December 2023


REMINDER: 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 2024

Covered Month

File and Payment Due

January

February 15, 2024

February

March 15, 2024

March

April 16, 2024

April

May 15, 2024

May

June 17, 2024

June

July 15, 2024

July

August 15, 2024

August

September 16, 2024

September

October 15, 2024

October

November 15, 2024

November

December 16, 2024

December

January 15, 2025

GASB 68 & GASB 75 Audits


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, 2024.


Earnable Compensation

Comp Time Changes




This past summer, MainePERS updated and shared the Earnable Compensation fact sheet, to help employers accurately report common payment scenarios. The form received positive feedback and we encourage you to review this guide.

 

One particular area of interest for employers has been Comp Time cash outs – as it represents a change from past practice and prior guidance for employers. In the past, Comp Time cash outs not paid in the same pay period earned were not earnable compensation. Now, 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. Please update your reporting to reflect this change.

 

*calendar, fiscal or school year



Implementation of New Form for

Certification of Bona Fide Termination


Beginning in January 2024, MainePERS will implement a new version of the Employer Preliminary Benefit Certification form for employers to use in ESS that contains the Certification Regarding Bona Fide Termination to comply with IRS Code 72(t) the “early distribution tax”. This was previously communicated to employers via an email notification in late November. A sample of the revised form and instructions for when and how to complete the new Certification Regarding Bona Fide Termination section may be found on our website at ESS Guides and Quick References (See, CL-0055-Employer Preliminary Benefit Certification Form). 

 

Under federal tax law, if an employee retires before 59½ and returns to work for the same employer without a bona fide termination, that retiree is subject to a 10% early distribution tax on their retirement benefits until they reach age 59½. A bona fide termination means there can be no explicit understanding or agreement that the employee will return to work after retirement. This tax does not apply if the employee retires before 59½ and returns to work for a different employer. It also does not apply if the employee returns to work for the same employer without a pre-retirement agreement that the employee would do so.

 

MainePERS must report on the retiree’s annual 1099-R that benefits received are subject to the 10% tax if the retiree has returned to work with the same employer without a bona fide termination. This will be reflected on the 1099-R beginning with the 2023 tax year.

 

For more information regarding the IRS 10% early distribution tax, who it applies to and answers to frequently asked questions, visit our Return To Work webpage.

MaineSTART Defined Contribution 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 email gary.emery@mainepers.org to explore adding the MaineSTART program for your employees. Additional information is available at www.mainestart.org.


MainePERS Launches Member Portal

Initial Phased Roll-out Planned to

Groups of Active and Retired Members


On October 2, MainePERS launched a secure online Member Portal for active and retired members that offers convenient access to their MainePERS account information. The online portal is being rolled out in phases over a period of months to groups of active and retired members. Additional details, including how to login, will be provided as each phased grouping is invited to participate. As part of the registration process members will need access to the email address or telephone number on file in their MainePERS account for the multi-factor authentication process required to login. Find out more about the MainePERS Member Portal.


 

Group Life Insurance Premium Calculator


The Group Life Insurance Premium Calculator available on the MainePERS website was recently updated to provide additional billing details. The calculator displays the premium based on the selected categories from drop down menus that include: employer type, premium frequency, coverage selected, age and level of annual gross compensation. Once the selections are completed, the calculator will provide a specific breakdown of the premium amounts for each coverage requested: Basic, Supplemental, and/or Dependent. See sample breakdown below.

As noted on the website, the calculator is for estimation purposes only. Specific coverage questions may be directed to Survivor Services for further information.