An Act To Allow the Buyback of Active Duty Military Time for Maine State Retirement System Credit
Maine Legislature, Session 121, LD 0881
Committee: Labor
Sponsors: COWGER, GAGNON, HEIDRICH, KAELIN, PINEAU, THOMPSON, WATSON, TREAT
Amends: 5 MRSA §17760, 5 MRSA §18360

Legislative Document 
No. 881 
H.P.658 
House of Representatives, February 20,2003 
An Act To Allow the Buyback of Active Duty Military Time for 
Maine State Retirement System Credit 
Reference to the Committee on Labor suggested and ordered printed. 
Presented by Representative COWGER of Hallowell. 
Cosponsored by Senator GAGNON of Kennebec and 
'7r/~ /J7.1lbc~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: HEIDRICH of Oxford, KAELIN of Winterport, McCORMICK of West 
Gardiner, McKENNEY of Cumberland, PINEAU of Jay, THOMPSON of China, WATSON of 
Bath, Senator: TREAT of Kennebec. 
Printed on rt:9cled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §17760, sub-§2, ~D, as enacted by PL 1985, c. 
801, §§5 and 7, is amended to read: 
D. 
EHeep1;--as--p-r-o-v-i-ded--iB-pa£~-aph--E-r-1;He The member must 
have begun membership before January 1, 1976. 
Sec. 2. 5 MRSA §17760, sub-§2, ~E, as amended by PL 2001, c. 
114, §2, is repealed. 
Sec. 3. 5 MRSA §17760, sub-§2, ~G, as enacted by PL 2001, c. 
114, §3, is amended to read: 
G. 
A member who fails to meet one or more of the terms and 
conditions required under paragraphs 
AT 
and 
D 
aB9.--E 
may 
purchase service credit as provided in this paragraph. 
The 
member must have at least 5 years of creditable service and, 
before any retirement benefit becomes effective for that 
member, must pay into the Members' Contribution Fund, by a 
single direct payment 
or 
annual 
direct payments 
to 
the 
retirement system, 
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. 
Annual direct payments must be made in accordance 
wi th section 17701, subsection 4. 
Any member who purchases 
service 
credit 
under 
this 
paragraph 
who 
subsequently, 
without inclusion of the purchased service credit and prior 
to retirement, meets the terms and conditions of paragraphs 
AT and D aBEl-E is entitled to purchase the service credit 
under section 17713, subsection 2 and to receive a refund of 
the amount paid under this paragraph that exceeds the cost 
to purchase the service credit under section 17713. 
Sec. 4. 5 MRSA §18360, sub-§2, ~D, as enacted by PL 1985, c. 
801, §§5 and 7, is amended to read: 
D. 
EHeep1;--as--p-E'-O¥-i-ded--iB-pa£~-aph--E-r-1;He The member must 
have begun membership before January 1, 1976. 
Sec. 5. 5 MRSA §18360, sub-§2, ~E, as amended by PL 2001, c. 
114, §5, is repealed. 
Sec. 6. 5 MRSA §18360, sub-§2,~, as enacted by PL 1985, c. 
801, §§5 and 7, is amended to read: 
F. 
EHeep1;--f-o.r--mem&e-Fs---t{~.,i.f"y.,i-l1~--1.ffide-r--I'a.£al3£apb--E-,--1;bis 
This subsection: 
(1) 
Applies to all persons, active or retired, but, 
for those already retired, the effective date of any 
adjustment sHall may not be Bet: earlier than the date 
on 
which 
the 
time 
or 
credit is certified to 
the 
retirement system; and 
(2) 
Does not apply to any member who begins membership 
on or after January 1, 1976. 
Sec. 7. 5 MRS A §18360, sub-§2, 1fI, as enacted by PL 2001, c. 
114, §6, is amended to read: 
I. 
A member who fails to meet one or more of the terms and 
conditions required under paragraphs 
AT 
and D 
aBe.--~ may 
purchase service credit as provided in this paragraph. 
The 
member must have at least 5 years of creditable service and, 
before any retirement benefit becomes effective for that 
member, must pay into the Members' Contribution Fund, by a 
single direct payment 
or 
annual direct payments 
to 
the 
retirement system, 
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. 
Annual direct payments must be made in accordance 
wi th section 17701, subsection 4. 
Any member who purchases 
service 
credit 
under 
this 
paragraph 
who 
subsequently, 
without inclusion of the purchased service credit and prior 
to retirement, meets the terms and conditions of paragraphs 
AT and D aBa-I!; is entitled to purchase the service credit 
under section 18311, subsection 2 and to receive a refund of 
the amount paid under this paragraph that exceeds the cost 
to purchase the service credit under section 18311. 
SUMMARY 
Public Law 2001, chapter 114 enacted an exception to the law 
to allow members of the Maine State Retirement System who didn't 
have the necessary service during a "federally recognized period 
of conflict" to buy back service credit for service in the United 
States Armed Forces by paying the actuarial cost of the portion 
of the retirement benefit based on the additional creditable 
service. 
This bill instead merely removes the requirement that 
members seeking to buy back service credit for service in the 
United States Armed Forces have served in a federally recognized 
period of conflict to be eligible to purchase military service 
credit.