An Act to Clarify the Purchase of Military Time Served under the Maine State Retirement System LR 1446(02)11 q
Maine Legislature, Session 121, LD 0992
Committee Amendment CA_A_S139 (Senate)
Amends: 5 MRSA §17851

COMMITTEE AMENDMENT "1/,, to S.P. 333, L.D. 992, 
Act To Clarify the Purchase of Military Time Served 
Maine State Retirement System" 
Bill, 
under 
"An 
the 
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 §17851, sub-§I-B, 1[B, as enacted by PL 1999, 
c. 489, §7, is repealed and the following enacted in its place: 
B. 
For the purpose of calculating creditable service under 
this subsection only, creditable service includes: 
(1) 
Time during which 
a 
member participated in the 
voluntary cost savings plan or the VOluntary employee 
incentive 
program 
authorized 
by 
Public 
Law 
1989, 
chapter 702, Part Fe 
section 6 and Public Law 1991. 
chapter 591, Part BB and chapter 780, Part vv; 
(2) Ten years of combined creditable service under this 
Part and Title 3, chapter 29; 
(3) Creditable service available to a member that the 
member was eligible to purchase on June 30, 1993 and 
that the member does purchase in accordance with rules 
adopted by the board; and 
Page l-LR1446(2) 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ·A .. to S.P. 333, L.D. 992 
(4) Creditable service purchased under section 17760 or 
18360 that a member was· not eligible to purchase on 
June 30, 1993, as long as, in addition to the amount 
required to be paid under section 17760 or 18360, the 
member pays an amount equal to the actuarial equivalent 
of the difference between the value of the retirement 
benefit calculated under section 17852, subsection 3 
and the value of the retirement benefit calculated 
under section 17852, subsection 3-A. 
Sec. 2. 5 MRSA §17851, sub-§2-B,~, as enacted by PL 1999, c. 
489, §10, is repealed and the following enacted in its place: 
B. 
For the purpose of calculating creditable service under 
this subsection only, creditable service includes: 
(1) 
Time during which 
a 
member participated in the 
voluntary cost savings plan or the voluntary employee 
incentive 
program 
authorized 
by 
Public 
Law 
1989, 
chapter 702, Part F, section 6 and Public Law 1991, 
chapter 591, Part BB and chapter 780, Part vv; 
(2) Ten years of combined creditable service under this 
Part and Title 3, chapter 29: 
(3) Creditable service available to a member that the 
member was eligible to purchase on June 30, 1993 and 
that the member does purchase in accordance with rules 
adopted by the board: and 
(4) Creditable service purchased under section 17760 or 
18360 that a member was not eligible to purchase on 
June 30, 1993, as long as, in addition to the amount 
required to be paid under section 17760 or 18360. the 
member pays an amount equal to the actuarial equivalent 
of the difference between the value of the retirement 
benefit calculated under section 17852, 
subsection 3 
and the value of the retirement benefit calculated 
under section 17852, subsection 3-A. 
Sec. 3. 5 MRS A §17852, sub-§3, as amended by PL 1999, c. 489, 
§16, is further amended to read: 
3. 
Member with creditable service of 25 years or more; 10 
years of creditable service on July 1, 1993. 
The amount of the 
service retirement benefit for members qualified under section 
17851, subsection 3, is computed in accordance with subsection 1, 
except that: 
A. 
The amount arrived at under subsection 1 is reduced by 
applying to that amount the percentage that a life annuity 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .. A 
.. to S.P. 333, L.D. 992 
due at age 60 bears to the life annuity due at the age of 
retirement; 
B. 
For 
the 
purpose 
of 
making 
the 
computation 
under 
paragraph 
A, 
the board-approved tables 
of 
annuities 
in 
effect at the date of the member's retirement are used; and 
C. 
Effective October 1, 1999, the reduction to be applied 
to the service retirement benefit of a member to whom this 
subsection applies may not be greater than that in effect on 
October 1, 1999 under paragraphs A and B for a member who, 
on October 1, 
1999 
or thereafter, meets 
the creditable 
service requirement for eligibility to receive a 
service 
retirement benefit 
under 
section 17851, 
subsection 
1-B; 
section 17851, subsection 1-C, paragraph A; section 17851, 
subsection 1-C, paragraph B; section 17851, subsection 2-A, 
paragraph A; section 17851, subsection 2-B; section 17851, 
subsection 2-C, paragraph B; or who after October 1, 1999, 
meets the creditable service requirement for eligibility to 
receive a service retirement benefit under section 17851, 
subsection 1-C, paragraph B or section 17851, 
subsection 
2-C, 
paragraph B. 
For members 
to whom 
section 17851-A 
applies, this paragraph must be applied in accordance with 
the requirements of section 17851-A, subsection 4. 
This subsection applies to members who, on July 1, 1993, have 10 
years of creditable service. 
For the purpose of calculating 
creditable service under this subsection only, creditable service 
includes time during which a member participated in the voluntary 
cost savings plan or the voluntary employee incentive programT 
authorized by Public Law 1989, chapter 702, Part F, section ~-9 Q 
and Public Law 1991, chapter 591, Part BB and chapter 780, Part 
VV, or 10 years of combined creditable service under this Part 
and Title 3, chapter 29, 
9l' creditable service available to a 
member that the member was eligible to purchase on June 30, 1993 
and that the member 
does 
purchase in accordance with rules 
adopted by the board, 
and creditable service purchased under 
section 17760 or 18360 that a member was not eligible to purchase 
on June 30, 1993, as long as, in addition to the amount required 
to be paid under section 17760 or 18360, the member pays an 
amount 
equal 
to 
the actuarial equivalent of 
the difference 
between the value of the retirement benefit calculated under this 
subsection and the value of the retirement benefit calculated 
under subsection 3-A.' 
This 
amendment 
member of the Maine 
credi t for military 
SUMMARY 
replaces the bill. 
Under current law, 
a 
State Retirement System may purchase service 
time served before that person entered the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. A 
.. to S.P. 333, L.D. 992 
Maine State Retirement System. 
If the person was eligible before 
July 1, 1993 to purchase that service credit time, the person may 
count the purchased service credit toward meeting the requirement 
of 
years of service credit in order to have 
retirement 
benefits calculated under 
a 
more 
favorable 
formula than for 
people who do not meet the 10-year requirement. 
This amendment 
allows a person who was not eligible to purchase military time 
before July 1, 1993 to also count that time toward qualifying for 
the more favorable benefit formula, but only if the person pays 
the actuarial cost of obtaining the right to the more favorable 
benefit as well as paying the cost of the service credits. 
FISCAL :--iOTE REQlIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 05109103 ;t!;?ac 
Office of Fiscal and Program Review 
LD992 
An Act to Clarify the Purchase of Military Time Served under the Maine 
State Retirement System 
LR 1446(02)11 q 
Fiscal Note for Bill as Amended by Committee Amendment 'It'J13 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
No net fiscal impact. 
Because this legislation requires the member to pay the full actuarial cost of including the purchased military service 
toward the ten year requirement in such a way that the member moves from coverage in the post-July 1, 1993 plan to 
coverage in the pre-July 1, 1993 plan, no costs to the retirement plan are created. 
LR1446(2) - Fiscal Note - Page 1 of 1