An Act To Bring the Laws of the Maine Public Employees Retirement System into Compliance with the Federal Internal Revenue Code
Maine Legislature, Session 124, LD 1582
Committee: Labor
Sponsors: TUTTLE, JACKSON, PINGREE, MITCHELL
Amends: 3 MRSA §701, 3 MRSA §702, 3 MRSA §801, 4 MRSA §1201, 4 MRSA §1202, 4 MRSA §120, 4 MRSA §1305-B, 5 MRSA §17001, 5 MRSA §17054-A, 5 MRSA §17652, 5 MRSA §17704, 5 MRSA §17704-A, 5 MRSA §17706-A, 5 MRSA §18058, 5 MRSA §18251, 5 MRSA §18252-A, 5 MRSA §18252-B, 5 MRSA §18254, 5 MRSA §18305, 5 MRSA §18305-A, 5 MRSA §18305-B, 5 MRSA §18307-A, 5 MRSA §18353, 5 MRSA §18358, 5 MRSA §18801, 20-A MRSA §12722

Legislative Document 
No. 1582 
H.P. 1120 
House of Representatives, December 22, 2009 
An Act To Bring the Laws of the Maine Public Employees 
Retirement System into Compliance with the Federal Internal 
Revenue Code 
Submitted by the Maine Public Employees Retirement System pursuant to Joint Rule 204. 
Received by the Clerk of the House on December 18, 2009. Referred to the Committee on 
Labor pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401. 
Presented by Representative TUTTLE of Sanford. 
Cosponsored by Senator JACKSON of Aroostook and 
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MILLICENT M. MacFARLAND 
Clerk 
Representative: Speaker PINGREE of North Haven, Senator: President MITCHELL of 
Kennebec. 
Printeu on recycled papt:r 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 3 MRSA §701, sub-§lO-A is enacted to read: 
to-A. Internal Revenue Code. "Internal Revenue Code" or "Code" means the 
United States Internal Revenue Code of 1986, as amended. 
Sec. 2. 3 MRSA §702, first ~, as amended by PL 2007, c. 491, §5, is further 
amended to read: 
There is established the Legislative Retirement Program as a governmental qualified 
defined benefit plan pursuant to Sections 401(a) and 414(d) of the Internal Revenue Code 
and such other provisions of the Internal Revenue Code and United States Treasury 
regulations and other guidance as are applicable, which has the powers and privileges of a 
corporation. 
Sec. 3. 3 MRS A §705 is enac ed to read: 
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§705. Internal Revenue Code compliance 
The Legislative Retirement Program established in this chapter is subject to the 
following requirements. 
1. Vesting. In compliance with the Code, Section 40 l(a)O), a member is 100% 
vested in the member's contribution account at all times. 
2. Use of forfeitures of benefits. In compliance with the Code, Section 40l(a)(8), 
any forfeitures of benefits by members or former members may not be used to pay benefit 
increases, but must be used to reduce unfunded liabilities. 
3.' Benefits. In compliance with the Code, Section 40l(a)(9), benefits must be paid 
in accordance with a good faith interpretation of the requirements of the Code, Section 
401(a)(9) and the regulations in effect under that section as applicable to a governmental 
plan within the meaning of the Code, Section 414(d). 
4. 
Application of annual compensation limits. In compliance with the Code, 
Section 40lCa)Cl7), applicable annual compensation limits must be applied for purposes 
of determining benefits or contributions due to the Maine Public Employees Retirement 
System. 
5. Rollovers. In compliance with the Code, Section 40l(a)(31), a member may 
elect, at the time and in the manner prescribed by the board of trustees, to have any 
portion of an eligible rollover distribution paid directly to an eligible retirement plan 
specified by the member in a direct rollover. 
6. Qualified military service. Effective December 12, 1994, contributions, benefits 
and service credit with respect to qualified military service are governed by the Code, 
Section 414(u) and the federal Uniformed Services Employment and Reemployment 
Rights Act of 1994 and, effective January 1, 2007, the Code, Section 401(a)(37). 
Page I - 124LR238t(Ot)-1 
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7. 
Additional requirements. 
In compliance with the Code, Section 415, the 
member contributions paid to and retirement benefits paid from the Legislative 
Retirement Program must be limited to the extent necessary to conform to the 
requirements of the Code, Section 415 for a qualified pension plan. 
8. Compliance with Section 503(b). Effective July 1, 1989, the board of trustees 
may not engage in a transaction prohibited by the Code, Section 503(b). 
9. Rules. The board of trustees shall adopt rules necessary to maintain the qualified 
pension plan tax status of the Legislative Retirement Program under the Internal Revenue 
Code as required for governmental defined benefit plans defined in the Code, Section 
414(d). Rules adopted under this subsection are routine technical rules as defined in Title 
5, chapter 375, subchapter 2-A. 
Sec. 4. 3 MRSA §801, sub-§l-A, as amended by PL 2007, c. 491, § 18, is further 
amended to read: 
1-A. Waiver provision. Any Legislator may petition the presiding officer for a 
waiver from the membership provisions of subsection 1 if it can be demonstrated that 
membership in the Legislative Retirement Program will create or exacerbate a 
Legislator's federal income tax liability due to the ownership of another retirement plan. 
The Office of the Executive Director of the Legislative Council shall provide assistance 
as requested by the Legislator or presiding officer. The presiding officer shall respond to 
the Legislator's petition within 30 days and shall provide copies of the decision to the 
Executive Director of the Legislative Council and the Executive Director of the Maine 
Public Employees Retirement System. A granted waiver of membership constitutes a 
one-time irrevocable election with respect to all subsequent employment with the same 
employer when membership in the Legislative Retirement Program is not mandatory. 
Sec. 5. 3 MRS A §805-B, sub-§l, as enacted by PL 2007, c. 137, §4, is amended 
to read: 
1. Conditions for refund. The retirement system may make an automatic refund of 
contributions to a member who has not properly applied for a refund as provided in 
section 805-A and who has terminated service, except by death or by retirement under 
this chapter, and who has not met the minimum creditable service requirement for 
eligibility to receive a service retirement benefit at the applicable age under the following 
conditions: 
A. The member account in the retirement system has been inactive for 3 or more 
years; 
B. 
Only accumulated contributions made by the member or picked up by the 
employer may be refunded to that member under this subsection; and 
C. A member who receives an automatic refund under this subsection may, within 30 
days of the issuance of the refund, return the full refunded amount to the retirement 
system. 
Upon receipt, the retirement system shall restore the accumulated 
contributions to the member's credit. 
Pursuant to the Code, Section 401(a)(3l)(B), the amount of an automatic refund under 
this section may not exceed $1,000. 
