An Act To Allow Certain Retirees in the Maine Public Employees Retirement System To Return to Service with the State for 180 Days Annually
Maine Legislature, Session 124, LD 0996
Committee: Labor
Sponsors: GOOLEY, SA VIELLO, ALFOND, BOWMAN, DAVIS, SCHNEIDER, WESTON, BRIGGS, KNAPP

Legislative Document 
No. 996 
S.P.375 
In Senate, March 12, 2009 
An Act To Allow Certain Retirees in the Maine Public Employees 
Retirement System To Return to Service with the State for 180 Days 
Annually 
Reference to the Committee on Labor suggested and ordered printed. 
Presented by Senator GOOLEY of Franldin. 
Cosponsored by Representative SA VIELLO of Wilton and 
9t~(J~ 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: ALFOND of Cumberland, BOWMAN of York, DAVIS of Cumberland, 
SCHNEIDER of Penobscot, WESTON of Waldo, Representatives: BRIGGS of Mexico, 
KNAPP of Gorham, McFADDEN of Dennysville. 
Printed on recY,cled paper 
Be it enacted by the People of the State of Maine as follows: 
. Sec.·I 5 MRSA c. 421, sub-c. 6 is enacted to read: 
SUBCHAPTER 6 
RETURN TO SERVICE AFTER RETIREMENT 
§17501. Definitions 
As used in this subchapter; unless the context otherwise indicates, the following 
terms have the following meanings. . 
. 
1. Normal retirement age. "Normal retirement age" means the age, years of service 
or combination of age and years of service at which a member is eligible for service 
retirement benefits that are not subject to reduction. 
2. 
MePERS employer. 
"MePERS employer" means the State,. a school 
administrative unit or a participating local district whether or not that participating local 
district is in the consolidated plan under chapter 427 for participating local districts. 
3. Return to service after retirement with the same MePElRS employer. "Return 
to service after retirement with the SaIne MePERS employer" means: 
A. ill all cases, employment after retirement with the MePERS employer for whom a 
member last worked prior to retiring; . 
B. ill the case of a retired State employee or retired teacher, employment after 
retirement as either a State employee or a teacher with a MePERS employer other 
than the MePERS employer for whom the member last worked prior to retiring; and 
C. 
ill the case of a participating loca.l district employee who retires from a 
participating local district in the consolidated plan under chapter 427 at the time of 
the member's retirement, employment with any participating local district that is in 
the consolidated plan at the time the member returns to employment. 
§17502. Conditions 
A member who has not reached normal retirement age at retirement who returns to 
service after retirement with the same MePERS employer must meet the following 
requirements. 
1. Bona fide termination of employment. There must be a bona fide termination of 
employment by the member prior to returning to service after retirement with the same 
MePERS employer. A bona fide termination of employment requires the following: 
A. At retirement, the member must certify to the retirement system that the member 
did not have any discussion or negotiation prior to the member's termination that 
resulted in an explicit or implicit arrangement or expectation of future employment 
after retirement with the same MePERS employer; 
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B. The member must not return to service after retirement with the same MePERS 
employer before the effective date of the member's retirement; and 
C. The member must not return to service after retirement with the same MePERS 
employer for at least 30 calendar days after the last day of work with the MePERS 
employer. 
2. Time limitation. A member who returns to service after retirement with the same 
MePERS employer may be employed by that MePERS employer for no more than 180 
days in each calendar year. 
SUMMARY 
Current Maine Public Employees Retirement System rules address the circumstance 
of a State employee or a teacher who retires prior to normal retirement age but who then 
returns to service with same employer for whom the employee or teacher last worked 
prior to retiring. The rules are based on the .interpretation of federal Internal Revenue 
Service regulations. 
This bill codifies some of those rules, including the requirement that there be a bona 
fide termination of at least 30 days, and allows a retiree to return t6 service after 
retirement with the same employer for a maximum of 180 days each year, instead of the 
current limit of 60 days specified in Maine Public Employees Retirement System rules.