State Teacher Plans for Massachusetts

Many teachers do not have access to low-cost choices in their 403(b) plans. Of the 265 district 403(b) plans that we have graded so far in Massachusetts, 0 districts have an A rating, 0 districts have a B rating, 190 districts have a C rating, 29 districts have a D rating, and 46 districts have an F rating.

If you are a teacher in Massachusetts, here are the state teacher plan options that are available to you.

Massachusetts MTRS

Most states still offer a traditional formula-based pension. Under this type of arrangement an educator would receive a percentage of their final year's salary until death that is based on some combination of years worked, age, and salary. Some states have made pension plans less generous to new hires, and some states have replaced traditional pensions with 401(k)-type plans.

More information about the Massachusetts MTRS plan is available directly from the pension website, and Karl Fisch's book on the Massachusetts pension is available here. Pension plan information for other states is also available for reference through this state pension search tool. This data is shared with us by Karl Fisch, and it is current as of January 1, 2025.

Applicable to All Teachers

Social Security

Massachusetts teachers do not pay into Social Security

Administrative Fee for Supplemental Plans

$10 per year + 0.0775% on 457 for some

New Teachers Hired On or After 1/1/2024

Defined Benefit

Employee: 11%; State: annual appropriation

Multiplier

Age factor 1.45% to 2.5%

Average Salary

Highest 5 consecutive years

Normal Retirement

Age 60 with 10 years of service

Cost-of-Living Adjustment (COLA)

CPI up to 3% on first $13,000 of benefit

Veteran Teachers Hired Prior to 1/1/2001

There are no additional benefit tiers between the new teacher and veteran teacher tiers compared here. The exact transition date between these tiers is not relevant to this comparison.

Defined Benefit

Employee: 8 to 11%; State: annual appropriation

Multiplier

Age factor 0.1% to 2.5%

Average Salary

Highest 3 consecutive years

Normal Retirement

Any age with 20 years of service
Age 55 with 10 years of service

Cost-of-Living Adjustment (COLA)

CPI up to 3% on first $13,000 of benefit

Massachusettes 457(b)

Every state operates a 457(b) plan that serves governmental workers like police, fire, and state government officials. These plans are generally excellent, and in many cases they are superior to the 403(b) offerings available in school district plans. Most states allow educators to participate in these plans; unfortunately, about a dozen do not.

Find out more about how we rate state 457(b) plans and view plans in other states.

Green Massachusettes Deferred Comp 457 Smart Plan

Massachusettes teachers are eligible to contribute to this plan.

Fees

0.0775% admin fee, $5 account fee, and a low index fee

Record Keeper

Empower

Target Date Fund

Custom CITs

NOTE: For accounts under $1,000: 0.025% on total account assets. Fees capped at $125 annually and assessed monthly. For accounts over $1,000: $5 annually per account plus 0.025% on total account assets. Fees capped at $125 annually and assessed monthly.

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