An Act To Authorize Certain Former Members of the Maine State Retirement System To Rejoin the Maine State Retirement System LR 1996(02)
Maine Legislature, Session 121, LD 1535
Committee Amendment CA_A_S152 (Senate)

COMMITTEE AMENDMENT "fl, to S.P. 514, L.D. 1535, Bill, "An 
Act 
To Authorize Certain Former 
Members of the Maine State 
Retirement System To Rejoin the Maine State Retirement System" 
Amend the bill in section 1 in that part designated "Sec. 6." 
in the last line (page 1, line 33 in L.D.) by inserting after the 
following: "Act." the fOllowing: 'The option may be exercised to 
apply retroactively or prospectively and may be exercised only 
once. 
1. 
Retroactive application of option. 
A benefit recipient 
who exercises the retroactive option provided under this section 
is restored to membership effective on January 1, 
2002. 
The 
restored member is responsible for repaying the retirement system 
for any retirement benefits received from the system after that 
date 
and 
for 
paying 
an 
amount 
that, 
together with regular 
interest on that amount, is the actuarial equivalent, at the 
effective date of the retirement benefit, of the portion of the 
retirement benefit based on the additional creditable service for 
the period between January 1, 2002 and the date the employer 
again begins to report that person as an active member of the 
retirement system. 
The restored member is also responsible for 
repaying the retirement system for any over earnings under Title 
5, former section 17855 based on earnings between September 21, 
2001 and January 1, 2002. 
Payment of the full actuarial cost of 
the additional creditable service must be made by a single direct 
payment or by annual direct payments as provided in Title 5, 
section 17701, 
subsection 4. 
Repayment of benefits received 
after January 1, 2002 and repayment of over earnings received 
between September 21, 
2001 and January 1, 
2002 must be by a 
single direct payment made within 60 days of the exercise of the 
option under this subsection. 
Repayment not completed by that 
date is subject to interest at the rate of regular interest as 
defined in Title 5, section 17001, subsection 31. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. A 
.. to S.P. 514, L.D. 1535 
2. 
Prospective application of option. 
A benefit recipient 
who 
exercises 
the 
option 
provided 
under 
this 
section 
prospectively is restored to membership effective on the first 
day of the month following the month in which the option is 
exercised. 
The restored member is responsible for repaying the 
system for any over earnings under Title 5, former section 17855 
based on earnings between September 21, 
2001 and January 1, 
2002. 
Repayment of over earnings received between September 21, 
2001 and January 1, 2002 must be by a single direct payment made 
within 
days 
of 
the 
exercise 
of 
the 
option 
under 
this 
subsection. 
Repayment not completed by that date is subject to 
interest at the regular interest rate as defined in Title 5, 
section 17001, subsection 31. 
3. 
Exercise of option. 
A benefit recipient who exercises 
the option provided in this section to be restored to membership 
and who later retires under the retirement system is covered by 
the provisions of sections 1 to 5 of this Act and may not again 
be restored to membership.' 
SUMMARY 
This amendment requires an employee who exercises the option 
under the bill to be retroactively restored to membership in the 
Maine State Retirement System to pay back to the retirement 
system over earnings while not a member, to pay full actuarial 
cost of the retirement benefit based on additional creditable 
service allowed under the bill and to repay retirement benefits 
received 
after 
retroactive 
restoration 
to 
membership. 
The 
amendment also provides an option for an employee to be restored 
to membership prospectively. 
An 
employee who 
exercises that 
option must repay the retirement system for any over earnings 
while retired before Public Law 2001, chapter 442 was enacted. 
FISCAL :'\OTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Revised: 05109/03 .:;'/k?ac::.. 
Office of Fiscal and Program Review 
LD 1535 
An Act To Authorize Certain Former Members of the Maine State 
Retirement System To Rejoin the Maine State Retirement System 
LR 1996(02) 
Fiscal Note for Bill as Amended by Committee Amendment ,A, 5-/ ~ 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
No net fiscal impact. 
Since this legislation requires the retiree who returns to covered employment under the retirement system as an active 
employee, and who chooses to have their membership in the plan either retroactively or prospectively restored, to pay 
the full cost associated with the restoration of membership, there is no fiscal impact to the Maine State Retirement 
System. The employer will be required to pay the normal cost component once the individual becomes an active 
member. This fiscal note assumes that the employer will have the retirement costs budgeted as part of the personal 
services cost of the position, so there will be no additional cost to the employer. 
LR1996(2) - Fiscal Note - Page 1 of 1