An Act Concerning Disability Retirement Benefits under the Maine State Retirement System LR 2564(02)
Maine Legislature, Session 121, LD 1814
Committee Amendment CA_A_H710 (House)

COMMITTEE AMENDMENT ,/I" to H.P. 1336, L.D. 1814, 
Act Concerning Disability Retirement Benefits under 
State Retirement System" 
Bill, "An 
the Maine 
Amend the bill in section 1 in paragraph B in the 7th line 
(page 
1, 
line 
in 
L.D.) 
by 
striking out 
the 
following: 
"performance 
of" 
and 
inserting in its place the 
following: 
'ability to perform' 
Further amend the bill in section 1 in paragraph B in the 
8th and 9th line (page 1, lines l3 and 14 in L.D.) by striking 
out the following: 
"of the disability retirement benefit" 
Further amend the bill in section 2 
in paragraph B in 
subparagraph (1) in the 12th line (page 2, line 15 in L.D.) by 
striking out the following: 
"performance of" and inserting in 
its place the following: 
'ability to perform' 
Further 
amend the bill in section 2 in paragraph B in 
subparagraph (1) in the 13th and 14th lines (page 2, lines 16 and 
in L.D.) by striking out the following: 
"of the disability 
retirement benefit" 
Further amend the bill in section 3 in paragraph B in the 
7th line (page 3, line 7 in L.D.) by striking out the following: 
"performance 
of" 
and 
inserting in its place 
the 
following: 
'ability to perform' 
Page l-LR2564(2) 
COMMITTEE AMENDMENT 
<,"\' 
COMMITTEE AMENDMENT ,/1" to H.P. 1336, L.D. 1814 
Further amend the bill in section 3 in paragraph B in the 
8th and 9th lines (page 3, lines 8 and 9 in L.D.) by striking out 
the following: 
"of the disability retirement benefit" 
Further 
subparagraph 
striking out 
its place the 
amend the bill in section 4 
(1) in the 12th line (page 4, 
in paragraph B in 
line 9 in L.D.) by 
the following: 
"performance of" and inserting in 
following: 
'ability to perform' 
Further 
amend the bill in section 4 
in paragraph B in 
subparagraph (1) in the 13th and 14th lines (page 4, lines 10 and 
in L.D.) by striking out the following: 
"of the disability 
retirement benefit" 
Further amend the bill by striking out all of section 5. 
SUMMARY 
Under current law, disability retirement benefits under the 
Maine State Retirement System are discontinued after a certain 
number of years if the person receiving the benefit is able to 
engage 
in 
"substantially 
gainful 
activity." 
The 
current 
determination of ability to 
engage 
in substantially gainful 
activity is based on the person's ability to perform work that 
would result in earnings of 
a 
certain amount, 
regardless of 
whether the person is actually performing such work. 
The bill bases the determination of "ability to engage in 
substantially gainful activity" on the actual performance of work 
resul ting in that level of earnings. 
The amendment changes the 
language 
to 
preserve 
the 
original 
method 
of 
making 
the 
determination, Le., basing it on the ability to perform work, 
not the actual performance. 
The 
amendment 
clarifies the 
language 
in 
the bill that 
changes the amount of earnings that indicate the ability to 
engage in substantially gainful activity. 
Under the bill, as 
amended, that amount is $20,000 or 80"'0 of the person's average 
final compensation at retirement, whichever is greater, adjusted 
for increases in the cost-of-living. 
Finally, the amendment removes the retroactivity provision. 
FISCAL \OT[ H.EQURED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 02/12/04 ;tyae. 
Office of Fiscal and Program Review 
LD 1814 
An Act Concerning Disability Retirement Benefits under the Maine State 
Retirement System 
LR 2564(02) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
Undetermined future biennium cost increase - All Funds 
Continuing the payment of disability benefits to recipients who, under current law, would have their disability 
retirement benefit discontinued will result in increased costs to the retirement plan. The impact can not be determined 
at this time. Although this legislation does not directly create an unfunded liability, it does result in the existing 
unfunded liability being paid down at a slower rate than what would have occurred without this provision. These 
costs will ultimately be reflected in the ongoing unfunded liability component of the employer retirement rate, 
resulting in increased employer contributions to the Maine State Retirement System for state employees and teachers. 
LR2564(2) - Fiscal Note - Page 1 of 1