An Act to Amend the Laws Relating to the Maine State Retirement System LR 1943(02) .
Maine Legislature, Session 121, LD 1501
Committee Amendment CA_A_S179 (Senate)
Amends: 5 MRSA §17927, 5 MRSA §18527

COMMITTEE AMENDMENT .. A .. to S.P. 501, L.D. 1501, Bill, "An 
Act To Amend the Laws Relating to the Maine State Retirement 
System" 
Amend the bill by striking out all of sections 4 to 9 and 
inserting in their place the following: 
'Sec. 4. 5MRSA§17911 is enacted to read: 
§179ll. 
Rehabilitation 
Upon agreement of the executive director and the person, 
rehabilitation services may be provided to any person who is the 
recipient of a disability retirement benefit under this article 
as a means to the person being able to return to substantially 
gainful activity. 
As a condition of entering into an agreement 
to provide rehabilitation services. the executive director must 
determine that rehabilitation is feasible. that rehabilitation is 
consistent with the purposes of this article. that the recipient 
is suitable for rehabilitation services and that· rehabilitation 
services are likely to lead to substantially gainful activity. 
When 
appropriate. 
determination 
of 
suitability 
must 
include 
consultation with the medical board to determine any medical 
indications 
that 
the 
recipient 
should 
not 
engage 
in 
a 
rehabilitation program or to identify a recipient too severely 
disabled to benefit from rehabilitation services in accordance 
with the purposes of this article. 
Services must be provided by 
private and public rehabilitation counselors. government agencies 
Page l-LR1943(2} 
COMMITTEE AMENDMENT 
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COMMITTEE ""ENDMENT "it" 
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to 
.P. 
, 
.D. 1501 
and others approved by the executive director as qualified to 
provide rehabilitation services. 
The executive director shall 
consider 
a 
rehabilitation 
counselor's 
rate 
of 
successfully 
placing rehabilitated employees in jobs relative to the placement 
rates of other counselors in the State as fundamental in deciding 
whether to approve the counselor as qualified. 
This section does 
not affect the ongoing requirement that a person remain disabled 
in order to continue to receive disability benefits. 
For the purposes of this section. "person" means any person 
who is the recipient of a disability retirement benefit. 
1. 
Rehabilitation plan. 
If the executive director makes 
the determinations necessary to provide rehabilitation services 
under this section and rehabilitation agreed to by the parties. 
the retirement system shall designate a rehabilitation provider 
to evaluate the person and develop a rehabilitation plan. 
2. 
Costs. 
The 
executive 
director 
may 
contract 
with 
rehabilitation providers 
to 
develop 
and 
carry 
out 
approved 
rehabilitation plans. 
A. 
Except 
as 
provided 
in 
paragraph 
B. 
the 
executive 
director shall pay these providers from funds accumulated in 
the Retirement Allowance 
Fund. 
established under section 
17251. 
B. 
If the person is entitled to other benefits to meet the 
cost of rehabilitation services. 
that person must first 
apply for and use those benefits to the extent available to 
pay for the goods and services provided. 
3. 
Approval of rebabilitation plan. 
The executive director 
and the person shall approve any rehabilitation plan developed 
under subsection 1 and shall indicate in writing their approval 
of and agreement to the rehabilitation plan. 
The person shall 
approve the plan within 30 days or. within that time period. 
submit 
to 
the 
executive director the 
name 
of 
an alternate 
provider 
for 
the executive director's consideration. 
If the 
rehabilitation plan 
includes 
return 
to 
employment 
with 
the 
employer for whom the person worked before becoming disabled. the 
employer also shall indicate in writing approval of the plan. 
4. 
Monitoring of rehabilitation plan. 
Each rehabilitation 
plan approved by the executive director must contain a provision 
for periodic review of progress being made by the person toward 
achieving 
the 
goal 
of 
the 
plan 
and 
substantially gainful 
activity. 
The 
prov~s~on relating 
to 
review 
must 
include 
authority for the executive director to terminate the plan or to 
amend the plan with the 
same provider or with a 
change of 
COMMITTEE AMENDMENT 
-. 
".~. 
"b~ 
'i'!' 
COMMITTEE AMENDMENT ,14 .. to S.P. 501, L.D. 1501 
provider, based upon results of the review or at the request of 
the person or the provider. 
