An Act To Clarify Retirement Programs for Participating Local Districts
Maine Legislature, Session 123, LD 2150
Committee: Labor
Sponsors: CLARK, DRISCOLL, HASKELL, JACKSON, THOMAS, TUTTLE, DOW, SULLIVAN
Amends: 5 MRSA §18252, 5 MRSA §18804

Legislative Document 
No. 2150 
H.P.1530 
House of Representatives, January 15,2008 
An Act To Clarify Retirement Programs for Participating Local 
Districts 
(EMERGENCY) 
Submitted by the Maine Public Employees Retirement System pursuant to Joint Rule 204. 
Reference to the Committee on Labor suggested and ordered printed. 
Presented by Representative CLARK of Millinocket. 
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'frI. 7lldC~{ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: DRISCOLL of Westbrook, HASKELL of Portland, 
JACKSON of Allagash, THOMAS of Ripley, TUTTLE of Sanford, Senators: DOW of 
Lincoln, SULLIVAN of York. 
PrilH~J on ft:cyded paper 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, planning for consolidation of educational and other service delivery at the 
local and regional level may affect retirement programs for employees; and 
Whereas, local districts have asked for more than one opportunity per year to join 
the Maine Public Employees Retirement System; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §18252, as amended by PL 2007, c. 137, § 17, is further amended 
to read: 
§18252. Membership in districts with Social Security coverage 
A person who is or would be covered by the United States Social Security Act as a 
result of employment by a participating local district having a so called " with Social 
Security Section 21 g agreement" coverage may elect to join, not to join, to cease 
contributions to or to withdraw from the retirement system under the following 
conditions. 
1. 
Membership. A new An employee may Jom the retirement system at the 
beginning of employment or on any anniversary of the begin.'ling of at any time after 
beginning employment, so long as that person is still an employee of the participating 
local district and the district continues to be a participating local district. 
A. 
Purchase of service credit for the period during which the person was not a 
member of the retirement system is governed by section 18305-A. 
2. 
Employee who is participating member. A person who is a participating 
member of the retirement system may elect to cease contributions to the system and, at 
that person's discretion, may withdraw accumulated contributions in accordance with 
section 18306-A. 
3. Person who has previously ceased contributions. A person who has previously 
elected to cease contributions to the retirement system, whether or not accumulated 
contributions have been withdrawn, may choose to rejoin the system at any time under 
the following conditions. 
B. 
The employer must still be a participating local district allowing new 
membership in the retirement system. 
C. 
Purchase of service credit for the period during which the person was not a 
member of the retirement system is governed by section 18305-A. Repayment of 
withdrawn accumulated contributions is governed by section 18304. 
5. Limit on right to rejoin. The right of a person to rejoin under subsection 3 is 
limited to 2 occurrences. 
6. Restoration to service. If any person who is the recipient of a service retirement 
benefit is covered by the United States Social Security Act upon being restored to service, 
continuation of that person's benefit is governed by the following. 
A. 
The person may elect to have the service retirement benefit continued during the 
period of time the person is restored to service and the person may not accumulate 
any additional service credits. 
B. 
The person may elect to have the service retirement benefit terminated, again 
become a member of the retirement system and begin contributing at the current rate. 
(1) The person is entitled to accumulate additional service credits during the 
period of time the person is restored to service. 
(2) When the person again retires, the person is entitled to receive benefits 
computed on the person's entire creditable service and in accordance with the law 
in effect at the time. 
C. 
Upon being restored to service, the person must elect to have benefits either 
continued or terminated. 
If written notification of the person's election is not 
received by the executive director within 60 days of restoration to service, the person 
is deemed to have elected the provisions of paragraph A. The election, regardless of 
how it is made, is irrevocable during the period of restoration to services. 
Sec. 2. 5 MRS A §18252-A, as amended by PL 2007, c. 137, §§18 and 19, is 
further amended to read: 
§18252-A. Membership in district without Social Security coverage and with plan 
provided by the employer under section 18252-B 
1. Membership. An employee of a participating local district that does not have a 
so called "Social Security gection 218 agreement" coverage and that has a plan provided 
by the employer under section 18252-B may elect to be a member under the retirement 
system or to be covered under the plan provided by the employer in accordance with the 
following. 
A. 
A person hired by a participating local district, or rehired following a break in 
service, after the date on which the employer provides a plan under section 18252-B 
must elect at the time of hiring or rehiring whether to be a member under the 
retirement system or to be covered under a plan provided by the employer under 
section 18252-B. 
(1) If the person elects to be a member under the retirement system, the election 
is effective as of the date of hire or rehire. 
(a) A person who elects to be a member of the retirement system may later 
elect to be covered under a plan provided by the employer under section 
18252-B. 
The person who so elects may, at that person's discretion, 
withdraw accumulated contributions in accordance with section 18306-A. 
(b) A person who elects under division (a) to be covered under a plan 
provided by the employer under section 18252-B may later elect to again 
become a member under the retirement system, unless to so elect would have 
the effect of requiring the employer, without the employer's agreement, to 
make an employer contribution to both the retirement system and the plan 
provided by the employer under section 18252-B. 
(c) A person who elects under division (b) to again become a member of the 
retirement system may, in accordance with section 18305-A, purchase 
service credit for the period during which the person elected not to be a 
member of the retirement system. 
The person may, in accordance with 
section 18304, repay contributions withdrawn under division (a) and may, as 
pennitted under other relevant retirement system law, rule and policy, repay 
other refunded contributions. 
