Maine Legislature, Session 123, LD 1492
Committee: Labor
Sponsors: MILLS

Legislative Document 
No. 1492 
S.P.519 
March 19, 2007 
RESOLUTION, Proposing an Amendment to the Constitution of 
Maine To Prohibit Incurring Any New Unfunded Liabilities for 
Retiree Health Benefits and To Require a 20-year Amortization of 
Public Retiree Benefits 
Reference to the Committee on Labor suggested and ordered printed. 
Presented by Senator MILLS of Somerset. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Constitutional amendment. Resolved: 
Two thirds of each branch of the 
Legislature concurring, that the following amendment to the Constitution of Maine be 
proposed: 
Constitution, Art. IX, §18-A is amended to read: 
Section IS-A. Funding of retirement benefits. Beginning witA tAe fiscal year 
starting July 1, 1997, the The normal cost of all retirement, health and ancillary benefits 
provided to retirees from public service and to participants under the Maine State 
Retirement System must be funded annually on an actuarially sound basis. Unfunded 
liabilities for retiree benefits of any kind may not be created except those resulting from 
experience losses. Unfunded liability resulting from experience losses must be retired 
over a period not exceeding 10 years. 
Constitution, Art. IX, §18-B is amended to read: 
Section IS-B. Payment of unfunded liabilities for public retiree benefits. Each 
fiscal year beginning with the fiscal year starting July 1, 1997, the Legislature shall 
appropriate funds that will on an actuarially sound schedule sufficient to retire in 31 years 
er--less , on or before July 1, 2028, the unfunded liabilities of tAe Maine State Retirement 
System tAat are attributable to all retirement benefits, including health and ancillary 
benefits, owed by the State on behalf of state employees and~ teachers and others whose 
retirement benefits are funded from state revenues. The unfunded liabilities referred to in 
this section are those determined by the Maine State Retirement System's actuaries and 
certified by the Board of Trustees of the Maine State Retirement System as of June 30, 
1996 and those actuarially determined and certified in the State's audited financial 
accounts for the fiscal year ending June 30, 2007. 
; and be it further 
Constitutional referendum procedure; form of question; effective date. 
Resolved: That the municipal officers of this State shall notify the inhabitants of their 
respective cities, towns and plantations to meet, in the manner prescribed by law for 
holding a statewide election, at a statewide election held in the month of November 
following the passage of this resolution, to vote upon the ratification of the amendment 
proposed in this resolution by voting upon the following question: 
"Do you favor amending the Constitution of Maine to prohibit the State from 
incurring any new unfunded liabilities for retiree health benefits and to require the 
retirement in 20 years of the unfunded liability of all retirement benefits, including 
health and ancillary benefits, owed by the State?" 
The legal voters of each city, town and plantation shall vote by ballot on this question 
and designate their choice by a cross or check mark placed within the corresponding 
square below the word "Yes" or "No." The ballots must be received, sorted, counted and 
declared in open ward, town and plantation meetings and returns made to the Secretary of 
State in the same manner as votes for members of the Legislature. The Governor shall 
review the returns. If it appears that a majority of the legal votes are cast in favor of the 
amendment, the Governor shall proclaim that fact without delay and the amendment 
I 
becomes part of the Constitution of Maine on the date of the proclamation; and be it 
further 
Secretary of State shall prepare ballots. Resolved: That the Secretary of State 
shall prepare and furnish to each city, town and plantation all ballots, returns and copies 
of this resolution necessary to carry out the purposes of this referendum. 
SUMMARY 
This resolution proposes to amend the Constitution of Maine to prohibit the State 
from incurring any new unfunded liabilities for retiree health benefits and to require the 
retirement within 20 years of the unfunded liability of all retirement benefits, including 
health benefits, owed by the State.