An Act To Amend the Laws Relating to the Maine State Retirement System
Maine Legislature, Session 121, LD 1501
Committee: Labor
Sponsors: EDMONDS, SMITH
Amends: 4 MRSA §1201, 5 MRSA §17760, 5 MRSA §17911, 5 MRSA §17927, 5 MRSA §18252, 5 MRSA §18252-A, 5 MRSA §18360, 5 MRSA §18512, 5 MRSA §18527, 5 MRSA §18801, 5 MRSA §18802-A

Legislative Document 
No. 1501 
S.P.501 
In Senate, April 1, 2003 
An Act To Amend the Laws Relating to the Maine State Retirement 
System 
Submitted by the Maine State Retirement System pursuant to Joint Rule 204. 
Reference to the Committee on Labor suggested and ordered printed. 
Presented by Senator EDMONDS of Cumberland. 
Cosponsored by Representative SMITH of Van Buren. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 4 MRSA §1201, sub-§7, as enacted by PL 1983, c. 853, 
Pt. C, §§15 and 18, is amended to read: 
7. 
Consumer Price Index. "Consumer Price Inde:K" means the 
Consumer Price Index for All Urban 
Wa~e---Ear'-ne-r~-·aOO--b~eFiea~ 
WeFkeFs+---~~~-~~~--Gi~y--Avera~e7--~~---it~r--199+.1gg 
Consumers, CPI-U, as compiled by the United States Department of 
Labor, Bureau of Labor Statistics; or, if the index is revised or 
superseded, the board shall employ the Consumer Price! Index sRa~~ 
Be--t.Re--4.BEleH--represeBteEl 
compiled 
by 
the 
Burea,u 
of 
Labor 
Statistics 
as---F&~~~--~--a€€~rat.e~y, 
United 
States 
Department of Labor that the board of trustees finds to be most 
reflective of changes in the purchasing power of the dollar By 
for 
the 
broadest population of 
consumers, 
including retired 
consumers. 
Sec. 2. 5 MRSA §17760, first 11, as amended by PL 1991, c. 479, 
§2, is further amended to read: 
Service credit for service in the United States Armed Forces 
lS governed as follows. 
Except as provided in subsection 1, 
paragraph B, subparagraph (1), service credit under this section 
is limited to -4- 2 years. 
Sec. 3. 5 MRS A §17760, sub-§I, as enacted by PL 1985, c. 801, 
§§5 and 7, is amended to read: 
1-
service 
member's 
1, under 
Service after becominq a member. A member is entitled to 
credit for the period of time during which Ris 
the 
membership is continued under section 17655, subsection 
the following terms and conditions. 
A. 
Ne A member who is otherwise entitled to service credit 
for military leave may not be deprived of these credits if 
the member's return to membership service is delayed beyond 
days after Ris the member's separation from the service 
in the Armed Forces of the United States, under conditions 
other than dishonorable, if the delay is caused by 
an 
illness or disability incurred in the service in the armed 
forces. 
B. 
A member may not receive service credit for military 
leave beyond the end of the period of first enlistment or 
induction or beyond -4-
years from the date of original 
call to active duty in the armed forces, whichever is less, 
unless: 
(1) 
The member's return 
forces 
or 
the 
extension 
beyond --4-
~ years 
is 
provision; and 
to active duty in the armed 
of 
service 
mandatory 
of 
the 
period 
required 
by 
some 
(2) 
The person presents proof of the return to or 
extension of service satisfactory to the board. 
Sec. 4. 5 MRSA §17911 is enacted to read: 
§11911. 
Rehabilitation 
As a means to a person being able to return to substantially 
gainful activity, rehabilitation services may be provided to any 
person who is the recipient of a disability retirement benefit 
under this article and has filed the application under section 
17902 for this benefit after the effective date of this section. 
Rehabilitation services may be provided to any person who is the 
recipient of a disability retirement benefit when the executive 
director 
determines 
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 
a 
medical 
board 
pursuant 
to 
section 17902, subsection 1, paragraph A 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 gualified to 
g£ovide 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 gualified. 
Nothing in this 
section affects the ongoing reguirement 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 
determines that rehabilitation is feasible and recommended, the 
retirement 
system 
shall 
designate 
a 
rehabilitation 
services 
provider to evaluate the person and develop a rehabilitation plan. 
2. 
Costs. 
