An Act To Ensure Benefits for State Retirees
Maine Legislature, Session 124, LD 1496
Senate Amendment SA_A_S349 (Senate)
Amends: 5 MRSA §18407

MAINE STATE LEGISLATURE 
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Date: ~-/~ -01 
L.D,1496 
(Filing No. s-3~q) 
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Reproduced and distributed under the direction of the Secretary of the Senate. 
SENATE 
124TH LEG][SLATURE 
Fn~ST REGULAR SESS][ON 
SENATE AMENDMENT "A "to S.P. 573, L.D. 1496, Bill, "An Act To Ensure 
Benefits for State Retirees" 
Amend the bill by striking outthe title and substituting the following: 
'An Act 1'0 Protect Benefits for State Retirees' 
Amend the bill by striking out everything after the title and before the summary and 
inselting the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjoumment 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 
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 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 follows: 
Sec.!. 4 MRSA §ll358, sl.llb-§l, ~A, as repealed and replaced by PL 1985, c. 
693, §11, is amended to read: 
A. +fie 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 §ll358, sl.llb-§l, 9TA-l is enacted to read: 
SENATEA 'ENDMENT 
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SENATE AMENDMENT ,It" to S.P. 573, L.D. 1496 
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. 3. 5 MRSA §:B. 7806, sub-§:B., GjfA, 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 Iridex 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 §:B. 7806, sub-§:B., GjfA-:B. 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. 
Sec. 5. 5 MRSA §:B.84107, sub-§41, GjfA, as enacted by PL 1985, c. 801, §§5 and 7, 
is amended to read: 
A. '.xnlenever 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 incr.ease or decrease in retirement benefits, 
beginning in September, up to a maximum annual iI'lcrease or decrease of 4%. 
Sec. 6. 5 MRSA §18407, sub-§4, IlffA-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 a.ctuarially 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.' 
SUMMARY 
Like the bill, this amendment is designed to protect state 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 
SENATE AMENDMENT 
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SENATE AMENDMENT'~ "to S.P. 573, LD. 1496 
Employees Retirement System shaII set the percentage change at 0% for that September. 
The adjustment for the foIIowing year must be set based on the actuariaIIy compounded 
Consumer Price Index for_bo51;rs i: a cost-:eutr,a: manner. 
SPONSORED BY: 
t-:tr'd·· rUfo 
(Senator MlILLS, P.) 
COUNTY: Somerset 
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FISCA.L .\OTE H£<JURED 
(See attac~ed) 
SENATE AMENDMENT 
Fiscal Detail and Notes 
Approved: 06112/09 J!lH'ac:.. 
124tb MAINE LEGISLATURE 
LD 1496 
LR 2029(03) 
AlI1l Act To ElI1lsanre Bell1lefnts for State Retirees 
Fiscal Note for Sell1late Amemllmell1lt "A" 
Spoll1lsor: Sell1l. MiHs of Somerset 
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Fiscal Note Reqanired!: Yes 
Fusca I 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(03) - Fiscal Note - Page 1 of I 
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