An Act To Amend the Laws Governing Purchase of Military Time Served under the Maine State Retirement System LR2648(02)
Maine Legislature, Session 121, LD 1836
Committee Amendment CA_A_H839 (House)
Amends: 5 MRSA §17001, 5 MRSA §17713, 5 MRSA §17760, 5 MRSA §17851

COMMITTEE AMENDMENT ,A" to H.P. 1360, L.D. 1836, Bill, "An 
Act To Amend the Laws Governing Purchase of Military Time Served 
under the Maine State Retirement System" 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
'Sec. 1. 5 MRSA §17001, sub-§10. as enacted by PL 1985, c. 
801, §§5 and 7, is amended to read: 
10. 
Creditable 
service. 
"Creditable 
service" 
means 
a 
person's 
membership 
service, 
the 
person's 
prior 
service 
and 
service for which credit is allowable under sections 17755 and 
17756; section 17760, subsection 6 .1; 
section 18258; sections 
18355 and 18356; and section 18360, subsection 2. 
Sec. 2. 5 MRSA §17713, sub-§2, as amended by PL 1993, c. 349, 
§16, is further amended to read: 
2. 
Service before becoming a member. A member who qualifies 
under section 17760 to purchase service credit at the cost set 
forth in section 17760, subsection 6r 
~ shall contribute to the 
retirement system for the period of service in the armed forces 
as follows ....... 
A. 
~f-~~~-~~a~i~~&-QRae~-~~~~-~~~r-saBseetieH 
6r-~a~Fi9~~ieHs Contributions must be calculated at the 
percentage rate required of active members during the period 
of time covered by the service in the armed forces applied 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT '*' to H.P. 1360, L.D. 1836 
to the member's earnable compensation during the first year 
as an employee after service in the armed forces, under the 
following terms and conditions: 
(1) 
If 2 or more percentage rates were in effect 
during the period of service in the armed forces, the 
highest percentage rate must be used; 
(2) 
The minimum rate is 5%; and 
(3) 
Interest at a rate set by the board not to exceed 
regular interest by 2 or more percentage points must be 
paid on the unpaid balance beginning January 1, 1976, 
or 
the 
date 
of 
attaining 
years 
of 
creditable 
service, if later, to the date payment is made. 
C. 
The payment must be made to the retirement system by a 
single direct payment or by annual direct payments made in 
accordance with section 17701, subsection 4. 
Sec. 3. 5 MRSA §17760, as amended by PL 2003, c. 387, §§2 and 
3, is further amended to read: 
§11160. Service in the armed forces 
Service credit for service in the United States Armed Forces 
is governed as follows. 
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1. 
Service after becoming a member. A member is entitled to 
service credit for the period of time during which the member's 
membership is continued under section 17655, subsection 1, under 
the 
following 
terms 
and 
conditions. 
Except 
as 
provided in 
paragraph Be service credit under this subsection is limited to 5 
years. 
A. 
A member who is otherwise entitled to service credit for 
military leave may not be deprived of these credits if the 
member's return to membership service is delayed beyond 90 
days after the member's separation from the service in the 
Armed Forces of the United States, under conditions other 
than dishonorable, if the delay is caused by an illness or 
disability incurred in the service in the armed forces. 
B. 
A member may not receive service credit for military 
leave beyond the end of the period of first enlistment or 
induction or beyond 5 years from the date of original call 
to active duty in the 
armed forces, 
whichever is less, 
unless: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ~, to H.P. 1360, L.D. 1836 
(1) 
The member I s return to active duty in the armed 
forces or the extension of the period of service beyond 
years is required by some mandatory provision; and 
(2) 
The person presents proof of the return to or 
extension of service satisfactory to the board. 
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COMMITTEE AMENDM~NT 
COMMITTEE AMENDMENT ,,~, to H.P. 1360, L.D. 1836 
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3. 
Service before becoming member. 
A member who served as 
a full-time active duty member of the United States Armed Forces 
before becoming a member and who separated from the armed forces 
under conditions other than dishonorable is entitled under this 
subsection to purchase service credit for the period of time that 
the member served in the armed forces by complying with the terms 
and conditions of this subsection and the applicable provisions 
of subsection 4 or 5. 
Service credit under this subsection is 
limited to 4 years. 
A. 
