An Act Concerning Retirement A" to H.P. Benefits for
Maine Legislature, Session 121, LD 1009
Committee Amendment CA_A-SA_A_S298 (Senate)
Amends: 4 MRSA §1201, 4 MRSA §1306, 5 MRSA §17704

SENATE 
AMENDMENT 
730, L.D. 1009, Bill, 
State Employees" 
"A" to COMMITTEE 
AMENDMENT 
"An Act Concerning Retirement 
"A" to H.P. 
Benefits for 
Amend the amendment by striking out everything after the 
title and before the 
summary and inserting in its place the 
following: 
'Amend 
the bill 
by 
striking 
out 
everything after 
the 
enacting clause and before the summary and inserting in its place 
the following: 
'Sec. I. 4 MRSA §1201, sub-§3, as repealed and replaced by PL 
1989, c. 133, §15, is amended to read: 
3. 
Average 
final 
compensation. 
"Average 
final 
compensation" means: 
A. 
The average annual rate 
member during the 3 years of 
not necessarily consecutive, 
rate of earnable compensation 
of earnable compensation of a 
creditable service as a judge, 
in which the member's annual 
is highest: or 
B. 
The average annualized rate of earnable compensation of 
a member during the entire period of creditable service if 
that period is less than 3 years. 
If a member took one or more days off without pay during the 
fiscal year beginning July L 
2002, as authorized by the State 
Court 
Administrator, 
and 
the 
member 
elects 
to 
make 
the 
contribution provided for in section 1306, 
the average final 
SENATE AMENDMENT 
",I'll 
'= 
"'-:::0.-: --
SENATE AMENDMENT "!+" to COMMITTEE 
AMENDMENT 
"A" to H.P. 
730, 
L.D. 1009 
compensation must be determined as if the member had not taken 
those days off without pay. 
Sec. 2. 4 MRSA §1306 is enacted to read: 
§1306. 
Bact contribution for certain days off without pay 
1. 
Election. 
If the 
Maine 
Judicial 
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 described in section 1201, 
subsection 3, 
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 member's benefit and to make 
payments as set forth in subsection 2~ 
2. 
Payment. 
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 described in section 1201, 
subsection 3, plus interest at the Same rate as that required for 
payment of back contributions pursuant to Title 5, section 17704, 
subsection 3. 
If the member elects to make the payment, the 
Maine Judicial 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 
L 
the 
Maine 
Judicial 
Retirement 
System 
shall 
calculate the member's retirement benefit without inclusion of 
the days off without pay during the 2002-03 fiscal year. 
Sec. 3. 5 MRSA § 17001, sub-§4, 1JA, as amended by PL 1993, c. 
410, Pt. RR, §1, is further amended to read: 
A. 
The average annual rate of earnable compensation of a 
member 
during the 
years of creditable service as 
an 
employee in Maine, not necessarily consecutive, in which the 
member's. annual rate of earnable compensation is highest. 
However, if a member is subject to a temporary layoff or 
other time off without pay as 
a 
result of a 
Governor's 
Executive 
Order, 
time 
off without payor loss 
of 
pay 
pursuant to the agreements of February 15, 1991, October 23, 
1991 and June 11, 1993 between the Executive Department and 
the 
American 
Federation of State, 
County 
and 
Municipal 
Employees, Council 93, time off without pay pursuant to the 
agreement of June 11, 1993 between the Executive Department 
and the Maine State Employees Association, days off without 
SENATE AMENDMENT 
I 
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-= 
SENATE 
AMENDMENT A " to COMMITTEE 
AMENDMENT 
"A" to H.P. 730, 
L.D. 1009 
pay as authorized by legislative action or days off without 
pay 
resulting 
from 
any 
executive 
order 
declaring 
or 
continuing a state of emergency relating to the lack of an 
enacted budget document for fiscal years ending June 30, 
1992 and June 30, 1993, or, if a member elects to make the 
payments as set forth in section 17704 B, 
as a result of 
days off without pay as authorized by legislative action, by 
the State Court Administrator or from executive order for 
the fiscal year beginning July 1, 2002, or, if a member is 
subject to days off without pay, not to exceed 10 days in 
each fiscal year ending June 30, 1992 and June 30, 1993, as 
a result of actions taken by local school administrative 
units 
to 
offset 
school 
subsidy 
reductions 
or, 
notwi thstanding section 18202, as a result of actions of a 
participating 
local 
district 
to 
offset 
reductions 
in 
municipal revenue sharing or a combination thereof, for the 
fiscal years ending June 30, 1992 and June 30, 1993, the 
3-year average final compensation must be determined as if 
the member had not been temporarily laid off, reduced in pay 
or provided days off without pay; or 
Sec. 4. 5 MRSA §17704.B is enacted to read: 
§17704-B. 
Bact contributions for certain dars 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 member's benefit and to make 
payments set forth in subsection 2. 
