If you die before you retire
- A refund. Lump-sum refund of contributions and interest to your designated beneficiaries, or (none named or none surviving) your spouse, children or older parent, else your estate. Available if you die in service, after leaving without a refund, or while on disability.
- A monthly survivor benefit. A monthly survivor benefit set by law based on the beneficiary's relationship to you. Available if you die in service or while on disability.
- An Option 2 benefit. A monthly payment calculated as though you had retired under Option 2. Available if you die in service, after leaving (without a refund) while eligible for but not yet receiving a benefit, or while on disability.
Handbook pp. 11-12, Ordinary Death Benefit; 5 M.R.S. §17953
The statute's monthly survivor benefits started at $150 and were raised for spouses to $300 from July 1, 1990 and for each dependent child to $250 from July 1, 1992, each indexed since by the COLA percentage; spouse plus children capped at 80% of AFC. The current indexed amounts are not published in the sources. 5 M.R.S. §17953(3)(D), (4)(A)(6)-(7), (4)(D)
The statute's survivor benefits ($300 for a spouse, $250 per dependent child, and others) have been indexed by the COLA since 1990-93. MainePERS doesn't publish today's amounts.
What we do: We describe the survivor benefit without a dollar figure.
What would settle it: MainePERS Survivor Services.A death from a job injury
If you die in service (or on disability) from a job injury, your spouse and/or dependent children may get a monthly income: your AFC a year if you have dependent children, two-thirds of AFC if not, reduced by workers' compensation. They choose this or an ordinary death benefit. Dependent children: under 18 and unmarried; under 22, unmarried, full-time students; or permanently disabled. Handbook pp. 12-13, Accidental Death Benefit
The 'Pension Beneficiary Designation for Pre-Retirement Death Benefits' form governs both ordinary and accidental death beneficiaries; naming more than one beneficiary can rule out the survivor benefit, and naming someone other than your spouse/dependent children rules out the accidental death benefit. Handbook p. 13, Designating a Beneficiary for Your Accidental Death Benefits
After you retire
Benefits are paid according to the payment option selected at retirement. After You Retire (2025) p. 1, In the Event of a Death; Handbook pp. 18-19 Payment options
Group life insurance into retirement
Basic coverage equal to your annual salary rounded up to the next $1,000; you may also buy supplemental (1x, 2x or 3x basic) and dependent coverage. Separate from the retirement plan. Handbook p. 13, Group Life Insurance; Group life Schedule of Benefits pp. 1-2
You keep basic coverage free in retirement if: coverage was held at least 120 months; it is in effect right before you retire with all premiums paid; your retirement is effective within 31 days of termination; and MainePERS receives your service retirement application no later than 31 days after your retirement effective date. Handbook pp. 13-14, Group Life Insurance
| Ex. | Benefit starts | Application in | Keeps it? |
|---|---|---|---|
| A | August 1 | August 28 | Yes |
| B | August 1 | September 15 | No |
| C | December 1 | July 31 | No |
Form H0039 (8/24) p. 1, Example A; Form H0039 (8/24) p. 1, Example B; Form H0039 (8/24) p. 1, Example C
To keep free retiree life insurance, the handbook requires the retirement application no later than 31 days after the retirement effective date; Form H0039 requires it within 31 days of terminating employment. Both require the effective date within 31 days of termination. Our calculator follows the handbook; H0039's three examples come out the same under both.
Handbook pp. 13-14; Form H0039 (8/24) p. 1How the coverage shrinks
Retiree basic coverage starts at your AFC rounded up to the next $100, and drops by 15% of that amount on each anniversary of retirement until it reaches 40% of the original level or $2,500, whichever is greater; it stays there for life. Form H0039 (8/24) p. 2; After You Retire (2025) p. 1, Life Insurance Coverage; Handbook p. 14
| Year | AFC $59,842.60 | AFC $47,250.00 |
|---|---|---|
| At retirement | $59,900 | $47,300 |
| Year 1 | $50,915 | $40,205 |
| Year 2 | $41,930 | $33,110 |
| Year 3 | $32,945 | $26,015 |
| Year 4 and after | $23,960 | $18,920 |
The first column is Form H0039's example; the second is the Ready to Retire handout's. Both stop at 40% of the starting amount. Form H0039 (8/24) p. 2, Example (AFC $59,842.60); Ready to Retire (2023) slide 16 (three-year average of $47,300)
The handbook says retiree life coverage decreases 15% a year 'until it is 40% of your AFC'; Form H0039, After You Retire and the policy schedule add 'or $2,500, whichever is greater'. Our calculator applies the $2,500 floor.
Handbook p. 14; Form H0039 (8/24) p. 2; Group life Schedule of Benefits p. 2PL 2025, c. 562 (effective July 29, 2026) bases coverage levels on 'earnable compensation' instead of gross W-2 compensation. Legislative Update (May 2026) p. 1; MainePERSpective Fall 2026 p. 3
From the sources
- If you die before retiring, your beneficiary chooses one of: a refund of your contributions and interest; a monthly survivor benefit set by law; or a monthly payment figured as if you had retired under Option 2. Which ones are available depends on your status at death.Handbook pp. 11-12, Ordinary Death Benefit
- If you die from a job injury while working, your spouse and dependent children may get a yearly benefit equal to your AFC (two-thirds of AFC if there are no dependent children), less any workers' compensation.Handbook p. 12, Accidental Death Benefit
- After you retire, what your survivors get depends on the payment option you chose.After You Retire (2025) p. 1, In the Event of a Death
- You keep free basic group life insurance in retirement if you had coverage at least 120 months, it is in force when you retire, your retirement starts within 31 days of leaving, and MainePERS gets your application within 31 days after your retirement date.Handbook pp. 13-14, Group Life Insurance
- Retiree life coverage starts at your AFC rounded up to the next $100 and drops 15% of that each year until it reaches 40% (or $2,500 if more). MainePERS's example: AFC $59,842.60 gives $59,900, then $50,915, $41,930, $32,945 and $23,960 for life.Form H0039 (8/24) p. 2
Questions
What happens to my MainePERS pension if I die before retiring?
Your beneficiary chooses a refund of your contributions and interest, a monthly survivor benefit set by law, or (in some cases) a payment as if you'd retired under Option 2.
What happens after I retire?
Benefits are paid according to the payment option selected at retirement.
Do I keep life insurance when I retire?
If you qualify, basic coverage continues free. It starts at your average final compensation rounded up to the next $100 and drops 15% of that a year until it reaches 40% or $2,500, whichever is greater.
Source: MainePERS Benefits for Teachers: Teacher Member Handbook, 2026, pp. 11-12, 12-13, 13-14, 18-19. Also: After You Retire (2025); Group life Schedule of Benefits; Form H0039 (8/24); Legislative Update (May 2026); MainePERSpective Fall 2026; Ready to Retire (2023); 5 M.R.S. §§ 17953, 18003, 18056, 18059. Last reviewed .