ME LD2169

Increases the income threshold for "substantially gainful activity" to $35,500 in calendar year 2026 (or the member's average/final annual compensation, whichever is greater), adjusted annually for inflation via the Consumer Price Index

Replaces the previous $20,000 or 80% of average final compensation earning limit with a unified formula applying to income from any employer, eliminating the distinction between covered and non-covered employers

Changes the penalty for exceeding earning limits from reimbursement requirements to a waivable, prorated reduction of disability benefits for one year

Removes the requirement that disability benefits be reduced by amounts received under the U.S. Social Security Act in certain circumstances

Adds statutory definitions for "final annual compensation" (annual pay rate immediately before disability retirement) and "substantially gainful activity" across both the State Employee/Teacher and Participating Local District retirement programs