Subsections I. 2 and 3 apply to any 
amended plans under this subsection. 
A person is entitled to a 
single rehabilitation plan during the course of the person's 
incapacity except when the person demonstrates that a termination 
of the plan was reasonable and for good cause. 
Any entitlement 
to amend a rehabilitation plan or establish a new plan ends with 
a determination by the executive director that the person is no 
longer disabled. 
5. 
Return to service. 
If the rehabilitation plan includes 
return to employment with the person's former employer, 
that 
person must be reemployed in accordance with the plan. 
The 
executive director shall notify the former employer, in writing, 
that the person has completed the rehabilitation plan and is 
ready 
to 
return 
to 
employment. 
The 
former 
employer 
shall 
reemploy the person in the first available position for which 
that person is qualified, taking into consideration that person's 
prior 
compensation 
and 
benefits. 
training, 
education 
and 
experience. including training and education received under that 
person's rehabilitation plan. 
6. 
EmPlo~nt exception. 
A person is not required to 
accept employment that reasonably necessitates relocation or for 
which the person is not qualified, taking into consideration that 
person's prior compensation and benefits, training, education and 
experience, including training and education received under that 
person's rehabilitation plan. The disability retirement benefit 
may not be discontipued except as provided by section 17929 or 
until the person is reemployed consistent with this section. 
Sec. 5. 5 MRSA §17927, as amended by PL 1995, c. 643, §§12 
and 13, is further amended to read: 
§17927. Rehabilitation 
Reaa:ei*i~a~ieB Upon agreement of the executive director and 
the person. rehabilitation services 
HlliS~ mgy be provided to any 
person who is the recipient of a disability retirement benefit 
under this article waeBeveF as a means to the person being able 
to return to substantially gainful activity. 
As a condition of 
entering into an agreement to provide rehabilitation services, 
the 
executive 
director 
se~eFHliBes 
must 
determine 
that 
rehabilitation is feasible, 
that rehabilitation is consistent 
with the purposes of this article aBs-<-
that the recipient is 
suitable 
for 
rehabilitation services 
and 
that rehabilitation 
services are likely to lead to substantially gainful activity. 
When 
BeeessaFY appropriate, 
determination of suitability must 
include consultation with the medical board to determine 
any 
medical indications that the recipient should not engage in a 
COMMITTEE AMENDMENT 
ref' 
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• 
.... 
;A '. ":.-
~, .. , 
"., 
COMMITTEE AMENDMENT .. A 
.. to S.P. 501, L.D. 1501 
rehabilitation program or to identify a recipient too severely 
disabled to benefit from rehabilitation services in accordance 
with the purposes of this article. 
Services must be provided by 
private and public rehabilitation counselors, government agencies 
and others approved by the executive director as qualified to 
provide rehabilitation services. 
The executive director shall 
consider 
a 
rehabilitation 
counselor's 
rate 
of 
successfully 
placing rehabilitated employees in jobs relative to the placement 
rates of other counselors in the State as fundamental in deciding 
whether to approve the counselor as qualified. 
This section does 
not affect the ongoing requirement that a person remain disabled 
in order to continue to receive disability benefits. 
For the purposes of this section, "person" means any person 
who is the recipient of a disability retirement benefit. 
1. 
Rehabilitation plan. 
If the executive director makes 
the determinations necessary to provide rehabilitation services 
under this section and rehabilitation is ~easiBle-aBa-£eeemmeBaea 
agreed to by the parties, the retirement system shall designate a 
rehabilitation provider to evaluate the person and develop a 
rehabilitation plan. 
2. 
Costs. 
The 
executive 
director 
rehabilitation providers 
to 
develop 
and 
rehabilitation plans. 
A. 
Except 
as 
provided 
in 
paragraph 
director shall pay these providers from 
the 
hlisaBilisy--R-e-t.-i~.eme«-~~j,..t;.-J1:1:lBa 
Fund, established under section 17251. 
may 
contract 
with 
carry 
out 
approved 
B, 
the 
executive 
funds accumulated in 
Retirement Allowance 
B. 
If the person is entitled to other benefits to meet the 
cost of rehabilitation services, 
that person must first 
apply for and use those benefits to the extent available to 
pay for the goods and services provided. 
3. 
