An Act Concerning Retirement Benefits for State Employees LR 1654(05)
Maine Legislature, Session 121, LD 1009
Committee Amendment CA_A-HA_A_H517 (House)
Amends: 5 MRSA §17704-B

HOUSE AMENDMENT 
L.D. 1009, Bill, "An 
Employees" 
"/I,, to COMMITTEE AMENDMENT "A" to H.P. 730, 
Act Concerning Retirement Benefits for State 
Amend 
the 
amendment 
by 
striking out all of 
the first 
indented paragraph after the title and section 2 (page 1, lines 
to 46 in amendment) and inserting in their place the following: 
'Amend the bill in section 1 in paragraph A in the 18th line 
(page 1, line 23 
in L.D.) 
by inserting after the following: 
"1993 or" the following: 
if a member elects to make the 
payment as set forth in section 17704-B,' 
Further amend the bill by inserting after section 1 the 
following: 
'Sec. 2. 5 MRSA §17704-B is enacted to read: 
§17704-B. 
Back contributions for certain days off without pay 
1. 
Election. 
If the retirement system determines at the 
time 
a 
member 
retires 
that 
the 
member's 
benefit 
would 
be 
increased as a result of the inclusion of compensation that would 
have been paid for fiscal year 2002-03 days off without pay as 
provided 
in 
section 
17001, 
subsection 
4, 
paragraph 
A, 
the 
retirement system shall advise the member of that result and 
shall allow 
the 
member 
to elect to 
have 
that 
compensation 
included in the calculation of the person's benefit and to make 
payments set forth in subsection 2. 
Page l-LR1654(5) 
HOUSE AMENDMENT 
\\.~Cb. 
HOUSE AMENDMENT".fi:. to COMMITTEE AMENDMENT "A" to H.P. 730, L.D. 
1009 
2. 
Pa~nt. 
The 
amount 
that 
a 
member 
who 
makes 
the 
election permitted in subsection 1 must pay is the amount equal 
to the employee contribution that person would have made on wages 
that would have been paid to that person on the days off without 
pay during the 2002-03 fiscal year as provided in section 17001, 
subsection 4, paragraph A, plus interest at the same rate as that 
required for payment of back contributions pursuant to section 
17704, subsection 3. 
If the member elects to make the payment. 
the retirement system shall withhold the required amount from the 
member's first retirement benefit check. 
3. 
Benefit calculation. 
If the member fails to make the 
election within 
days 
of 
the notification provided 
under 
subsection 1, the retirement system shall calculate the member's 
retirement benefit without inclusion of the days off without pay 
during the 2002-03 fiscal year as provided in section 17001, 
subsection 4. paragraph A. 
Sec. 3. Employee contribution; transition. 
A member of the Maine 
State Retirement System who retired before the effective date of 
this Act may ask the retirement system to determine whether 
inclusion of the wages from days off without pay as provided in 
the Maine Revised Statutes, Title 5, section 17001, subsection 4, 
paragraph A would increase .that member's retirement benefit. 
If 
it would, the retirement system shall allow the retiree to make 
an 
election 
and 
payments 
as 
provided 
in Title 
5, 
section 
l7704-B. 
A retiree is not entitled to retroactive payment of any 
increase in the benefit resulting from inclusion of the days off 
wi thout pay.' , 
Further amend the amendment by relettering or renumbering 
any 
nonconsecutive 
Part 
letter 
or 
section 
number 
to 
read 
consecutively. 
SUMMARY 
This amendment allows members of the Maine State Retirement 
System to elect whether to make the payment necessary to have the 
compensation from days off without pay included in their average 
final compensation. 
If the payment is not made at the member's 
election, the compensation from those days off is not included in 
calculating the member's retirement benefit. 
As 
in Committee 
Amendment "A," this amendment allows persons who retired before 
the effective date 
of this bill as 
amended 
to 
ask 
for 
a 
HOUSE AMENDMENT 
~.~,. 
HOUSE AMENDMENT ,,~. to COMMITTEE AMENDMENT "A" to H.P. 730, L.D. 
1009 
determination of 
whether 
the 
inclusion would 
increase their 
retirement benefit and to enable them to make the same election. 
SPONSORED BY: 
TOWN: 
Van Buren 
FISCAL NOTE REQUIRED 
(See attached) 
HOUSE AMENDMENT 
Fiscal Detail and Notes 
Approved: 05/22/03 ~ac:.. 
Office of Fiscal and Program Review 
LD 1009 
An Act Concerning Retirement Benefits for State Employees 
LR 1654(05) 
Fiscal Note for House Amendment" " to Committee Amendment "A" 
Sponsor: Rep. Smith of Van Buren 
Fiscal Note Required: Yes 
Fiscal Note 
No fiscal impact. 
This amendment allows members to choose whether to make the employee contributions necessary to include the 
earnings from the shutdown days in the fiscal year beginning July 1, 2002 in the calculation of their average final 
compensation. Assuming that all members who could take advantage of this option would do so, there is no change 
the estimate of the employer contributions developed by the Maine State Retirement System. 
LR1654(5) - Fiscal Note - Page 1 of 1