Massachusetts RetirementPlus Buyback Guide: Evaluating House Bill H.4361 vs. Senate Bill S.3109
A second chance to accelerate your full retirement benefit, and retire earlier.
Where This Gets Complicated — and Where I Come In
MTRS calculates your benefit once you elect in. It does not coordinate the 403(b) rollover with your district. This is a brand-new buyback, so no district or TPA has processed one before — but the transfer mechanics follow the same path as other service purchases.
District TPA Coordination
I download the TPA's transfer paperwork and request your current 403(b) carrier's transfer paperwork. Then I send both to the TPA for sign-off and return them to the 403(b) carrier with your MTRS or Boston Retirement Board invoice.
I maintain a database of school systems' TPAs, built from purchasing out-of-state service time and rollovers. The RetirementPlus buyback process should work the same way.
Reach out to Tim to schedule a free virtual meeting and find out if his services are right for you.
Get to Know Call →House Bill vs. Senate Bill — What the RetirementPlus Contribution Will Cost You
The House and Senate passed different versions of the bill, and they have not yet been reconciled. The clearest difference is that the Senate bill explicitly writes compounded actuarial interest (historically 7–8.5%) into the makeup contribution formula, going back to 2001. The House bill doesn't address interest either way — it leaves the terms of makeup contributions up to the relevant retirement board. That silence means the House cost estimates below are the floor, not a guarantee; the board could still require interest under that bill's language.
| Hired before July 1, 1996 · 8%+2% rate · 25 years to buy back · avg. salary $58K | Est. Cost |
|---|---|
| House Bill H.4361 — base contribution, interest terms left to the retirement board | ~$37,000+ |
| Simple interest at actuarial rate (7–8.5%) — not specified in either bill, shown for reference | ~$58,000 |
| Senate Bill S.3109 — compounded actuarial interest (written into the bill) | ~$83,700+ |
The $83,700+ figure above fully compounds both pieces, the $900/year base and the 1% salary portion, at MTA's 7.5% illustrative rate. The $58,000 average salary is the union's estimate across the roughly 8,000 eligible educators over the last 25 years. MTA's own published number is lower, $55,700+, because their June 9, 2026 estimate compounds the base but adds no interest at all to the 1% salary portion. The House figure is shown as a base-contribution-only estimate, since the bill text doesn't fix an interest term. Your actual cost depends on your real salary history and on which version of the bill — or what compromise language — is ultimately enacted.
| Hired July 1, 1996–June 30, 2001 · 9%+2% rate · 25 years to buy back | Est. Cost |
|---|---|
| House Bill H.4361 — base contribution, interest terms left to the retirement board | ~$15,000+ |
| Simple interest at actuarial rate (7–8.5%) — not specified in either bill, shown for reference | ~$29,600 |
| Senate Bill S.3109 — compounded actuarial interest (written into the bill) | ~$41,200 |
Senate estimate per MTA guidance, June 9, 2026. Simple interest estimate calculated at 7.5% average actuarial rate on discrete annual missed contributions. All figures illustrative — individual costs vary by salary history, hire date, and the final reconciled bill language.
Making the Plan Whole vs. Making the Person Pay
If the goal is to make the person pay their fair share, simple interest is the standard. The teacher missed contributions. Charge them the time value of what they missed — not earnings on earnings the fund never actually had from their contributions.
Simple interest — not written into either bill — would charge for the time value of the missed contributions, no more.
Why Is It Difficult to Estimate Some Members' Cost
Teachers hired between 1996 and 2001 fall into the 9% plus 2% group. This one's simple: $600 per year for 25 years, plus interest if the Senate's compounded-interest approach is what's enacted. Same for everyone in this group unless there was a break in service. Electing in also raises your contribution rate to a flat 11% going forward, an extra $600/year pretax until you retire.
Teachers hired before 1996 are in the 8% plus 2% group. This one's harder: the $900/year base is flat, but the 1% owed on income above $30,000 is different every year, since salary changes year to year. Each year's 1% amount then needs its own interest calculation if compounded interest applies, not one lump interest calculation. That means a full, accurate estimate requires an actual year-by-year salary history, not a single average.