A member may purchase service credit at the cost set 
forth in subsection 4 if the member has at least 15 years of 
creditable service at the time of retirement, the member 
makes payment as required under subsection 4 and the member: 
(1) 
Began membership prior to January I. 1976; 
(2) 
Served in the United States Armed Forces during 
any federally recognized period of conflict; or 
(3) 
Was awarded an Armed Forces Expeditionary Medal. a 
Combat Action Ribbon. 
a Combat Infantry Badge or any 
other campaign or expeditionary medal and the receipt 
of such a medal would allow the member to be considered 
"preference 
eligible" 
under 
United 
States 
Code, 
Section 2108(3)(A) or 2108(3){B). 
A member described 
in this subparagraph is entitled to purchase service 
credit at the cost set forth in subsection 4 only if a 
cost subsidy for that member's service credit has been 
paid to the retirement system as provided in subsection 
h 
B. 
A member may purchase service credit at the cost set 
forth in subsection 5 if the member has at least 5 years of 
creditable service at the time of retirement and the member 
makes payment as required under subsection 5. 
C. 
For purposes of this subsection. "federally recognized 
period of conflict" means World War I. April 6, 
1917 to 
November 11. 1918 or to March 31. 1920 if service was in 
Russia; World War II. December 7, 1941 to December 31. 1946; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,~, to H.P. 1360, L.D. 1836 
the Korean Conflict, June 27, 1950 to January 31, 1955; the 
Vietnam War, August 5, 1964 to May 7, 1975 and the period 
beginning on February 28, 1961 and ending on May 7, 1975 in 
the case of a veteran who served in the Republic of Vietnam 
during that period; and the Persian Gulf War, August 7, 1990 
to the date that the United States Government recognizes as 
the end of the Persian Gulf War. 
4. 
Members qua1ified for credit at subsidized cost. 
A 
member qualified under subsection 3 to purchase service credit at 
the cost set forth in this subsection is entitled to service 
credit upon payment of back contributions under section 17713, 
subsection 2. 
Upon complete payment of back contributions, the 
member must be granted service credit for the period of time for 
which payment is made. 
Upon making partial payment, the member 
must be granted service credit on a pro rata basis in accordance 
with rules adopted by the board. 
5. 
Members qqalified for credit at actuarial cost. 
A 
member qualified under subsection 3 to purchase service credit at 
the cost set forth in this subsection is entitled to service 
credit if the member pays into the Members' Contribution Fund 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. 
A. 
Payment must 
be 
made before any retirement benefit 
becomes effective for that member. 
B. 
Payment may be made to the retirement system by a single 
direct payment or by annual direct payments in accordance 
with section 17701, subsection 4. 
C. 
A person 
who 
purchases 
service 
credit 
under 
this 
subsection and who subsequently, without inclusion of the 
purchased service credit and prior to retirement, becomes 
qualified for service credit at the cost set forth in 
subsection 4 is entitled to purchase the service credit 
under section 17713, subsection 2 and to receive a refund of 
the amount paid under this subsection that exceeds the cost 
to purchase the service credit under section 17713. 
A 
person who would have been qualified to purchase service 
credit under subsection 4 prior to retirement if a timely 
appropriation had been made under subsection 6 is entitled 
to a refund under this subsection even if the person becomes 
qualified after retirement. 
6. 
Cost 
subsidy 
for 
certain 
award 
recipients: 
annual 
report. 
A recipient of an award described in subsection 3, 
COMMITTEE 
AMENDM~NT 
COMMITTEE AMENDMENT ,~, to H.P. 1360, L.D. 1836 
paragraph A, subparagraph (3) may purchase service credit at a 
subsidized cost under subsection 4 only if the retirement system 
has 
received an appropriation of the difference between the 
actuarial cost of that member's service credit and the amount to 
be paid by the member under subsection 4. 
A. 
The retirement system shall annually, by February 15th, 
report to the joint standing committee of the Legislature 
having jurisdiction over retirement matters and the joint 
standing committee of the Legislature having jurisdiction 
over appropriations matters: 
(1) The amount, if any, in the account maintained for 
the purposes of this subsection; 
(2) 
The 
cost to subsidize the purchase of service 
credit under this subsection for members who applied 
and 
were 
determined eligible in the 
calendar 
year 
immediately preceding the report; and 
(3) 
The 
cost to subsidize the purchase 
of service 
credi t 
under this subsection for members who applied 
and were determined eligible in each of the calendar 
years before the immediately preceding calendar year 
for which full appropriations were not made. 
