How inflation erodes the value of public employee pensions

A Dignified Retirement for Teachers

The pensions that Massachusetts public sector employees receive lose much of their value over time. Under existing law, a $50,000 pension earned by a retired public school teacher, for example, will lose 20 percent of its buying power over ten years. This takes place because pensions are poorly adjusted for inflation.

To understand how inflation erodes the value of public employee pensions, read the MTA's analysis of the current system of pension cost-of-living adjustments for the Massachusetts Teachers’ Retirement System.

Findings include:

Read the Report

For more about the MTA’s legislative priorities, including the dignified retirement bill, please visit