An Act to Make Supplemental Appropriations and Allocations for the Expenditures of State Government and to Change Certain Provisions of the Law Necessary to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2004 and June 30, 2005 LR2833(50)
Maine Legislature, Session 121, LD 1919
Committee Amendment CA_A-HA_Q_H932 (House)
Amends: 5 MRSA §285

HOUSE 
AMENDMENT "Q" to COMMITTEE 
AMENDMENT 
"A" to H.P. 
1420, 
L.D. 
1919, 
Bill, 
"An 
Act 
To 
Make 
Supplemental 
Appropriations 
and Allocations for the Expenditures of State 
Government and To Change Certain Provisions of the Law Necessary 
to the Proper Operations of State Government for the Fiscal Years 
Ending June 30, 2004 and June 30, 2005" 
Amend the amendment by striking out all of Part DDDD and 
inserting in its place the following: 
'PARTDDDD 
Sec. DDDD-l. 5 MRSA §285, sub-§12 is enacted to read: 
12. 
Contractual 
cODDnitment 
to 
health 
insurance 
for 
retirees. 
Effective April 1, 2004, to each vested employee as 
defined in this subsection, the State makes solemn contractual 
commitments as set forth in paragraph C, protected under the 
contract clauses of the Constitution of Maine, Article I, Section 
and the United States Constitution, Article I, Section 10. 
A, 
For purposes of this subsection, "vested employee" means 
an 
employee 
in 
a 
category described in 
subsection 
1, 
paragraph A, F, F-l, F-2 or F-3 who, on or after April 1, 
2004, meets the applicable creditable service requirement 
for eligibility to receive a retirement benefit, at the 
applicable age if so required, under one of the following: 
(1) 
Section 851, which governs legislative retirement: 
(2) 
Section 17851, which governs the regular state 
employee plan; 
(3) 
Section 17851-A, subsection 2, which governs state 
special plans; 
HOUSE AMENDMENT 
~q,. 
~.~ 
HOUSE 
AMENDMENT "0.,, to COMMITTEE 
AMENDMENT 
"A" to H.P. 
L.D. 1919 
1420, 
(4) 
Section 18451. which governs participating local 
district regular plans; 
(5) 
Section 18453, which governs participating local 
district special plans; or 
(6) 
The 
terms 
of 
a 
retirement 
plan 
provided 
to 
employees pursuant to section 18252-B. 
B. 
For purposes of this subsection. 
"time of vesting" 
means. for each employee. the date on which that employee 
met the creditable service requirement for eligibility to 
receive a retirement benefit. at the applicable age if so 
required. as set forth in paragraph A. subparagraphs (1) to 
ti..L. 
C. 
The State makes solemn contractual commitments under 
this subsection that. with respect to any group health plan 
offered by the State: 
(1) 
Eligibility criteria for a vested employee or a 
family member of a vested employee to participate in a 
group health plan under this section after retirement 
will be no more restrictive than eligibility criteria 
applicable to that employee or family member at the 
time of vesting; 
(2) 
The state contribution toward the cost of the 
premium for any group health plan offered by the State 
for a retired vested employee. as a percentage of the 
cost of coverage. is not less than that provided at the 
time of vesting: and 
(3) 
The group health plans offered in each plan year 
to retired vested employees under this section will be 
the 
same 
as or substantially similar to the group 
health plans offered to active employees in that same 
plan year. 
The State Employee Health Commission shall 
determine whether plans are substantially similar. 
D. 
This subsection does not create a contractual commitment 
on the part of the State to offer group heal th plans or to 
maintain coverage for a specific type of benefit or level of 
benefit payment. 
The State may reduce or eliminate coverage 
for types of benen ts or levels of benef i t 
payments for 
retired vested employees only if it makes 
the 
same 
or 
substantially similar reductions for active employees. 
HOUSE AMENDMENT 
HOUSE 
AMENDMENT 
L.D. 1919 
,,~, to COMMITTEE 
AMENDMENT "A" to H. P. l420, 
E. 
This subsection does not create an ancillary benefit 
within the meaning of the Constitution of Maine. Article IX, 
Section 18-A and may not be construed to create a claim 
against the assets of the Maine State Retirement System. 
F. 
The 
solemn 
contractual 
cOmmitment 
provided in this 
subsection is void if a 
court of competent jurisdiction 
rules that this subsection creates an ancillary benefit 
within the meaning of the Constitution of Maine. Article IX, 
Section 18-A.' 
Further amend the amendment by relettering or renumbering 
any 
nonconsecutive 
Part 
letter 
or 
section 
number 
to 
read 
consecutively. 
SUMMARY 
This amendment clarifies that the committee amendment does 
not create a contractual commitment on the part of the State to 
offer group health plans at all or to continue to offer health 
insurance coverage for any type of benefit or to offer a specific 
level of benefit payment. 
However, the State may reduce coverage 
for retirees only if it makes the same or substantially similar 
reductions for active employees. 
It also includes employees of 
the Maine Maritime Academy in the list of vested employees 
eligible to receive health insurance as state retirees. 
FISCAL NOTE REQUIRED 
(See attached) 
(~ 
'---/ 
~ 
/ 
// 
.. -7'/ 
SPONSORED BY: 
.y.c$~~-~.-/ ~ 
(Representative BRANNIGAN) ~~ 
/-,,-
/// 
HOUSE AMENDMENT 
Fiscal Detail and Notes 
Approved: 04114/04 ;tk?ae 
Office of Fiscal and Program Review 
LD 1919 
An Act to Make Supplemental Appropriations and Allocations for the 
Expenditures of State Government and to Change Certain Provisions of 
the Law Necessary to the Proper Operations of State Government for the 
Fiscal Years Ending June 30, 2004 and June 30, 2005 
LR2833(50) 
Fiscal Note for House Amendment" " to Committee Amendment" A" 
Sponsor: Rep. Brannigan 
Fiscal Note Required: Yes 
Fiscal Note 
This amendment will have no net effect on General Fund appropriations and revenue and a balanced budget is 
maintained for the 2004-2005 biennium. 
LR2833(50) - Fiscal Note - Page 1 of 1