The 
executive 
director 
may 
contract 
with 
rehabilitation 
services 
providers 
to 
develop 
and 
carry 
out 
approved rehabilitation plans. 
A. 
Except 
as 
provided 
in 
paragraph 
B, 
the 
executive 
director shall pay rehabilitation services providers from 
funds 
accumulated 
in 
the 
Retirement 
Allow"ance 
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 
shall approve a rehabilitation plan that the executive director 
finds to be in the person's best interest and consistent with the 
purposes of this article. 
The person and the executive director 
shall indicate in writing their approval of and agreement to the 
submitted 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 
rehabilitation 
services 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. 
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 rehabilitation services 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 
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 p,lan 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 
emJ;,loyer 
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 reguired to 
accept employment that reasonably necessitates relocation or for 
which the person is not gualified, 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 11929 or 
until the person is reemployed consistent with this section. 
Sec. 5. 5 MRSA §17927, first" as amended by PL 1995, c. 643, 
§12, is further amended to read: 
Rehabilitation services mlist; m.gy be provided to any person 
who is the recipient of a disability retirement benefit under 
this article waeaevel' as a means to the person being able to 
return 
to 
substantially gainful 
activity. 
Services 
may 
be 
provided 
when 
the 
executive 
director 
determines 
that 
rehabilitation is feasible, 
that rehabilitation is consistent 
wi th the purposes of this article aBeL that the recipient is 
suitable 
for 
rehabilitation services 
and that 
rehabilitation 
services are likely to lead to substantially gainful activity. 
When 
BeeeSSal'Y 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 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. 
Nothing in this 
section affects the ongoing reguirement 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. 
Sec. 6. 5 MRSA §17927, sub-§l, as enacted by PL 1989, c. 409, 
§§8 and 12, is amended to read: 
1. 
Rehabilitation 
plan. 
If 
the 
executive 
director 
determines that rehabilitation is feasible and recommended, the 
retirement 
system 
shall 
designate 
a 
rehabilitation 
services 
provider to evaluate the person and develop a rehabilitation plan. 
Sec. 7. 5 MRSA §17927, sub-§2, l(A, as enacted by PL 1989, c. 
409, §§8 and 12, is amended to read: 
A. 
Except 
as 
provided 
in 
paragraph 
director shall pay these providers from 
the aisaBi~i~y-~~~~~-~~~-~Qsa 
Fund, established under section 17251. 
B, 
the 
executive 
funds accumulated in 
Retirement Allowance 
Sec. 8. 5 MRS A §17927, sub-§4, as amended by PL 1995, c. 643, 
§13, is repealed. 
Sec. 9. 5 MRSA §17927, sub-§5, as enacted by PL 1989, c. 409, 
§§8 and 12, is amended to read: 
5. 
Monitoring of rehabilitation plan. 
Each rehabilitation 
plan approved by the executive director sha±± 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 provision relating to review sha±l must 
include authority for the executive director to 
tE~rminate 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 aSG-4 
sha±± 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. 
Sec. 10. 5 MRSA §18252, as amended by PL 2001, c. 699, §3, is 
further amended to read: 
§18252. 
Membership in districts vith Social Security coverage 
under Social Security Section 218 agreement 
An employee who is or would be covered by the United States 
Social Security Act as a result of employment by a participating 
local district having a so-called "Social Security Section 218 
agreement" may elect to join, not to join, to cease contributions 
to or to withdraw from the retirement system under the following 
conditions. 
1. 
Rev employees. A new employee may join thH retirement 
system at the beginning of his employment or on any anniversary 
of the beginning of his employment, so long as he the employee is 
still an employee of the participating local district and the 
district continues to be a participating local district. 
2. 
Employee who is participatinq IIlelRber. 
An employee who 
is a participating member of the retirement system ase-wRe-wisRes 
may elect to wi~Re~aw-f~e~ cease contributions to the system ~ay 
and, 
at the 
employee's 
discretion, 
ffiQY 
withdraw 
accumulated 
contributions in accordance with the procedures in section 18306. 
3. 
Employee who has previously ceased contributions. 
An 
employee 
who 
has previously 
wi~Re~aws--~~e~ elected to cease 
contributions 
to 
the 
retirement 
system, 
whether 
or 
not 
accumulated contributions have 
been withdrawn, 
may 
choose 
to 
rejoin the system Wi~Ris-~-~~~~-wi~Re~awal at any time under 
the following conditions. 
