An Act To Restore Equity to the Maine State Retirement System
Maine Legislature, Session 123, LD 1693
Committee Amendment CA_A-SA_C_S605 (Senate)
Amends: 3 MRSA §8, 4 MRSA §1351, 5 MRSA §17852

SENATE AMENDMENT "e-" to COMMITTEE AMENDMENT "A" to S.P. 600, 
L.D. 1693, Bill, "An Act To Restore Equity to the Maine State Retirement System" 
Amend the amendment by striking out the first 5 indented paragraphs after the 
substitute title (page 1, lines 14 to 34 in amendment) and inserting the following: 
'Amend the bill by striking out sections 1 to 11 and inserting the following: 
'Sec. 1. 3 MRSA §8S1, sub-§2-A, as amended by PL 2007, c. 491, §26, is further 
amended to read: 
2-A. Early retirement; employed under program on June 30, 1993, but less than 
years creditable service on July 1, 1993. Any member, whether or not in service at 
retirement, who on June 30, 1993 was employed in a position that is covered under the 
State Employee and Teacher Retirement Program, the Legislative Retirement Program or 
the Judicial Retirement Program but who on July 1, 1993 had less than 10 years of 
creditable service and who has completed at least 25 years of creditable service may retire 
any time before the member's 62nd birthday. Creditable service as a member of any other 
retirement program of the Maine Public Employees Retirement System may be combined 
with creditable service as a member of the Legislative Retirement Program for the 
purpose of determining the completion of 25 years of creditable service. The retirement 
allowance is determined in accordance with section 852, except that it is reduced by 6% 
3% for each year that the member's age precedes age 62. 
Sec. 2. 3 MRS A §8S1, sub-§2-C is enacted to read: 
2-C. Early retirement; not employed under program on June 30, 1993. Any 
member, whether or not in service at retirement, who on June 30, 1993 was not employed 
in a position that is covered under the State Employee and Teacher Retirement Program, 
1 
the Legislative Retirement Program or the Judicial Retirement Program and who has 
completed at least 25 years of creditable service may retire any time before the member's 
62nd birthday. 
Creditable service as a member of the Maine Public Employees 
Retirement System may be combined with creditable service as a member of the Maine 
Legislative Retirement System for the purpose of determining the completion of25 years 
SENATE AMENDMENT 
SENATE AMENDMENT "V, to COMMITTEE AMENDMENT "A" to S.P. 600, L.D. 1693 
of creditable service. The retirement allowance is determined in accordance with section 
852, except that it is reduced by 6% for each year that the member's age precedes age 62. 
Sec. 3. 4 MRSA §1351, sub-§3-A, as amended by PL 1999, c. 756, §9, is further 
amended to read: 
3-A. Early retirement; employed under program on June 30,1993, but less than 
years creditable service on July 1, 1993. Any member, whether or not in service at 
retirement, who on June 30, 1993 was employed in a position that is covered under the 
State Employee and Teacher Retirement Program, the Legislative Retirement Program or 
the Judicial Retirement Program but who on July 1, 1993 had less than 10 years of 
creditable service and who has completed at least 25 years of creditable service may retire 
any time before the member's 62nd birthday. The retirement allowance is determined in 
accordance with section 1352, except that the benefit is reduced by 6%-- 3% for each year 
that the member's age precedes age 62. 
Sec. 4. 4 MRSA §1351, sub-§3-B is enacted to read: 
3-B. Early retirement; not employed under program on June 30, 1993. Any 
member, whether or not in service at retirement, who on June 30, 1993 was not employed 
in a position that is covered under the State Employee and Teacher Retirement Program, 
the Legislative Retirement Program or the Judicial Retirement Program and who has 
completed at least 25 years of creditable service may retire any time before the member's 
62nd birthday. The retirement allowance is determined in accordance with section 1352, 
except that the benefit is reduced by 6% for each year that the member's age precedes age 
62. 
Sec. 5. 5 MRSA §17852, sub-§3-A, as amended by PL 1999, c. 489, §17, is 
further amended to read: 
3-A. Member with creditable service of 25 years or more whether or not in 
service at retirement; employed under program on June 30,1993, but fewer than 10 
years of creditable service on July 1, 1993. The amount of the service retirement 
benefit for members qualified under section 17851, subsection 3, is computed in 
accordance with subsection 1, except that: 
C. 
The benefit is reduced by 6% 3% for each year that the member's age precedes 
1 
years of age; and 
D. 
Effective October 1, 1999, the reduction to be applied to the service retirement 
benefit of a member to whom this subsection applies may not be greater than that in 
effect on October 1, 1999 under paragraph C for a member who, on October 1, 1999 
or thereafter, meets the creditable service requirement for eligibility to receive a 
service retirement benefit under section 17851, subsection l-C, paragraph A; section 
17851, subsection l-C, paragraph B; section 17851, subsection 2-C, paragraph A; 
section 17851, subsection 2-C, paragraph B; or section 17851-A, subsection 2, 
paragraph A. For a member to whom section 17851-A applies, this paragraph must 
be applied in accordance with the requirements of section 17851-A, subsection 4. 
This subsection applies to members who on June 30, 1993 were employed in a position 
that is covered under the State Employee and Teacher Retirement Program, the 
SENA TE AMENDMENT 
SENATE AMENDMENT "u' to COMMITTEE AMENDMENT "A" to S.P. 600, L.D. 1693 
Legislative Retirement Program or the Judicial Retirement Program but who, on July 1, 
1993, do not have 10 years of creditable service. 