Approval. of rehabilitation plan. 
The executive director 
and the person shall approve any rehabilitation plan sha-t.--&he 
eHee1:lsive-Qi£e€-t.e£-~-i~~~-&e-iB--t.h€-~~~~-~a~~&&-aBe 
eeBsis&eB&-w4-t.h--t.h€-~~~-~~~~~~~r--~-~r~a-aaQ-&he 
eHee1:ls4ve--d4.-1--eGt~--sAall developed under subsection 1 and shall 
indicate in writing their approval of 
and agreement to the 
s1:iBmis&ea rehabilitation plan. 
The person shall approve the plan 
within 
days or, 
within that 
time period, 
submit to the 
executive director the name of an alternate provider for the 
executive director's consideration. 
If the rehabilitation plan 
includes return to employment with the employer for whom the 
person worked before becoming disabled, the employer shall also 
indicate in writing approval of the plan. 
COMMITTEE AMENDMENT 
" ,'. 
G"~' 
COMMITTEE AMENDMENT .. A 
.. to S.P. 501, L.D. 1501 
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ERe--~~~~~-~~~~-eEEeFea-~~-~~~-Ee-~~-~~-a 
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aisaai±iEy-~~~~~--aeae~i~-~~-e&a~-~~-~~-e~a-~-Ehe 
ffieBER-Ee±±ewiB~-ERe-aee±iBe-eF-FeE~sa±T 
AT---~Re--eHee~Eive--aiFeeEeF--SRa±±--Be~iEY--~Re--peFseB--iB 
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~Re-~~~~~~~-~~~~-a~~waaee-ffiay-~-~-aiseeB~iB~ea 
~B~il-all-appea±s-Rave-aeeB-eHRa~s~eaT 
5. 
Monitorinq of rehabilitation plan. 
Each rehabilitation 
plan approved by the executive director shall contain a provision 
for periodic review of progress being made by the person toward 
achieving 
the 
goal 
of 
the 
plan 
and 
substantially 
gainful 
activity. 
The provision relating to review SRa±± must include 
authority for the executive director to terminate the plan or to 
amend the plan with the 
same provider or with a 
change of 
provider, based upon results of the review or at the request of 
the person or the provider. 
Subsections 1, 2T and 3 aBa-4-£aa~± 
apply to any amended plans under this subsection. 
A person is 
entitled to a single rehabilitation plan during the course of the 
person's incapacity, except when the person demonstrates that a 
termination of the plan was reasonable and for good cause. 
Any 
entitlement to amend a rehabilitation plan or establish a 
new 
plan ends with a determination by the executive director that the 
person is no longer disabled. 
6. 
Return to service. 
If the rehabilitation plan includes 
return to employment with the person's former employer, 
that 
person must be 
reemployed in accordance with the plan. 
The 
executive director shall notify the former employer, in writing, 
that the person has completed the rehabilitation plan and is 
ready 
to 
return 
to 
employment. 
The 
former 
employer 
shall 
reemploy the person in the first available position for which 
that person is qualified, taking into consideration that person's 
prior 
compensation 
and 
benefits, 
training, 
education 
and 
experience, including training and education received under that 
person's rehabilitation plan. 
7. 
Other employment under system. 
A person is not required 
to accept employment that reasonably necessitates relocation or 
for which the person is not qualified, taking into consideration 
that 
person's 
prior 
compensation 
and 
benefits, 
training, 
COMMITTEE AMENDMENT 
""\' 
\\5l;.' 
COMMITTEE AMENDMENT .. A" to S.P. 501, L.n. 1501 
education 
and 
experience, 
including 
training 
and 
education 
received under that person's rehabilitation plan. 
The disability 
retirement benefit may not be discontinued except as provided by 
section 17929 or until the person is reemployed consistent with 
this section.' 
Further amend the bill by striking out all of sections 14 to 
and inserting in their place the following: 
'Sec. 14. 5 MRS A §18512 is enacted to read: 
§185l2. 
Rehabilitation 
Upon agreement of the executive director and the person, 
rehabilitation services may be provided to any person who is the 
recipient of a disability retirement benefit under this article 
as a means to the person being able to return to substantially 
gainful activity. 
