An Act To A1low Employee Retirement Disability Benefits To Be Eligible for the Pension Deduction under Maine Income Tax Law Further amend the bill by striking out everything after the enacting clause and before the summary and inserting in its place the following: Sec. 1. 36 MRSA §5122, sub-§2, 11M, as amended by PL 2003, c. 391, §5, is further amended to read: M. For each individual who is a primary recipient of pension benefits or disability benefits under an employee retirement plan, an amount that is the lesser of: (1) Six thousand dollars reduced by the total amount of the individual's social security benefits and railroad retirement benefits paid by the United States, but not less than $0. The reduction does not apply to benefits paid under a military retirement plan; or (2) The aggregate of pension benefits and disability benefits under employee retirement plans included in the individual's federal adjusted gross income. Page l-LR1845(2) COMM/rrEE AMENDMENT
Maine Legislature, Session 122, LD 1158
Committee Amendment CA_A_H585 (House)
Amends: 36 MRSA §5122

COMMITTEE AMENDMENT "A .. to H.P. 801, L.D. 1158, Bill, "An 
Act To Allow Disabled Retired State Employees To Be Eligible for 
a Pension Deduction under Maine Income Tax Law" 
Amend the bill by striking out the title and substituting 
the following: 
'An Act To A1low Employee Retirement Disability Benefits To Be 
Eligible for the Pension Deduction under Maine Income Tax Law' 
Further amend the bill by striking out everything after the 
enacting clause and before the summary and inserting in its place 
the following: 
'Sec. 1. 36 MRSA §5122, sub-§2, 11M, as amended by PL 2003, c. 
391, §5, is further amended to read: 
M. 
For 
each individual who 
is a 
primary recipient of 
pension benefits or disability benefits under an employee 
retirement plan, an amount that is the lesser of: 
(1) 
Six thousand dollars reduced by the total amount 
of 
the 
individual's 
social 
security 
benefits 
and 
railroad retirement benefits paid by the United States, 
but not less than $0. 
The reduction does not apply to 
benefits paid under a military retirement plan; or 
(2) 
The aggregate of pension benefits and disability 
benefits under employee retirement plans included in 
the individual's federal adjusted gross income. 
Page l-LR1845(2) 
COMM/rrEE AMENDMENT 
?.-" 
COMMITTEE AMENDMENT "A· to H.P. 801, L.D. 1158 
For purposes of this paragraph, the following terms have the 
following 
meanings. 
"Primary 
recipient" 
means 
the 
individual upon whose earnings the employee retirement plan 
benefits 
are 
based 
or 
the 
surviving 
spouse 
of 
that 
individual. 
"Pension benefits" means 
employee retirement 
plan benefits reported as pension or annuity income for 
federal 
income tax purposes. 
"Employee 
retirement plan" 
means a state, federal or military retirement plan or any 
other retirement benefit plan established and maintained by 
an employer for the benefit of its employees under the Code, 
Section 40l(a), Section 403 or Section 457(b), except that 
distributions made pursuant to a 
see~ieB Section 457(b) plan 
are 
not 
eligible 
for 
the 
deduction 
provided 
by 
this 
paragraph if they are made prior to age 55 and are not part 
of a series of substantially equal periodic payments made 
for the life of the primary recipient or the joint lives of 
the 
primary 
recipient 
and 
that 
recipient's 
designated 
beneficiary. 
"Employee retirement plan" does not include an 
individual retirement account under Section 408 of the Code, 
a 
Roth 
IRA 
under Section 408A of the Code, 
a 
rollover 
individual retirement account, a simplified employee pension 
under Section 408 (k) of the Code or an ineligible deferred 
compensation 
plan 
under 
Section 
(f) 
of 
the 
Code. 
8eBeEi~s Pension benefits or disability benefits under an 
employee retirement plan do not include distributions that 
are subject to the tax imposed by the Code, Section 72(t). 
"Military retirement plan" means benefits received as 
a 
result of service in the active or reserve components of the 
Army, Navy, Air Force, Marines or Coast Guard;' 
SUMMARY 
This 
amendment extends 
the $6,000 
apply 
to 
disability 
benefits 
received 
retirement plan. 
pension deduction to 
under 
any 
employee 
FISCAL ~on: REQUIRED 
.""" 
(Se~ ~ttac~~d), 
COMMITTEE AMENDMENT 
• 
. 
. 
!IF ........ 
Approved: 05/26/05 ~ac.. 
LD 1158 
LR 1845(02) 
An Act To Allow Disabled Retired State Employees To Be Eligible for a Pension Deduction under 
Maine Income Tax Law 
Net Cost (Savings) 
General Food 
ltevenue 
General Food 
Fiscal Note for Bill as Amended by Committee Amendment 'Au 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
2005-06 
2006-07 
2007-08 
$1,014,843 
$2,577,701 
$2,824,878 
Other Special Revenue Funds 
($1,014,843) 
($54,538) 
($2,577,701) 
($138,528) 
($2,824,878) 
($154,951) 
Fiscal Detail and Notes 
Projections 
2008-09 
$2,937,873 
($2,937,873) 
($161,149) 
Exempting the first $6,000 of income received ooder certain disability retirement plans is expected to reduce General 
Food revenue by $1,014,843 in fiscal year 2005-06 and $2,577,701 in fiscal year 2006-07. 
LR1845(2) - Fiscal Note - Page 1 of 1