Q. Who decides how MainePERS invests its monies?
A. The MainePERS Board of Trustees decides the
investment policy for the System. The Board contracts
with professional investment managers for assistance, as
well as seeking advice from an Investment Advisory
Council composed of academic and business experts.
< Back to Top >
Q. How large is the MainePERS retirement fund?
A. Total System assets at June 30, 2009 were
$8.3 billion.
< Back to Top >
Q. Is MainePERS a 401(k) plan?
A. No, it is a federally qualified defined
benefit plan under IRS Code Section 401(a).
< Back to Top >
Q. I am getting a divorce. How does this
affect my contributions or pension?
A. Your contributions or pension may be
affected depending upon how your assets are divided by
the court pursuant to a
qualified
domestic relations order (QDRO). If you have
questions about your funds and divorce, contact
MainePERS and ask to speak with the QDRO Administrator.
< Back to Top >
Q. I am (or may be) entitled to receive both a
service retirement benefit and Social Security
retirement benefits. Do these two benefits affect each
other in any way?
A. The amount of your MainePERS service
retirement benefit is not affected by your receipt of
Social Security retirement benefits.
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.
To obtain information about the effect of receiving
MainePERS benefits on Social Security benefits, please
contact SSA directly at
www.ssa.gov. You can locate the SSA office nearest
you by referring to your local phone book under “United
States Government – Health and Human Services.”
< Back to Top >
Q. What if I do not receive my benefit payment?
A. If you believe there is a problem with your
direct deposit benefit payment, contact MainePERS
immediately. Some retirees still receive payment by
check. If your check is more than a few days late, or
you have recently changed your address,
contact the MainePERS Payrolls Administration to
verify your check status. If your check is still
outstanding after 10 calendar days, MainePERS will place
a stop payment order on the original check and reissue
another as soon as possible. You may also send us a torn
or damaged check for replacement, if necessary.
< Back to Top >
Q. How can I direct deposit my retirement
benefit?
A. To switch to direct deposit, complete an
Authorization Agreement for Electronic Direct Deposit
form and return it to MainePERS.
< Back to Top >
Q. Where can I get information about my health
and/or dental insurance?
A. Although MainePERS may deduct health and/or
dental insurance premiums from your benefit payment each
month, we do not administer any health and/or dental
insurance programs. All questions regarding these types
of insurance should be directed to the administrator of
the insurance program under which you are covered.
To view a listing of those organization, click
here.
< Back to Top >
Q. How is the Cost of Living Adjustment (COLA)
determined each year?
A. By law, the Board of Trustees sets the COLA
using the change in the Consumer Price Index for All
Urban Consumers (CPI-U) for the 12-month period ending
each June 30. The Board may not set the COLA at more
than 4%. Click
here for the current COLA information.
State employee, Legislative, Judicial and
Teacher benefit recipients:
Once eligible, you will receive a cost-of-living
adjustment (COLA) annually in September. To determine
when you are eligible, you must determine whether you
are in the age 60 or 62 plan, see “How do I determine my
normal retirement age (NRA)?”
If your NRA is 60: You are eligible to receive a COLA in
the first September after having been retired for at
least 12 months. (Example: If your effective date of
retirement is on or before September 1, 2010, you will
receive a COLA in September 2011; if you retired as of
October 1, 2010, you will receive a COLA in September
2012.)
If your NRA is 62: You are eligible to receive a COLA
effective the September that is at least 12 months after
you reach age 62. (Example: If your 62nd birthday is in
January of 2008, you will receive a COLA in September of
2009.)
Participating Local District (PLD) benefit
recipients:
Recipients who are covered by a retirement plan that
includes the COLA provision are eligible to receive a
COLA the first September after having been retired for
at least six months and annually thereafter. For
example, if you retire on or before March 1, 2010, you
will receive a COLA in September 2010. If you are
unsure whether your district has a COLA provision, check
with your payroll office or the PLD Unit at MainePERS.
< Back to Top >
Q. How do I notify MainePERS when I change my
winter/summer address?
A. Complete the
Member/Benefit Recipient Data Update form
and return it to MainePERS.