Sec. 6. 4 MRSA §1201, sub .. :§H-Ais enacted to read: 
ll-A. Internal Revenue Code. "Internal Revenue Code" or "Code" means the 
United States Internal Revenue Code of 1986, as amended. 
Sec. 7. 4 MRSA §1202, fnrst CU, as amended by PL 2007, c. 491, §34, is further 
amended to read: 
There is established the Judicial Retirement Program as a governmental qualified 
defined benefit plan pursuant to Sections 401(a) and 414(d) of the Internal Revenue Code 
and such other provisions of the Internal Revenue Code and United States Treasury 
regulations and other guidance as are applicable, which has the powers and privileges of a 
corporation. 
Sec. 8. 4 MRSA §120S is ena ted to read: 
§1205. Internal Revenue Code compliance 
The Judicial Retirement Program established in this chapter is subject to the 
following requirements. 
1. Vesting. In compliance with the Code, Section 401(a)(7), a member is 100% 
vested in the member's contribution account at all times. 
2. Use of forfeitUD"es of benefits. In compliance with the Code, Section 40 l(a)(8), 
any forfeitures of benefits by members or former members may not be used to pay benefit 
increases, but must be used to reduce unfunded liabilities. 
3. Benefits. In compliance with the Code, Section 40l(a)(9), benefits must be paid 
in accordance with a good faith interpretation of the requirements of the Code, Section 
40l(a)(9) and the regulations in effect under that section, as applicable to a governmental 
plan within the meaning of the Code, Section 414(d). 
4. 
Application of annnal compensation limits. In compliance with the Code, 
Section 401(a)(l7), applicable annual compensation limits must be applied for purposes 
of determining benefits or contributions due to the Maine Public Employees Retirement 
System. 
5. Rollovers. In compliance with the Code, Section 40l(a)(3l), a member may 
elect, at the time and in the manner prescribed by the board of trustees, to have any 
portion of an eligible rollover distribution paid directly to an eligible retirement plan 
specified by the member in a direct rollover. 
6. Qualified military sell"Vice. Effective December 12, 1994, contributions, benefits 
and service credit with respect to qualified military service are governed by the Code, 
Section 414(u) and the federal Uniformed Services Employment and Reemployment 
Rights Act of 1994 and, effective January 1, 2007, the Code, Section 40l(a)(37). 
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7. 
Additional requirements. 
In compliance with the Code, Section 415, the 
member contributions paid to and retirement benefits paid from the Judicial Retirement 
Program must be limited to the extent necessary to conform to the requirements of the 
Code, Section 415 for a qualified pension plan. 
8. Compliance with Section 503(b). Effective July 1, 1989, the board of trustees 
may not engage in a transaction prohibited by the Code, Section 503(b). 
9. Rules. The board of trustees shall adopt rules necessary to maintain the qualified 
pension plan tax status of the Judicial Retirement Program under the Internal Revenue 
Code as required for governmental defined benefit plans defined in the Code, Section 
414(d). Rules adopted under this subsection are routine technical rules as defined in Title 
5, chapter 375, subchapter 2-A. 
Sec. 9. 4 MRSA §1305-B, sub-§l, as enacted by PL 2007, c. 137, §8, is amended 
to read: 
1. Conditions for refund. The retirement system may make an automatic refund of 
contributions to a member who has not properly applied for a refund as provided in 
section 1305-A and who has terminated service, except by death or by retirement under 
this chapter, and who has not met the minimum creditable service requirement for 
eligibility to receive a service retirement benefit at the applicable age under the following 
conditions: 
A. The member account in the retirement system has been inactive for 3 or more 
years; 
B. 
Only accumulated contributions made by the member or picked up by the 
employer may be refunded to that member under this subsection; and 
C. A member who receives an automatic refund under this subsection may, within 30 
days of the issuance of the refund, return the full refunded amount to the retirement 
system. 
Upon receipt, the retirement system shall restore the accumulated 
contributions to the member's credit. 
Pursuant to the Code, Section 40 l(a)(3l)(B), the amount of an automatic refund under 
this section may not exceed $1,000. 
Sec. 10. "MRSA §1306, sub-§2, as amended by PL 2007, c. 491, §48, is further 
amended to read: 
2. Payment. The amount that a member who makes the election permitted in 
subsection 1 must pay is the amount equal to the employee contribution that person 
wou ld have made on wages that would have been paid to that person on the days off 
without pay during the 2002-03 fiscal year as described in section 1201, subsection 3, 
plus interest at the same rate as that required for payment of back contributions pursuant 
to Title 5, section 17704, subsection 3 a rate, to be set by the board, not to exceed regular 
interest by 5 or more percentage points. Interest must be computed beginning at the end 
of the year when those contributions or pick-up contributions would have been made to 
the date of payment. 
If the member elects to make the payment, the Maine Public 
I 
Employees Retirement System shall withhold the required amount from the member's 
first retirement benefit check. 
Sec. 11. 5 MRSA §17001, sub-§18-A is enacted to read: 
18-A. Internal Revenue Code. "Internal Revenue Code" or "Code" means the 
United States Internal Revenue Code of 1986, as amended. 
Sec. 12. 5 MRSA §17054-A is enacted to read: 
§170S4-A. Responsibilities of employers and the retirement system 
Employers are responsible for providing procedures by which employees for whom 
membership in the retirement system is optional make a membership election, for 
maintaining all records relevant to the election process and an individual employee's 
election and for informing the retirement system as to employee elections in accordance 
with procedures established by tre executive director. 
The retirement system is 
responsible to ensure that its recore, accurately reflect the information provided by the 
employer. 
With respect to matit s related to participation and membership in the 
retirement system other than those specified in this section, the retirement system and the 
board retain responsibility and authority according to applicable retirement system law 
and rules as to the employer and the employees to whom this Part applies, including the 
authority to make final administrative decisions. 
Sec. 13. 5 MRS A §17602, first <i[, as enacted by PL 2007, c. 491, §93, IS 
amended to read: 
There is established the State Employee and Teacher Retirement Program as a 
governmental qualified defined benefit plan pursuant to Sections 401(a) and 414(d) of the 
Internal Revenue Code and such other provisions of the Internal Revenue Code and 
United States Treasury regulations and other guidance as are applicable, which has the 
powers and privileges of a corporation. 
Sec. 14. 5 MRS A §17603 is enacted to read: 
§17603. Internal Revenue Code qualified plan compliance 
The State Employee and Teacher Retirement Program established in this chapter is 
subject to the following requirements. 
1. Vesting. In compliance with the Code, Section 401(a)(7), a member is 100% 
vested in the member's contribution account at all times. 