A. 
~Re If the employee withdrew accumulated contributions 
and is rejoining the system within 3 years of the date that 
a refund was paid under section 18306, the employee must 
repay to the retirement system an amount equivalent to the 
withdrawn 
accumulated 
contributions 
plus 
the 
amount 
of 
interest wRieR that would be required of any terminated 
employee who had become reemployed and had elected to rejoin 
the retirement system and to repay the contributions. 
11.-1. 
If the employee withdrew accumulated contributions and 
is rejoining the system more than 3 years from the date that 
a refund was paid under section 18306, the employee may not 
repay to the retirement system the contributions withdrawn 
under subsection 2. 
B. 
The 
employer 
must 
still be 
a 
participating 
local 
district allowing new membership in the retirement system. 
4T--~~-whe-~-pFevieQ6IY-~~-FeieiB6-~~~--~ 
yeaF6T---As--~~€e--~-~-~~~~-~~~~&--f~em--~Re 
~eti~e~eB~-~y~~~~-eReese-~e-~~~~-~h&-6y6~e~-~~~--~-yea~6 
e£-witRQ~aWa±-QBQe~-tRe-Ee±±ewiB~-eeBQi~iesST 
AT--~h€-~~~-~~-~epay-~e-~~~~~~-&y&~-tRe 
eeBt~iBQtieB6-wi~RQFaWB-QBQeF-6QB6ee~ieB-6T 
8T---~he--€~~€~--~--~-~~~-~--&--pa~~ieipa~i~--±eea± 
Qi6t~iet-a±±ewiB~-Bew-~e~Be~6Rip-iB-~Re-~e~i~e~eB~-sys~e~T 
5. 
Limit on right to rejoin. 
rejoin 
under 
ei~Re~ subsection 
occurrence. 
The right of an employee to 
e~--4-
is 
limited 
to 
one 
6. 
Restoration to service. 
If any person who 
is 
the 
recipient of 
a 
service retirement benefit is covered by the 
United States Social Security Act upon being restored to service, 
continuation 
of 
that 
person's 
benefit 
is 
governed 
by 
the 
following. 
A. 
The person may elect to have the service retirement 
benefit continued during the period of time the person is 
restored to service and the person may not accumulate any 
additional service credits. 
B. 
The person may elect to have the service retirement 
benefit terminated, again become a member of the retirement 
system and begin contributing at the current rate. 
(1) 
The person is entitled to accumulate additional 
service credits during the period of time the person is 
restored to service. 
(2) 
When 
the person again 
entitled to receive benefits 
entire creditable service and 
law in effect at the time. 
retires, 
the person is 
computed on the person's 
in accordance wi th the 
c. 
Upon being restored to service, the person GRall must 
elect to have benefits either continued or terminated. 
If 
written 
notification 
of 
the 
person's 
election 
is 
not 
received 
by 
the 
executive 
director 
within 
days 
of 
restoration to service, the person is deemed to have elected 
the provisions of paragraph A. 
The election, regardless of 
how 
it is 
made, 
is 
irrevocable 
during 
the 
period 
of 
restoration to services. 
Sec. 11. 5 MRSA §18252-A, sub-§I, "A and B, as enacted by PL 
1997, c. 709, §4, are amended to read: 
A. 
An employee hired by a participating local district, or 
rehired following a break in service, after the date on 
which the employer provides a plan under section l8252-B 
GRall must elect at the time of hiring or rehiring whether 
to be a member under the retirement system or to be covered 
under a plan provided by the employer under section 18252-B. 
(1) 
If the employee elects to be a member under the 
retirement system, the election is effective as of the 
date of hire or rehire. 
(a) 
An employee who elects to be a member of the 
retirement system may later elect to be covered 
under 
a 
plan 
provided 
by 
the 
employer 
under 
section 18252-B. 
The employee who so elects GRall 
may, 
at 
the 
employee's 
discretion, 
withdraw 
accumulated 
contributions 
in 
accordance 
with 
applicable 
requirements 
of 
law 
and 
rule 
and 
retirement system procedures. 
(b) 
An employee who elects under division (a) to 
be covered under a plan provided by the employer 
under section 18252-B may later elect to again 
become 
a 
member 
under 
the 
retirement 
system, 
unless 
to 
so elect would 
have 
the effect of 
requiring 
the 
employer, 
without 
the 
employer's 
agreement, 
to make 
an employer contribution to 
both the retirement system and the plan provided 
by the employer under section 18252-B. 
