An Act Concerning Disability Retirement Benefits under the Maine State Retirement System
Maine Legislature, Session 122, LD 0093
Committee Amendment CA_A_S82 (Senate)

COMMITTEE AMENDMENT ,A, to S.P. 35, L.D. 93, Bi11, "An Act 
Concerning Disability Retirement Benefits under the Maine State 
Retirement System" 
Amend the bill by incorporating the attached fiscal note. 
SUMMARY 
This amendment incorporates a fiscal note. 
Page l-LR0510(2) 
COMMITTEE AMENDMENT 
Approved: 04/01105 ~ae 
LD93 
LR0510(02) 
An Act Concerning Disability Retirement Benefits under the Maine State Retirement System 
Fiscal Note for Bill as Amended by Committee Amendment A 
Fiscal Detail and Notes 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium cost increase - All Funds 
Undetermined future biennium cost increase - All Funds 
Allowing the changes made to the disability retirement benefit program enacted in Public Law 2003, Chapter 675 to 
be applied retroactively to January I, 2000 may result in a cost to the Retirement System. The actual cost can not be 
determined at this time and will depend on the actual population that is impacted by this legislation. If this measure 
requires the payment of past benefits that were not paid under the current law, an unfunded liability may be created. 
Pursuant to the Constitution of Maine, Article IX, Section I8-A, unfunded liabilities may not be created except those 
that result from experience losses. The Maine State Retirement System will require one-time additional General Fund 
appropriations and Highway Fund and other funds allocations representing the full actuarial value of the increase to 
the unfunded liability. 
Although the actual General Fund appropriations and Highway Fund and other funds allocations that would be needed 
to fund the retroactive provision of this legislation are not available, the Retirement System attempted to provide an 
estimate of the potential impact by selecting 3 former benefit recipients and determining the likely cost if their benefits 
were reinstated under this provision. According to the System, if the 3 recipients, out of the total 21 disability 
retirement benefit recipients that had their benefits discontinued since January 2000 under the law that was in effect at 
that time, were reinstated under this legislation, the cost to fund the retroactive provision would be $108,745. 
Also, to the extent that those impacted by this legislation continue to receive prospective benefits that would not have 
been received under current law, additional costs to the retirement plan are created. Although these costs do not 
directly create an unfunded liability, it does result in the existing unfunded liability being paid down at a slower rate 
than what would have occurred without this legislation. According to the Retirement System, the prospective costs for 
those same 3 recipients would be $1,535,000. These costs will ultimately be reflected in the ongoing unfunded 
liability component of the employer retirement rate, resulting in increased employer contributions to the Maine Statf 
Retirement System for state employees and teachers. 
LR0510(2) - Fiscal Note - Page 1 of 1