Retire with Dignity: Bargaining for Better Retirement

By Mark Ashe, Cape Elizabeth EA Negotiator & Maine DOE Financial Literacy Teacher Leader Fellow and Samantha Burdick, MEA Communications Director

For many years, a career in education came with a promise—work hard, serve your community, and retire with security. That promise was anchored by the Maine Public Employees Retirement System (MainePERS). But today, things look very different.

Over the past few decades, Maine’s pension system for educators has undergone significant changes. The most dramatic shift came in 2011 under Governor Paul LePage, when cost-of-living adjustments (COLAs) were cut. COLAs are critical because they help retired educators keep up with rising prices. Without them, benefits lose value year after year.

Why does this matter? Pensions don’t just support retirees—they strengthen our schools. When educators know they’ll have a stable retirement, they’re more likely to stay in the classroom. That means better instruction and a consistent environment for all students.

→What is the Maine Public Retirement System (MainePERS)?
All teachers, certified professionals (such as school nurses and school counselors), and Education Technicians (Ed Tech) II and III in Maine’s public schools are part of MainePERS — the state pension system which provides retirement benefits for Maine’s public sector employees, including educators.

Many likely assume that these public servants have an amazing pension system that will take care of them throughout retirement. Unfortunately, this is far from reality.

Consider a teacher or an Ed Tech II who worked in Maine schools for 30 years. At their “normal retirement age,” they will be eligible for a pension equal to 60% of the average of their highest three years of wages. If living on 60% of your income sounds like a challenge, that’s because it is—especially since, as of 2025, only $26,429 of that pension receives a cost-of-living adjustment (COLA). Anything above that amount loses value over time. In 2025 retirees received only a 2.7% COLA—a maximum increase of only $59.74 per month.

→Not All Public Retirement Plans Are Created Equal
Not all school employees in Maine are part of MainePERS. Some, including Ed Tech I, custodians, and bus drivers, are covered by Social Security instead. In both systems the employee and employer make mandatory contributions—but contributions to the system differ significantly.

Employees covered by Social Security pay 6.2% of their salary to Social Security, whereas teachers and Ed Tech II and III pay 7.65% of their wages into MainePERS. For employees covered by Social Security, the school department pays 6.2% of an employee’s wages into the Social Security system. By contrast, the school department only pays 4.47% of a teacher or Ed Tech II and III’s wages into MainePERS, and historically that figure has been well below 4%.

The result? MainePERS members pay more toward their retirement than employees on Social Security, and school departments pay less into MainePERS for each employee than they pay into Social Security.

→Bargaining for Better Retirement
Many school departments provide a 403(b) match for employees covered by Social Security—matching a percentage of the employee’s contributions to help them save for retirement. While all school employees can contribute to a 403(b), most districts do not provide a match for school employees who are members of MainePERS—teachers, certified staff, and Ed Tech II and III.

This is often due to a misconception that they are ineligible for a 403(b) match because they belong to MainePERS. But these two retirement programs have absolutely nothing to do with one another.

While MEA has been working at the State House to address the shortcomings of MainePERS and strengthen our public retirement system, a few locals are improving their retirement benefits by bargaining a 403(b) match into their contracts.

This year, the Cape Elizabeth Education Association (CEEA) negotiations team led by Karen Johnson, Tom Kohan, Hilary Roberts, and Mark Ashe bargained a 2% match into the Ed Tech II and III contract beginning in the 2027-2028 school year. This will help reduce the disparity between employee and employer contributions to MainePERS versus Social Security.

They also demonstrated the impact that even a modest match can make. While 2% may sound small, it can compound over time. For example, an employee earning $35,000 who contributes 2% of their pay—roughly $58 per month—at a 5% rate of return will accumulate nearly $48,000 in 20 years—a meaningful boost to retirement security.

→Make the Most of Your Match
While a 403(b) match is a great way to help school employees retire with dignity and offset the current shortcomings of MainePERS, it is important to realize that many 403(b) plans come with high fees and low performing investment options. To ensure the match truly benefits employees, districts should offer at least one high-quality, low-cost provider—such as Fidelity, Vanguard, or the MaineSTART program offered by MainePERS—all of which offer access to target-date index funds.

Why does this matter? Fees can quickly erode savings. Some providers charge 1.25% to 3% annually, which can “eat up” an employer’s match. In the example above, a 1.25% fee would reduce the final balance by more than $6,000, and a 2% fee would cost the employee nearly $10,000. If your district doesn’t offer a low-cost option, advocate for adding one or negotiate it into your contract.

→Get to Know Your Contract—And Plan Early!
Thinking about retirement benefits might feel like trying to hit a moving target, but there are small steps you can take today. Start by understanding your options early—not just when you approach normal retirement age. In addition to 403(b) and other investment options, many educators work part-time outside the classroom or entered education as a second career. With the recent elimination of Social Security Offset Penalties—known as GPO/WEP—some may qualify for Social Security benefits in addition to MainePERS upon retirement. To get a complete picture of your retirement options, consult a fiduciary who understands public pensions and 403(b) plans.

And check your current contract language. Are you taking advantage of the retirement benefits offered by your district such as a 403(b) match? Is a match included in your contract? If not, consider advocating for these benefits in future negotiations. Even a modest match can make a big difference over time.

→Terms to Know

Normal Retirement Age: Your normal retirement age is the age at which you can retire without your benefit being subject to an early retirement reduction.

In Maine, the normal retirement age varies based on the type of retirement plan and the individual’s hire date:

• 60 years old if you were hired before July 1, 1993, and have at least one year of service credit immediately prior to reaching age 60
• 62 years old if you reached age 60 with at least one year of service credit and then reached age 62 with at least one year of service credit immediately prior to reaching age 62
• 65 years old if you were hired before July 1, 2011, and did not reach age 62 with at least one year of service credit.

Additionally, if you have 25 years of service, you may still retire, but your retirement benefit will be reduced.

Source: bit.ly/MainePERShandbook

A 403(b) is a tax-advantaged investment account for school employees similar to a 401(k) in the private sector. It is simply a special type of investment account that the IRS makes available to school employees to help them save for retirement in a way that provides a tax benefit.

MaineSTART is a program from MainePERS that provides an excellent retirement savings program for school employees.
It uses low-cost, high-quality Vanguard funds.

• It offers both pre-tax and Roth options.
• It charges very low fees: 0.03% versus 1.25% (or more) from other providers.
• It offers simple investment choices like target-date retirement funds.
• While stocks have historically provided superior returns, the program also offers bonds and money market funds for more conservative investors.

Contributions into Retirement Systems:

• Social Security employees pay 6.2% of their salary into Social Security, and their employer matches that with another 6.2%.
• MainePERS members (teachers and Ed Techs II and III) pay 7.65% of their wages into MainePERS, while school departments contribute only 4.47%—and historically, that figure was even lower.

NEA Member Benefits: As a member of MEA and NEA, you have access to resources to help you explore retirement options and resources.
bit.ly/nearetiremea