Workers’ Compensation Offsets

There is a maximum monetary amount that members can receive from the combination of MainePERS disability retirement and Workers Compensation.

If one or more of the medical conditions applied on is the result of or exacerbated by MainePERS-covered employment, a member must provide proof of filing for Workers’ Compensation prior to MainePERS reaching a decision on eligibility for disability retirement.

If a member receives a Workers’ Compensation benefit for a condition other than the condition(s) the MainePERS disability benefit has been granted on, there is no offset to the MainePERS disability benefit.

The combination of MainePERS disability retirement and Workers’ Compensation benefits (awarded based on the same medical condition(s) that a MainePERS disability retirement benefit is granted on) cannot exceed 80% of the Average Final Compensation for State/Teacher members or Average Annual Earnings for PLD members. Average Annual Earnings means the total of the recipient’s average final compensation plus other wages and earnings from employment for the calendar year in which the recipient has the highest total of other wages and earnings from employment during the five years immediately preceding the year in which the recipient became disabled. When the combined benefits exceed the amount allowed, MainePERS will reduce the disability retirement benefit to reach the 80% threshold. However, a disability benefit cannot be reduced below the actuarial equivalent of a member’s contributions and interest.

It is important that disability recipients notify MainePERS when there is a change in the amount of Workers’ Compensation payments to avoid over or underpayment of MainePERS disability retirement benefits.