Earnings Limitations

There are limits on the amount of money a disability retiree may earn before benefits are reduced or eliminated. If you exceed your earnings limitation, your benefit may be reduced based on your ability to earn, and if you exceed your Substantial Gainful Activity* (SGA) amount, your benefits will be terminated.

Earnings Limitation

You may earn the greater of:

  1. The Minimum Earnings Limitation ($35,500 in 2026, adjusted annually by the Consumer Price Index for All Urban Consumers or CPI-U).
  2. The difference between your disability benefit in any given year and your Average Final Compensation (the average of your three highest years of pay), adjusted annually by CPI-U.
  3. The difference between your disability benefit in any given year and your Final Annual Compensation (your last annual rate of compensation received during MainePERS covered employment prior to receiving a disability retirement benefit), adjusted annually by CPI-U.

If you only received a disability benefit for part of the year, you will have a pro-rated earnings limitation based on the number of months you received disability benefits.  Actual earnings will be used for the months you received disability benefits and compared to the pro-rated earnings limitation.

Substantial Gainful Activity

Your Substantial Gainful Activity amount is the greater of:

  1. Your Average Final Compensation, adjusted annually by CPI-U.
  2. Your Final Annual Compensation, adjusted annually by CPI-U.
  3. The minimum SGA ($35,500 in 2026), adjusted annually by CPI-U.