Sec. 6. 5 MRSA §17852, sub-§3-B is enacted to read: 
3-B. Member with creditable service of 25 years or more whether or not in 
service at retirement; not employed under program on June 30, 1993. The amount of 
the service retirement benefit for members qualified under section 17851, subsection 3 is 
computed in accordance with subsection 1, except that: 
A. The benefit is reduced by 6% for each year that the member's age precedes 62 
years of age. 
This subsection applies to members who on June 30, 1993 were not employed in a 
II 
position that is covered under the State Employee and Teacher Retirement Program, the 
Legislative Retirement Program or the Judicial Retirement Program.' , 
Amend the amendment in section 13 in the last line (page 2, line 19 in amendment) 
by striking out the following: "sections 17851-A and 17852" and inserting the following: 
'section 17852' 
Amend the amendment by striking out all of section 15 (page 3, lines 25 to 35 in 
amendment) and inserting the following: 
'Sec. 15. Contingent effective date. Since the Constitution of Maine, Article IX, 
Section 18-A requires the Maine Public Employees Retirement System to be funded 
annually on an actuarially sound basis and prohibits the creation of unfunded liabilities 
except those resulting from experience losses, sections 1 to 8 take effect only if the Board 
of Trustees of the Maine Public Employees Retirement System, pursuant to section 9, 
takes an action to reduce the required unfunded liability payment for fiscal year 2007-08. 
Within 10 days of the effective date of this Act, the Board of Trustees of the Maine 
Public Employees Retirement System shall notify the Secretary of the Senate, the Clerk 
of the House of Representatives and the Revisor of Statutes whether, pursuant to section 
9, it took an action on or before the effective date of this Act to reduce the required 
unfunded liability payment for fiscal year 2007-08.' 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter 
or section number to read consecutively. 
SUMMARY 
The bill, as amended by Committee Amendment "A," reduces the penalty for early 
retirement from 6% to 3% for members of the state employee and teacher retirement plan, 
the legislative retirement plan and the judicial retirement plan. This amendment limits the 
reduction in penalty to only those employees who were already employed in a position 
that is covered under the State Employee and Teacher Retirement Program, the 
SENATE AMENDMENT 
SENATE AMENDMENT "e; to COMMITTEE AMENDMENT "A" to S.P. 600, L.D. 1693 
Legislative Retirement Program or the Judicial Retirement Program prior to the time the 
penalty was increased from 2.25% to 6% per year and only those employees who do not 
have the option to retire at 55 years of age without a penalty. 
SPONSORED BY: -If-"'---+---+-'~-----
(Senator MILLS, 
COUNTY: Somerset 
SENATE AMENDMENT 
Approved: 04/08/08 frac. 
LD 1693 
LR 2016(06) 
An Act To Restore Equity to the Maine State Retirement System 
Fiscal Note for Senate Amendment "L/' to Committee Amendment "A" 
Sponsor: Sen. Mills, P. of Somerset 
Net Cost (Savings) 
General Fund 
Highway Fund 
A ppropriations/ Allocations 
General Fund 
Highway Fund 
Federal Expenditures Fund 
Other Special Revenue Funds 
Federal Block Grant Fund 
Other Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
2008-09 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
Projections 
2009-10 
($2,653,266) 
($182,760) 
($2,653,266) 
($182,760) 
($283,111) 
($170,624) 
($16,856) 
($130,376) 
Projections 
2010-11 
($2,779,296) 
($194,583) 
($2,779,296) 
($194,583) 
($296,559) 
($178,728) 
($17,657) 
($136,569) 
This amendment reduces the 2008-2009 biennial cost of the bill by $31,900,000 with $30,900,000 being the decreased 
cost to the unfunded actuarial liability and $1,000,000 being the decreased cost associated with the normal cost 
component for fiscal year 2008-09. 
This amendment reduces the total cost of the bi II through June 30, 2028 by $102,071 ,666. Of that amount, the 
decrease to the unfunded liability payments will be $70,866,032 and the decrease to the normal cost component 
payments will be $31,205,634. 
As amended, reducing the early retirement reduction factor from 6% to 3% for those members of the State Employee 
and Teacher Retirement Plan, the Legislative Retirement Plan and the Judicial Retirement Plan who were members as 
of July I, 1993, excluding those members whose normal retirement age is 55, and are currently subject to the 6% 
reduction factor will result in a 2008-2009 biennial cost of$64,900,000, with $63,000,000 being the increased cost to 
the unfunded actuarial liability and $1,900,000 being the increased normal cost component for fiscal year 2008-09. 
LR20 16(06) - Fiscal Note - Page I of 2 
As amended, because this legislation proposes to fund the current biennium cost of this provision by utilizing a 
portion of the $199,295,540 already appropriated and/or allocated in fiscal year 2007-08 to the Maine Public 
Employees Retirement System (MainePERS) for the employer's contribution to the unfunded liability, no additional 
General Fund appropriation is required in the 2008-2009 biennium. However, based on current projections, reducing 
the amount of funds to be applied to existing unfunded actuarial liability in fiscal year 2007-08 and providing the 
additional benefit will result in total additional payments through June 30, 2028 of $203,466,429. Of that amount, the 
total increase to the unfunded I iabil ity payments wi II be $144,175,723 and the increase to the normal cost component 
payments will be $59,290,706. 
LR20 16(06) - Fiscal Note - Page 2 of 2