Average final compensation (AFC)
The average of your three highest years of earnable compensation.
Handbook p. 16More on this →These are the words you'll meet in MainePERS letters and on these pages. To put them to work, try the MainePERS calculator, or start with your retirement age group and the formula.
Beneficiary
The person you name to receive payments after you die. Options 2 to 8 pay a beneficiary for life or a share; Option 1 pays any money left in your account.
Handbook pp. 18-20, Selecting a Benefit Payment OptionMore on this →Bona fide termination
Really leaving your job, with no agreement to come back. Retiring before 59 1/2 without one brings the IRS 10% early distribution tax.
Handbook p. 14, Terminating Employment; 94-411 C.M.R. ch. 410, §1(3)More on this →COLA base
The part of your yearly benefit the COLA applies to; $27,142.56 in 2026, $27,956.84 in 2027.
MainePERS COLA pageMore on this →CPI-U
The Consumer Price Index for All Urban Consumers. The MainePERS COLA follows its rise from July 1 to June 30, up to 3%.
Handbook p. 22, Cost-of-Living Adjustment (COLA); 5 M.R.S. §17806(1)(A)More on this →Early retirement reduction
The permanent cut for starting before your normal retirement age, allowed only with 25 years of service: 6% a year (age-62 and age-65 groups) or about 2 1/4% a year (age-60 group).
Handbook p. 17, NoteMore on this →Earnable compensation
The pay MainePERS counts for contributions and your AFC. Retirement incentives aren't included.
Handbook pp. 2, 22, Membership; Retirement IncentivesMore on this →Full Benefit
The highest payment option, for your life only; Options 1-8 are reduced from it.
Handbook p. 18More on this →Normal retirement age (NRA)
The age (60, 62 or 65) at which you can retire without an early reduction.
Handbook p. 15More on this →Pick-up contributions
Your contributions paid by your employer through a salary reduction (IRC 414(h)).
Handbook p. 10More on this →Pop-up
In Options 6, 7 and 8, your payment rises to the Full Benefit if your beneficiary dies before you.
Handbook p. 19, Options 6-8More on this →Refund
A payment of your own contributions plus interest when you leave. It ends your MainePERS membership and benefits.
Handbook pp. 9-10, Taking a RefundMore on this →Restoration to service
Going back to work for the 'same employer' (any State Employee and Teacher-covered job) after retiring.
Handbook p. 23More on this →Service credit
The years and parts of years you're credited with. Full-time work earns a year for a year; part-time, per-diem and hourly work earn a share.
Handbook pp. 5-6, How Service Credit AccumulatesMore on this →Vested
Having enough service (5 years, or 10 if you left before October 1, 1999) to get a benefit at your normal retirement age instead of only a refund.
Handbook pp. 15-16, Eligibility for a Service Retirement Benefit (Being Vested)More on this →Source: MainePERS Benefits for Teachers: Teacher Member Handbook, 2026, pp. 2, 5-6, 9-10, 14, 15-16, 17, 18-20, 22, 23. Also: MainePERS COLA page; 5 M.R.S. § 17806; MainePERS rule 94-411 C.M.R. ch. 410. Last reviewed .