Maine State Retirement

You are currently employed with the South Portland School Department in an eligible position under Maine State Retirement's participating local district plan.  While the position is eligible - YOU are not.  You were offered the opportunity to join Maine State Retirement at the outset of your employment and declined participation.  This decision is typically NOT reversible and is in force forever.  Maine State Retirement is offering you a chance to change your mind and join now.

One of two reasons:

1. You aren't in a benefits eligible position.

2. You already participate in Maine State Retirement or are retired from a Maine State Retirement PLD plan with South Portland or another employer.  Once you elect participation, you cannot stop participation and remain in a covered position.  The only way to stop participation is to stop working in a covered position with the South Portland School Department.  You would also be required to participate if you move into a covered position with the city.

Maine State Retirement (ME PERS) is a defined benefit retirement plan.  This means, unlike with a traditional retirement plan, like a 401k or other defined contribution plan, you do not have any control over the amount of money you contribute.  The plan dictates how much of your paycheck you need to supply to your account. At this time, the amount is set at 7.05% or 7.8% of your pay.

Once an employee makes his/her decision to join or not join (ME PERS) as an employee of the City of South Portland, that decision will remain in effect FOREVER. (Even if leaving employment and being rehired at a later date). This means if you join ME PERS and later decide you no longer want to contribute to the plan, the only way to stop, is to stop working for the city or the school. 

Unlike defined contribution plans, where retirement payments stop when the funds are exhausted, MEPERS offers a lifetime retirement benefit and disability retirement benefit. That means even if the money you've contributed runs out, you will continue to get your monthly retirement benefits until you pass away.  More information can be found on the MEPERS website.

The City of South Portland maintains a section 218 agreement, which means members pay into ME PERS and social security. Social security benefits will not be affected by participating in the ME PERS PLD plan through South Portland Schools.

You were offered the opportunity to join Maine State Retirement OR the 457B at the outset of your employment.  You declined participation in Maine State Retirement.  You may have opened a 457B instead.  To confirm, you should review your paystub.  If you see a deduction, "DEFCOM-SCH", you are participating in the 457B.

If it's been a while since you looked at a paystub and can't find one, reach out to Sarah Pinault in payroll.  If you've found the email with your paystub, but can't remember the password, it's the last 4 digits of your social security number.

If you are currently making contributions to a 457B and now opt to join Maine State Retirement, your contributions to the 457B will  stop.  Employees are only eligible to participate in ONE of these retirement plans.

The funds in your 457B will need to remain with the plan.  The funds only become accessible when you leave employment, reach a certain age, or have an unforeseen financial emergency under IRS regulations.

You may be able to use the funds in the 457B to purchase service credits with Maine State Retirement - but not for time worked with the South Portland Schools.  This would need to be explored on an individual basis with Maine State Retirement.

You should have received an email and an interoffice mailer with information about your length of employment. 

If you've worked with the city or school for a combined total of more than 5 years, you have until 4pm on 11/1/21 to return the application electing participation.  The form can be found here:/uploaded/centralofficeadmin/Benefits/Blank_Forms/ME_PERS_Application.pdf Please print, fill out, and return to Mary Dinsmore at Central Office through interoffice mail or drop off.

If your length of service is 5 years or less, please wait for further instruction.  Dates for an open enrollment period will be coming out soon.  You will be able to return your application electing participation at that time.

Please print, fill out, and return:/uploaded/centralofficeadmin/Benefits/Blank_Forms/ME_PERS_Application.pdf to Mary Dinsmore at Central Office through interoffice mail or drop off. Mark the box declining participation. 

Yes.  There is an up to 8% match on contributions made to a 457B and the account can be opened at any time.  Please contact our Met Life representative, Briar Golden at (603) 765-9699 for help opening an account.

Benefits around retirement can be confusing and are important - not a great combo.  We understand.

While we cannot tell you which option to pick, we are doing the best we can to give you access to as much information as possible to help you make the best decision for you and your family.

ME PERS staff are offering Zoom meetings.  Please contact them at PLD@mainepers.org for a schedule and/or to register.  

You may also call Line Larrabee, Retirement Services Specialist at (800) 451-9800 during regular business hours.