State Teacher Plans for Maine

Many teachers do not have access to low-cost choices in their 403(b) plans. Of the 96 district 403(b) plans that we have graded so far in Maine, 0 districts have an A rating, 0 districts have a B rating, 55 districts have a C rating, 13 districts have a D rating, and 28 districts have an F rating.

If you are a teacher in Maine, here are the state teacher plan options that are available to you.

MainePERS

Most states still offer a traditional formula-based pension. Under this type of arrangement an educator would receive a percentage of their final year's salary until death that is based on some combination of years worked, age, and salary. Some states have made pension plans less generous to new hires, and some states have replaced traditional pensions with 401(k)-type plans.

More information about the MainePERS plan is available directly from the pension website, and Karl Fisch's book on the Maine pension is available here. Pension plan information for other states is also available for reference through this state pension search tool. This data is shared with us by Karl Fisch, and it is current as of January 1, 2025.

Applicable to All Teachers

Social Security

Maine teachers do not pay into Social Security

Administrative Fee for Supplemental Plans

$50 per year + 0.03% for 457 for some

New Teachers Hired On or After 1/1/2024

Defined Benefit

Employee: 7.65%; Employer: 18.98%

Multiplier

Average Salary

Highest 3 years

Normal Retirement

Age 65 with 1 year of service

Cost-of-Living Adjustment (COLA)

CPI on first $26,428 of benefit indexed to inflation

Veteran Teachers Hired Prior to 1/1/2001

There are no additional benefit tiers between the new teacher and veteran teacher tiers compared here. The exact transition date between these tiers is not relevant to this comparison.

Defined Benefit

Employee: 7.65%; Employer: 18.98%

Multiplier

Average Salary

Highest 3 years

Normal Retirement

Age 62 with 5 years of service or age 65 with 1 year of service

Cost-of-Living Adjustment (COLA)

CPI on first $26,428 of benefit indexed to inflation

Maine 457(b)

Every state operates a 457(b) plan that serves governmental workers like police, fire, and state government officials. These plans are generally excellent, and in many cases they are superior to the 403(b) offerings available in school district plans. Most states allow educators to participate in these plans; unfortunately, about a dozen do not.

Find out more about how we rate state 457(b) plans and view plans in other states.

Green MaineStart

Maine teachers are eligible to contribute to this plan.

Fees

$47 per year plus 0.03% of account balance admin fee, $0 account fee, and a low index fee

Record Keeper

Ascensus

Target Date Fund

Vanguard

NOTE: Limited number of excellent Vanguard funds across major asset classes. Closest plan we have seen to the excellent Federal Thrift Savings Plan (TSP).

Green MaineSaves 457(b)

Maine teachers are not eligible to contribute to this plan.

Fees

0.18% admin fee, $0 account fee, and a low index fee

Record Keeper

Voya

Target Date Fund

American Funds

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