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.

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. https://www.mainepers.org/retirement/colas/ Regarding COLA with respect to Social Security wages: https://www.ssa.gov/cola/

If there is a COLA increase, it is added to the September pension each year. The September pension is distributed near the end of the month.

If you are receiving Maine Public Employees Retirement System (MainePERS) pension, going to work at a position not covered by MainePERS, there is no impact on your MainePERS pension.

If you are in receipt of Social Security retirement benefits, going to work may impact your Social Security retirement benefits.  The federal Social Security Administration has an “official age of retirement” based on your birth date.  If you receive Social Security retirement benefits prior to reaching your “official age of retirement” according to the Social Security Administration, your earnings can impact your Social Security retirement benefits.

The first step when deciding if you want to return to work, you need to ask the Social Security Administration your personal “official age of retirement.”  The Social Security Administration can provide you the amount you can earn before your Social Security retirement benefit is impacted.

Once you reach your “official age of retirement,” there is NO offset to your Social Security retirement benefit due to earnings.

If you return to public service covered by MainePERS, the state law has changed.  There was a state law that limited state retirees and educators’ wages and benefits if they returned to employment covered by MainePERS.   Those limitations have been removed.  The one limit is employment time after retirement will not be added to your MainePERS calculation for pension purposes.

Yes. Anyone who receives a Maine Public Employee Retirement System (MainePERS) pension may be a member of MAR.  If your spouse was a member of MAR and you receive a MainePERS pension on your own or are a beneficiary of the spouse’s MainePERS pension, you can be a member of MAR.