An Act To II
Maine Legislature, Session 123, LD 1693
Committee Amendment CA_A_S451 (Senate)
Amends: 3 MRSA §8, 4 MRSA §13

Majority 
COMMITTEE AMENDMENT "A" to S.P. 600, L.D. 
Restore Equity to the Maine State Retirement System" 
1693, Bill, "An Act To 
II 
Amend the bill by striking out the title and substituting the following: 
'An Act To Restore Equity to the Maine Public Employees Retirement 
System' 
Amend the bill by inserting after the enacting clause and before section 1 the 
following: 
'Sec. 1. 3 MRSA §8S1, sub-§2-A, as amended by PL 1999, c. 756, §3 and PL 
2007, c. 58, §3, is further amended to read: 
2-A. Early retirement; less than 10 years creditable service on July 1, 1993. Any 
member, whether or not in service at retirement, 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 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 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. 4 MRSA §13S1, sub-§3-A, as amended by PL 1999, c. 756, §9, is further 
amended to read: 
3-A. Early retirement; less than 10 years creditable service on July 1, 1993. Any 
member, whether or not in service at retirement, 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.' 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 600, L.D. 1693 
Amend the bill by striking out all of sections 12 and 13 (page 5, lines 3 to 15 in L.D.) 
and inserting the following: 
'Sec. 12. Members receiving service retirement benefits on effective date 
of Act. Members of the state employee and teacher retirement system governed by the 
Maine Revised Statutes, Title 5, chapter 423, the legislative retirement system governed 
by Title 3, chapter 29 and the judicial retirement system governed by Title 4, chapter 27 
receiving service retirement benefits on the effective date of this Act who would receive 
an increased service retirement benefit if their benefit had been calculated using the 3% 
reduction factor provided in this Act must receive such an increased benefit retroactive to 
their effective date of retirement. 
Sec. 13. Members who retire on or after the effective date of this Act. As 
members of the state employee and teacher retirement system governed by the Maine 
Revised Statutes, Title 5, chapter 423, the legislative retirement system governed by Title 
3, chapter 29 and the judicial retirement system governed by Title 4, chapter 27 retire on 
or after the effective date of this Act, their benefits based on service earned in the 
applicable system on or after the effective date of this Act and their benefits based on 
service earned in the applicable system prior to the effective date of this Act must be 
calculated using the 3% reduction factor specified in Title 3, section 851; Title 4, section 
1351; and Title 5, sections 1 7851-A and 17852. 
Sec. 14. Funding benefits under this Act. This section provides funding for the 
benefits provided under this Act. 
1. For purposes of this section, the following terms have the following meanings: 
A. "Cost of this Act" means the total of: 
(1) All past service liabilities created by the benefits provided in this Act; 
(2) 
The normal cost payments for fiscal year 2008-09 associated with the 
benefits provided in this Act; and 
(3) The fiscal year 2008-09 unfunded liability supplemental payment. 
B. "Fiscal year 2008-09 unfunded liability supplemental payment" means payment of 
an amount toward the unfunded liability that equals the first year's payment of a 20-
year amortization of the amount of the fiscal year 2007-08 unfunded liability 
payment that is deferred in order to pay the cost of this Act. 
C. "Unfunded liability" means the unfunded actuarial liability of the Maine Public 
Employees Retirement System attributable to state employees and teachers under the 
Constitution of Maine, Article IX, Section 18-B. 
D. "Unfunded liability payment" means the amount appropriated or allocated by the 
Legislature for the Maine Public Employees Retirement System as the employer 
contribution amount paid toward the unfunded liability. 
2. Notwithstanding Title 5, section 17160, the employer contribution amount paid 
toward the unfunded liability may be less for fiscal year 2007-08 than the amount paid for 
that purpose during fiscal year 2006-07, as long as the Board of Trustees of the Maine 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A "to S.P. 600, L.D. 1693 
Public Employees Retirement System takes an action, consistent with sound actuarial 
practice, to reduce the required unfunded liability payment in fiscal year 2007-08, 
A. If, on or before the effective date of this Act, the Board of Trustees of the Maine 
Public Employees Retirement System takes an action to reduce the required unfunded 
liability payment for fiscal year 2007-08 by an amount that leaves a balance sufficient 
to fund the cost of this Act, that balance is committed by this Act to fund the cost of 
this Act. 