2. Use of forfeitures of benefits. In compliance with the Code, Section 401(a)(8), 
any forfeitures of benefits by members or former members may not be used to pay benefit 
increases, but must be used to reduce unfunded liabilities. 
3. Benefits. In compliance with the Code, Section 401(a)(9), benefits must be paid 
in accordance with a good faith interpretation of the requirements of the Code, Section 
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l(a)(9) and the regulations in effect under that section, as applicable to a governmental 
plan within the meaning of the Code, Section414(d). 
4. 
Application of annual compensation limits. In compliance with the Code, 
. 
Section 401(a)(l7), applicable annual compensation limits must be applied for purposes 
of determining benefits or contributions due to the retirement system. 
5. Rollovers. In compliance with the Code, Section 401(a)(31), a member may 
elect, at the time and in the manner prescribed by the board, to have any portion of an 
eligible rollover distribution paid directly to an eligible retirement plan specified by the 
member in a direct rollover. 
6. Qualified military service. Effective December 12, 1994, contributions, benefits 
and service credit with respect to qualified military service are governed by the Code, 
Section 414(u) and the federal Uniformed Services Employment and Reemployment 
Rights Act of 1994 and, effective January 1, 2007, the Code, Section 401(a)(37). 
7. 
Additional requirements. 
In compliance with the Code, Section 415, the 
member contributions paid to and retirement benefits paid from the State Employee and 
Teacher Retirement Program must be limited to the extent necessary to conform to the 
requirements of the Code, Section 415 for a qualified pension plan. 
8. Compliance with Section 503(b). Effective July 1, 1989, the board may not 
engage in a transaction prohibited by the Code, Section 503(b). 
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9. Rules. The board shall adopt rules necessary to maintain the qualified pension 
plan tax status of the State Employee and Teacher Retirement Program under the Internal 
Revenue Code as required for governmental defined benefit plans defined in the Code, 
Section 414(d). Rules adopted under this subsection are routine technical rules as defined 
in chapter 375, subchapter 2-A. 
Sec. 15. 5 MRSA §17652, as amended by PL 2007, c. 491, §95, is further 
amended to read: 
§17652. Optional membership 
1. Elected and appointed officials. Membership in the State Employee and Teacher 
Retirement Program is optional for elected officials or officials appointed for a fixed 
term. A person must make an election at the time of hire whether to be a member of the 
program. Once an election is made under this subsection, the election is irrevocable with 
respect to all subsequent employment with the same employer when membership in the 
program is not mandatory. 
2. Delayed election of membership. A person, including a substitute teacher, who 
elects not tojoin the State Bmployee and Teacher Retirement Program at the beginning of 
that person's employment may at any time apply for and be admitted to membership. 
A 1. A person who joins the State Bmployee and Teacher Retirement Program under 
this subsection may purchase· service credit for thc pcriod during-v/hieh the Derson 
served as aR elected official or official appointed for a fixed term or was employed as 
a substitute teacher but was not a member of the program. 
B. Membership service eredit for persons joining the State Employee aRd Teacher 
Retirement Program under this subsection begins as of the effective date of first 
contributions or nick un contributions to the nro2'Fam. 
C. This subsection applies to any member who begins membership after December 
1L lQRS. 
A. Reentry. A person '",hose membership is optional and .... "ho becomes a member 
after having previously , ..... ithdravlA from the State Employee and Teacher Retirement 
Pro~am may purchase service credit for the time served in eligible service as follows. If 
1 
qualified under both paragraphs A and B. the person may purchase time under both 
paragraphs. 
A. If the person withdrevt' accumulated contributions at the time of withdnpt'lal, the 
person may repurchase that prior service credit by repaying those contributions 
pursuant to section 17703. 
B. For the purchase of time for 'Nhich the person was not a member. the person must 
Rae .... the amount !'let forth in !'lection 17704 A. 
3. Certain employees of the Maine Community College System. Notwithstanding 
section 17651, membership in the State Employee and Teacher Retirement Program is 
optional for employees of the Maine Community College System who are eligible to 
participate in a retirement plan pursuant to Title 20-A, section 12722. A person must 
make an election at the time of hire whether to be a member of the program. Once an 
election is made under this subsection, the election is irrevocable with respect to all 
subsequent employment with the same employer when membership in the program is not 
mandatory. 
4. 
Limitation on election to join State Employee and Teacher Retirement 
Program. 
Notwithstanding any other law, confidential employees of the Maine 
Community College System who are not represented in a collective bargaining unit may 
join or rejoin the State Employee and Teacher Retirement Program under this section 
only upon the written authorization of the Board of Trustees of the Maine Community 
College System. The board of trustees shall authorize the person to join or rejoin the 
State Employee and Teacher Retirement Program when the Maine Community College 
System Office or other Maine Community College System entity that employs the 
individual seeking to join or rejoin has identified and designated the funds necessary to 
pay for the cost of that person's joining or rejoining the program. A person must make an 
election at the time of hire whether to be a member of the program. Once an election is 
made under this subsection, the election is irrevocable with respect to all subsequent 
employment with the same employer when membership in the program is not mandatory. 
5. Certain members of the Maine National Guard. A member of the Maine 
National Guard who is not governed by section 17651 and who is on active state service 
for more than 5 consecutive days pursuant to Title 37-B may elect to be a member of the 
State Employee and Teacher Retirement Program. A member of the Maine National 
Guard on active state service pursuant to Title 37-B who does not elect to participate in 
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the State Employee and Teacher Retirement Program or is not eligible to participate in 
the State Employee and Teacher Retirement Program shall participate in the United States 
Social Security System. Once a member of the Maine National Guard makes an election 
under this subsection, that election is irrevocable with respect to all subsequent 
employment with the same employer when membership in the program is not mandatory. 
A member of the Maine National Guard on active state service pursuant to Title 37-B 
may participate in the tax-deferred arrangement of chapter 67. 
6. Substitute teachers. Notwithstanding section 17651, membership in the State 
Employee and Teacher Retirement Program is optional for substitute teachers. The right 
of a substitute teacher to r~oin the program is limited to 2 occurrences. A person must 
make an election at the time of hire whether to be a member of the program. Once an 
election is made under this subsection, the election is irrevocable with respect to all 
subsequent employment with the same employer when membership in the program is not 
mandatory. 
Sec. 16. 5 MRSA §17704, as amended by PL 2007, c. 491, §109, is repealed. 
Sec. 17. 5 MRSA §17704-A, as amended by PL 2007, c. 491, §§110 and 111, is 
repealed. 
