An Act To Make Actuarially Fair Adjustments in Retirement Benefits for Older Employees
Maine Legislature, Session 123, LD 1603
Committee: Labor
Sponsors: WOODBURY
Amends: 5 MRSA §17851, 5 MRSA §17858-C

Legislative Document 
No. 1603 
H.P.1125 
House of Representatives, March 21, 2007 
An Act To Make Actuarially Fair Adjustments in Retirement 
Benefits for Older Employees 
Reference to the Committee on Labor suggested and ordered printed. 
Presented by Representative WOODBURY of Yarmouth. 
Printed on reqded paper 
71/~ 
/J?7TldC~ 
Mll..LICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §17851, sub-§l-B, as amended by PL 1999, c. 756, §10, is 
further amended to read: 
I-B. Member in service at retirement; 10 years of creditable service on July 1, 
1993. A member who on July 1, 1993, had 10 years of creditable service and who is in 
service at retirement, or a member who on July 1, 1993 had reached 60 years of the age 
requirement under subsection 16, paragraph A and had been in service for a minimum of 
one year immediately before July 1, 1993 and has been in service for a minimum of one 
year immediately before retirement, qualifies for a service retirement benefit if the 
member retires upon or after reaching 60 years of the age requirement under subsection 
16, paragraph A. For the purpose of determining completion of the 10-year requirement, 
the 10 years of creditable service may include creditable service as a member of the 
Maine Legislative Retirement System under Title 3, section 701, subsection 8. 
A. 
Effective October 1, 1999, the creditable service and age requirements of this 
subsection may not be increased for a member who on or before October 1, 1999 met 
either of the requirements for eligibility for service retirement benefits under this 
subsection, whether or not the member is in service on October 1, 1999. 
B. 
For the purpose of calculating creditable service under this subsection only, 
creditable service includes time during which a member participated in the voluntary 
cost savings plan or the voluntary employee incentive program, authorized by Public 
Law 1989, chapter 702, Part F, section 6 and Public Law 1991, chapter 591, Part BB 
and chapter 780, Part VV, or 10 years of combined creditable service under this Part 
and Title 3, chapter 29, or creditable service available to a member that the member 
was eligible to purchase on June 30, 1993 and that the member does purchase in 
accordance with rules adopted by the board. 
Sec. 2. 5 MRSA §17851, sub-§l-C, as amended by PL 1999, c. 756, §II, IS 
further amended to read: 
I-C. Member in service at retirement; fewer than 10 years creditable service on 
July 1, 1993. A member who on July 1, 1993, had neither 10 years of creditable service 
nor had reached 60 years of the age requirement under subsection 16, paragraph A with 
one year of creditable service immediately before July 1, 1993 who is in service at 
retirement, qualifies for a service retirement benefit if the member retires upon or after 
reaching 62 )'ears of the age requirement under subsection 16. paragraph Band: 
A. 
Has been in service for a minimum of one year immediately before retirement or 
has at least 10 years of creditable service, which, for the purpose of determining 
completion of the 10-year requirement, may include creditable service as a member 
of the Maine Legislative Retirement System under Title 3, section 701, subsection 8; 
or 
B. 
Effective October 1, 1999, is in service on October 1, 1999 and had fewer than 
years of creditable service on July 1, 1993, including any person who was not in 
service on July 1, 1993, and: 
Page I - 123LR2431(Ol)-1 
(1) Is in service upon or after reaching 62 )'ears of the age requirement under 
subsection 16, paragraph B; 
(2) 
Has been in service for a minimum of one year immediately before 
retirement or has at least 5 years of creditable service, which, for the purpose of 
determining completion of the 5-year requirement, may include creditable service 
as a member of the Maine Legislative Retirement System under Title 3, section 
701, subsection 8; and 
(3) Meets the applicability requirements of subsection 3-A. 
When a member has met either of the creditable service requirements set out in either 
paragraph A or paragraph B, subparagraph (2) for eligibility to receive a service 
retirement benefit under this subsection, the creditable service and age requirements of 
this subsection may not be increased for that member. 