As a condition of entering into an agreement 
to provide rehabilitation services, the executive director must 
determine that rehabilitation is feasible, that rehabilitation is 
consistent with the purposes of this article, that the recipient 
is suitable for rehabilitation services and that rehabilitation 
services are likely to lead to substantially gainful activity. 
When 
appropriate, 
determination 
of 
suitability 
must 
include 
consultation with the medical board to determine any medical 
indications 
that 
the 
recipient 
should 
not 
engage 
in 
a 
rehabilitation program or to identify a recipient too severely 
disabled to benefit from rehabilitation services in accordance 
with the purposes of this article. 
Services must be provided by 
private and public rehabilitation counselors, government agencies 
and others approved by the executive director as g:ualified to 
provide rehabilitation services. 
The executive director shall 
consider 
a 
rehabilitation 
counselor's 
rate 
of 
successfully 
placing rehabilitated employees in jobs relative to the placement 
rates of other counselors in the State as fundamental in deciding 
whether to approve the counselor as qualified. 
This section does 
not affect the ongoing requirement that a person remain disabled 
in order to continue to receive disability benefits. 
For the purposes of this section, "person" means any person 
who is the recipient of a disability retirement benefit. 
1. 
Rehabilitation plan. 
If the executive director makes 
the determinations necessary to provide rehabilitation services 
under this section and rehabilitation agreed to by the parties, 
the retirement system shall designate a rehabilitation provider 
to evaluate the person and develop a rehabilitation plan. 
2. 
Costs. 
The 
executive 
director 
may 
contract 
with 
rehabilitation providers 
to 
develop 
and 
carry 
out 
approved 
rehabilitation plans. 
COMMITTEE AMENDMENT 
~~~ 
'~. 
COMMITTEE AMENDMENT il" to S.P. 501, L.D. 1501 
A. 
Except 
as 
provided 
in 
paragraph 
B, 
the 
executive 
director shall pay these providers from funds accumulated in 
the Retirement Allowance 
Fund, 
established under section 
17251. 
B. 
If the person is entitled to other benefits to meet the 
cost of rehabilitation services, 
that person must first 
apply for and use those benefits to the extent available to 
pay for the goods and services provided. 
3. 
Approval of rehabilitation plan. 
The executive director 
and the person shall approve any rehabilitation plan developed 
under subsection 1 and shall indicate in writing their approval 
of and agreement to the rehabilitation plan. 
The person shall 
approve the plan within 30 days or, within that time period, 
submit to 
the executive director the 
name 
of 
an alternate 
provider for the executive director's consideration. 
If the 
rehabilitation plan 
includes 
return 
to 
employment 
with 
the 
employer for whom the person worked before becoming disabled, the 
employer also shall indicate in writing approval of the plan. 
4. 
Monitoring of rehabilitation plan. 
Each rehabilitation 
plan approved by the executive director must contain a provision 
for periodic review of progress being made by the person toward 
achieving 
the 
goal 
of 
the 
plan 
and 
substantially 
gainful 
activity. 
The 
prov~s~on 
relating 
to 
review 
must 
include 
authority for the executive director to terminate the plan or to 
amend the plan with the 
same provider or with a 
change of 
provider, based upon results of the review or at the request of 
the person or the provider. 
Subsections 1, 2 and 3 apply to any 
amended plans under this subsection. 
A person is entitled to a 
single rehabilitation plan during the course of the person's 
incapacity except when the person demonstrates that a termination 
of the plan was reasonable and for good cause. 
Any entitlement 
to amend a rehabilitation plan or establish a new plan ends with 
a determination by the executive director that the person is no 
longer disabled. 
5. 
Return to service. 
If the rehabilitation plan includes 
return to employment with the person's former employer, 
that 
person must be 
reemployed in accordance with the plan. 
The 
executive director shall notify the former employer, in writing, 
that the person has completed the rehabilitation plan and is 
ready 
to 
return to 
employment. 
The 
former 
employer 
shall 
reemploy the person in the first available position for which 
that person is qualified, taking into consideration that person's 
prior 
compensation 
and 
benefits, 
training, 
education 
and 
experience, including training and education received under that 
person's rehabilitation plan. 
COMM/rrEE AMENDMENT 
COMMITTEE AMENDMENT "A" to S.P. 501, L.D. 1501 
6. 
Emplo~ent exception. 