Sec. 18. 5 MRS A §17704-B, sub-§2, as amended by PL 2009, c. 213, Pt. SSS, 
§2, is further amended to read: 
2. 
Payment. The amount that a member who makes the election permitted in 
subsection 1 must pay is the amount equal to the employee contribution that member 
would have made on compensation that would have been paid to that member on the days 
off without payor for days worked for which the level of pay is reduced as the result of 
the freezing of merit pay and longevity pay during fiscal year 2002-03, 2009-10 or 2010-
Il, or a combination thereof, as provided in section 17001, subsection 4, paragraph A, 
plus interest at the same rate as that required for payment of back contributions pursuant 
to section 17704, subsection 3 a rate, to be set by the board, not to exceed regular interest 
by 5 or more percentage points. Interest must be computed beginning at the end of the 
year when those contributions or pick-up contributions would have been made to the date 
of payment. If the member elects to make the payment, the retirement system shall 
withhold the required amount from the member's first retirement benefit check. 
Sec. 19. 5 MRS A §17704-C is enacted to read: 
§17704-C. Continued eligibility to purchase back time 
A member whose membership date is prior to August 1, 2010 and who was eligible 
to purchase service credit under former section 17704 or 17704-A prior to August 1, 
2010, retains eligibility to purchase that service credit under the conditions of those 
sections as in effect prior to repeal. 
Sec. 20. 5 MRSA §17706-A, sub-§l, as amended by PL 2007, c. 491, § 113, is 
further amended to read: 
1. Conditions for refund. The retirement system may make an automatic refund of 
contributions to a member who has not properly applied for a refund as provided in 
section 17705-A and who has terminated service, except by death or by retirement under 
this Part, or who as an optional member has withdrawn from a retirement program of the 
Maine Public Employees Retirement System, and who has not met the minimum 
creditable service requirement for eligibility to receive a service retirement benefit at the 
applicable age under the following conditions: 
A. The member account has been inactive for 3 or more years; 
B. Except when inclusion of a portion of employer contributions is required by this 
subsection, only accumulated contributions made by the member or picked up by the 
employer may be refunded to that member under this subsection; 
C. The amount of the refund of accumulated contributions related to a member's 
compensation for service rendered as a part-time, seasonal or temporary employee 
after December 31, 1991 must be at least equal to 7.5% of the member's 
compensation for that service ph s interest as provided by section 17156; and 
D. A member who receives ar. automatic refund under this subsection may, within 
days of the issuance of the refund, return the full refunded amount to the 
retirement system. Upon receipt, the retirement system shall restore the accumulated 
contributions to the member's credit. 
Pursuant to the Code, Section 401 (a)(31 )(B), the amount of an automatic refund under 
.. this section may not exceed $1.000. 
Sec. 21. 5 MRS A §17707, sub-§4, ~C, as amended by PL 2007, c. 491, §114, is 
further amended to read: 
C. 
If an employee who has not contributed during the employee's CET A 
employment or who has withdrawn the employee's contributions later elects, under 
section 17761, to purchase the employee's CET A time for past creditable service, the 
employee shall pay to the applicable retirement program of the Maine Public 
Employees Retirement System an amount equal to the employee's contributions, plus 
interest, as provided under section 17704 at a rate, to be set by the board, not to 
exceed regular interest by 5 or more percentage points. Interest must be computed 
beginning at the end of the year when those contributions or pick-up contributions 
would have been made to the date of payment. 
Sec. 22. 5 MRS A §17753, as amended by PL 1995, c. 180, §4, is further amended 
to read: 
§17753. Service credit for back contributions 
Upon complete payment of the back contributions under section 17704 or 17704 A 
17704-C, the member must be granted service credit for the period of time for which the 
contributions have been made. Upon making partial payment of the back contributions 
under section 17704 or 17704 A 17704-C, the member must be granted service credit on 
a pro rata basis in accordance with rules adopted by the board. 
Sec. 23. 5 MR.SA §17758, as enacted by PL 1985, c. 801, §§5 and 7, is repealed. 
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Sec. 24. 5 MRSA §18058, sub-§l, as amended by PL 2009, c. 236, § I, is further 
amended to read: 
1. Employees automatically insured. Except as provided in Title 20 A, section 
12722, subsection 8, paragraph D, all All employees eligible for basic insurance under 
this subchapter are automatically insured for the amounts of basic coverage applicable 
under this subchapter, beginning on the first day of the month following one month of 
employment after the employee becomes eligible. Each employee shall complete an 
application for insurance coverage within 31 days of becoming eligible. 
A. The employee shall indicate the types of coverage elected. 
B. If an application is completed in a timely manner, any coverage in addition to 
basic becomes effective on the first day of the month following one month of 
employment after the employee becomes eligible. 
C. If an application is not completed within 31 days of the employee's first becoming 
eligible, the employee may subsequently apply for supplemental and dependent 
insurance but must produce evidence of insurability at the employee's own expense 
and in accordance with the requirements of the insurance underwriter. 
Sec. 25. 5 MRSA §18058, sub-§2, as amended by PL 2009, c. 236, §2, is further 
amended to read: 
2. Employees not wanting to be insured. Except as provided in Title 20 A, section 
12722, subsection g, paragraph D, any Any employee not wanting to be insured under 
this subchapter, at the time the employee first becomes eligible, shall, on the application 
form, give written notice to the employee's employing officer and to the retirement 
system that the employee does not want to be insured. 
A. If after being insured, the employee wishes to cancel or reduce coverage, written 
notice must be given by the employee to the employee's employing officer and to the 
retirement system. 
B. The employee's insurance coverage must cease or be reduced at the end of the 
month in which the notice is received by the employing office. 
C. 
Any employee who does not want to be insured or who cancels insurance 
coverage may subsequently apply for insurance, but must produce evidence of 
insurability at the employee's own expense and in accordance with the requirements 
of the insurance underwriter. 
D. Any employee who, during a period of unpaid military leave of absence, does not 
continue coverage while on unpaid military leave mu~t be reinstated to the levels of 
coverage in effect immediately prior to the unpaid military leave. 
A request for 
reinstatement by the employee must be made within 31 days of the employee's return 
to work following unpaid military leave. An employee who wants to be reinstated 
and who does not apply for reinstatement within 31 days of the employee's return to 
work from unpaid military leave must produce evidence of insurability at the 
employee's own expense and in accordance with the requirements of the insurance 
underwriter. 
I 
Sec. 26. 5 MRS A §18200, first EIT, as enacted by PL 2007, c. 491, §181, IS 
amended to read: 
There is established the Participating Local District Retirement Program as a 
governmental qualified defined benefit plan pursuant to Sections 401(a) and 414(d) of the 
Internal Revenue Code and such other provisions of the Internal Revenue Code and 
United States Treasury regulations and other guidance as are applicable, which has the 
powers and privileges of a corporation. 
