MainePERS Employer Update

December 2024

Thank you for your survey feedback

We hear your concerns

Thank you for taking the time to respond to our employer satisfaction survey this October. Your feedback in this and prior surveys has been valuable as we consider improvements to our services.

This year’s survey found nearly 79% of those responding rating their overall satisfaction with MainePERS as satisfied or very satisfied. A majority (nearly 88%) agreed or strongly agreed with the statement that MainePERS acts with integrity. And a majority (nearly 82%) agreed or strongly agreed that MainePERS staff are knowledgeable.

Many of you in the comments section expressed your appreciation for your Employer Account Associate and the services you receive. Your honesty about other areas in need of improvement were also appreciated.

We heard your desire for additional training opportunities and offering training focused on specific topics. We are reviewing options for additional training opportunities and more information will be available in the coming months.

We also understand your concerns about the complexity and lack of robust modern features in Employer Self-Service (ESS), our current employer portal. Efforts have begun to implement a new Pension Administration System (PAS) that will include a new employer portal. We are in the initial steps of this process, having recently completed a competitive bid process to select a vendor. Negotiations are currently underway with the successful bidder and a kick-off to begin the project is planned for the first quarter of 2025.

As our employer partners, we will be asking you to play an important role as we begin this multi-year process of building this new PAS and the accompanying employer portal. Additional details about the PAS project and opportunities for employer involvement will be shared in a separate communication from MainePERS’s CFO Sherry Tripp Vandrell early next year. We look forward to the improved services this will provide to our members, retirees, and employers.

Reducing "Special Plan" rates for certain members once they are "Fully Qualified"

Several of the MainePERS “special plans” include a provision allowing employees the opportunity to qualify to retire after 25 years of service, with no age restrictions. These plans require participating employees to pay a higher employee contribution rate during those first 25 years of membership.

Under some of these 25 year plans, once the employee has met the service requirement to retire under the special plan and the employee is considered “fully qualified,” their contribution rate is reduced for any additional years of service in the plan. Whether or not there is a reduction in the employee contribution rate, and if so, the reduction amount, is specific to the plan.

All of the years of special plan service required for special plan retirement do not have to be with the same employer. Because of this, as well as other individual member circumstances such as leaves of absence and service credit purchases, estimating when an employee has the years of qualifying service can be complicated. To help ease this difficulty, MainePERS recently implemented a new process to review these special plan member records on a regular schedule with the goal of identifying these special plan members as they are nearing that qualification threshold. This will allow us to contact employers in advance of when the contributions need to be reduced.

When you have an employee in one of these special plans who is nearing or has met this requirement, your Employer Reporting Account Associate will notify you of the date the employee’s contribution rate should be reduced and what that new rate is and what rate schedule number to use for reporting going forward. If you have already withheld contributions at the higher rate beyond that date, your Account Associate will assist with any adjustments that might be necessary.

For more information about the special plans subject to this provision, please contact your Employer Reporting Account Associate.

Are you meeting your SSA-1945 obligations?

Do you have positions covered by MainePERS and not covered by Social Security? Almost all teachers and State employees fall into this category, as do PLD employees if the PLD has not opted into Social Security. Federal law requires you to use Social Security Administration form SSA-1945 when you hire a new employee into a position covered by a MainePERS plan and not by Social Security.

SSA-1945 notifies new hires that the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) may reduce the amount of any Social Security benefits they become entitled to receive. It is important for employees to understand this so they plan appropriately for their retirement income.

For positions covered by this requirement, federal law requires employers to:

Give the SSA-1945 form to the employee prior to the start of employment;
Get the employee’s signature on the form; and
Submit a copy of the signed form to the pension-paying agency (i.e., MainePERS).

An electronic version of SSA-1945 is available at on the MainePERS website and also contains resources for your employees who might want additional information. Signed forms may be mailed to MainePERS at:

PO Box 349, Augusta, ME 04332.

Earnable Compensation

Comp Time Changes Reminder

MainePERS has developed a fact sheet on Earnable Compensation to help employers accurately report common payment scenarios. We hope you find this guidance helpful.

One particular area of interest for employers has been Comp Time cash outs and how to handle them when reporting to MainePERS. Comp Time cash outs are earnable compensation as long as they are accrued and paid in the same year^*. Comp Time cash outs paid after the year^* in which they are accrued are not earnable compensation.

Should you have any questions about how to report any earnable compensation, please reach out to your assigned Employer Reporting Account Associate.

^*calendar, fiscal or school year

New Maine Paid Family and Medical Leave Law and MainePERS Contributions

Beginning January 1, 2025, the new Maine Family and Medical Leave law will become effective and those employers subject to this new program will begin withholding contributions from an employee’s payroll.

Benefit payments to employees taking leave under this new program will begin as of May 1, 2026.

Two important notes regarding this plan and MainePERS contributions.

1) MainePERS contributions should be calculated on the gross amount before withholding contributions for this new leave program.

Ex: Member’s gross payroll is $2,000. The withholding contribution due under the Maine Paid Family and Medical Leave Act is 1%. The MainePERS employee contribution rate is 7.65%.

A correct calculation applies the MainePERS contribution first: $2,000 x 7.65% = $153 is correct amount due to MainePERS.

An incorrect calculation applies the Maine Family and Medical Leave contribution first: $2,000 – 1% = $1,980 x 7.65% = $151.47 is an incorrect amount due to MainePERS.

2) When an employee receives payment under the Maine Family and Medical Leave law it is earnable compensation. MainePERS will provide additional detailed reporting guidance prior to the commencement of benefit payments beginning on May 1, 2026.

Please note MainePERS does not administer this plan. For additional information about the law and how to report and remit payments for the Maine Family and Medical Leave law, please visit the Maine Department of Labor website at maine.gov/paidleave/.