B. 
In response to the report described in paragraph A, the 
joint 
standing 
committee 
of 
the 
Legislature 
having 
jurisdiction 
over 
retirement 
matters 
may 
report 
out 
legislation appropriating funds for all or a part of the 
costs set forth in the report. 
C. 
The retirement system shall maintain a separate account 
for funds appropriated for the purposes of this subsection. 
When the account contains sufficient funds to subsidize the 
purchase of service credit for all members who applied and 
were determined to be eligible in a 
particular calendar 
year, 
the 
retirement 
system 
shall 
allow that group 
of 
members to make purchases. 
Funds in the account must be 
applied to the earliest calendar year for which members 
remain who are eligible but have not yet been able to make 
purchases. 
Sec. 4. 5 MRSA §17851, sub-§4, 1fA, as amended by PL 1997, c. 
740, §3 and affected by §6, is further amended to read: 
A. 
Became a state police 
before September 16, 1984, 
years of creditable service 
may 
include 
creditable 
officer after July 9, 1943, but 
and retires after completing 20 
as a state police officer, which 
service 
under 
section 
17760, 
~OMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,~, to H.P. 1360, L.D. 1836 
subsection 1, but may not include creditable service under 
section 17760, subsection 6 ~; or 
Sec. 5. 5 MRSA §17851, sub-§5, 1[B, as enacted by PL 1985, c. 
801, §§5 and 7, is amended to read: 
B. 
Retires after completing 20 years of creditable service 
in that capacity, which may include creditable service under 
section 17760, subsection 1, but may not include creditable 
service under section 17760, subsection 6 1. 
Sec. 6. 5 MRSA §17851, sub-§6, 1[B, as enacted by PL 1985, c. 
801, §§5 and 7, is amended to read: 
B. 
Retires after completing 20 years of creditable service 
in that capacity, which may include creditable service under 
section 17760, subsection 1, but may not include creditable 
service under section 17760, subsection 6 1.' 
SUMMARY 
This amendment replaces the bill. 
Under current law, 
a 
Maine State Retirement System member can purchase service credit 
for military service at a subsidized rate as long as the person 
served during a federally recognized period of conflict. 
The 
term "federally recognized period of conflict" was contained in 
the 
Maine 
Revised 
Statutes, 
Title 
37-B 
and 
served 
as 
the 
defini tion for purposes of the retirement laws. 
In 1999, that 
definition was repealed in Title 37-B. 
This amendment enacts a 
definition similar to that from Title 37-B as amended immediately 
prior to its repeal. 
The amendment also allows recipients of the Armed Forces 
Expeditionary Medal and several other campaign and expeditionary 
medals and awards to purchase service credit at a subsidized 
rate, but only if an appropriation is made to the retirement 
system to cover the subsidy. 
The retirement system will report 
annually to the Legislature on the amounts needed to subsidize 
purchases 
by 
members 
who 
have 
applied 
and 
been 
determined 
eligible during the prior calendar year to make such a purchase. 
The amendment clarifies the intent of legislation enacted 
last session regarding the maximum amount of service credit that 
may be granted for periods of service in the armed forces. 
The 
amendment also corrects cross-references. 
FISCAL :\OTE REQLlRED 
(See attached) 
COMMITTEE AMENDM~NT 
Fiscal Detail and Notes 
Approved: 03/30/04 ;!;Pac 
Office of Fiscal and Program Review 
LD 1836 
An Act To Amend the Laws Governing Purchase of Military Time 
Served under the Maine State Retirement System 
LR2648(02) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
Potential future biennium cost increase - All Funds 
This bill expands the number of members who may be eligible to purchase military service credit at a subsidized rate. 
Since this bill allows for these additional members to purchase military service at a subsidized rate only after a 
General Fund appropriation has been made by the Legislature that is sufficient to subsidize the difference between thf' 
actuarial cost of the members' service credit and the amount to be paid by the member, there is no immediate cost to 
the retirement plan. The future cost can not be determined at this time and will depend on the number of members 
who apply and are found eligible to purchase militiary service credit under this provision. 
T "R?tl4R(2) - Fiscal Note - Page 1 of 1