A person is not 
required to 
accept employment that reasonably necessitates relocation or for 
which the person is not qualified, taking into consideration that 
person's prior compensation and benefits, training, education and 
experience, including training and education received under that 
person's rehabilitation plan. The disability retirement benefit 
may not be discontinued except as provided by section 17929 or 
until the person is reemployed consistent with this section. 
Sec. 15. 5 MRSA §18527, as amended by PL 1995, c. 643, §§24 
and 25, is further amended to read: 
§18527. Rehabilitation 
ReaasiJ,it:;at:;ieB Upon agreement of the executive director and 
the person, rehabilitation services HlY.St:; ~ 
be provided to any 
person who is the recipient of a disability retirement benefit 
under this article 
i~ as a means to the person being able to 
return to substantially gainful activity. 
As 
a 
condition of 
entering into an agreement to provide rehabilitation services, 
the 
executive 
director 
set:;erHliBes 
must 
determine 
that 
rehabilitation is feasible, 
that rehabilitation is consistent 
with the purposes of this article aBS.L that the recipient is 
suitable 
for 
rehabilitation services 
and 
that rehabilitation 
services are likely to lead to substantially gainful activity. 
When Beeessary appropriate, 
determination of suitability must 
include consultation with the medical board to determine any 
medical indications that the recipient should not engage in a 
rehabili tation program or to identify a recipient too severely 
disabled to benefit from rehabilitation services in accordance 
with the purposes of this article. 
Services must be provided by 
private and public rehabilitation counselors, government agencies 
and others approved by the executive director as qualified to 
provide rehabilitation services. 
The executive director shall 
consider 
a 
rehabilitation 
counselor's 
rate 
of 
successfully 
placing rehabilitated employees in jobs relative to the placement 
rates of other counselors in the State as fundamental in deciding 
whether to approve the counselor as qualified. 
This section does 
not affect the ongoing requirement that a person remain disabled 
in order to continue to receive disability benefits. 
For the purposes of this section, "person" means any person 
who is the recipient of a disability retirement benefit. 
1. 
Rehabilitation plan. 
If the executive director makes 
the determinations necessary to provide rehabilitation services 
under this section and rehabilitation is ~easisJ,e-aBs-£eeeHlHleBses 
agreed to by the parties, the retirement system shall designate a 
rehabilitation provider to evaluate the person and develop a 
rehabilitation plan. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ·14" to S.P. 501, L.D. 1501 
2. 
Costs. 
The 
executive 
director 
rehabilitation providers 
to 
develop 
and 
rehabilitation plans. 
A. 
Except 
as 
provided 
in 
paragraph 
director shall pay these providers from 
the 
gisasHHy--R-e-t4.~-ement.--Ren&f-~-!=\lBa 
Fund, established under section 17251. 
may 
contract 
with 
carry out 
approved 
B, 
the 
executive 
funds accumulated in 
Retirement Allowance 
B. 
If the person is entitled to other benefits to meet the 
cost of rehabilitation services, 
that person must first 
apply for and use those benefits to the extent available to 
pay for the goods and services provided. 
3. 
Approval of rehabilitation plan. 
The executive director 
and 
the 
person 
shall 
approve 
any 
rehabilitation 
plan 
t;he 
eHee\lt;ive-Q4~e€~e~-~4.~~~-~-iB-~ae-~~~~-i&~~&&-aBa 
eeRsist;eBt;-wi~h-~ae-~~-~-~~~~~~~~--~-~~&&&-aBe-t;he 
eHee\lt;ive--di-c-eo-t-o-r--shal,;l, developed under subsection 1 and shall 
indicate in writing their approval 
of 
and 
agreement to the 
s\lBmit;tea rehabilitation plan. 
The person shall approve the plan 
within 
days 
or, 
within that 
time period, 
submit to 
the 
executive director the name of an alternate provider for the 
executive director' s consideration. 
If the rehabilitation plan 
includes return to employment with the employer for whom the 
person worked before becoming disabled, the employer shall also 
indicate in writing approval of the plan. 
4y--~~~~-Pehahi~i~a~ieBy--~~-~~~~~~-\l&e-ef 
t;he-~~~~it~~-~~¥4£~--e~~eFee-~-~~~~--t;e-~~-~~-a 
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\lBtil-all-appeals-aave-BeeR-eHha\lsEeeT 
5. 
