Vesting
If your final termination was after September 30, 1999 you need 5 years of service credit to qualify for a benefit (10 years if it was before October 1, 1999). If you reach normal retirement age and have been in service at least one year immediately before then, you are eligible for a benefit at termination. Handbook pp. 15-16, Eligibility for a Service Retirement Benefit (Being Vested)
A refund
If you terminate all MainePERS-covered employment you may take a refund of your own contributions and interest (including employer pick-up of your contributions), never employer contributions. No partial refunds. A refund gives up all MainePERS benefits. You may roll over all or part. A direct payment may be taxed and, under 59 1/2, may owe the IRS 10% early distribution tax. Handbook pp. 9-10, Taking a Refund
You have paid Maine tax on all your contributions; interest on refunded contributions is subject to Maine tax. Contributions after 1988 and all interest are federally tax-deferred. Refund Application Package (2024) p. 3, Tax Status of Your Funds Refunds paid directly may be taxed; under 59 1/2 the IRS 10% early distribution tax may apply. Handbook p. 10
Leaving it in
If you leave your contributions on account they keep earning interest; you cannot borrow against them. A vested member can draw a benefit at NRA. Handbook p. 9, Leaving Your Contributions with MainePERS; Refund Application Package (2024) p. 2
If you are not vested, your account may be refunded automatically three years after you terminate. Handbook p. 9
The handbook and Active Members FAQ say an unvested inactive account may be refunded automatically three years after termination (the statute: inactive 3+ years, capped at $1,000 before the later of 62 or NRA). The Refund Application Package says an unvested inactive account will be refunded before April 1 of the year after you turn 73.
Handbook p. 9; MainePERS Active Members FAQs; 5 M.R.S. §17706-A; Refund Application Package (2024) p. 2Coming back
If you return to membership you may pay back the refund plus interest and get the service credit back. Handbook p. 10; p. 8 (Refunded: no limit)
The deadline to start
You must begin benefits or take a refund by April 1 after the year you reach RMD age (or after the year you terminate, if still working). Handbook p. 9, Required Minimum Distributions
| Born | Age |
|---|---|
| Born before July 1, 1949 | 70.5 |
| Born July 1, 1949 to the day before January 1, 1951 | 72 |
| Born January 1, 1951 to the day before January 1, 1960 | 73 |
| Born January 1, 1960 or later | 75 |
The handbook's RMD table has overlapping rows ('Between July 1, 1949 and December 31, 1950: 72' and 'Between January 1, 1950 and December 31, 1959: 73'). We read the second row as starting January 1, 1951.
Handbook p. 9, Required Minimum DistributionsThinking of leaving to teach in another state? Some out-of-state service can be bought back if you return. Buying service credit
From the sources
- If you leave all MainePERS-covered jobs you can take a refund of your own contributions plus interest, never your employer's. It must be the whole account. Taking it ends all your MainePERS benefits.Handbook pp. 9-10, Taking a Refund
- If you leave your money with MainePERS it keeps earning interest. If you're vested you can draw a benefit at your normal retirement age. You can't borrow against it.Handbook p. 9; Refund Application Package (2024) p. 2
- MainePERS pays a refund within 60 days after it has your application and your employer's final payroll report. You can roll all or part of it into an IRA or another plan. Under 59 1/2, a direct payment may owe the IRS 10% early tax.Refund Application Package (2024) pp. 2-4; Handbook p. 10
- Check with MainePERSIf you're not vested and leave your money on account, MainePERS may refund it automatically three years after you leave.Handbook p. 9
- If you come back to MainePERS after a refund, you may pay it back with interest and get the service credit back.Handbook p. 10
Questions
Can I get my MainePERS money back if I leave teaching?
Yes, if you leave all MainePERS-covered jobs: a refund of your own contributions plus interest, not your employer's. It ends your MainePERS benefits.
How fast is a refund paid?
You can expect your refund no later than 60 days after MainePERS has both your completed application and the employer payroll report with your last contributions. Refunds are paid every other Friday.
What if I leave my money in?
It keeps earning interest. If you're vested (5 years), you can draw a benefit at your normal retirement age.
Source: MainePERS Benefits for Teachers: Teacher Member Handbook, 2026, pp. 5-6, 8, 9-10, 15-16. Also: Refund Application Package (2024); 5 M.R.S. §§ 17705-A, 17706-A, 17851. Last reviewed .