2. 
P~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 member would have made on wages 
that would have been paid to that member 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 
SENATE AMENDMENT 
SENATE AMENDMENT "A" to COMMITTEE 
AMENDMENT "A" to H.P. 
L.D. 1009 
730, 
during the 2002-03 fiscal year as provided in section 17001, 
subsection 4, paragraph A. 
Sec. 5. Employee contribution; transition. 
A member of the Maine 
State Retirement System or the Maine Judicial 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 4, 
section 1201 or 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 4, 
section 1306 or Title 5, section 17704-B. 
A retiree is not 
entitled to retroactive payment of any increase in the benefit 
resulting from inclusion of the days off without pay. 
Sec. 6. Special retirement rate assessment. 
Notwithstanding any 
other provision of law, the State Budget Officer shall calculate 
a 
special retirement rate assessment for all departments and 
agencies necessary to fund the employer's share of the costs of 
this legislation, estimated to be $76,081. 
The State Budget 
Officer shall divide the cost by the total salaries and wages 
paid by state departments and agencies during the time period 
from July 1, 2003 to September 30, 2003 and apply that percentage 
as an assessment against all affected accounts so that $76,081 is 
available on October 1, 
2003 for payment to the Maine State 
Retirement System.' , 
SUMMARY 
This amendment incorporates provisions from the bill, from 
Committee Amendment "A" and from House Amendment "A" to Committee 
Amendment "A" (H-S17) and makes several additional changes. 
It 
allows state employees who took days off without pay during the 
fiscal year beginning on July 1, 2002, to have the compensation 
that would have been paid on those days included in their average 
final compensation, 
provided they elect to contribute to the 
Maine State Retirement System the employee contribution that 
would have been paid on that compensation, plus interest. 
The 
amendment covers state employees in all branches of 
state government, including those employed by the Legislative and 
Judicial Departments and those covered by the Judicial retirement 
plan. 
If the employee elects to have that compensation included 
in average final compensation for purposes of determining the 
person's retirement benefit, the Maine State Retirement System 
would withhold the required contribution from the person's first 
retirement benefit check. 
A person who retired prior to the 
SENATE AMENDMENT 
.,,; 
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,. 
SENATE AMENDMENT "A" to COMMITTEE 
AMENDMENT 
"A" to H. P . 
L.D. 1009 
730, 
effective date of the change in law may ask the retirement system 
to determine whether inclusion of the compensation would increase 
the person's benefit and, if it does, the person may elect to 
have 
the 
required 
contribution 
withheld 
form 
the 
person's 
retirement 
check 
and 
to 
begin 
receiving 
the 
higher 
amount 
prospectively. 
This 
amendment 
provides 
for 
a 
special 
retirement 
cost 
assessment to be applied to all departments and agencies from 
July 1, 2003 to September 30, 2003 to fund the employer's share 
of the costs associated with those current and future retirees 
for whom it is expected that fiscal year 2002-03 could be one of 
the 
average 
final 
compensation 
years 
used 
in 
the 
benefit 
calculation. 
This amendment requires the State Budget Officer to 
divide the cost by the total salaries and wages paid by state 
departments and agencies during the first quarter of fiscal year 
2003-04 and apply that percentage as an assessment against all 
affected accounts so that the funds are available on October 1, 
2003 for payment to the Maine State Retirement System. 
SPONSORED BY: 
(Senator 
COUNTY: 
Penobscot 
FISCAL NOTE REQUIRED 
(See attached) 
SENATE AMENDMENT 
Net Cost (Savings) 
General Fund 
Appropriations! Allocations 
General Fund 
Fiscal Detail and Notes 
Approved: 06/11103 ~aC!. 
Office of Fiscal and Program Review 
LD 1009 
An Act Concerning Retirement Benefits for State Employees 
LR 1654(OP 
Fiscal Note for Senate Amendment 'P' to Committee Amendment 1f' 
Sponsor: Sen. Cathcart 
Fiscal Note Required: Yes 
Fiscal Note 
2003-04 
($76,081) 
($76,081) 
2004-05 
$0 
$0 
Projections 
2005-06 
$0 
$0 
Projections 
2006-07 
$0 
$0 
This amendment eliminates the General Fund appropriation in the bill and provides for a special retirement rate 
assessment to be applied to all departments and agencies from July 1, 2003 to September 30, 2003 to fund the 
employer's share of the costs, estimated by the Maine State Retirement System to be $76,081, associated with those 
current and future retirees for whom it is expected that fiscal year 2002-03 could be one of the average final 
compensation years used in the benefit calculation. The impact to General Fund accounts is estimated to be $35,378; 
the impact to Highway Fund accounts is expected to be approximately $12,781; and the impact to other fund accounts 
is estimated to be $27,922. The ability of departments and agencies to absorbed this cost can not be determined at this 
time. 
LR1654(7) - Fiscal Note - Page 1 of 1