Monitoring of rehabilitation plan. 
Each rehabilitation 
plan approved by the executive director shall contain a provision 
for periodic review of progress being made by the person toward 
achieving 
the 
goal 
of 
the 
plan 
and 
substantially gainful 
activity. 
The provision relating to review shall must include 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. A 
If to S.P. 501, L.D. 1501 
authority for the executive director to terminate the plan or to 
amend the plan with the 
same provider or with 
a 
change of 
provider, based upon results of the review or at the request of 
the person or the provider. 
Subsections 1, 2T and 3 aas-4-£aall 
apply to any amended plans under this subsection. 
A person is 
entitled to a single rehabilitation plan during the course of the 
person's incapacity, except when the person demonstrates that a 
termination of the plan was reasonable and for good cause. 
Any 
enti tlement to amend a rehabilitation plan or establish a 
new 
plan ends with a determination by the executive director that the 
person is no longer disabled. 
6. 
Return to service. 
If the rehabilitation plan includes 
return to employment with the person's former 
employer, 
that 
person must be 
reemployed in accordance with the plan. 
The 
executive director shall notify the former employer, in writing, 
that the person has completed the rehabilitation plan and is 
ready 
to 
return 
to 
employment. 
The 
former 
employer 
shall 
reemploy the person in the first available position for which 
that person is qualified, taking into consideration that person's 
prior 
compensation 
and 
benefits, 
training, 
education 
and 
experience, including training and education received under that 
person's rehabilitation plan. 
7. 
Other employment under system. 
A person is not required 
to accept employment that reasonably necessitates relocation or 
for which the person is not qualified, taking into consideration 
that 
person's 
prior 
compensation 
and 
benefits, 
training, 
education 
and 
experience, 
including 
training 
and 
education 
received under that person's rehabilitation plan. 
The disability 
retirement benefit may not be discontinued except as provided by 
section 18529 or until the person is reemployed consistent with 
this section.' 
Further amend the bill by inserting after section 21 the 
following: 
'Sec. 22. PL 2001, c. 442, §5, as amended by PL 2001, c. 557, §1 
and c. 699, §7, is further amended to read: 
Sec. 5. Status of employees who have retired and returned to covered 
employment under the Maine State Retirement System; choice to retire 
rather than continue to work. 
Notwithstanding the Maine Revised 
Statutes, Title 5, section 17651 and section 17652, recipients of 
a 
service retirement benefit from the Maine State Retirement 
System 
who 
have 
returned 
to 
covered 
employment 
under 
the 
retirement system in a position that would otherwise be covered 
by the retirement plan for state employees and teachers may not 
eea1::e:-i&l:l-'E-e---1:e 
rejoin 
the 
retirement 
system, 
do 
not 
earn 
creditable service for their employment after retirement and do 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ·A" to S.P. 501, L.D. 1501 
not earn any additional retirement benefits as a result of that 
employment. 
By 
retiring 
from 
a 
position 
covered 
under 
the 
retirement system, an employee exercises that employee' s choice 
between 
continuing to work 
and 
thereby continuing to accrue 
retirement service credit and, potentially, an increased earnable 
compensation, and retiring, with both service credit and earnable 
compensation thereby becoming fixed. 
The employee' s retirement 
constitutes the employee' s 
knowing and voluntary waiver of any 
claim of any nature under federal or state law with respect to 
retirement system service credit or earnable compensation related 
to return to employment after retirement. 
';I;hey Recipients of a 
service 
retirement 
benefit 
from 
the 
retirement 
system 
may 
participate in other retirement options available to similar 
employees, 
including 
the 
state 
program 
of 
tax-deferred 
arrangements under Title 5, chapter 67, at the discretion of 
their employer. 
For 
purposes of participation in the state 
employee health insurance program pursuant to the Maine Revised 
Statutes, Title 5, 
section 285 or in dental health insurance 
coverage offered by the State, recipients of a service retirement 
benefit under the Maine State Retirement System who are retired 
state employees and who are reemployed as state employees must be 
treated 
as 
retirees 
under 
section 
285, 
subsection 
I-A 
for 
purposes of eligibility for coverage under the group plan. 