Sec. 3. 5 MRSA § 17851, sub-§2-B, as amended by PL 1999, c. 756, § 12, is 
further amended to read: 
2-D. Member not in service at retirement; 10 years of creditable service on July 
1, 1993. A member who on July 1, 1993 had 10 years of creditable service and who is 
not in service at retirement qualifies for a service retirement benefit upon or after 
reaching 60 )'ears of the age requirement under subsection 16, paragraph A. For the 
purpose of determining completion of the 10-year requirement, the 10 years of creditable 
service may include creditable service as a member of the Maine Legislative Retirement 
System under Title 3, section 701, subsection 8. 
A. 
Effective October 1, 1999, the creditable service and age requirements of this 
subsection may not be increased for a member who on or before October 1, 1999 met 
the creditable service requirements for eligibility for service retirement benefits under 
this subsection, whether or not the member is in service on October 1, 1999. 
B. 
For the purpose of calculating creditable service under this subsection only, 
creditable service includes time during which a member participated in the voluntary 
cost savings plan or the voluntary employee incentive program, authorized by Public 
Law 1989, chapter 702, Part F, section 6 and Public Law 1991, chapter 591, Part BB 
and chapter 780, Part VV, or 10 years of combined creditable service under this Part 
and Title 3, chapter 29 or creditable service available to a member that the member 
was eligible to purchase on June 30, 1993 and that the member does purchase in 
accordance with rules adopted by the board. 
Sec. 4. 5 MRSA §17851, sub-§2-C, as amended by PL 1999, c. 756, §13, is 
further amended to read: 
2-C. 
Member not in service at retirement; fewer than 10 years creditable 
service on July 1, 1993. A member who on July 1, 1993, did not have 10 years of 
creditable service and who is not in service at retirement qualifies for a service retirement 
benefit if the member retires upon or after reaching 62 years of the age requirement under 
subsection 16, paragraph Band: 
A. 
Has at least 10 years of creditable service, which, for the purpose of determining 
completion of the 10-year requirement, may include creditable service as a member 
of the Maine Legislative Retirement System under Title 3, section 701, subsection 8; 
or 
B. 
Effective October 1, 1999, is in service on October 1, 1999, had left service prior 
to October 1, 1999 with' or without withdrawing that member's contributions and on 
or after October 1, 1999 returns to service or is first in service on or after October 1, 
1999 and: 
(1) Has reached 62 years of the age requirement under subsection 16, paragraph 
Ii; and 
(2) 
Has at least 5 years of creditable service, which, for the purpose of 
determining completion of the 5-year requirement, may include creditable service 
as a member of the Maine Legislative Retirement System under Title 3, section 
701, subsection 8. 
When a member has met the creditable service requirement set out in paragraph A or 
paragraph B, subparagraph (2) for eligibility to receive a service retirement benefit under 
this subsection, the creditable service and age requirements of this subsection may not be 
increased for that member. 
Sec. 5. 5 MRSA §17851, sub-§16 is enacted to read: 
16. A~e requirement. The board annually shall update the age requirement based 
upon life expectancy as detailed by the federal Centers for Disease Control and 
Prevention, National Center for Health Statistics, for which the required age is 
determined by: 
A. A remaining life expectancy of 22 years and 2 months; or 
B. A remaining life expectancy of 20 years and 7 months. 
Sec. 6. 5 MRSA §17858-C is enacted to read: 
§17858-C. Service after retirement a~e 
A member who continues to work after retirement age determined pursuant to section 
17851, subsection 16 may receive upon retirement an additional benefit of 6% of the 
retirement benefit allowed under this chapter for every year of creditable service 
subsequent to the member's retirement. 
SUMMARY 
Sections 1 through 5 of the bill replace the current retirement system for state 
employees, which provides for normal retirement benefits beginning at age 60 or 62, with 
a system that indexes the age of eligibility to the number of years of remaining life 
expectancy. The reform is calibrated to retain the identical retirement age for those 
individuals retiring this year. For those currently eligible for retirement benefits at age 
60, the indexed system would provide normal benefits at the age when there are 22 years 
I 
and 2 months of remaining life expectancy. For those currently eligible for retirement 
benefits at age 62, the indexed system would provide normal benefits at the age when 
there are 20 years and 7 months of remaining life expectancy. These ages of eligibility 
would be revised annually, based on life expectancy statistics maintained by the National 
Center for Health Statistics. 
Section 6 of the bill provides for a 6% increase in the retirement benefit amount for 
each year that an employee works after the normal retirement age. 
This adjustment 
prevents older workers from losing the actuarial value of their accumulated benefits if 
they continue to work beyond the normal retirement age.