GASB 68 & GASB 75 Audit Reports and Schedules

The GASB 68 (defined benefit plans) and GASB 75 (group life insurance) audit reports and schedules should be available on the MainePERS website on or around January 31, 2025.

MaineSTART Deferred Compensation Plan

The MaineSTART 457 Deferred Compensation Plan is now available to Public School Teachers. By joining this program, employers can provide their teachers with an opportunity to participate in another MainePERS offered retirement savings plan. MaineSTART offers both Traditional (pre-tax) and Roth (after-tax) accounts. These voluntary programs can help your employees save money to fund their retirement and help secure their financial future. Please contact Gary Emery at (207)512-3116 or via email at gary.emery@mainepers.org to explore adding the MaineSTART program for your employees. Additional information is available at www.mainestart.org.

Reminder: Group Life Insurance Level Changes are due soon

GLI coverage levels are updated every April based on an employee’s prior year's earnings. You do not need to wait to until April; you can submit this information as soon as you the data is available. Simply upload the file through the Employer Self Service portal using the Upload File function.

To do this, you will need to create a file that meets the requirements of the “Simple Format (CSV) - GLI Level” import.

Create a new Excel file or open your existing file, click file>save as>file type must be .csv. The file will be 4 columns with no header row. The columns should contain Year, Employer location code, SSN and Level in that order. Please save the file with the name of your employer code and year (P0999 2024). Here is an example file:

2024	P0999	6100101	59000
2024	P0999	123456789	49000
2024	P0999	987654321	43000

To upload your file: log into ESS
Navigate to the Account tab
Click Upload File
Select GLI Level
Click browse - find your file
Enter an import description of your location code and year (P0999 2024)
Validate
Validates with exceptions - OK, the file will process
Validates with errors - STOP and contact MainePERS for assistance
Process - Processes the file
Step-by-step guidelines are in our ESS User Guide (v 10) beginning on page 39.

How is the level defined? This will typically be your employee's 2024 annual gross wages from their W-2 (these amounts will automatically round up to the next $1,000).

How do I verify my import? The GLI Level Report will be in your Employer Self Service (ESS) Report/Generate Report/select ESS GLI Level Report/Employer Code and Location Code, and leave the Start Date as is.

What is my responsibility once I receive the new level report? Review the report carefully and contact your Employer Reporting Account Associate if an employee is missing or you believe something is incorrect.

FY26 Group Life Insurance Premium Rates

New group life insurance premium rates will become effective on July 1, 2025 for certain state employees and participating local districts (PLDs) employees. For state employees, the changes include a small increase in basic premiums and some small reductions in supplemental and dependent coverage rates. For PLD employees, there is a small increase in premiums for basic coverage only. There are no changes to premiums for covered teachers. The new rates, which become effective on July 1, 2025, have been posted to our website.

New Group Life Insurance Videos for your employees

MainePERS has two new Group Life Insurance (GLI) videos available for sharing with your employees.

The first video, GLI Coverage for Active Employees, is geared for new employees and should be shared with them as part of their onboarding process. This video provides useful information as employees decide whether to sign up for GLI coverage, including highlighting the 30-day enrollment period at hire for coverage without the need for a medical examination. It also explains how they can purchase supplemental coverage for themselves and whether to consider purchasing coverage for their spouse and dependents.

Please consider including this video with any other informational materials provided to employees at the time of hire.

The second video, GLI Coverage for Retirees, is especially helpful for employees nearing retirement. This video explains how they might continue their GLI coverage into retirement at no cost to themselves. Most importantly, it highlights the specific notice time periods to MainePERS GLI program that must be met regarding their termination from employment and retirement date to keep the coverage. It also explains the gradual coverage reduction during the first five years of retirement.

Please consider including this video with any other pre-retirement materials and notices provided to your employees.

The links to both of the videos, along with helpful FAQ’s and materials about the GLI program are available on the MainePERS GLI website and can easily be access via www.mainepers.org/gli.

FY26 Employer Contribution Rates

Employer and member contribution rates for the upcoming fiscal year, which begins July 1, 2025 and ends June 30, 2026, are now available on the Employer Rates and Rate Setting page where you will find plan specific information.

Grant funded teacher rate information is included in the Teacher section. The grant funded teacher costs do not include the additional amount due for teacher retiree health. This is established by and paid directly to State Employee Health and Benefits. You will receive a separate notification from Employee Health and Benefits for the amount due to fund retiree health coverage.

Employer Training

MainePERS offers a half day Employer Training Session each month via Zoom. The training can provide the basics to new staff or is an excellent refresher or opportunity to fine-tune your understanding of Employer Self-Service (ESS). Topics include Accessing ESS, Understanding Eligibility and Enrollment, Navigating ESS, and Survivor Services and Group Life Insurance (GLI) Highlights. Register online today.

You may also request training on specific topics or group training for multiple members of your payroll and human resources staff. To request training on a specific topic please contact Employer Reporting at 1-800-451-9800 or by email at employer@mainepers.org.

Reminder: 2025 Payroll Filing Dates

Payroll filings are due to MainePERS by the fifteenth day of the month following the payroll-filing period being reported. You can upload your payroll file as early as the next day after your last pay date for the payroll month being reported. We encourage you to complete this upload as soon as possible after that last pay date so that we have time to work with you to correct any issues before the filing deadline.

Payroll Filing Deadlines for 2025

Covered Month	File and Payment Due
January	February 18, 2025
February	March 17, 2025
March	April 15, 2025
April	May 15, 2025
May	June 16, 2025
June	July 15, 2025
July	August 15, 2025
August	September 15, 2025
September	October 15, 2025
October	November 17, 2025
November	December 15, 2025
December	January 15, 2026