Sec. 27. 5 MRS A §18205 is enacted to read: 
§1820S. Internal Revenue Code qualified plan compliance 
fO 
The Participating Local District Retirement Program established in this chapter is 
II 
subject to the following requirements. 
1. Vesting. In compliance wi-'h the Code, Section 401(a)(7), a member is 100% 
vested in the member's contribution; ccount at all times. 
2. Use of forfeitures of benefits. In compliance with the Code, Section 401(a)(8), 
IS 
any forfeitures of benefits by members or fonner members may not be used to pay benefit 
increases, but must be used to reduce unfunded liabilities. 
17-
-3.- Benefits. Incompliance with the Code, Section 401(a)(9), benefits must be paid 
in accordance with a good faith interpretation of the requirements of the Code, Section 
I (a)(9) and the regulations in effect under that section, as applicable to a governmental 
plan within the meaning of the Code, Section 414(d). 
4. 
Application of annual compensation limits. In compliance with the Code, 
Section 40 I (a)C17), applicable annual compensation limits must be applied for purposes 
of detennining benefits or contributions due to the retirement system. 
5. Rollovers. In compliance with the Code, Section 401(a)e3l), a member may 
elect, at the time and in the manner prescribed by the board, to have any portion of an 
eligible rollover distribution paid directly to an eligible retirement plan specified by the 
member in a direct rollover. 
6. Qualified military service. Effective December 12, 1994, contributions, benefits 
and service credit with respect to qualified military service are governed by the Code, 
Section 414(u) and the federal Unifonned Services Employment and Reemployment 
Rights Act of 1994 and, effective January I, 2007, the Code, Section 40 I (a)(3 7). 
7. 
Additional requirements. 
In compliance with the Code, Section 415, the 
member contributions paid to and retirement benefits paid from the Participating Local 
District Retirement Program must be limited to the extent necessary to confonn to the 
requirements of the Code, Section 415 for a qualified pension plan. 
8. Compliance with Section 503(b). Effective July 1, 1989, the board may not 
engage in a transaction prohibited by the Code, Section 503(b). 
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9. Rules. The board shall adopt rules necessary to maintain the qualified pension 
plan tax status of the Participating Local District Retirement Program under the Internal 
Revenue Code as required for governmental defined benefit plans defined in the Code, 
Section 414(d). Rules adopted under this subsection are routine technical rules as defined 
in chapter 375, subchapter 2-A. 
Sec. 28. 5 MRSA §18251, sub-§3, as amended by PL 2007, c. 491, § 188, IS 
further amended to read: 
3. 
Optional membership. 
Membership in the Participating Local District 
Retirement Program is optional for the following employees of a participating local 
district: 
A. 
A person in the service of a participating local district on the date of 
establishment for that participating local district. 
Once such a person joins the 
Participating Local District Retirement Program, membership ceases to be optional 
for that person under this paragraph; 
B. An elected official or an official appointed for a fixed term. Special provisions 
apply to certain officials as follows: 
(1) Membership of trustees of a water district is governed by Title 35-A, section 
6410, subsection 8; 
(2) Membership of trustees of a sanitary district is governed by Title 38, section 
1104; and 
(3) Membership of trustees of a sewer district is governed by Title 38, section 
1252; 
C. A chief administrative officer of a participating local district, whether appointed 
for a fixed term or appointed with tenure; and 
D. A person whose membership is optional under section 18252, 18252-A or 18801. 
A person must make an election at the time of hire, or on the date of first eligibility to 
participate, whichever occurs earlier, whether to be a member of the program. Once an 
election is made under this subsection, the election is irrevocable with respect to all 
subsequent employment with the same employer when membership in the program is not 
mandatory. 
Sec. 29. 5 MRS A §18251, sub-§4, as amended by PL 2007, c. 491, §189, is 
repealed. 
Sec. 30. 5 MRS A §18251, sub-§5, as amended by PL 2007, c. 491, § 190, is 
repealed. 
Sec. 31. 5 MRS A §18252, as repealed and replaced by PL 2009, c. 415, Pt. A, §5, 
is amended to read: 
§18252. Membership in districts with Social Security coverage 
A person who is or would be covered by the United States Social Security Act as a 
result of employment by a participating local district with Social Security coverage may 
elect to join, not to join, to cease contributions to or to ):."ithdraw from be a member in the 
Participating Local District Retirement Program under the following conditions. 
A 
person must make an election at the time of hire or on the date of first eligibility to 
participate, whichever occurs earlier, whether to be a member of the program. Once an 
election is made under this section, the electWn is irrevocable with respect to all 
subsequent employment with the same employer When membership in the program is not 
mandatory. 
1. Membership. An employee may join the Participating Local District R~irement 
Program at the beginning of employment or at any time after beginning employment, as 
long as that person is still an employee of the participating local district and the district 
continues to be a participating local district. 
A. Purchase of service credit for the period during ',yhich the person v,'as not a 
member of the Participating Local District Retirement Program is governed by 
section 18305 A. 
2. 
Employee who is partieipating member. A person '""ho is a participating 
member of the Participating Local District Retirement Program may elect to cease 
contributions to that program and, at that person's discretion, may 'Nithdraw accumulated 
contributions in accordance with section 18306 A. 
3. Person who has previously eeased eontributions. A person who has previously 
elected to cease contributions to the Participating Local District Retirement Program, 
whether or not accumulated contributions have been ",·,.ithdrawn, may choose to rejoin 
that program at any time under the following conditions. 
B. The employer must still be a participating local district allowing ne)" membership 
in the Participating Local District Retirement Program. 
C. 
Purchase of service credit for the period during which the person was not a 
member of the Participating Local District Retirement Program is governed by 
section 18305 A. Repayment of v.'ithdravr'A accumulated contributions is governed 
by section 18304. 
5. Limit on right to rejoin. The right of a person to rejoin under subsection 3 IS 
limited to 2 occurrences. 
6. Restoration to service. If any person who is the recipient of a service retirement 
benefit is covered by the United States Social Security Act upon being restored to service, 
continuation of that person's benefit is governed by the following. 
A. The person may elect to have the service retirement benefit continued during the 
period of time the person is restored to service and the person may not accumulate 
any additional service credits. 
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B. The person may elect to have the service retirement benefit tenninated, again 
become a member of the Participating Local District Retirement Program and begin 
contributing at the current rate. 
(1) The person is entitled to accumu late additional service credits during the 
period oftime the person is restored to service. 