(c) 
An employee who elects under division (b) to 
again become a member of the retirement system may 
not pay contributions or pick-up contributions or 
receive service credit for the period during which 
the employee elected not to be a member under the 
retirement 
system. 
The 
employee 
may, 
in 
accordance with section 18304, repay contributions 
withdrawn under division (a) and may, as permitted 
under other relevant retirement system law, rule 
and policy, repay other refunded contributions. 
(d) 
An 
employee 
who, 
having elected to 
again 
become a member under the retirement system under 
division (c), 
later elects again not to be 
a 
member may not thereafter become a member under 
the retirement system while employed by the same 
participating local district. 
(2) 
An employee who elects to be covered under a plan 
provided by the employer 
under 
section 18252-B 
may 
later elect to become a member under the retirement 
system. 
(a) 
Membership service credit for 
an employee 
Jo~ning 
the 
retirement 
system 
under 
this 
subparagraph begins as of the effective date of 
first contributions or pick-up contributions to 
the 
retirement 
system 
following 
the 
employee's 
election under this subparagraph. 
(b) 
An employee who joins the retirement system 
under this subparagraph may not pay contributions 
or have pick-up contributions made on or receive 
any service credit for the period during which the 
employee 
elected 
not 
to 
be 
a 
member 
of 
the 
retirement system. 
(c) 
An employee who, having elected to become a 
member 
under 
the 
retirement 
system 
under 
this 
subparagraph, 
later elects 
again 
not 
to 
be 
a 
member 
sha~~ may, 
at the employee's discretion, 
withdraw accumulated contributions in accordance 
with applicable requirements of law and rule and 
retirement 
system 
procedures 
and 
may 
not 
thereafter become a 
member under the retirement 
system while employed by the same participating 
local district. 
B. 
An employee of the participating local district who is a 
member under the retirement system on the date on which the 
employer provides a plan under section 18252-B may elect to 
remain a member under the retirement system or to become 
covered under a plan provided by the employer under section 
18252-B. 
(1) 
If the employee elects not to remain a member, the 
election is effective as of the first day of the month 
in which no contributicns or pick-up contributions are 
made to the retirement system by the employee. 
An 
employee who elects not to remain a member sha±± !lli!YL 
at 
the 
employee's 
discretion, 
withdraw 
accumulated 
contributions 
in 
accordance 
with 
applicable 
requirements of 
law and rule and 
retirement 
system 
procedures. 
( 2 ) 
under 
An 
employee who 
the retirement 
elects not to remain 
system may later elect 
a 
member 
to again 
become a member. 
(a) 
Membership service credit for an employee who 
elects 
to 
again 
become 
a 
member 
under 
the 
retirement system under this subparagraph begins 
as 
of 
the 
effective 
date 
of 
the 
first 
contributions 
or 
pick-up 
contributions 
to 
the 
retirement 
system 
following 
the 
employee's 
election under this subparagraph. 
(b) 
An employee who rejoins the retirement system 
under this subparagraph may not pay contributions 
or pick-up contributions or receive service credit 
for the period during which the employee elected 
not to be a member under the retirement system. 
The 
employee 
may, 
in 
accordance 
with 
section 
18304, 
repay 
contributions 
refunded 
under 
subparagraph (1), unless to so elect would have 
the effect of requiring the employer, without the 
employer's 
agreement, 
to 
make 
an 
employer 
contribution to both the retirement system and the 
plan 
provided 
by 
the 
employer 
under 
section 
18252-B. 
(c) 
An 
employee 
who, 
having elected to again 
become a member under the retirement system under 
this subparagraph, later elects again not to be a 
member shall may, 
at the employee's discretion, 
withdraw accumulated contributions in accordance 
with applicable requirements of law and rule and 
retirement 
system 
procedures 
and 
may 
not 
thereafter become 
a 
member under the retirement 
system while employed by the 
same participating 
local district. 
Sec. 12. 5 MRSA §18360, first" as amended by PL 1991, c. 479, 
§5, is further amended to read: 
Service credit for service in the Armed Forces of the United 
States is governed as follows. 
Except as provided in subsection 
1, 
paragraph 
B, 
subparagraph 
(1), 
service credit under 
this 
section is limited to -4-
~ years. 