(d) A person who, having elected to again become a member under the 
retirement system under division (c), later elects again not to be a member 
may not thereafter become a member under the retirement system while 
employed by the same participating local district. 
(2) A person who elects to be covered under a plan provided by the employer 
under section 18252-B may later elect to become a member under the retirement 
system. 
(a) Membership service credit for a person joining the retirement system 
under this subparagraph begins as of the effective date of first contributions 
or pick-up contributions to the retirement system following that person's 
election under this subparagraph. 
(b) A person who joins the retirement system under this subparagraph may, 
in accordance with section 18305-A, purchase service credit for the period 
during which the person elected not to be a member of the retirement system. 
(c) A person who, having elected to become a member under the retirement 
system under this subparagraph, later elects again not to be a member may, at 
the employee's discretion, withdraw accumulated contributions in accordance 
with applicable requirements of law and rule and retirement system 
procedures and may not thereafter become a member under the retirement 
system while employed by the same participating local district. 
B. 
An employee of the participating local district who is a member under the 
retirement system on the date on which the employer provides a plan under section 
18252-B may elect to remain a member under the retirement system or to become 
covered under a plan provided by the employer under section 18252-B. 
(1) If that person elects not to remain a member, the election is effective as of 
the first day of the month in which no contributions or pick-up contributions are 
made to the retirement system by that person. A person who elects not to remain 
a member may, at that person's discretion, withdraw accumulated contributions in 
accordance with section 18306-A. 
(2) A person who elects not to remain a member under the retirement system 
may later elect to again become a member. 
(a) Membership service credit for a person who elects to again become a 
member under the retirement system under this subparagraph begins as of the 
effective date of the first contributions or pick-up contributions to the 
retirement system following that person's election under this subparagraph. 
(b) A person who rejoins the retirement system under this subparagraph 
may, in accordance with section 18305-A, purchase service credit for the 
period during which that person elected not to be a member of the retirement 
system. 
The person may, in accordance with section 18304, repay 
contributions refunded under subparagraph (1), unless to so elect would have 
the effect of requiring the employer, without the employer's agreement, to 
make an employer contribution to both the retirement system and the plan 
provided by the employer under section 18252-B. 
(c) A person who, having elected to again become a member under the 
retirement system under this subparagraph, later elects again not to be a 
member may, at that person's discretion, withdraw accumulated contributions 
in accordance with section 18306-A and may not thereafter become a 
member under the retirement system while employed by the same 
participating local district. 
D. 
If the participating local district does not have a plan provided under section 
18252-B, the employees do not have the elections provided under paragraphs A and 
B. 
2. District employer responsibilities. Responsibilities of the participating local 
district employer are as follows. 
A. 
The participating local district employer is responsible for ensuring that the plan 
provided by the employer under section 18252-B meets the requirements of that 
section. 
B. 
The participating local district employer is responsible for providing employees 
with information as to membership under the retirement system and as to coverage 
under the plan provided by the employer under section 18252-B to assist the 
employee in making election decisions. The retirement system shall provide the 
employer with information as to the retirement system. 
C. 
The participating local district employer is responsible for providing procedures 
by which employees make elections under this section, for maintaining all records 
relevant to the election process and each employee's elections, for informing the 
retirement system as to employee elections in accordance with procedures established 
by the executive director and for making all administrative decisions, including the 
final administrative decision, in any dispute related to an employee's elections or 
administrative decision, in any dispute related to an employee's elections or to any 
issue as to the plan provided by the employer under section 18252-B. Neither the 
retirement system nor the system's board of trustees has responsibility or jurisdiction 
to make the final administrative decision with respect to any of these matters. The 
retirement system is responsible only to ensure that its records accurately reflect the 
information provided by the employer, the employer's decision as to any of these 
matters, and the legally cognizable outcome of any dispute related to any of these 
matters. 
D. 
With respect to matters related to participation and membership other than those 
specified in paragraph C, the retirement system and the board retain responsibility 
and authority according to applicable retirement system law and rules as to the 
participating local districts and their employees to whom this section applies, 
including the authority to make final administrative decisions. 
3. 
Exclusions. This section does not apply to employees of participating local 
districts: 
A. 
Who are employed in part-time, seasonal or temporary positions; 
B. 
Whose membership in the retirement system is optional under section 18252, 
section 18801, subsection 1 or section 18251, subsection 3, paragraph A, B or C; 
C. 
For whom membership in the retirement system is denied under section 18256; 
or 
D. 
Who are excluded from membership under section 18201, subsection 3. 
Sec. 3. 5 MRSA §18804, sub-§4, as enacted by PL 1989, c. 811, §3, is amended 
to read: 
4. Date participation begins. The retirement system establishes the schedule for 
enrolling participating local districts and for the effective date of establishment of a 
participating local district. 
The date when the participation of the employees of a 
participating local district begins is the first day of July following the date the contract is 
5igne6 as of the date of first contributions or pick-up contributions to the retirement 
system. This date is considered the date of establishment for a participating local district 
under section 17101, subsection 3. 
Emergency clause. 
In view of the emergency cited m the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill makes consistent the standards for optional retirement system membership 
for employees of participating local districts that also have Social Security or another 
Internal Revenue Service-qualified plan. It eliminates the once per year option for a local 
district to join the Maine system. These changes are proposed in anticipation of school 
district consolidation and other local and regional consolidation efforts and to promote 
choice of retirement plans for employers and employees.