(2) 
When the person again retires, the person is entitled to receive benefits 
computed on the person's entire creditable service and in accordance with the law 
in effect at the time. 
C. Upon being restored to service, the person must elect to have benefits either 
continued or terminated. 
If written notification of the person's election is not 
received by the executive director within 60 days of restoration to service, the person 
is deemed to have elected the provisions of paragraph A. The election, regardless of 
how it is made, is irrevocable during the period of restoration to service. 
Sec. 32. 5 MRSA §18252-A, suh-§l, ~A, as repealed and replaced by PL 2009, 
c. 415, Pt. A, §6, is amended to read: 
A. A person hired by a participating local district, or rehired following a break in 
service, after the date on which the employer provides a plan under section 18252-B 
must elect at the time of hiring or rehiring whether to be a member under the 
Participating Local District Retirement Program or to be covered under a plan 
provided by the employer under section 18252-B. Once an election is made under 
this paragraph, the election is irrevocable with respect to all subsequent employment 
with the same employer when membership in the program is not mandatory. 
(1) If the person elects to be a member under the Participating Local District 
Retirement Program, the election is effective as of the date of hire or rehire. 
(a) A person who elects to be a member of the Participating Local District 
Retirement Program may later elect to be covered under a plan provided by 
the employer under section 18252 B. The person who so elects may, at that 
person's discretion, ,,,,,ithdrav\' accumtilated contribtitions in accordance '.vith 
section 18306 A. 
(b) A person who elects tinder division (a) to be covered under a plan 
provided by the employer under section 18252 B may later elect to again 
become a member under the Participating Local District Retirement Program, 
unless to so elect would have the effect of requiring the employer, 'Nithout 
the employer's agreement, to make an employer contribution to both that 
program and the plan provided by the emplo~'er under section 18252 B. 
(c) l'. person ';",ho elects tinder division (b) to again become a member of the 
Participating Local District Retirement Program may, in accordance '""ith 
section 18305 A, purchase service credit for the period during 'Nhich the 
person elected not to be a member of that program. The person may, in 
accordance with section 18304, repay contribtitions withdravlfl under division 
(a) and may, as permitted under other relevant retirement system la,.~l, rule 
and nolic','. rena',' other refunded contributions. 
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(d) A person 'Nho, having elected to again become a member under the 
Participating Local District Retirement Program under division (c), later 
elects again not to be a member may not thereafter become a member under 
that program vfhile employed by the same participating local district. 
(2) A person vlho elects to be covered under a plan provided by the employer 
under section 18252 B may later elect to become a member under the 
Participating Local District Retirement Program. 
(a) Membership service credit for a person joining the Partioipating Local 
District Retirement Program under this subparagraph begins as of the 
effective date of first contributions or pick up contributions to that program 
follm.ving that person's election under this subparagraph. 
(b) A person 'Nho joins the Participating Local District Retirement Program 
under this subparagraph may, in accordance with section 18305 A, purchase 
service credit for the period during which the person elected not to be a 
member of that program. 
(c) 
A person vt'ho, having elected to become a member under the 
Participating Local District Retirement Program under this subparagraph, 
later elects again not to be a member may, at the employee's discretion, 
vt'ithdraw 
aocumulated 
contributions 
in 
accordance 'i'r'ith 
applicable 
requirements of lB:'tv and rule and retirement system prooedures and may not 
thereafter become a member under that program while employed by the same 
participating local district. 
Sec. 33. 5 MRSA §18252-A, suh-§l, ~, as repealed and replaced by PL 2009, 
c. 415, Pt. A, §6, is amended to read: 
B. 
An employee of the participating local district who is a member under the 
Participating Local District Retirement Program on the date on which the employer 
provides a plan under section 18252-B may elect to remain a member under that 
program or to become covered under a plan provided by the employer under section 
I 8252-B. A person must make an election within 90 days of the date on which the 
employer provides a plan under section 18252-B. Once an election is made under 
this paragraph, the election is irrevocable with respect to all subsequent employment 
with the same employer when membership in the program is not mandatory. 
(1) If that person elects not to remain a member, the election is effective as of the 
first day of the month in which no contributions or pick-up contributions are 
made to the Participating Local District Retirement Program by that person. A 
person who elects not to remain a member may, at that person's discretion, 
withdraw accumulated contributions in accordance with section I 8306-A. 
(2) A person v,rho elects not to remain a member under the Participating Local 
District Retirement Program may later eleot to again beoome a member. 
(a) Membership servioe oredit for a person "vho eleots to again beoome a 
member under the Prniicipating Local District Retirement Program under this 
subnara2"ranh bee=ins as of the effective date of the first contrihution<: or nick 
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up contributions to that program following that person's election under this 
subparagraph. 
(b) 
A person who rejoins the Participating Local District Riltirement 
Program under this subparagraph may, in accordance 'with section 18305 A, 
purchase service credit for the period during which that person elected not to 
be a member of that program. The person rna)" in accordance with section 
18304, repay contributions refunded under subparagraph (1), unless to so 
elect " .. ould have the effect of requiring the employer, '",ithout the employer's 
agreement, to malce an employer contribution to both the Participating Local 
District Retirement Program and the plan provided by the employer under 
section 18252 B. 
(c) A person who, having elected to again become a member under the 
Participating Local District Retirement Program under this subparagraph, 
later elects again not to be a member may, at that person's discretion, 
\ .... ithdrw ..... accumulated contributions in accordance with section 18306 A and 
may not thereafter become a member under that program vt'hile employed by 
the same nartioinatiRI! IAoal distriot. 
Sec. 34. 5 MRSA §18252-B, sub-§6, ~C, as amended by PL 2007, c. 491, §198, 
is repealed. 
Sec. 35. 5 MRSA §18254, sub-§l, as amended by PL 2007, c. 491, §204, is 
further amended to read: 
1. Employee eligible to withdraw accumulated coutributions. An employee of 
the district whose membership in the Participating Local District Retirement Program 
was compulsory under section 18251 must make an election to remain a member under 
that program or to withdraw accumulated contributions within 90 days of the effective 
date of the employer withdrawal from the program under section 18203, subsection 2. 
An employee who withdraws elects to withdraw accumulated contributions under this 
subsection may not be a member of the Participating Local District Retirement Program 
program as an employee of that district. Once an election is made under this subsection, 
the election is irrevocable with respect to all subsequent employment with the same 
employer when membership in the program is not mandatory if the employer later 
resumes participation in the program pursuant to section 18254-A. 
