An Act To Restore Equity to the Maine State Retirement System
Maine Legislature, Session 123, LD 1693
Committee Amendment CA_A-SA_A_S585 (Senate)

SENATE AMENDMENT" A" 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 everything after the substitute title and before 
the summary and inserting the following: 
'Amend the bill by striking everything after the enacting clause and before the 
summary and inserting the following: 
Sec. 1. 5 MRS A §17852, suh-§3-B is enacted to read: 
3-B. Teachers with fewer than 10 years of creditable service on July 1, 1993. 
Notwithstanding subsection 3-A, for a teacher who was employed as a teacher and who 
was a member on July 1, 1993 and did not have 10 years of creditable service, the amount 
of the service retirement benefit for members qualified under section 17851, subsection 3 
is computed in accordance with subsection 1, except that the benefit is reduced by 3% for 
each year that the member's age precedes 62 years of age.' 
SUMMARY 
This amendment strikes the bill and Committee Amendment "A" to change to 3% the 
amount of benefit reduction for teachers employed on July I, 1993 who did not have 10 
years of creditable service. 
This corrects what is known as the "cliff provision" for 
teachers. 
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SPONSORED BY: 
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(Senator SHERMA 
COUNTY: Aroostook 
FISCAL .\OTE HE(,!L1RED 
(See attached) 
SENATE AMENDMENT 
Approved: 04/08/08 Mac;. 
LD 1693 
LR 2016(04) 
An Act To Restore Equity to the Maine State Retirement System 
Fiscal Note for Senate Amendment "A " to Committee Amendment "A" 
Sponsor: Sen. Sherman of Aroostook 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
2008-09 
Projections 
2009-10 
Projections 
2010-11 
Net Cost (Savings) 
General Fund 
Highway Fund 
$0 
$0 
$0 
$0 
($4,474,108) 
($4,686,628) 
Appropriations/Allocations 
General Fund 
Highway Fund 
Federal Expenditures Fund 
Other Special Revenue Funds 
Federal Block Grant Fund 
Other Funds 
Fiscal Detail and Notes 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
($313,240) 
($328, II q 
($4,474,108) 
($4,686,628) 
($313,240) 
($328,119) 
($477,401) 
($500,077) 
($287,717) 
($301,383) 
($28,424) 
($29,774) 
($219,848) 
($230,291 ) 
This amendment reduces the 2008-2009 biennial cost of the bill by $53,600,000 with $51,900,000 being the decreased 
cost to the unfunded actuarial liability and $1,700,000 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 $172,122,287. Ofthat amount, the 
decrease to the unfunded liability payments will be $119,072,708 and the decrease to the normal cost component 
payments will be $53,049,579. 
As amended, reducing the early retirement reduction factor from 6% to 3% for only those teachers who were members 
of the Maine Public Employees Retirement System as of June 30, 1993 and are currently subject to the 6% reduction 
factor will result in a 2008-2009 biennial cost of $43,200,000, with $42,000,000 being the increased cost to the 
unfunded actuarial liability and $1,200,000 being the increased normal cost component for fiscal year 2008-09. 
LR20J6(04) - Fiscal Note - Page J of2 
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 offunds 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 $133,415,808. Ofthat amount, the 
total increase to the unfunded liability payments will be $95,969,047 and the increase to the normal cost component 
payments will be $37,446,761. 
LR20 16(04) - Fiscal Note - Page 2 of 2