An Act To Ensure Benefits for State Retirees .
Maine Legislature, Session 124, LD 1496
House Amendment HA_A_H581 (House)
Amends: 4 MRSA §1358, 5 MRSA §17806, 5 MRSA §18407

HOUSE AMENDMENT" A" to S.P. 573, L.D. 1496, Bill, "An Act To Ensure 
Benefits for State Retirees" 
. 
Amend the bill by striking out the title and substituting the following: 
'An Act To Protect Benefits for State Retirees' 
Amend the bill by striking out everything after the title and before the summary and 
inserting the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; 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 
PriGe 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 are protected; 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 of the State of Maine as fonIows: 
Sec. L 4 MRSA §1358, sub-§l, GjfA, as repealed and replaced by PL 1985, c. 
693, § 11, is amended to read: 
A. +He Except as provided in paragraph A-I, the board shall automatically adjust 
allowances, beginning in September 1985, and each September thereafter, by any 
percentage change in the Consumer Price Index from July 1st to June 30th, but only 
to a maximum annual increase or decrease of 4%. The board shall determine the cost 
of these adjustments and shall include them in its budget requests, if necessary. 
Sec. 2. 4 MRSA §1358, sub-§l, <!jfA-l is enacted to read: 
HOUSE AMENDMENT 
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HOUSE AMENDMENT" A" to S.P. 573, L.D. 1496 
A-I. If there is a percentage decrease in the Consumer Price Index from July 1st to 
June 30th, the board as provided in paragraph A shall set the percentage change at 
0% for that September. The adjustment for the following year must be set based on 
the actuarially compounded Consumer Price Index for both years in a cost-neutral 
. manner. 
Sec. 3. 5 MRSA §17806, sub-§l,EjfA, as enacted by PL 1985, c. 801, §§5 and 7, 
is amended to read: 
A. Whenever Except as provided in paragraph A-I, whenever there is a percentage 
change in the Consumer Price Index from July 1st 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, ~A-l is enacted to read: 
A-I. If there is a percentage decrease in the Consumer Price Index from July 1 st to 
June 30th, the board as provided in paragraph A shall set the percentage change at 
0% for that September. The adjustment for the following year must be set based on 
the actuarially compounded Consumer Price Index for both years in a cost-neutral 
manner. 
Sec. 5. 5 MRSA §18407, sub-§4, ~A, as enacted by PL 1985, c. 801, §§5 and 7, 
is amended to read: 
A. Whenever Except as provided in paragraph A-I, whenever there is a percentage 
change in the Consumer Price Index from July 1st 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. 6. 5 MRSA §18407, sub-§4, ~A-l is enacted to read: 
A-I. If there is a percentage decrease in the Consumer Price Index from July 1st to 
June 30th, the board as provided in paragraph A shall set the percentage change at 
0% for that September. The adjustment for the following year must be set based on 
the actuarially compounded Consumer Price Index for both years in a cost-neutral· 
manner. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved.' 
SU~Y 
Like the bill, this amendment is designed to protectstate retirees from the impact on 
retirement benefits of decreases in the Consumer Price Index. This amendment requires 
that if the Consumer Price Index decreases, the Board of Trustees of the Maine Public 
HOUSE AMENDMENT 
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HOUSE AMENDMENT" A" to S.P. 573, L.D. 1496 
Employees Retirement System shaJl set the percentage change at 0% for that September. 
The adjustment for the following year must be set based on the actuarially compounded 
Consumer Price Index for both years in a cost-neutral manner. 
SPONSORED BY: l, . L. :;:::;z-
(Representative TU)?LE) 
TOWN: Sanford 
FISCAL ~OTE REQUlRED 
(See attached) 
HOUSE A 'ENDMENT 
Fiscal Detail and Notes 
Approved: 06112/09 ;!.;pac: 
124tb MAINE LEGISLATURE 
JLD 1496 
LR 2029(04) 
An Act To lEnsmre Benefits for State Retirees 
Fiscal Note for HOUnse AmemllmeHitt "A" 
Sponsor: Rep. Tuttle, Jr. of Sanford 
Fiscal Note Required: Yes 
FnscaH Note 
Recovery of loss of potential savings - All Funds 
This amendment recovers the loss of the potential actuarial gains in those years when the consumer price index 
declines and retirement benefit amounts would be reduced. 
LR2029(04) - Fiscal Note - Page 1 of 1 
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