Left Massachusetts with MTRS Years? Evaluating Your Pension, Rollover, and Buyback Options
1. Can You Transfer Your Massachusetts Teacher Retirement to Another State?
If you taught or worked as a principal in Massachusetts, including Boston, and then moved your career to another state, you face a unique set of retirement rules. Your “frozen” Massachusetts pension (MTRS, or Boston Retirement if you worked in Boston) is not just a secondary fund. In 2026, it is a significant asset.
The question is: What is the best way to use it?
I'm Tim Hayes, a fiduciary financial advisor based in Boston. I serve educators nationwide in person, by phone, Zoom, and email.
Because of the Social Security Fairness Act (the repeal of the WEP and GPO), you are no longer penalized for having a Massachusetts pension. The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) were policies that reduced Social Security benefits for individuals who also received a pension from non-Social Security-covered employment. This change gives you two distinct options to choose from:
- Option A: Triple Stream—collect your Massachusetts pension, new state’s pension, and full Social Security, with no offset.
- Option B: The Pension Swap. You take your Massachusetts cash and “buy back” service years in your new state’s retirement plan. (You might need to use some of your 403bs) The process typically involves submitting a formal request to the retirement system of your current state, paying a required amount, and then having those years credited to your record.
Which is better? I will run the math to see if two smaller checks are worth more than one “boosted” check.
Did You Work in One of These 15 States?
In most of the U.S., teachers pay into Social Security. However, in these 15 states, the pension system is a "Standalone" plan. If you have moved between a state on this list and one off it, because of the Fairness Act, your retirement strategy needs to be revisited.
AK, CA, CO, CT, GA, IL, KY, LA, ME, MA, MO, NV, OH, RI, TX
Note: In some states like GA, KY, RI, and TX, Social Security participation depends on your specific school district.
2. Your Massachusetts Vesting Milestone
To choose the right path, you first need to know whether you are vested in MTRS. Your status depends on your Massachusetts hire date and credited years:
- Vested (10+ Years in MA): You have a locked-in lifetime Massachusetts pension. You can live anywhere and collect this check once you meet the age requirement.
- The 10 & 55 Milestone: If you were hired in Massachusetts before April 2012 and have at least 10 years in MTRS, you can often start drawing that check at age 55, even while you are still working and earning your second pension in your new state.
- MTRS Tier 1 vs. Tier 2: Those hired in Massachusetts before April 2012 (Tier 1) can collect at 55 with 10 years, or at any age with 20. Those hired after (Tier 2) must be 60 with 10 years. Knowing your MTRS tier tells you how soon you can start that first stream of income.
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3. Not Vested? The "Interest Freeze" Risk
If you left Massachusetts with fewer than 10 years of service, your money is likely sitting in a dormant account.
- The Problem: For many members, MTRS interest stops accruing 24 months after you leave Massachusetts service. If your money has been sitting there for years, it is losing purchasing power.
- The Fix: You need to decide whether to use those funds to “buy back” years in your new state, roll them into an IRA or a 403b where they can grow, or consider buying back military service if applicable. I handle the paperwork to ensure the transfer happens seamlessly.
4. Out-of-State Taxes & Reciprocity
If you decide to keep your Massachusetts pension, you need to find out how your new state taxes it. Massachusetts does not tax its own pensions. However, the tax rules in your new state may differ, even though many states have Reciprocal Agreements recognizing the Massachusetts exemption.
The State-to-State Audit: I will review your current state’s tax laws to check if your Massachusetts pension may still be taxed locally or if you will benefit from reciprocity. This ensures you avoid unexpected double taxation and make the most of any available tax exemptions.
Find the Best Option for Your Massachusetts Years
Don’t leave your retirement to chance. Whether you have 3 or 23 years, I will help you figure out the best way to coordinate your old Massachusetts years with your new state’s pension.
What It Costs & How It Works
Fee: $200 per hour. The Process: This is a labor-intensive, research-heavy process. Every state has different “tiers” and multipliers. I do the deep dive into those rules so you have a clear, fiduciary-backed plan.
- Required: Years of service credited in Massachusetts, and total contributions into the Massachusetts system
- Required: Years of service in your new state’s pension system
- Current 403(b) value, if you have one (useful if you’re considering using some of it to buy back years)
- Your latest Social Security statement, if you qualify and have access to it
- Your spouse’s latest Social Security statement, if married and they qualify too
These are the opinions of Financial Advisor Tim Hayes and not necessarily those of Cambridge Investment Research. They are for informational purposes only and should not be construed or acted upon as individualized investment advice. Content provided via links to third-party sites should not be considered an endorsement of content that we cannot verify completeness or accuracy of.