Code of Maine Rules
94 - INDEPENDENT AGENCIES
411 - MAINE PUBLIC EMPLOYEES RETIREMENT SYSTEM (MAINEPERS)
Chapter 510 - REDUCTION OF DISABILITY RETIREMENT BENEFITS BECAUSE OF LUMP-SUM SETTLEMENTS OF BENEFITS PAYABLE UNDER THE WORKERS' COMPENSATION OR SIMILAR LAW OR THE UNITED STATES SOCIAL SECURITY ACT
Section 411-510-1 - DEFINITIONS

1. Accumulated Contributions. The term "accumulated contributions" as used in this Chapter means the amount of "accumulated contributions" calculated pursuant to the provisions of the applicable Retirement System plan, as of the effective date of the recipient's entitlement to Retirement System disability retirement benefits.

2. Actuarial Equivalent of Accumulated Contributions. "Actuarial Equivalent of Accumulated Contributions" as used in this Chapter means the recipient's accumulated contributions at the time of his or her disability retirement divided by the "annuity factor for recipient's age at retirement" as calculated pursuant to Section 5.2, and then converted to a monthly amount by dividing by twelve.

3. Actuarial Equivalent of the Lump-Sum Settlement. "Actuarial Equivalent of the Lump Sum Settlement" as used in this Chapter means the amount of the "lump-sum settlement" divided by the "annuity factor for recipient's age at effective date of lump-sum settlement" calculated pursuant to Section 5.3, and then converted to a monthly amount by dividing by twelve.

4. Average Annual Earnings. "Average Annual Earnings" means the total of the person's average final compensation plus other wages and earnings from employment for the calendar year in which the person has the highest total of other wages and earnings from employment during the 5 years immediately preceding the year in which the person became disabled.

5. Average Final Compensation. "Average Final Compensation" as used in this Chapter means the amount of "average final compensation" calculated pursuant to the provisions of the applicable Retirement System plan, as of the effective date of the recipient's entitlement to Retirement System disability retirement benefits.

6. Initial Disability Retirement Benefit. "Initial disability retirement benefit" as used in this Chapter means the monthly disability retirement benefit, not reduced because of disability benefits received under other laws, payable to the recipient as of the effective date of his or her entitlement to Retirement System plan disability retirement benefits, calculated pursuant to the applicable Retirement System plan provisions.

7. Lump-Sum Balance. "Lump-Sum Balance" as used in this Chapter in a given month means the sum of the lump-sum settlement and interest for that month and all prior months subject to reduction pursuant to this Chapter less the reduction amount determined pursuant to Section 4.1 for that month and all prior months subject to reduction pursuant to this Chapter.

8. Lump-Sum Settlement. "Lump-sum settlement" as used in this Chapter means the amount paid or to be paid pursuant to a settlement agreement under the workers' compensation law and/or similar law and/or the United States Social Security Act for the same disability for which Retirement System plan disability retirement benefits are awarded, but not including any part of the lump-sum settlement amount attributable to vocational rehabilitation, attorneys', physicians', nurses', hospital, medical, surgical or related fees or charges or any amount paid or payable under former Title 39, section 56-B for permanent impairment or under Title 39-A, section 212, subsection 3 for specific loss benefits. "Lump-sum settlement" includes amounts paid or to be paid under the United States Social Security Act only if the employment for which Retirement System creditable service with the employer is allowed was also covered under that Act at the date of disability retirement.

9. Lump-Sum Settlement Agreement. A "Lump-Sum Settlement Agreement" as used in this Chapter is an agreement, signed or otherwise approved by the approving authority, describing payment of the lump-sum settlement.

10. Retirement System Plan. "Retirement System plan" as used in this Chapter means a benefit plan of the Maine Legislative Retirement System, Maine Judicial Retirement System, or the Maine State Retirement System. Benefit plans of the Maine State Retirement System include benefits for eligible state employees, teachers, and Participating Local District ("PLD") members.