Sec. 13. 5 MRS A §18360, sub-§1, as enacted by PL 1985, c. 80l, 
§§5 and 7, is amended to read: 
service 
member's 
1, under 
Service after becoming a member. A member is entitled to 
credit for 
the period of 
time during which his the 
membership is continued under section 18258, subsection 
the following terms and conditions. 
A. 
We A member who is otherwise entitled to service credit 
for military leave may not be deprived of these credits if 
the member'S return to membership service is delayed beyond 
days after his the member's separation from the service 
in the Armed Forces of the United States, under conditions 
other 
than dishonorable, 
if the 
delay is 
caused 
by 
an 
illness or disability incurred in the service in the armed 
forces. 
B. 
A member may not receive service credit for military 
leave beyond the end of the period of first enlistment or 
induction or beyond -4-
~ years from the date of original 
call to active duty in the armed forces, whichever is less, 
unless: 
( 1) 
The member's return 
forces 
or 
the 
extension 
beyond --4-
~ years 
is 
provision; and 
to active 
of 
the 
required 
duty in the armed 
period of 
service 
by 
some 
mandatory 
(2) 
The member presents proof of the return to or 
extension of service satisfactory to the board. 
Sec. 14. 5 MRSA §18512 is enacted to read: 
§185l2. 
Rehabilitation 
As a means to a person being able to return to substantially 
gainful activity, rehabilitation services may be provided to any 
person who is the recipient of a disability retirement benefit 
under this article and has filed the application under section 
18502 for this benefit after the effective date of this section. 
Rehabilitation services may be provided to any person who is the 
recipient of a disability retirement benefit when the executive 
director 
determines 
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 
a 
medical 
board pursuant 
to 
section 18502, subsection 1, paragraph A 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 
wi th 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. 
Nothing in this 
section affects 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 
determines that rehabilitation is feasible and recommended, the 
retirement 
system 
shall 
designate 
a 
rehabilitation 
services 
provider to evaluate the person and develop a rehabilitation plan. 
2. 
Costs. 
The 
executive 
director 
may 
contract 
with 
rehabilitation 
services 
providers 
to 
develop 
and 
carry 
out 
approved rehabilitation plans. 
A. 
Except 
as 
provided 
in 
paragraph 
B, 
the 
executive 
director shall pay these rehabilitation services 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 
shall approve a rehabilitation plan that the executive director 
finds to be in the person's best interest and consistent with the 
purposes of this article. 
The person and the executive director 
shall indicate in writing their approval of and agreement to the 
submitted 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 
rehabilitation 
services 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. 
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 
provision 
relating 
to 
review 
must 
include 
authority for the executive director to terminate the plan or to 
amend the plan with the same rehabilitation services 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 
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 
pr ior 
compensation 
and 
benefits, 
training, 
education 
and 
experience, including training and education received under that 
person's rehabilitation plan. 
6. 
Employment 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 
Page l2-LR1943(1) 
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. 
Sec. 15. 5 MRS A §18527, first" as amended by PL 1995, c. 643, 
§24, is further amended to read: 
Rehabilitation services 
HniS~ may be provided to any person 
who is the recipient of a disability retirement bEmefit under 
this article i€ as a means to the person being able to return to 
substantially gainful activity. 
Services may be provided when 
the 
executive 
director 
determines 
that 
rehabilitation 
is 
feasible, that rehabilitation is consistent with the purposes of 
this 
article 
aBaL 
that 
the 
recipient 
is 
suitable 
for 
rehabilitation services 
and 
that 
rehabilitation services 
are 
likely to lead to substantially gainful activity. 
When Beeessa~y 
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 
wi th 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. 
Nothing in this 
section affects the ongoing requirement that a 
pHrson 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. 
Sec. 16. 5 MRSA §18527, sub-§I, as enacted by PL 1989, c. 409, 
§§ll and 12, is amended to read: 
1. 
Rehabilitation 
plan. 
If 
the 
executive 
director 
determines that rehabilitation is feasible and recommended, the 
retirement 
system 
shall 
designate 
a 
rehabilitation 
services 
provider to evaluate the person and develop a rehabilitation plan. 
Sec. 17. 5 MRSA §18527, sub-§2, ,A, as enacted by PL 1989, c. 
409, §§ll and 12, is amended to read: 
A. 
