An Act To Provide Continued Protection of Benefits for Retirees of the Maine Public Employees Retirement System
Maine Legislature, Session 124, LD 1595
Committee: Labor
Sponsors: MITCHELL, PINGREE, DIAMOND, JACKSON, BLODGETT, BUTTERFIELD, CAIN, CROCKETT, MARTIN, MILLETT
Amends: 4 MRSA §1358, 5 MRSA §17806, 5 MRSA §18407

MAINE STATE LEGISLATURE 
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124th MAl E LEGISLATURE 
Legislative Document 
No. 1595 
S.P.602 
In Senate, December 18, 2009 
An Act To Provide Continued Protection of Benefits for Retirees of 
the Maine Public Employees Retirement System 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Secretary of the Senate on December 18, 2009. Referred to the Committee 
on Labor pursuant to Joint Rule 308.2 and ordered printed. 
Presented by President MITCHELL of Kennebec. 
Cosponsored by Speaker PINGREE of North Haven and 
9tg(J~ 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: DIAMOND of Cumberland, JACKSON of Aroostook, Representatives: BLODGETT 
of Augusta, BUTTERFIELD of Bangor, CAIN of Orono, CROCKETT of Augusta, MARTIN 
of Eagle Lake, MILLETT of Waterford. 
Printed on recycled pilper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 4 MRSA §1358, sub-§l, crrA, as amended by PL 2009, c. 433, § 1, IS 
further amended to read: 
A. 
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 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 
determine the cost of these adjustments and shall include them in its budget requests, 
if necessary. 
Sec. 2. 4 MRSA §1358, sub-§l, crrA-l, as enacted by PL 2009, c. 433, §2, is 
amended 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 CO'lsumer Price Index for both years in a cost-neutral 
manner. If the Consumer Price ndex in the subsequent year or years is not sufficient 
to allow for the adjustment to Je cost-neutral for the 2 years, then the adjustment 
needed for cost-neutrality must continue to be applied to following years until such 
time as the cost-neutrality requirement is met. 
Sec. 3. 5 MRSA §17806, suh-§l, ~A, as amended by PL 2009, c. 433, §3, IS 
further amended to read: 
A. Except as provided in paragraph A-I, 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, ~A-l, as enacted by PL 2009, c. 433, §4, is 
amended to read: 
A-I. Ifthere 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. If the Consumer Price Index in the subsequent year or years is not sufficient 
to allow for the adjustment to be cost-neutral for the 2 years, then the adjustment 
needed for cost-neutrality must continue to be applied to following years until such 
time as the cost-neutrality requirement is met. 
Sec. 5. 5 MRSA §18407, sub-§4, ~A, as amended by PL 2009, c. 433, §5, is 
further amended to read: 
A. Except as provided in paragraph A-I, whenever there is a percentage change 
increase in the Consumer Price Index from July 1 st to June 30th, the board shall 
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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, 'ITA-I, as enacted by PL 2009, c. 433, §6, is 
amended 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. If the Consumer Price Index in the subsequent year or years is not sufficient 
to allow for the adjustment to be cost-neutral for the 2 years, then the adjustment 
needed for cost-neutrality must continue to be applied to following years until such 
time as the cost-neutrality requirement is met. 
SUMMARY 
This bill protects retirees of the Maine Public Employees Retirement System from the 
impact on retirement benefits of decreases in the Consumer Price Index. 
This bill 
requires that if the Consumer Price Index decreases for one or more years, adjustments in 
the subsequent year or years must result in cost-neutrality.