An Act Concerning Retirement Benefits for State Employees LR 1654(03)
Maine Legislature, Session 121, LD 1009
Committee Amendment CA_A_H441 (House)

COMMITTEE 
Act Concerning 
AMENDMENT " H, to H. P . 
Retirement Benefits for 
730, L.D. 1009, 
State Employees" 
Bill, "An 
Amend the bill by inserting at the end before the summary 
the following: 
'Sec. 2. Employee contribution. 
If the Maine State Retirement 
System determines at the time a member retires that the member's 
benefit would be increased as 
a 
result of the inclusion of 
compensation that would have been paid for fiscal year 2002-03 
days off without pay, as provided in the Maine Revised Statutes, 
Title 5, section 17001, subsection 4, paragraph A, the retirement 
system shall deduct from that member's first retirement benefit 
check an amount equal to the employee contribution that person 
would have made on the wages that would have been paid to that 
person on the days off without pay during the 2002-03 fiscal 
year, plus interest at the same rate as that required for payment 
of back contributions pursuant to Title 5, section 17704. 
A member who retired before the effective date of this Act 
may ask the retirement system to determine whether inclusion of 
the wages from those days off without pay would increase that 
member's retirement benefit and, if so, 
the retirement system 
shall recalculate that person's benefit, begin paying the higher 
amount to that person and deduct the contribution described in 
this section from the next retirement check of that person. 
The 
person is not entitled to any retroactive payment of the higher 
benefit amount. 
Sec. 
3. 
Appropriations 
and 
allocations. 
appropriations 
and 
allocations 
are 
made. 
Page I-LRI654(3) 
The 
following 
Funds 
mus t 
be 
COMMITTEE AMENDMENT 
}~~ 
~~ 
~. 
COMMITTEE AMENDMENT "ft' to H.P. 730, L.D. 1009 
transferred 
to 
the 
Maine 
State 
Retirement 
System 
on 
or 
immediately after the effective date of this Act. 
MAINE STATE RETIREMENT SYSTEM, BOARD OF TRUSTEES OF THE 
Retirement Allowance Fund 
0085 
Initiative: 
Provides funds for the employer's share of the costs 
associated with those current and future retirees for whom it is 
expected that fiscal year 2002-03 could be one of the average 
final compensation years used in the benefit calculation. 
General Fund 
All Other 
General Fund Total 
SUMMARY 
2003-04 
$76,081 
$76,081 
2004-05 
$0 
$0' 
This amendment provides the funding necessary so that the 
inclusion 
of 
unpaid 
furlough 
days 
in 
the 
average 
final 
compensation of certain members will not create 
an 
unfunded 
liability for the Maine State Retirement System. 
It provides for 
an immediate appropriation of $76,081 to represent the employer 
contribution and requires employees who gain a higher retirement 
benefit as a result of the bill to make up the missed employee 
contribution, plus interest, when they retire. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Appropriations! Allocations 
General Fund 
Fiscal Detail and Notes 
Approved: 05/16/03 ~ac:.. 
Office of Fiscal and Program Review 
LD 1009 
An Act Concerning Retirement Benefits for State Employees 
LR 1654(03) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
Projections 
2003-04 
2004-05 
2005-06 
2006-07 
$76,081 
$0 
$0 
$0 
$76,081 
$0 
$0 
$0 
This bill revises the definition of average final compensation such that no reduction will be experienced for the days 
without pay required for state employees during the fiscal year beginning July 1, 2002. This legislation requires only 
those retirees for whom the inclusion of shutdown day earnings would result in an increased retirement benefit to pay 
the employee contributions associated with those lost earnings and allows for those missed contributions and accrued 
interest to be deducted from a retiree's first benefit check. This bill includes a one-time General Fund appropriation of 
$76,081 in fiscal year 2003-04 to the Maine State Retirement System for the payment of the employer contributions 
associated with the shutdown earnings to be included in the calculation of retirement benefits. This appropriation is 
based on an estimate, developed by the Maine State Retirement System, that reflects the amount of employer 
contributions associated with those current and future retirees for whom it is expected that fiscal year 2002-03 could 
be one of the average final compensation years used in the benefit calculation. 
LR1654(3) - Fiscal Note - Page 1 of 1