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Upcoming Rulemaking: Chapter 410 – Retirees Returning to Employment after Retirement with the Same Employer

2009 Cost of Living Adjustment
MainePERS retirees currently receive an annual Cost of Living Adjustment (COLA) based on the Consumer Price Index for Urban Consumers (CPI) at June 30th of each year.

For the first time, the Consumer Price Index could go down to below zero. This means that if MainePERS applied the negative Consumer Price Index, your monthly retirement benefit could be lower this year than last.

MainePERS and the Legislature were concerned about any reduction to retiree benefits. The Legislature passed emergency legislation Friday to keep benefits stable without increasing overall costs to the retirement system. The law takes effect immediately, so no retiree will see a reduction in benefits if the Consumer Price Index change is negative at June 30, 2009.

The new law changes the COLA for both the year in which the CPI is negative and for the following year. When the CPI is negative, there will be no COLA. The COLA for the next year will be blended to include the total CPI for both years. This makes your benefit more stable without increasing costs in these unusual economic times.

The Economy and Your Retirement Benefit
Recent news stories about the economic downturn are focusing on states' abilities to meet their pension obligations. Sandy Matheson, Executive Director of the System wants to assure retirees that “the current economic downturn is not affecting our ability to pay benefits. We’re meeting our obligations to today’s retirees and expect to meet them for future retirees.”

The System oversees retirement plans for more than 60,000 public sector employees statewide and pays monthly benefits to more than 35,000 retirees. MainePERS has administered pension benefits since 1942 and has weathered several significant economic downturns. Although the System has an unfunded liability dating back to the early 1990s, there is a plan and commitment to eliminate that debt by 2028.

In a report to the Legislature’s Appropriations Committee earlier this year, System staff briefed the Committee on the impact of recent financial market losses on future costs of funding retirement plans for State employees and public school teachers. The System Board of Trustees does not plan to request increased funds from the State for at least another two years.


2009 State Employee Retirement Incentive Program Beneficiary Update Project New Federal Tax Tables 2009 Benefit Payment Dates		Informational Meetings for Teacher and Participating Local District Employers State Member Retirement Sessions Teacher Member Retirement Sessions Employer Training		Manage Your Money MaineSTART—the MainePERS program offering both a 401(a) Defined Contribution Plan and a 457 Deferred Compensation (DC) Plan—an effective way to enhance retirement savings.

Since 1942, the Maine Public Employees Retirement System (MainePERS) has helped public employees prepare for retirement. The System's contributing members include teachers, state, county, and municipal employees, legislators, judges, and those who work for other public entities. In addition to our active members, many public sector retirees and their beneficiaries receive monthly benefits from retirement plans offered by MainePERS. The System also administers Disability Retirement, Group Life Insurance, and MaineSTART, a tax-deferred retirement savings program.