Annual Statement of Compensation
Disability recipients are required to file an Annual Statement of Compensation (ASC). This document requires reporting any compensation received by a recipient from sources outside of their MainePERS Disability Retirement benefit. The form is required to be returned to MainePERS annually, unless otherwise waived by MainePERS, along with a copy of any W2s, Corrected W-2s, Schedule SE and SSA-1099 associated with the recipient. Some members find it easier to submit their entire return. MainePERS will accept a complete copy of a tax filing in lieu of individual forms and schedules. Only the documentation required to be filed will be used when determining whether the earnings limitation has been exceeded or the recipient has met their substantially gainful activity amount. MainePERS may request documentation in addition to the forms and schedules listed above when necessary in order to verify earnings.
ASC packets are mailed each January to all members who received Disability Retirement benefits for any portion of the prior calendar year. The packet includes instructions for filing the ASC and provides the deadline for filing, which is consistent with IRS income tax filing deadlines. All materials must be returned by the deadline given in order to prevent interruption to the recipient’s monthly benefit.
MainePERS staff review ASC forms and supporting documentation for each recipient. When a recipient records having earned outside income, that income is assessed for its impact to eligibility for disability benefits and/or the amount the recipient should receive for their monthly benefit. Additionally, receipt of Social Security and Workers’ Compensation income may require an offset to a recipient’s MainePERS disability payment. Other sources of income must be compared against a recipient’s earnings limitation for the year. Disability recipients are encouraged to contact MainePERS immediately regarding changes to Social Security benefits, Workers’ Compensation benefits or outside earnings so any potential impact to their MainePERS benefit may be discussed.
Annual Statement of Compensation Waivers
MainePERS may waive the Annual Statement of Compensation filing requirement for good cause. While participation in the ASC process is an important part of a recipient’s involvement in the Disability Program, annual reporting may not be necessary when the circumstances and available information indicate a member has not earned in excess of their earnings limitation or substantially gainful activity amount.
Examples of good cause include:
- Review for Continuing Eligibility Recently Completed. If at the completion of a review for continuing eligibility the functional limitations resulting from the condition(s) a recipient was approved for benefits on result in no capacity for any gainful employment and the recipient has not reported earnings within the past three years, a waiver may be issued for five years.
- Residency in an Assisted Living Home, Nursing Home or Hospice Care. If MainePERS has bona fide information the recipient is being housed in assisted living, a nursing home or has entered hospice care, a waiver may be granted.
- Guardianship. A waiver may be granted for those under guardianship of the Department of Health and Human Services without application and for a period deemed appropriate based on the individual’s circumstances.
- History of Reporting No Income. If, after receipt of disability retirement benefits for five years, a recipient has reported zero income, with the exception of Social Security benefits, and their condition(s) is such that it is unlikely that the individual will earn in the future, a waiver may be granted for five years.
- Health Complications. A waiver may be granted due to health complications that render the recipient unable to comply with filing deadlines, such as hospitalization or rapid deterioration caused by one or more medical condition.
If you meet one or more of the above criteria and would like to request an ASC Waiver, please complete the Annual Statement of Compensation Waiver Request Form located on our Disability Forms page.
If you have questions about the waiver process, please contact us.