Sec. 36. 5 MRSA §18254, sub-§5, as enacted by PL 2001, c. 181, §10, IS 
amended to read: 
5. Conditions under which withdrawn participating local district is no longer 
participating local district. A participating local district that has no former employees 
eligible for retirement benefits under subsection 3 and no former employees covered 
under subsection 4 is no longer a participating local district when: 
A. The participating local district's status as a participating local district is based 
solely on the existence of a former employee or employees who are retirees receiving 
retirement benefits or on the existence of current or potential beneficiaries of such 
retirees who are receiving or potentially entitled to receive benefits; and 
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B. The district satisfies fully all liabilities as measured by the retirement system for 
those to' whom paragraph A applies: 
(1) In accordance with state and federal law; and 
(2) A~cording to standards and procedures approved by the board as determined 
by the board to protect the interests of current and potential benefit recipients and 
any other affected or potentially affected person or entity. Such procedures may 
... include, but are not limited to, the establishment by purchase or otherwise of an 
annuity or annuities as a means of satisfying the district's liabilities. 
Having- satisfied its liabilities in compliance with this subsection, a district is no longer a 
participating local district, and once the retirement plan is terminated in accordance with 
federal law, the retirement system must return to it any assets in the district's retirement 
system account exceeding the amount necessary to comply. 
Satisfaction of district 
liabilities pursuant to this subsection bars any future claim by any person against the 
retirement system for liability to or responsibility for any retiree, beneficiary or the 
djstrict, and a retiree, beneficiary or the district is not thereafter subject to this Part. 
Sec. 37. 5 MRSA §18305, as amended by PL 2007, c. 491, §§214 and 215, is 
repealed. 
Sec. 38. 5 MRSA §18305-A, as amended by PL 2007, c. 491, §§216 and 217, is 
repealed. 
Sec. 39. 5 MRSA §18305-B is enacted to read: 
§18305-B. Continued eligibility to purchase seJI""Vice credit 
A member whose membership date is prior to August 1, 2010, and who was eligible 
to purchase service credit under former section 18305 or 18305-A prior to August 1, 
2010, retains eligibility to purchase that service credit under the conditions of those 
sections as in effect prior to repeal. 
Sec. 40. 5 MRSA §18307-A, s1lllIb-§l, as amended by PL 2007, c. 491, §219, is 
further amended to read: 
' 1. Conditions for refund. The retirement system may make an automatic refund of 
contributions to a member who has not properly applied for a refund as provided in 
section 18306-A and who has terminated service, except by death or by retirement under 
this Part, or who as an optional member has withdrawn from a retirement program of the 
Maine Public Employees Retirement System, and who has not met the minimum 
creditable service requirement for eligibility to receive a service retirement benefit at the 
applicable age under the following conditions: 
A. The member account has been inactive for 3 or more years; 
B. Except when inclusion of a portion of employer contributions is required by this 
subsection, only accumulated contributions made by the member or picked up by the 
employer may be refunded to that memberunder this subsection; 
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C. The amount of the refund of accumulated contributions related to a member's 
compensation for service rendered as a part-time, seasonal or temporary employee 
after December 31, 1991 must be at least equal to 7.5% of the member's 
compensation for that service plus interest as provided by section 17156; and 
D. A member who receives an automatic refund under this subsection may, within 
days of the issuance of the refund, return the full refunded amount to the 
retirement system. Upon receipt, the retirement system shall restore the accumulated 
contributions to the member's credit. 
Pursuant to the Code, Section 401 (a)(31 )(B), the amount of an automatic refund under 
this subsection may not exceed $1,000. 
Sec. 41. 5 MRS A §18308, sub-§4, ~C, as amended by PL 2007, c. 491, §220, is 
further amended to read: 
C. 
If an employee who has not contributed during the employee's CET A 
employment or who has withdrawn the employee's contributions later elects, under 
section 18361, to purchase the employee's CETA time for past creditable service, the 
employee shall pay to the applicable retirement program of the Maine Public 
Employees Retirement System an amount equal to the employee's contributions, plus 
interest, as provided under section 18305 at a rate, to be set by the board, not to 
exceed regular interest by 5 or more percentage points. Interest must be computed 
beginning at the end of the year when those contributions or pick-up contributions 
would have been made to the date of payment. 
Sec. 42. 5 MRSA §18353, as repealed and replaced by PL 1989, c. 95, §11, is 
amended to read: 
§18353. Service credit for bacB{ contributions 
Upon complete payment of the back contributions under section -l-8JO.5. 18305-B, the 
member sflalt must be granted service credit for the period of time for which the 
contributions have been made. Upon making partial payment of the back contributions 
under section ~ 
18305-B, the member sflaR must be granted service credit on a pro 
rata basis in accordance with rules adopted by the board. 
Sec. 43. 5 MRSA §18358, sub-§2, as amended by PL 2007, c. 491, §229, IS 
repealed and the following enacted in its place: 
2. 
Optional members ioining the Participating Local District Retirement 
Program. A person who joins the Participating Local District Retirement Program under 
section 18251, 18252 or 18252-A begins to accrue membership service credit on the 
effective date of first contributions or pick-up contributions to the program. 
Sec. 44. 5 MRSA §18801, first <IT, as amended by PL 1993, c. 250, §3, is repealed 
and the following enacted in its place: 
There is established the Participating Local District Consolidated Retirement Plan as 
a governmental qualified defined benefit plan pursuant to Sections 401(a) and 414(d) of 
the Internal Revenue Code and such other provisions of the Internal Revenue Code and 
United States Treasury regulations and other guidance as are applicable, which has the 
powers and privileges of a cOffioration. The pUffiose of the Participating Local District 
Consolidated Retirement Plan is to provide retirement allowances and other benefits 
under this chapter for employees of participating local districts. The board shall establish 
by rule the plan provisions of the Participating Local District Consolidated Retirement 
Plan in accordance with section 18804. 
Sec. 45. 20-A MRSA §12722, sub-§2, as enacted by PL 1997, c. 763, §4 and 
affected by §7 and amended by PL 2007, c. 58, §3, is repealed and the following enacted 
in its place: 
2. Election periods. An eligible person is considered to be a participant in the 
defined contribution plan offered by the board of trustees unless that person makes a one-
time irrevocable election to participate in the Maine Public Employees Retirement 
System. The election must be made in writing no later than 30 days after the date of hire 
in an eligible position, and notice of the election must be filed with the administrative 
officer of the employing institution. The employing institution shall notify the Maine 
Public Employees Retirement System of the election in accordance with procedures 
established by the Executive Director of the Maine Public Employees Retirement System. 
Participation in the Maine Public Employees Retirement System pursuant to an election 
under this subsection is effective as of the date of hire, and the system shall remit all 
required contributions to the Maine Public Employees Retirement System retroactively to 
the date of hire. 
