An Act To Allow the Buyback of Active Duty Military Time for Maine State Retirement System Credit LR 1047(02)
Maine Legislature, Session 121, LD 0881
Committee Amendment CA_A_H320 (House)
Amends: 5 MRSA §17760, 5 MRSA §18360

COMMITTEE AMENDMENT "4,, to H.P. 658, L.D. 
Act To Allow the Buyback of Active Duty Military 
State Retirement System Credit" 
881, Bill, "An 
Time for Maine 
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 §17760, sub-§2, 1[D, as enacted by PL 1985, c. 
801, §§5 and 7, is repealed. 
Sec. 2. 5 MRSA §17760, sub-§2, 1[E, as amended by PL 2001, c. 
114, §2, is repealed. 
Sec. 3. 5 MRSA §17760, sub-§2, 1[G, as enacted by PL 2001, c. 
114, §3, is amended to read: 
G. 
A member who fails to meet eRe-e£-~€-~-~~-~Fffi&-aRa 
eeRa~~~eR6--~~~~-~---paFa~Fapa&--A7--~-~~--~ the 
requirement of paragraph A 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 
COMMITTEE AMENDMENT 
· 
~ 
.. "': 
~', . :' 
'~. '.' 
COMMITTEE AMENDMENT .. # 
.. to H.P. 658, L.D. 881 
payments must be made in accordance with 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 
~e~ffis-aBe-£e£~~~~-~-~~~~r~-aBe-E requirement of 
paragraph A 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, tn, as enacted by PL 1985, c. 
801, §§5 and 7, is repealed. 
Sec. 5. 5 MRSA §18360, sub-§2, 1[E, as amended by PL 2001, c. 
114, §5, is repealed. 
Sec. 6. 5 MRSA §18360, sub-§2, 1fI, as enacted by PL 2001, c. 
114, §6, is amended to read: 
I. 
A member who fails to meet eBe-e£-~~~-~~-~Em&-aBa 
eeBa~~ieBs--~~~~-~---paFa~Fapas--A7--~-~--E the 
requirement of paragraph A 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 with 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 
~e~ffis-aBe-£~~~~-~-~~~~r~-ase-E reguirement of 
paragraph A 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 
This 
amendment 
replaces 
the 
bill 
with 
language 
that 
accurately reflects the intent of the bill. 
It provides that a 
person need not have served in a federally recognized period of 
conflict to be entitled to the subsidized rate for buying back 
military service time if the person has 15 years of creditable 
COMMITTEE AMENDMENT 
\ .. 
COMMITTEE AMENDMENT '11" to H.P. 658, L.D. 881 
service when the military service credits are being purchased. 
If the person has fewer than 15 years of creditable service, the 
person may continue to purchase mili tary service time at the 
actuarial cost, as long as the person has at least 5 years of 
creditable service. 
FISCAL :\OTE RE(,lLlRED 
(Se'!_attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 05107/03 ~aC! 
12lst Maine Legislature 
Office of Fiscal and Program Review 
LD881 
An Act To Allow the Buyback of Active Duty Military Time for Maine 
State Retirement System Credit 
LR 1047(02) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
Undetermined current biennium cost increase - All Funds 
Allowing members who served in the military at a time other than during a federally recognized period of conflict to 
purchase service credit at a subsidized cost regardless of when membership in the retirement system began would 
increase the unfunded liability of the Maine State Retirement System. Pursuant to the constitution of Maine, Article 
IX, Section 18-A, unfunded liabilities may not be created except those that result from experience losses. The Maine 
State Retirement System will require one-time additional General Fund appropriations and Highway Fund and other 
funds allocations, the amounts of which can not be determined at this time, representing the full actuarial value of the 
increase to the unfunded liability. An estimate prepared for legislation submitted to the 119th Legislature utilizing 
data from the Retirement System and the Department of Veterans Affairs indicated that the increase to the unfunded 
liability would be approximately $701,000. There will be an additional cost to the Maine State Retirement System for 
the actuarial services that will be required to update this estimate. 
According to the Retirement System, the impact of this legislation on the normal cost component can not be 
determined at this time. However, it is expected to be minimal, and would emerge over time through plan experience. 
The changes made by this legislation are applicable to both Participating Local Districts in the Consolidated Plan and 
to withdrawn PLD's only if adopted by either the Consolidated Plan Advisory Committee and the Board or by the 
PLD. Since acceptance of changes by a PLD requires acceptance of the cost of the change, no unfunded liability is 
created. 
LR 1047(7)  Pi",."l N"t ..  D~~4 1 
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