A 
recipient of a service retirement benefit under the Maine State 
Retirement System who is a retired teacher and who returns to 
work as a teacher under this Act is eligible for coverage under 
the group health insurance plan for active teachers in the school 
administrative unit in which newly employed. 
For purposes of 
participation in the 
group accident 
and 
sickness or health 
insurance for retired teachers pursuant to Title 20-A, section 
13451, 
a 
recipient of a 
service retirement benefit under the 
Maine State Retirement 
System who 
is 
a 
retired teacher 
who 
returns to work under this Act is eligible upon ceasing work to 
return to coverage under the group health insurance plan in 
effect for active teachers in the school unit from which the 
teacher 
originally 
retired, 
including 
state 
payment 
of 
a 
percentage of the premium cost under section 13451. 
Sec. 23. PL 2001, c. 442, as amended by PL 2001, c. 557, §l and 
c. 699, §7, is further amended by adding at the end the following: 
Sec. 
6. 
Interpretation 
and 
application; 
rulemaking. 
The 
provisions of this Act that establish the opportunity to retire 
from 
a 
position covered under 
the 
retirement 
system 
and to 
thereafter 
return to 
work 
in 
a 
position covered 
under 
the 
retirement system with no reduction of retirement benefits or 
limitation on compensation must be interpreted and applied in a 
manner that meets applicable requirements of federal law and 
regulation, including, but not limited to, the Internal Revenue 
Page ll-LRI943(2} 
COMMITTEE AMENDMENT 
-" -
~ 
\ 
COMMITTEE AMENDMENT "A" to S.P. 501, L.D. 1501 
Code and Internal Revenue Service regulations. 
The retirement 
system shall adopt rules for the interpretation and application 
of the provisions that reflect these reguirements. 
Rules adopted 
under this section are routine technical rules as defined in the 
Maine Revised Statutes, Title 5, chapter 375, subchapter 2-11.. 
Sec. 7. Reporting requirements. 
Retirement system employers 
are reguired to identify and report to the retirement system, in 
the manner specified by the retirement system, each individual 
who is a retiree who becomes an employee of the employer. 
The 
employer shall report each such employee whenever and so long as 
an 
employee is the employer's 
employee. 
The 
employer shall 
inguire of individuals hired to ascertain whether an individual 
is a retiree and the individual shall disclose that. 
"Employer" 
includes the State, all school 
administrative units 
and all 
partiCipating 
local 
districts. 
"Employee" 
means 
an 
already 
retired individual 
receiving 
a 
Maine 
State Retirement System 
retirement benefit, 
regardless of the 
retirement system plan 
retired under, who after retirement is employed by an employer as 
defined in this section. 
"Retire" means to receive a retirement 
benefit 
from 
the 
retirement 
system. 
"Retiree" 
means 
an 
individual who receives a retirement benefit from the retirement 
system under any of the retirement system's retirement plans. 
Sec. 24. PL2001,c.699,§8 is amended to read: 
Sec. 8. Status of employees who have retired and returned to covered 
participating local district employment under Maine State Retirement 
System. 
Notwithstanding the Maine Revised Statutes, Title 5, 
section 18251, 
6\i96e€~-i-E>n--l section 18252 and section 18252-11., 
recipients of a service retirement benefit from the Maine State 
Retirement 
System 
for 
service 
in 
the 
employment 
of 
a 
participating 
local 
district 
who 
have 
returned 
to 
covered 
employment under the retirement system in a position that would 
otherwise be covered by the retirement plan for a participating 
local district may 
not 
eeB~Fi9\i~e--~e 
reJo~n the 
retirement 
system, do not earn creditable service for their employment after 
retirement and do not earn any additional retirement benefits as 
a result of that employment. 
By retiring from a position covered 
under 
the 
retirement 
system, 
an 
employee 
exercises 
that 
employee's 
choice 
between 
continuing 
to 
work 
and 
thereby 
continuing to accrue retirement service credit and, potentially, 
an 
increased earnable 
compensation, 
and 
retiring, 
with both 
service credit and earnable compensation thereby becoming fixed. 
The employee's retirement constitutes the employee's knowing and 
voluntary waiver of any claim of any nature under federal or 
state law with respect to retirement service credit or earnable 
compensation related to return to employment after retirement. 
