Massachusetts' pension system faced scrutiny in 2025, with a focus on its sustainability and the substantial payments made to former state employees. The state paid out a staggering $6.63 billion in pension payments that year, highlighting the financial burden on the state. Among the highest-paid beneficiaries was Thomas D. Manning, a former deputy chancellor at UMass Chan Medical School, who earned $349,905. The next two highest-paid retirees, Vivian Budnik and Joyce Murphy, were also UMass Chan alumni, with Budnik receiving $341,804 and Murphy $341,061. William Bulger, the former president of the UMass system, received $274,538, despite his resignation in 2003 following revelations about his relationship with his fugitive brother, James "Whitey" Bulger. The majority of the top recipients were former employees of the University of Massachusetts system, with the notable exception of Daniel J. Warwick, a former Springfield Public Schools superintendent, who collected $239,669 in benefits in 2025. Despite these eye-popping pensions, Shawn Duhamel, CEO of the Mass. Retirees Association, noted that the average pension payment is significantly lower, with the average annual pension being around $48,700. Massachusetts teachers and other state employees receive an average pension of $51,800 and $45,600, respectively. Massachusetts stands out as one of the few states that does not participate in Social Security for its public workforce, and even public retirees who qualify for Social Security often rely on their public pension for the majority of their retirement income. State employees must have at least 10 years of service to vest their pension, and they can officially retire at 55 or 60 years old, with benefits depending on their length of service and highest annual salaries. The Department of Corrections was the state agency with the most benefits overall, paying out $220.8 million to 4,400 beneficiaries last year. The Massachusetts State Police followed closely behind, with beneficiaries receiving $204.5 million, and an average benefit of $83,810. The state pension system provided benefits to 135,820 people in 2025, an increase of about 5% from 2020 and 14% from 2015. Massachusetts' pension fund has been performing well, with a 9.6% yearly return in fiscal year 2025, surpassing the 7% net return target. However, the state pension system's success contrasts with the uncertainty surrounding state pension plans across the country, as reported by Equable. Despite three years of solid returns and record-high contribution rates, public plans have barely recovered the ground lost in 2022's market downturn, according to the report. Charlie Chieppo, a senior fellow at the Pioneer Institute, acknowledges the need for pension system changes to offer workers more flexibility and reduce the financial burden on the state, but such changes seem unlikely for now. The state pension system's stability is a topic of debate, with some arguing for reforms to ensure sustainability, while others highlight the advantages of pension plans in attracting employees to the public sector.
