September 2022: 3% retiree COLA for State/Teacher Plan participants; 2.5% retiree COLA for eligible PLD participants

On Aug. 11, 2022, the Maine Public Employees Retirement System Board of Trustees adopted retirement cost of living adjustments (COLAs) for eligible retirees in the State/Teacher/Legislative/Judicial Retirement Plan and in the Participating Local District (PLD) Consolidated Plan as follows:

State/Teacher/Legislative/Judicial Retirement Plan: A 3% retiree COLA on the pension base, which currently is at $24,186.25, for eligible retirees. This increase will be included in MainePERS payments beginning in September 2022.

Participating Local District (PLD) Consolidated Plan: A 2.5% retiree COLA on the total benefit for eligible retirees. This increase will be included in MainePERS payments beginning in September 2022.

The retiree COLA increases are in keeping with the COLA rates allowable under statute and rule. It’s important to note these increases happened because the Maine Legislature and Governor Mills respected the retiree-COLA process that resulted in these September 2022 increases.

To be sure, the 2022 Consumer Price Index – Urban Consumers (CPI-U) for the 12 months ending June 30, 2022, is 9.1%. Because of our advocacy, we persuaded the 130th Maine Legislature and Governor Mills to make key improvements to State/Teacher/Legislative/Judicial pensions, including increasing the 2021 cumulative COLA by an additional 1% and adding 2.4% to the pension base. Also, for all retired Maine workers, the budget exempts the first $25,000 in pension income beginning next year, and increases that exemption by $5,000 a year until it matches the exemptions for Social Security.

Updated: September 19, 2022 — 1:31 PM