Who Counts as a "Teacher" Under State Law
The general legal definition of "Teacher" under M.G.L. c. 32, §1 is broader than most people realize. The statute defines a Teacher as:
Any person employed by one or more school committees or boards of trustees, on at least a half-time basis, as a teacher, school psychologist, school psychiatrist, school adjustment counsellor, school social worker, director of occupational guidance and placement, principal, supervisor, or superintendent in any public school, or as a supervisor or teacher of adult civic education.
In practice, this means principals, assistant principals, supervisors, superintendents, school psychologists, school adjustment counsellors, and guidance directors fall under the general "Teacher" definition. A "supervisor" is generally anyone who supervises other teachers. If your title isn't on this list, you aren't automatically excluded — MTRS applies a separate eligibility regulation (807 CMR 4.00) to determine coverage. See the full statutory definition, M.G.L. c. 32, §1.
Where the Senate Bill Differs on Eligibility
The House bill includes school nurses in the election; the Senate bill doesn't. Until the two chambers agree on a final version, nurse eligibility is undecided — everyone else covered by the Teacher definition above qualifies under either bill.
The House bill also covers anyone who missed any opportunity to join RetirementPlus, not just the original 2001 window. The Senate bill only covers the original 2001 miss. If your situation involves a later missed chance, whether you're covered depends on the final bill.
What Happens Next
A House-Senate conference committee began meeting on August 1, 2026 to reconcile the two versions. Asked what he'll have to work out with House conferees, lead Senate negotiator Sen. Michael Rodrigues pointed to the buyback provisions — how eligible teachers buy back into the system after missing the window 25 years ago. Despite the issue dragging on for years, he said he thinks "it'll be easy to work out." The final bill goes to the governor only after both chambers agree on a single version.
Section updated August 4, 2026, following the start of conference committee negotiations reported by State House News Service.
8+2 Group: Buyback Break-Even Estimate
You cannot buy back only specific years. Electing RetirementPlus requires purchasing the entire missing service history from 2001, regardless of your proximity to the 80% maximum. The cost remains the same, even if the additional benefit is minimal. Therefore, the key consideration is not eligibility, but whether the potential benefit justifies the expense.
To evaluate this, divide the buyback cost by the annual increase to your pension. This calculation shows how many years of pension payments are needed to recover your investment.
Example
For example, if the buyback costs $58,000 and increases your pension by $3,000 per year, it would take approximately 19 years to break even.
The 9+2 group generally faces a lower buyback cost and is often further from the 80% cap. However, their primary risk differs: RetirementPlus requires 30 years of creditable service to receive any payout. If you elect in but do not reach 30 years by retirement, you will revert to the regular formula and receive a refund of your contributions plus interest. In this case, there is neither gain nor loss.
Major Changes and Opportunities for Massachusetts Teachers
Two significant changes are impacting Massachusetts public school teachers, and potentially school nurses. The WEP/GPO Fairness Act has restored Social Security benefits for many, and pending legislation may provide those hired before July 1, 2001, with another opportunity to participate in RetirementPlus.
The WEP/GPO Fairness Act restored Social Security benefits for many public employees. The RetirementPlus buyback gives teachers who missed the 2001 enrollment a second chance at an enhanced pension.
To take advantage of these changes, eligible educators should review their options once the final bill is signed. This page will guide you through the financial case for the buyback and the importance of getting proper analysis before you proceed.
Three Reasons the RetirementPlus Legislation Makes Financial Sense Right Now
Why Your Pension Is Worth More Than Your 403(b)
This is one of the most underappreciated aspects of public employee retirement planning:
The Number That Changes Everything
Example: $100,000 per year pension. $20,000 of that is your money. The other $80,000 comes from your employer and the Commonwealth. After roughly 13 years your own contributions to the plan are returned — yet the full $100,000 per year continues for the rest of your life. Your 403(b) balance doesn't work this way — it's entirely your own money.
| Your 403(b) | MA Pension — RetirementPlus | |
|---|---|---|
| Market risk | You bear all of it | None — guaranteed for life |
| MA state income tax | Taxed as ordinary income on withdrawal | Exempt from MA state income tax while you remain a Massachusetts resident |
The Fairness Act Enhanced the Retirement Income Picture
Before the WEP/GPO Fairness Act, many MA teachers and school nurses faced a painful tradeoff: a strong pension but diminished or eliminated Social Security. That tradeoff no longer exists.