Sec. 46. 20-A MRSA §12722, sulb-§3, as amended by PL 2007, c. 58, §3 and c. 
137, §25, is repealed. 
Sec. 47. 20-A MRS A §12722, sulb-§8, as amended by PL 2009, c. 236, §3, is 
repealed. 
SUMMARY 
This bill makes changes to the laws governing the qualified defined benefit 
retirement programs administered by the Maine Public Employees Retirement System to 
conform them to provisions of the United States Internal Revenue Code. These changes 
are necessary to ensure the continued qualified status and favorable tax treatment of the 
defined benefit programs under the Internal Revenue Code, Sections 401(a) and 414(d) 
and other applicable provisions. The Maine Public Employees Retirement System has 
received favorable determination letters from the Internal Revenue Service confirming 
the continued qualification of the Legislative Retirement Program, Judicial Retirement 
Program, State Employee and Teacher Retirement Program and Participating Local 
District Retirement Program, subject in part to the adoption of the changes proposed in 
this bill. 
The bill adds language to clarify that applicable retirement programs are intended to 
be governmental qualified defined benefit plans under the Internal Revenue Code. 
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The bill amends the respective retirement program statutes to comply with specific 
Internal Revenue Code requirements that govern certain operational procedures currently 
in practice but that must be specifically referred to in the written plan document. 
In 
addition, the bill amends the respective retirement programs to comply with the 
provisions of the federal Tax Reform Act of 1986, the federal Unemployment 
Compensation Amendments of 1992, the federal Omnibus Budget Reconciliation Act of 
1993; the federal Uruguay Round Agreements Act, the federal Uniformed Services 
Employment and Reemployment Rights Act of 1994, the federal Small Business Job 
Protection Act of 1996, the federal Taxpayer ReI ief Act of 1997, the federal Internal 
Revenue Service Restructuring and Reform Act of 1998, the federal Community Renewal 
Tax Relief Act of 2000 and the federal Economic Growth and Tax Relief Reconciliation 
Act of2001. More specifically, the bill: 
1. Confirms that a member is 100% vested in the member's contribution account 
pursuant to the Internal Revenue Code, Section 401 (a)(7); 
2. Specifies that a forfeiture of a benefit by a member or former member must be 
used to reduce the unfunded liability of the employer pursuant to the Internal Revenue 
Code, Section 401 (a)(8); 
3. Provides that distributions to members must commence no later than the April 1 st 
following the calendar year in which the member attains 70 1/2 years of age pursuant to 
the Internal Revenue Code, Section 401 (a)(9), known as the "required minimum 
distribution," and must be paid in accordance with the Code; 
4. Provides that annual compensation of an eligible member that exceeds $245,000, 
adjusted yearly for cost-of-living increases, may not be taken into account in determining 
benefits or contributions due for any plan year pursuant to the Internal Revenue Code, 
Section 401(a)(17); 
5. 
Defines what constitutes an eligible retirement plan, an eligible rollover 
distribution and a member for favorable tax rollovers pursuant to the Internal Revenue 
Code, Section 401(a)(31); 
6. Specifies how contributions, benefits and service credit with respect to qualified 
military service must be provided in accordance with the Internal Revenue Code, Section 
414(u) and the federal Uniformed Services Employment and Reemployment Rights Act 
of 1994; 
7. Establishes a ceiling on the amount of annual retirement benefits that may be 
provided to a member pursuant to the Internal Revenue Code, Section 415, currently 
$195,000 for a member who has at least 10 years of service and who is at least 62 years 
of age; and 
8. 
Prohibits the Board of Trustees of the Maine Public Employees Retirement 
System from engaging in certain transactions pursuant to the Internal Revenue Code, 
Section 503(b). 
The bill authorizes the Board of Trustees of the Maine Public Employees Retirement 
System to adopt rules necessary to maintain the qualified tax status of the governmental 
defined benefit retirement plans administered by the Maine Public Employees Retirement 
System. 
The bill amends the waiver prOVISIOns of the Legislative Retirement Program to 
provide that a Legislator is allowed a one-time irrevocable election of whether to join the 
program. This language is added to comport with various provisions of the Internal 
Revenue Code, federal treasury regulations and guidance providing that employees in a 
defined benefit plan or pick-up plan may not have an election with respect to participation 
or the amount of contributions unless that election is a one-time irrevocable election at 
the commencement of employment, and that election survives the employee's entire 
working life with that employer. 
The bill provides a maximum automatic refund amount under the existing refund of 
inactive account statutes pursuant to Internal Revenue Code, Section 401 (a)(31 )(B). 
The bill establishes the employer reporting requirements for employees with optional 
membership in the State Employee and Teacher Retirement Program and sets forth the 
responsibilities of the employer in the optional membership election process. 
The bill amends the optional membership statutes in the State Employee and Teacher 
Retirement Program to provide for a one-time irrevocable election and removes all 
provisions relating to delayed elections and reentry into the plan to comport with federal 
law. 
The bill repeals language related to the purchase of back contributions that is no 
longer applicable due to the elimination of certain election options. 
The bill establishes the conditions under which a person who is a member prior to 
August 1, 2010 may purchase service credit. 
The bill amends the group life insurance program statutes to remove language that is 
no longer applicable. 
The bill amends the optional membership provision in the Participating Local District 
Retirement Program to provide for a one-time irrevocable election to participate in the 
program. 
The bill provides for a one-time irrevocable election for persons hired by a 
participating local district with Social Security coverage. 
The bill provides for a one-time irrevocable election for persons hired, or rehired, by 
a participating local district that created an alternative retirement plan prior to the person's 
hire date. It also provides that an employee of a participating local district that creates an 
alternative plan after the person's date of hire can make a one-time irrevocable election 
into the alternative plan within 90 days. 
The bill amends the conditions under which a member may withdraw accumulated 
contributions when a participating local district withdraws from the program. 
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The bill amends the conditions under which the retirement system must refund the 
assets of a withdrawn participating local district to include that the plan must be 
terminated in accordance with federal law. 
The bill removes language regarding optional members rejoining a program of the 
retirement system that is no longer applicable. 
The bill amends the establishment clause of the Participating Local District 
Consolidated Retirement Plan to clarify that the plan is intended to be a governmental 
defined benefit plan and to state the purpose of the plan in a manner consistent with the 
other Maine Public Employees Retirement System defined benefit retirement programs. 
The bill amends the Maine Community College System retirement plan statutes to 
provide for a one-time irrevocable election into the State Employee and Teacher 
Retirement Program.