State retirees have the minimum amount of Life Insurance through MainePERS and the value decreases over time to a lower amount. During employment and at retirement you may have increased the life insurance plan. To determine your life insurance benefit, contact MainePERS at (207) 512-3100 or 1-800-451-9800.
As for Educators and Participating Local District retirees, this depends on if your former employer offered this benefit. You can contact MainePERS at (207) 512-3100 or 1-800-451-9800 to determine your benefit.
The majority of Public Service Retirees have to apply for Medicare Parts A & B at age 65. There will be a monthly cost based on your individual circumstances. In general, the cost for 2022 is $170.10 per month per person.
For the majority of Public Service Retirees, the State Employee Health Commission (SEHC), Maine Education Association (MEA) Benefits Trust, and the Maine Municipal Association (MMA) Employees Health Trust provide retirees with Medicare Part C. Medicare Part C benefits includes prescription drug coverage. Therefore, there is NO need to purchase a separate Medicare Part D plan.
Specific information on the Medicare Part C plans can be provided by:
MainePERS retirees are impacted by the GPO due to the fact that the State of Maine does not participate in the federal Social Security System.
The GPO impacts spouses, widowers, and widowers who receive monthly MainePERS pensions they have earned. If the person is a beneficiary, the GPO does not apply to them.
For survivors who are MainePERS recipients based on their earnings (not a spouse) 2/3 of your MainePERS pension amount will be reduced from your Social Security survivor’s benefit. Social Security survivor’s benefits are ½ of the Social Security worker’s benefit.
EXAMPLE 1:
Spouse receives $1,500 in Social Security benefit
Your MainePERS pension is $1,000 per month
Spouse passes away
Social Security survivor’s benefit would be $750 per month
Minus 2/3 of MainePERS pension ($1,000 x .67) = $660
SS Survivors Benefit = $90
EXAMPLE 2:
Spouse receives $1,500 in Social Security benefit
Your MainePERS pension is $1,750 per month
Spouse passes away
Social Security benefit would be $750 per month
Minus 2/3 of MainePERS pension ($1,750 x .67) = $1,155
SS Survivors Benefit = $0
If the MainePERS pension was “earned” by your spouse, the GPO does not affect your Social Security benefit.
The federal Social Security Government Pension Offset (GPO) is the method Social Security uses to determine the level of Social Security survivors benefits for retirees who receive a pension from an entity which did not participate in the Social Security System.
When determining the impact of the WEP, the number of years a MainePERS retiree participated in the federal Social Security System with substantial earnings impacts the percentage formula in the first tier of the calculation.
When a MainePERS retiree has between 20 and 30 years of participation in the federal Social Security System, the percentage in the first tier of the calculation is as follows:
SS Years
20
21
22
23
24
25
26
27
28
29
30
Percentage
0.4
0.45
0.5
0.55
0.6
0.65
0.7
0.75
0.8
0.85
0.9
$826
$330.40
$371.70
$413
$454.30
$495.60
$536.90
$578.20
$619.50
$660.80
$702.10
$743.40
If a MainePERS retiree has 30 + years substantial participation in the federal Social Security System, there is no WEP.
In 1983, the Maine Legislature and Administration choose not to participate in the federal Social Security System for Public Service Employees (Legislators, Judges, Troopers, State Employees, Educators and some Municipal Employees) and choose to participate in the Maine Public Service Retirement System (MainePERS). This decision impacts the method the federal Social Security System uses to determine the Social Security retirement benefits for MainePERS retirees.
Federal Social Security benefits are calculated based on the average monthly earnings over thirty-five years (AIME). Once the AIME is determined, a three tiered formula is used to calculate the monthly Social Security retirement benefit. The first $826 of the AIME provides 90% of the AIME as part of the Social Security benefit; the AIME amount between $827 and $4,980 provides 32% of the AIME as part of the Social Security benefit; and the AIME over $4,980 provides 15% of the Social Security benefit.
SOCIAL SECURITY CALCULATION WITHOUT THE WINDFALL PROVISION
AIME
Percentage
SS Benefit Amount
Up to $826
90%
$ 743.40 Maximum
$827 to $4,980
32%
$1,593.60 Maximum
$4,980 and up
15%
$ 747.00 Maximum
Total
$3,083.00
The WINDFALL ELIMINATION PROVISION (WEP) changes the formula for determining the Social Security benefit with the intent to take into account the years someone was not paying Social Security because of another public pension versus no Social Security due to no employment. For MainePERS retirees, the formula changes the percentage in the first tier of the formula from 90% to 40%. The remaining two tiers are unchanged.
SOCIAL SECURITY CALCULATION WITH WINDFALL ELIMINATION PROVISION
In 2021, eligible State, Educator, Judicial, and Legislative retirement plan retirees received a 3% COLA on their benefit up to $22,947.11 (which is the 2020 base), or a maximum increase of $57.37/month. The amount of the COLA for 2021 was determined during the summer of 2021 and appeared in the 2021 September pension benefit.
COLA is a cost of living adjustment to wages, pension, etc. based on a standard.
For Maine Public Service Retirees who have a pension from Maine Public Service Retirement System (MainePERS), the COLA is based on the Consumer Price Index (CPI).
The CPI is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. Changes in the CPI are used to assess price changes associated with the cost of living; the CPI is one of the most frequently used statistics for identifying periods of inflation or deflation.
For retired public service educators and State retirees, the COLA is calculated on the first $20,000 of the pension indexed, which is now $23,635.32.
For the majority of participating local districts (PLD-municipalities) the COLA is calculated on the full pension benefit.
