Maine Legislature, Session 123, LD 1511
Committee Amendment CA_A_S259 (Senate)

COMMITTEE AMENDMENT 'A " to S.P. 534, L.D. 1511, "RESOLUTION, 
Proposing an Amendment to the Constitution of Maine To Dispose of Unfunded 
Liabilities in State Retiree Health Care Plans" 
Amend the resolution by striking out section 24 and inserting the following: 
'Section 24. Payment of unfunded liabilities in state retiree health care plans. 
Each fiscal year beginning with the fiscal year starting July 1, 2008, the Legislature shall 
appropriate and allocate funds that will retire in 30 years the unfunded liabilities in the 
state retiree health care plans for state employees and teachers. Annual payments must be 
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made on the basis of an independent actuarial analysis conducted every 2 years so that the 
unfunded liabilities of the state retiree health care plans for state employees and teachers 
are eliminated no later than fiscal year 2038. The unfunded liabilities referred to in this 
section are those in existence on the effective date of this section.' 
Amend the resolution by striking out the question (page 1, lines 21 to 23 in L.D.) and 
inserting the following: 
'''Do you favor amending the Constitution of Maine to eliminate the unfunded 
liabilities of the state retiree health care plans for state employees and teachers by 
fiscal year 20387'" 
SUMMARY 
This amendment provides a requirement for the allocation of funds in the proposed 
constitutional amendment, identifies state employee and teacher plans as the subject of 
the amendment, changes from 25 to 30 years the time period by the end of which 
unfunded liabilities will be retired, provides that actuarial analyses be conducted every 2 
years as a basis for annual payments and removes a prohibition on incurring further 
liability. 
¥ISCAL .\OTE REQllRED 
@ee attached} 
COMMITTEE AMENDMENT 
Approved: 06108/07 
~aC! 
LD 1511 
LR 1280(02) 
RESOLUTION, Proposing an Amendment to the Constitution of Maine To Dispose of Unfunded 
Liabilities in State Retiree Health Care Plans 
Referendum Costs 
Fiscal Note for Bill as Amended by Committee Amendment ~ " 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
Current biennium cost increase - General Fund 
Future biennium cost increase - General Fund 
MonthN ear 
Election Type 
Question 
Nov-07 
General 
Referendum 
Length 
Standard 
The Secretary of State's budget includes sufficient funds to accommodate one ballot of average length for the general 
election in November. If the number or size of the referendum questions increases the ballot length, an additional 
appropriation of $8,000 or more may be required. 
Fiscal Detail and Notes 
Ifvoters approve the referendum in November the State will be required to make annual payments that will eliminate 
the unfunded liability of the State retiree health care plans no later than fiscal year 2038. The Administration's current 
plan to address this unfunded liability is to increase annual contributions beginning in 2010 to put the State on a 10-
year path to making the annual required contributions necessary to fund the liability of the retiree health care plans. 
In addition, Part LL of the Committee Amendment to LD 499, would create an irrevocable trust fund for health care 
plan benefits that would help reduce this unfunded liability by increasing the rate of return on plan assets. 
Under the Administration's plan, contributions for retiree health insurance as a percentage of total State payroll will 
increase from 5.9% in state fiscal year 2008-09 to 13.4% by state fiscal year 2019 and thereafter until fiscal year 2038. 
LRI280(02) - Fiscal Note - Page I of I