New Pension Agreement

We are thrilled to share that thanks to the strong and united efforts of Carmen's Union Local 589 representatives during months of negotiations, MBTA management has agreed to safeguard the pensions and benefits of all members through a new 10-year contract.

Your union held strong in the face of an unfavorable and unfair arbitration decision that would have slashed the pensions of many members. “We are happy to have reached a resolution that protects our members, ensuring they receive their benefits with a secure retirement," said Carmen's Union Local 589 President Jim Evers.

This agreement will address the issue of employee retention, especially for skilled and certified workers, ultimately benefiting riders, the community, and employees alike.

The new pension agreement lasts until June 30, 2028. Here are some of its key wins:

• The maximum pension benefit is increased from 75% of final earnings to 80%, increasing the maximum pensionable service from 30.5 to 32.5 years.

• Employees hired after the date of the new agreement will be covered by a benefit formula which is graduated by age at retirement as follows: age 55 – 1.75% of High-3; age 56 – 1.875%; age 57 – 2.00%; age 58 – 2.125%; age 59 – 2.25%; age 60 – 2.375%; age 61 and older – 2.46%. New hires may retire after 10 years of service under this formula.

• For a 5-year period beginning July 2023, employee contributions will be 1.25% of pay above the otherwise required contribution under the current plan.

• The MBTA will be able to re-hire up to 125 retirees. These retirees will continue to receive their pensions and other retirement benefits while actively employed by the MBTA.

The retirement system of the MBTA, valued at $1.66 billion, plays a vital role in securing the future of our members post-MBTA. As