Cost of Living Adjustment (COLA)

There will be no cumulative COLA in September 2011, 2012 or 2013.

By law, the COLA is the change in the Consumer Price Index for All Urban Consumers (CPI-U) for the 12-month period ending June 30. The COLA is capped at 3%, unless the Governor requests and the Legislature approves a higher amount.  When the CPI is negative, there will be no COLA.  COLA is applicable to the first $20,000 of your retirement benefit (indexed).

State employee and teacher benefit recipients whose normal retirement age is 60 are eligible to receive a cost-of-living adjustment in the first September after having been retired for at least 12 months. For example, if you retired on or before September 1, 2007, are eligible for any COLA in September 2008; if you retired as of October 1, 2007, you are eligible for any COLA in September 2009. If your normal retirement age is 62 or 65, you are eligible to receive a COLA effective the first September that is at least 12 months after you reach your normal retirement age.        

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Disability Benefits

See the Disability section of this website for information about the Disability Retirement program.

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Group Life Insurance

The MainePERS Group Life Insurance program is available to State employees whose employers participate in the program, and whose positions are eligible for coverage. If you complete an application for Group Life Insurance coverage within the first 31 days of becoming eligible, you may select coverage for yourself and your dependents without having to show evidence of insurability.  Additional information can be found in the Group Life Insurance section on this Web site. 

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Health Insurance and MainePERS

MainePERS does not administer health or dental insurance. Contact your health insurance program for questions regarding health insurance. Click here for a reference list of these organizations.

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Life Changes

Certain events in your life may affect your retirement or beneficiary designations. It is important that you notify MainePERS immediately when the following life changing events occur:

• Termination of employment
• Birth/adoption of a child
• Marriage, divorce, legal separation, annulment
• Death of spouse or dependent
• An employment status change for you
• A court order results in the gain or loss of a dependent

Note: To ensure that all information is up-to-date, members should periodically review their Designation of Beneficiary forms for both pre-retirement death benefits and Group Life Insurance.

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Member Statement

MainePERS sends annual Member Statements to most members. The statement shows the amount of retirement service credit, retirement plan, normal retirement age, known purchasable service, as well as current beneficiary information. The Member Statement information can help you plan for your own retirement.

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Membership Eligibility

As a State employee, you must become a member of MainePERS when you are hired. The major exception is for elected and appointed officials, for whom membership is optional.  

As a member, you contribute a percentage of your earnings to MainePERS, and these contributions earn interest at a rate set by MainePERS Board of Trustees. The percentage you contribute depends on which membership category applies to you. State employees covered by the regular plan contribute 7.65% of their gross earnable compensation.

For those covered under special retirement plans, refer to the tables in the State Member handbook.  Your MainePERS membership ends upon your retirement, upon your death, or if you take a refund of your contributions.

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Military Time

MainePERS members who are on a leave of absence from their MainePERS-covered positions to serve in the uniformed services of the United States have, under federal and State law, specific protections, or eligibility for protections, with respect to their MainePERS membership and related benefits. For more information, click here.

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Purchasing Service Credit

As a contributing member of MainePERS, you may be eligible to purchase additional service credit.  There are eligibility and verification requirements in order to make these purchases.  For more information, please see the State Member handbook.

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QDRO (Qualified Domestic Relations Order)

The purpose of a qualified domestic relations order (QDRO) is to permit a retirement system to make direct payment to the party who is not the member, retiree, or beneficiary of the system. Direct payment by MainePERS is not possible, even if the court awards an interest in the benefits to the non-member or retiree, unless the court enters an order that MainePERS determines is "qualified." Also, even if the order is a qualified domestic relations order, no payment will be made to the former spouse until an amount is payable to the MainePERS member or retiree or beneficiary. A qualified domestic relations order does not entitle the former spouse to immediate payment of the portion of the benefit awarded to him or her by the court. Click here for more information.

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Retirement Eligibility

You qualify to receive a benefit once you have at least 25 years of service credit.    

You qualify to receive a benefit upon reaching your normal retirement age of 60, 62 or 65, whether or not you are in service, provided that you have earned creditable service of 5 or 10 years, whichever amount is applicable to you.    

You qualify to receive a benefit upon reaching your normal retirement age of 60, 62 or 65, provided you have earned at least one year of service credit immediately prior to your retirement.  

For more information on eligibility and qualification to receive a service retirement benefit, please see the State Member handbook.

Vesting

If your final termination from MainePERS-covered employment was before October 1, 1999, you must have at least 10 years of service credit in order to be eligible to draw a benefit at normal retirement age.  

If your final termination from MainePERS-covered employment is after September 30, 1999, you must have at least 5 years of service credit in order to be eligible to draw a benefit at normal retirement age.

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Unused Sick Leave and Vacation Leave

For some members, payment for a maximum of 30 days of unused sick and/or vacation leave can be included in the calculation of their AFC. (For purposes of this provision, "a day" is considered your normal working day, up to a maximum of eight hours.)   　

This applies to those State employees who:  

had 10 or more years of service as of July 1, 1993, or

had reached age 60 before July 1, 1993, and had been in service for at least     one year before July 1, 1993.

You may be able to include payment for a maximum of 30 days of unused sick and/or vacation leave at your final termination from MainePERS-covered employment, in the calculation of your AFC. For purposes of this provision, a “day” is considered your normal working day, up to a maximum of eight hours. However, please note that if the employer makes such a payment as a retirement incentive/bonus, MainePERS will not include it in the amount of earnable compensation used in the calculation of your AFC.  For more information on retirement incentives, see the section titled "Retirement Incentives" the State Member handbook.

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Social Security and MainePERS

If you are eligible to receive Social Security retirement benefits either because you worked in a Social Security covered job or because your deceased spouse did, the amount of your Social Security benefit may be affected by your receipt of a MainePERS benefit.  

The relevant Social Security provisions are the Windfall Elimination Provision (WEP), which are Social Security benefits for your own work; and, the Government Pension Offset (GPO), which are Social Security benefits as a spouse or widow(er).  

Neither Maine law nor MainePERS policies cause the effects of these provisions. The effects result from federal law administered by the Social Security Administration (SSA). To obtain information about any effect of receiving MainePERS benefits on your Social Security benefits, please contact SSA directly.  

Social Security Administration (Augusta Office)
Toll-free: 1-866-882-5422
Fax: (207) 622-8398
www.ssa.gov

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Taking a Refund of Your Contributions

If you terminate all your MainePERS-covered employment, you may apply for a refund. The Refund Application Package includes information to consider before making a decision to request a refund. By refunding your contributions, you give up your rights to any MainePERS benefits. Since it may not be in your best interest to withdraw your contributions, we suggest you investigate the pros and cons of taking a refund.  For more information, see “Taking a Refund” in the State Member handbook.

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