An Act To Ensure Benefits for State Retirees. (AFTER DEADLINE)
Maine Legislature, Session 124, LD 1496
Committee: Labor
Sponsors: MITCHELL, PINGREE, TUTTLE
Amends: 4 MRSA §1358, 5 MRSA §17806

Legislative Document 
S.P.573 
An Act To Ensure Benefits for State Retirees. 
(AFTER DEADLINE) 
(EMERGENCY) 
. No. 1496 
In Senate, June 12, 2009 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Labor suggested and ordered printed. 
Presented by President MITCHELL of Kennebec. 
Cosponsored by Speaker PINGREE of North Haven and 
Representative: TUTTLE of Sanford .. 
Printed on recycled pnper 
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9tf)(J~ 
JOY J. O'BRIEN 
Secretary ofthe Semite 
Emergency preamble. Whereas, acts and resoives of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergericies; and 
Whereas, current law requires that cost-of-living adjustments in retirement benefits 
for state employees must be made when there is a percentage change in the Consumer 
Price Index; and 
Whereas, there has been a percentage change in the Consumer Price Index; and 
Whereas, it is imperative that this legislation take effect immediately so that the 
benefits for state retirees do not decrease; 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 ofthe State of Maine as follows: 
Sec. 1. 4 MRSA §1358, sub-§l, IIJlA, as repealed and. replaced by PL 1985, c. 
693, § 11, is amended to read: 
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A. The board shall automatically 00:fast increase allowances, beginning in September 
1985, and each September thereafter, by any percentage change increase in the 
Consumer Price Index from July 1 st to June 30th, but only to a maximum annual 
increase or decrease of 4%. The board shall detennine the cost of these adjustments 
and shall include them in its budget requests, if necessary. 
Sec. 2. 4 MRSA §1358, sub-~§l, ~, as repealed and replaced by PL 1985, c. 
693, § 11, is repealed. 
Sec. 3. 5 MRSA §17806, sub-§l, ~A, as enacted by PL 1985, c. 801, §§5 and 7, 
. is amended to read: 
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A. Whenever there is a percentage change increase in the Consumer Price Index 
from JUly 1 st to June 30th, the board shall automatically make an equal percentage 
increase or decrease in retirement benefits,. beginning in. September, up to a 
maximum annual increase or decrease of 4%. 
. 
Sec. 4. 5 MRSA §17806, sub-§l, ~C, as enacted by PL 1985, c. 801, §§5 and 7, 
is repealed. 
Sec. 5. 5 MRS A §18407, sub-§4, IiffA, as enacted by PL 1985, c. 801, §§5 and 7, 
is amended to read: 
A. . Whenever there is a percentage change increase in the Consumer Price Index 
from July 1 st to June 30th, the board shall automatically make an equal percentage 
increase or decrease in retirement benefits, beginning in September, up to a 
maximum annual increase or decrease of 4%. 
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Sec. 6. 5 MRS A §18407, sub-§4, .,-rC, as enacted by PL 1985, c. 801, §§5 and 7, 
is repe·aled. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill ensures that the cost-of-living adjustment to retirement benefits based on 
any percentage change in the Consumer Price Index does not affect the benefits of state 
retirees unless that change is an increase in the Consumer Price Index. 
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FISCAL ~OTE k.E(lLlRED 
(~e~.~U~c~ed) 
Fiscal Detail and Notes 
Approved: 06/11109 
}'!;pac:. 
LD 
LR 2029(01) 
An Act To Ensure Benefits for State Retirees 
Preliminary Fiscal Impact Statement for Original Bill 
Sponsor: Sen. Mitchell of Kennebec 
Committee: Not Referred 
Fiscal Note Required: Yes 
Pll"elimill1laryFiscal Impact Statemell1lt 
Loss of potential savings - All Funds 
This legislation may result in the loss of the potential actuarial gains in those years when the consumer price index 
declines and retirement benefit amounts would be reduced. As a result, the State may not realize a decline in future 
contribution rates. 
LR2029(0 i) - Fiscal Note - Page I of 1 
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