With Social Security now fully restored, a teacher who also buys into RetirementPlus has:
- An enhanced MA pension — exempt from Massachusetts state income tax while you remain a Massachusetts resident
- If eligible, full Social Security benefits — no longer offset or eliminated
- Remaining 403(b) assets — a growth supplement to guaranteed pension and Social Security income
The combination creates a diversified, guaranteed retirement income base. The buyback is the piece that completes the picture.
The Buffett Indicator
The Buffett Indicator compares the total value of the U.S. stock market to GDP. Warren Buffett called it "probably the best single measure of where valuations stand at any given moment." It currently sits at 223% — the highest ever recorded. Berkshire Hathaway has been a net seller of stocks for 13 consecutive quarters and is holding a record $382–392 billion in cash.
If your 403(b) is invested in stock funds at historic highs, using it to fund the buyback is worth considering. A market pullback between now and funding doesn't reduce what the buyback costs — it only reduces what you have to pay it with.
To fund the buyback with 403(b) assets, the rollover goes through your district's TPA to the MTRS. Every district is different — Tim has worked with TPAs across Massachusetts for 35 years and handles the process directly.
Pre-1998 403(b) Contributions — Important
This affects a small percentage of eligible educators. If you made 403(b) contributions before 1998, those contributions were made on an after-tax basis for Massachusetts state income tax purposes — meaning the state already taxed that money when it went in.
The Double Taxation Risk
Rolling pre-1998 after-tax 403(b) contributions into the MTRS without properly documenting the cost basis can result in paying Massachusetts state income tax on that money a second time. If this applies to you, it needs to be identified and documented before any rollover takes place.
The Fiscal Case
| Item | Amount |
|---|---|
| Enhanced pension cost | $270M |
| Minus buyback contributions | -$180M |
| Minus salary savings | -$1B |
| Net savings | $910M |
- $270M assumes all 6,000 retire immediately and is the cost to provide the enhanced benefit for those five years.
- $180M is the total amount the 6,000 did not pay on their first $30,000 of salary. Everything above $30,000 was already paid at the 11% RetirementPlus rate.
- Salary savings of $1B assumes towns hire back 5,000 of the 6,000 — reflecting lower enrollments — at $40,000 less than the retiring salary.
- This figure predates the updated 6,500–8,500 eligible-population estimate and assumes an unrealistic all-at-once retirement scenario. Treat as illustrative of the general fiscal shape, not a current projection.
- Illustrative only.
Is the Buyback Right for You?
The RetirementPlus legislation makes sense for teachers — and, if the final bill includes the House's nurse provision, school nurses — who:
- Currently employed as a teacher (or school nurse, pending final bill language) in Massachusetts
- On track to reach 30 years of creditable service
- Have assets available to fund the buyback
Retirement assets such as a 403(b) are often the best source to fund the buyback — pre-tax dollars moving to a pre-tax benefit with no tax consequence on the transfer.
Tim will help you determine whether it makes sense for your specific situation, recommend how to fund it, and coordinate the rollover of 403(b) assets through your district's TPA to the MTRS.
Once the final bill is signed and the interest terms are set, book a consultation ($200/hr) to plan your next steps.
Boston Public Schools does not use a TPA — Tim works directly with the City of Boston on BPS rollovers.
Boston Public Schools — Sick Day Buyback
Boston Public Schools pays out unused sick days at retirement. For eligible BPS teachers and school nurses, this payout can potentially be used to help fund some of the RetirementPlus buyback cost — creating a backdoor source of funding that other districts do not have. Learn more about the BPS sick day buyback.
MA School Systems & 403(b) TPAs
RetirementPlus buyback rollovers require coordination between your school district's Third Party Administrator (TPA) and the MTRS. Every district is different — the paperwork, timeline, and vendor process vary significantly. Tim Hayes has worked with school systems and TPAs across Massachusetts for 35 years. Click your district's letter below to find your TPA's plan page.
Wherever you are in Massachusetts, I provide ongoing support—not just a one-time meeting.
Get a Custom Buyback & Rollover Analysis
Don't navigate the TPA paperwork or structural pension calculations alone. For personalized buyback information based on your specific hire date, salary history, and 403(b) setup, let's map out your optimal strategy together.
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