B. If, on or before the effective date of this Act, the Board of Trustees of the Maine 
Public Employees Retirement System does not take an action that reduces the 
required unfunded liability payment for fiscal year 2007-08 by an amount sufficient 
to fund the cost of this Act, the entire amount of the fiscal year 2007-08 unfunded 
liability payment must be applied toward the unfunded liability. 
3. 
Notwithstanding subsection 2, the entire amount of the fiscal year 2007-08 
unfunded liability payment: 
A. Must be paid over to the Maine Public Employees Retirement System; and 
B. Is deemed the employer contribution amount paid toward the unfunded liability 
for fiscal year 2007-08 for the sole purpose of calculating the required unfunded 
liability payment for fiscal year 2008-09 and thereafter pursuant to Title 5, section 
17160. 
4. Beginning in fiscal year 2009-10, the increase in the normal cost resulting from 
the benefits provided under this Act and any increase in unfunded liability payments 
resulting from the application of the 2007-08 unfunded liability payment to fund the cost 
of this Act must be appropriated or allocated by the Legislature from the General Fund or 
other appropriate funds in accordance with law. 
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 I to IS take effect only if the 
Board of Trustees of the Maine Public Employees Retirement System, pursuant to section 
16, 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 
16, 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 bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment does the following: 
I. It reduces the early retirement reduction factor from 6% to 3% for members of the 
legislative retirement program and the judicial retirement program who are currently 
subject to the 6% reduction factor. This ensures consistency with the same reduction that 
COMMITTEE AMENDMENT 
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IS 
COMMITTEE AMENDMENT" A" to S.P. 600, L.D. 1693 
is provided to members of the state employee and teacher retirement program under the 
bill; 
2. It allows the Board of Trustees of the Maine Public Employees Retirement System 
to reduce the payment in fiscal year 2007-08 toward the unfunded actuarial liability of the 
state employee and teacher retirement program and, if such a reduction is made, to apply 
the balance of the amount appropriated for that purpose to fund the past service liabilities 
created by the benefits provided under the amended bill, the increase in normal cost in 
fiscal year 2008-09 associated with the benefits provided under the amended bill and any 
increased unfunded liability payments required in fiscal year 2008-09 resulting from the 
reduced unfunded liability contribution in fiscal year 2007-08; and 
3. 
It provides that the substantive changes to the Maine Public Employees 
Retirement System accomplished by this legislation take effect only if the Board of 
Trustees of the Maine Public Employees Retirement System determine that the reduction 
in the required unfunded liability payment in fiscal year 2007-08 is consistent with sound 
actuarial practice. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 03/04/08 frac 
LD 1693 
LR 2016(02) 
An Act To Restore Equity to the Maine State Retirement System 
Fiscal Note for Bill as Amended by Committee Amendment "A " 
Committee: Labor 
Net Cost (Savings) 
General Fund 
Highway Fund 
Appropriations/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 
Projections 
2008-09 
2009-10 
$0 
$7,942,636 
$0 
$556,077 
$0 
$7,942,636 
$0 
$556,077 
$0 
$847,503 
$0 
$510,767 
$0 
$50,459 
$0 
$390,284 
Projections 
2010-11 
$8,319,911 
$582,491 
$8,319,911 
$582,491 
$887,759 
$535,029 
$52,856 
$408,822 
Reducing the early retirement reduction factor from 6% to 3% for members of the State Employee and Teacher 
Retirement Plan, the Legislative Retirement Plan and the Judicial Retirement Plan who are cUlTently subject to the 6% 
reduction factor will result in a 2008-2009 biennial cost of $96,800,000, with $93,900,000 being the increased cost to 
the unfunded actuarial liability and $2,900,000 being the increased normal cost component for fiscal year 2008-09. 
Because this legislation proposes to fund the CUlTent 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 CUlTent 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$305,538,095. Of that amount, the total increase to 
the unfunded liability payments will be $215,041,755 and the increase to the nom1al cost component payments will be 
$90,496,340. 
LR2016(02) - Fiscal Note - Page 1 of 1