< Back to Top >
Q. How do I change my tax
exemptions/allowances?
A. You will need to submit new withholding
certificates (W4-P and W-4ME). You can obtain these
forms directly from the
IRS,
Maine Revenue Services, from the
Retirement Benefit Forms section of this site.
< Back to Top >
Q. How is the taxable portion of my service
retirement benefit determined?
A. To view the handout click
here.
< Back to Top >
Q. Once retired, can I change my option and/or
beneficiary?
A. You cannot change your option once you
receive your first benefit payment. You may change your
beneficiary under very limited circumstances and in most
cases the change will affect the amount of your
benefit. For further information
contact the MainePERS Survivor Services unit.
< Back to Top >
Q. Can I return to work after retirement?
A. Regardless of your age, you are not eligible to
draw a retirement benefit from MainePERS without a
termination of employment.
If you are retiring below
your Normal Retirement age you:
- May not discuss or negotiate a return to work with
your employer prior to your termination; and,
- May not return to employment for at least 30 days
after termination; and,
- May not return to employment before the effective date
of your retirement.
- Must certify to MainePERS that you have met all the
above requirements.
If you retire below your
normal retirement age and return to work for the “same
employer,” MainePERS will suspend your retirement
benefit unless:
- You provide services for no more than 90 days in one
year.
“One Year” means the year as defined by the type of
employment, for example, calendar year for most State or
PLD employers, or school contract year for most Teacher
employers.
“One Day” means eight hours if paid hourly and one full
day if paid on a per diem basis. For pay based on an
annual rate, a day is one full-time work day. Each
stipend position equals 60 work days.
“Same employer” means for:
▪ State or teacher retirees: Employment in any position
covered under the State/Teacher plan.
▪ Participating Local District (PLD) retirees who retire
from a PLD in the Consolidated Plan: Employment with any
employer in the Consolidated Plan.
▪ PLD retirees who retire from a PLD that is not part of
the Consolidated Plan: Employment with the same PLD
employer.
Failure to comply will result in the suspension of your
retirement benefit. You will have to repay the benefits
paid during any period when you were not eligible to
receive them, and any interest. MainePERS will
re-instate your benefits (less any repayment due) the
first of the month after you stop post-retirement
employment or reach your normal retirement age,
whichever is sooner.
< Back to Top >
Advices of Deposit:
Q: Why don’t I receive an advice of deposit each
month anymore?
A: A number of MainePERS retirees suggested to
the System in 2004 that creation and mailing of
thousands of advices of deposit each month—typically
reflecting the same amounts from month to month—were
wastes of resources. We conducted a survey of all our
members, and a substantial majority of those who
responded indicated that they shared this view. We
therefore decided to greatly reduce the number of
advices we create and mail each month by limiting them
to certain months when the information is important to
most retirees. This change significantly reduces mailing
and related costs for the retiree payroll.
Q: Which months do you still mail advices? Why
those months?
A: We currently distribute advices of deposit
to all members: in any January that is accompanied by a
change in the tax tables (typically, every year); in
June when insurance premium adjustments are most likely
to take place; in September when cost of living
increases are applied; and in December when annual
totals may be necessary for tax and year-end planning.
Q: How am I supposed to know when my payment has
been deposited?
A: Your advice of deposit isn’t the best source
of that information; your financial institution (bank or
credit union) can tell you with greater speed and
certainty than can MainePERS whether your funds have
been received and are available to you. Most financial
institutions offer free or low-cost access to telephone,
personal computer, or ATM banking services that let you
check on deposited funds.
Q: How do I know why my payment has changed?
A: As noted above, most of the changes for our
retirees occur in a limited number of months, and
advices are distributed to all annuitants in those
months. However, there may be some deductions—family
health premiums or organization dues, for example—that
could change for some members in a non-advice month. You
should have received some form of notification from the
insurer or other payee; MainePERS typically does not
receive specific notice before the adjustment is made
electronically by the vendor. Most such changes will be
small, but if you urgently need to know,
contact us and we’ll try to assist you.
< Back to Top >