Except 
as 
provided 
in 
paragraph 
B, 
the 
executive 
director shall pay these providers from funds accumulated in 
Page l3-LR1943(1} 
the gisaBi±i~y-~~~~~-~~~-~~Ba Retirement Allowance 
Fund, established under section 17251. 
Sec. 18. 5 MRS A §18527, sub-§4, as amended by PL 1995, c. 643, 
§25, is repealed. 
Sec. 19. 5 MRSA §18527, sub-§5, as enacted by PL 1989, c. 409, 
§§ll and 12, is amended to read: 
5. 
Monitorinq of rehabilitation plan. 
Each rehabilitation 
plan approved by the executive director sha±± 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 provision relating to review sha±± 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 aBG-4 
SHall 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. 
Sec. 20. 5 MRSA §18801, sub-§6, as enacted by PL 1989, c. 811, 
§3, is amended to read: 
6. 
Plan desiqn and amendments. 
The rules adopted by the 
board must be based entirely upon proposals for the consolidated 
retirement plan 
and 
proposed 
amendments 
to 
the 
consolidated 
retirement plan received from the Participating Local District 
Advisory Committee or 
from 
the retirement system staff. 
The 
board shall adopt as 
a 
rule 
any proposal received from 
the 
Participating Local District Advisory Committee or return the 
proposal to the advisory committee with a statement setting forth 
the reasons for not adopting the proposal. 
Sec. 21. 5 MRSA §18802-A, sub-§§5 and 6, as enacted by PL 1997, 
c. 12, §l and affected by §2, are amended to read: 
5. 
Transaction of business. 
The transaction of business by 
the advisory committee is governed as follows. 
A. 
Seven 
voting 
members 
constitute 
a 
quorum 
for 
the 
transaction of any business. 
B. 
Each member is entitled to one vote. 
C. 
gHee~~-a~-~~~~~-SQBSee~~eB-~-~~~~~Fma~~~-ve~es 
aFe Affirmative votes of a simple majority of the quorum or, 
if greater, of the voting members present are necessary for 
the passage of any resolution or any other action by the 
advisory committee. 
6. 
Proposal for plan design or amendment. 
The advisory 
committee sba±± or the retirement system staff may present to the 
board 
proposals 
for 
the 
consolidated 
retirement: 
plan 
and 
amendments to the plan. 
Passage of any resolution or any other 
action by the advisory committee relating to proposals for the 
consolidated 
retirement 
plan 
or 
proposed 
amendments 
to 
the 
consolidated retirement plan requires -g-
affirmative votes of a 
simple majority of the quorum or, if greater, of the voting 
members present. 
SUMMARY 
The bill makes the definition of Consumer Price Index that 
applies to judges consistent with the definition that applies to 
all other Maine State Retirement System members. 
The bill brings state law into compliance with federal law 
with respect to the period of time that a member may continue to 
earn creditable service while on a leave of absence in order to 
serve in the military. 
The 
bill 
extends 
rehabilitation 
services 
to 
additional 
disability 
retirement 
recipients 
and 
makes 
optional 
the 
participation in rehabilitation services designed to assist their 
return to substantially gainful activity. 
A disability recipient 
under this change could request rehabilitation services and. upon 
meeting certain criteria, receive them. 
The bill repeals the discontinuance of disability retirement 
benefits 
to 
recipients 
who 
decline 
to 
participate 
in 
the 
rehabilitation services program. 
The 
bill clarifies 
subsections 
of 
the 
Maine 
Revised 
Statutes 
by 
combining 
them 
and 
makes 
the 
withdrawal 
of 
contributions optional when a member who is covered by the Social 
Security 
Act 
elects 
to 
cease 
contributing 
to 
Maine 
State 
Retirement System. 
The bill makes 
the withdrawal of contributions 
from 
the 
Maine State Retirement System optional when 
a 
member 
who 
is 
covered by an employer-provided retirement plan elects to cease 
contributing to the Maine State Retirement System. 
Page l5-LR1943(1) 
The bill changes the attendance and voting requirements 
under which the Participating Local District Advisory Committee 
transacts business. 
The bill also adds the retirement system 
staff to those permitted to make rule amendment proposals to the 
Board of Trustees of the Maine State Retirement System. 
The 
Participating Local District Advisory Committee was previously 
the sole entity permitted to make such proposals.