“If numbers are what we’re focusing on, it really highlights a major sustainability issue,” noted Charlie Chieppo, a senior fellow at the Pioneer Institute in Boston. “But if we’re looking at it politically, we might not be as alarmed.”
The highest salary for last year went to Thomas D. Manning, the former vice president of the Massachusetts Chan College of Medicine, who earned $349,905. Manning had a long career at MIT, wrapping it up in 2012 after 34 years.
Following him, two other high earners from Chan University were Vivian Budnik, a neuroscientist who retired in 2024 with earnings of $341,804, and Joyce Murphy, who was deputy chancellor of federal medicine until 2018, with a pension of $341,061.
William Bulger, a former president of the UMass system, received $274,538 last year; this is one of the most significant state pensions. Bulger stepped down from the university in 2003 amid reports of his brother, James “Whitey” Bulger, being a fugitive.
Most of the top earners in pensions previously worked for the University of Massachusetts System. The sole exception among the top 20 is Daniel J. Warwick, who was the Superintendent for Springfield Public Schools and will retire in 2024 with benefits reaching $239,669.
Sean Duhamel, CEO of the Massachusetts Association of Retirees, observed that while these pensions are impressive, the average amount received is much lower.
According to state statistics, the average pension last year was around $48,700. Teachers tended to earn about $51,800 on average, while other state employees averaged $45,600.
Duhamel pointed out that Massachusetts is unique in not having Social Security for public employees. Even those who qualify often find that a significant part of their retirement income comes from public pensions linked to private sector work.
“The health of pension systems is vital for retirees’ financial security,” he remarked.
For state employees to receive pensions, they need at least 10 years of service. Retirement eligibility comes around age 55 or after 20 years of service in some cases.
Pension contributions depend on the years of service, typically based on the highest annual salary over three (or sometimes five) consecutive years, with annual payouts capped at 80% of this average.
David Holway, president of the National Association of Government Employees, stated that most state employees are everyday managers and blue-collar workers who largely fund their retirement plans through salary deductions. (Contribution levels vary by employee classification.)
“I’m not talking about doctors at the UMass Medical School or the high earners at state universities,” he clarified. His union covers various state institutions. “I’m referring to the regular folks who put in hard hours under demanding conditions.”
While academic and medical professionals draw the highest pensions, the Department of Corrections has the most beneficiaries, costing the state roughly $220.8 million last year for approximately 4,400 recipients.
Next on the list is the Massachusetts State Police, which accounted for $204.5 million in payouts, the average being $83,810 for over 1,000 beneficiaries.
Chief beneficiaries from the State Police include John D. Pinkham, a retired Lieutenant Colonel who received $199,736.
Quasi-public agencies like the MBTA maintain their own pension funds and are not included in the state system. Boston also manages its retirement system, which paid out $760.6 million to around 15,000 beneficiaries in 2024.
Last year, the state pension system totaled 135,820 beneficiaries, about 1,700 more than in 2024. This reflects a rise of around 5 percent since 2020 and about 14 percent since 2015.
The Massachusetts pension fund reached a record high of $121.1 billion in the first quarter of 2026, exceeding its return target by 7% with an annualized return of 9.6% for fiscal year 2025, according to the State Pension Reserve Investment Management Board (MassPRIM).
Comments from MassPRIM CEO, Michael Trotsky, expressed satisfaction with the fund’s performance during a recent board meeting, highlighting contrasts with national pension system uncertainties.
A report from Equable indicated slight improvements in funding proportions among national public pension systems, yet many still face significant challenges.
“Despite three years of strong gains, public plans have barely regained what was lost during the 2022 market dip,” the report stated. “While public pension funds are surviving, they are not thriving.”
Chieppo from the Pioneer Institute suggested reforms that could ease the burden on the state while offering more flexibility to employees, although progress seems slow.
“It’s critical that pensions adapt to be more sustainable; funding shouldn’t keep falling,” he noted, acknowledging the complexities of enacting such changes.
In comparing the National Pension System to others, Chieppo mentioned it’s “similar to Fidelity,” as opposed to struggling ones like the MBTA Retirement Fund.
Holway emphasized that pension plans remain a key advantage for public sector jobs, particularly when competing with private employers.
“Without a pension or health benefits, why would anyone choose to work for the state?” he questioned. “People in state roles usually earn less than in the private sector, so we need to attract them somehow.”