This section applies only to retired participating local district 
COMMITTEE AMENDMENT 
i:JIi 
<s 
~ 
COMMITTEE AMENDMENT "A" to S.P. 501, L.D. 1501 
employees 
to 
whom 
Title 
5, 
section 
17001, 
subsection 
32, 
paragraph B applies. 
Sec. 25. PL 2001, c. 699 is amended by adding at the end the 
following: 
Sec. 
9. 
Interpretation 
and 
application; 
rulemaking. 
The 
provisions of this Act that establish the opportunity to retire 
from 
a 
position covered under 
the retirement system and to 
thereafter 
return to 
work 
in 
a 
position 
covered 
under 
the 
retirement system with no reduction of retirement benefits or 
limitation on compensation must be interpreted and applied in a 
manner that meets applicable requirements of federal 
law and 
regulation, including, but not limited to, the Internal Revenue 
Code and Internal Reyenue Service regulations. 
The retirement 
system shall adopt rules for the interpretation and application 
of the provisions that reflect these requirements. 
Rules adopted 
under this section are routine technical rules as defined in the 
Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A. 
Sec. 10. Reporting requirements. 
Retirement system employers 
are required to identify and report to the retirement system, in 
the manner specified by the retirement system, each individual 
who is a retiree who becomes an employee of the employer. 
The 
employer shall report each such employee whenever and so long as 
an 
employee is the employer's 
employee. 
The 
employer shall 
inquire of individuals hired to ascertain whether an individual 
is a retiree and the individual shall disclose that. 
"Employer" 
includes 
the State, all school 
administrative units 
and all 
participating 
local districts. 
"Employee" 
means 
an 
already 
retired individual receiving a 
Maine State Retirement System 
retirement benefit, 
regardless of the retirement system plan 
retired under, who after retirement is employed by an employer as 
defined in this section. 
"Retire" means to receive a retirement 
benefit 
from 
the 
retirement 
system. 
"Retiree" 
means 
an 
individual who receives a retirement benefit from the retirement 
system under any of the retirement system's retirement plans.' 
Further amend the bill by relettering 
nonconsecutive 
Part 
letter 
or 
section 
consecutively. 
SUMMARY 
or renumbering any 
number 
to 
read 
This 
amendment 
clarifies 
the 
changes 
in 
rehabilitation 
services made in the bill. 
Under this amendment, rehabilitation 
services for state employee, 
teacher 
and participating local 
district disability retirees under the Maine Revised Statutes, 
COMMITTEE AMENDMENT 
:~ 
:~ 
~; 
COMMITTEE AMENDMENT" A'to S.P. 501, L.D. 1501 
Title 5, chapter 421, subchapter 5, Article 3 and Article 3-A 
disability plans are optional and must be agreed to by both the 
Executive Director of the Maine State Retirement System and the 
retiree. 
The amendment also makes changes to the recently enacted law 
allowing 
state 
employees, 
teachers 
and 
participating 
local 
district members of the retirement system to retire and return to 
covered employment without a limitation on earnings. 
First, to 
comply 
with 
federal 
age 
discrimination 
law, 
the 
amendment 
provides that retirees who take advantage of the new state law 
and exercise their choice to retire without 
a 
cap on their 
earnings while retired but also without the ability to accrue 
additional service credit for retirement purposes do so willingly 
and 
knowingly. 
Second, 
the amendment directs the 
retirement 
system to adopt rules regarding termination of employment to 
comply 
with 
federal 
tax 
law 
and 
regulations. 
Third, 
the 
amendment provides the retirement system the ability to collect 
the necessary information from employers to determine the impact 
of the new law on the costs of the plan. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Revised: 05109/03 ~ae 
Office of Fiscal and Program Review 
LD 1501 
An Act to Amend the Laws Relating to the Maine State Retirement 
System 
LR 1943(02) 
. 
Fiscal Note for Bill as Amended by Committee Amendment 'Ails -( 1( 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium savings - All Funds 
This legislation includes changes to the provision of rehabilitation services to disability recipients within the Maine 
State Retirement System. Although the net fiscal impact of these changes can not be determined at this time, these 
measures are not expected to increase the overall cost of the program, and may result in savings. Any additional cost 
to the Maine State Retirement System associated with rulemaking can be absorbed utilizing existing budgeted 
resources. 
LR1943(2) - Fiscal Note - Page 1 of 1