An Act To Provide More Transparency and Protection for Public Employees in the Laws Governing the Maine Public Employees Retirement System
Maine Legislature, Session 124, LD 1292
Committee Amendment CA_A_S285 (Senate)
Amends: 5 MRSA §17054, 5 MRSA §17103, 5 MRSA §17105-A, 5 MRSA §17106, 5 MRSA §17106-A, 5 MRSA §17924, 5 MRSA §18504, 5 MRSA §18511, 5 MRSA §18524

COMMITTEE AMENDMENT" A" to S.P.474, L.D. 1292, Bill, "An 'Act To 
Provide More Transparency and Protection for Public Employees in the Laws Governing 
the Maine Public Employees Retirement System" 
,Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 5 MRSA §17054, sub-§3, as amended by PL 1993, c. 386, §2, is further 
amended to read: 
3. Recovery of overpayments by the retirement system. Any amounts due the 
retirement system as the resu It of overpayment or erroneous payment of benefits, an 
excess refund of contributions or overpayment or erroneous payment of life insurance 
benefits may be recovered from an individual's contributions, any benefits or life 
insurance benefits payable under this Part to the individual or the beneficiary of the 
individual or any combination of contributions and benefits. If the overpayment or 
excess refund of contributions resulted from an unintentional f! mistake of or incorrect 
information provided by an employee of the retirement system, or a mistake of the retiree 
or the recipient of the benefit or life insurance benefit, 00 a penalty or interest may not be 
collected assessed by the retirement system on the amount to be recovered. In all cases of 
recovery of overpayments through the reduction of a retirement benefit, whether with or 
without the assessment of interest by the retirement system, the recovery practices must 
be reasonable and consider the personal economic stability of the retiree in the 
establishment of the recovery schedule. The executive director may also take action to 
recover those amounts due from any amounts payable to the individual by any other state 
agency or by an action in a court of competent jurisdiction. Whenever the executive 
director makes a decision to recover any amounts under this subsection, that decision is 
subject to appeal under section 17451;--and~ 
Employers are responsible for enrolling employees in the correct retirement plan. 
The 
retirement system shall provide training, education and information to assist employers in 
the correct enrollment of employees. 
If an employee is enrolled in the incorrect 
retirement plan by the employer through no fault of the employee, the employee may not 
Page I - 124LR0769(02)-1 
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COMMITIEE AMENDMENT" A" to S.P. 474, L.D. 1292 
lose any retirement benefits. 
The State is not responsible for the employer contribution 
when the employer is a school district, municipality or county and those contributions and 
assessed interest, if applicable, must be paid to the retirement system by the school 
district, municipality or county; and 
Sec. 2. 5 MRSA §17103, sub-§6, as amended by PL 2007, c. 491, §77, is further 
amended to read: 
6. Rights, credits and privileges; decisions. The board shall in all cases make the 
final and determining administrative decision in all matters affecting the rights, credits 
and privileges of all members of all programs of the retirement system whether in 
participating local districts or in the state service. 
Whenever the board finds that, because of an error or omission on the part of the 
employer of a member or retired member, a member or retired rriember is required to 
make a payment or payments to the retirement system, the board may waive payment of 
all or part of the amount due from the member or retired member. In these. instances of 
recovery of overpayments from members of the retirement system, the retirement system 
is governed by section 17054, subsection 3. 
Sec. 3. 5 MRSA §17103,sub-§6-A is enacted to read: 
6-A. Communication between the board and members of the retirement system. 
Communications between the board and members of the retirement system are governed 
by this subsection. 
. 
A. The board shall make all members aware of the requirements in law or rule and 
any changes to these requirements governing retirees, disability benefits and any 
other benefits provided by the retirement system. 
All retirement information 
provided to retirement system members must be provided by highly competent 
individuals well-trained and knowledgeable about the benefits and requirements of 
the retirement system in both law and rules, including requirements to qualify for 
disability retirement, and including information provided by individuals representing 
participating local districts to members. 
The board shall provide applicants for 
retirement or disability status with· materials summarizing· the most significant' 
requirements and restrictions in state laws and rules to include, at a minimum, 
retirement benefits,· postretirement employment and responsibilities of retirees. 
These materials must be. clearly written in simple and understandable terms. 
B. In the event that a member requests to retire before normal retirement age, it is the 
primary responsibility of the retirement system to ensure through all feasible means 
that the member is informed of all the restrictions related to early retirement. 
Sec. 4. 5 MRS A §17103, sub-§l1, as amended by PL 1997, c. 651, §3, is further 
amended to read: 
11. Report to Legislature. The board shall make a written report to the appropriate 
legislative committee on or before tfte March 1 st of each year that must contain: 
A. 
A discussion of any areas of policy or administration that, in the opinion of the 
board, should be brought to the attention of the committee; 
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COMMITIEE AMENDMENT "A" to S.P. 474, L.D. 1292 
B. 
Any proposed legislation amending the retirement system law that the board 
recommends to improve the retirement system; 
C. 
A discussion of the progress toward meeting the goals of chapter 161; 
D. 
A review of the operations of the retirement system, including a summary of 
administrative expenses and improvements in the delivery of services to members of 
the retirement system; aOO 
E. 
A budget report showing the budget status of the administrative operations and 
functions of the system for the current fiscal year relative to the budget for the current 
fiscal year7~ 
F. The number of individuals who retired in the previous calendar year categorized 
by plan status; 
G. 
The number of new active members of the retirement system who became 
members during the previous year, by plan status; 
H. The amount of earnings on investment in the previous calendar year;, 
I. The total amount of employee and employer contributions to the retirement system 
in the previous calendar year and the total amount of payout to retirees, categorized 
by plan status; and 
J. The number of persons who applied for disability retirement during the previous 
calendar year including: 
(1) 
The number of applicants for disability retirement who were awarded 
beriefits at the application stage; 
(2) 
The number of applicants for disability retirement who were awarded 
benefits following the submission of additional information; 
(3) 
The net number of applicants for disability 'retirement who appealed 
decisions that denied disability retirement status; and 
(4) The number of applicants who were granted disability retirement following 
their appeals. 
Sec. 5. 5 MRSA §17105-A is enacted to read: 
§17105-A. Adverse decisions of tile retirement system 
Prior to any adverse decision rendered by retirement system staff with respect to the 
recoupment, suspension or termination of benefits, or assessment of penalties or interest, 
the affected member or retiree is entitled to an informal hearing to which the member or 
retiree may bring legal counsel. The retirement system shall issue a written decision; this 
decision is subject to the retirement system's review and appeal process pursuant to 
section 17451. 
Sec. 6. 5 MRSA §17106, as amended by PL 2007, c. 491, §79, is further amended 
to read: 
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COMMllTEE AMENDMENT "A ,. to S.P. 474, L.D. 1292 
§17106. Medical board 
1. Establishment. The board shall designate a medical board or boards eaoh to be 
composed of at least 3 physicians not eligible to participate in any of the retirement 
programs of the retirement system. The board shall make a good faith effort to appoint 
physicians to the medical board who are from those fields of medicine within which the 
Maine Public Employees Retirement System receives the greatest number of applications 
for disability retirement benefits. 
2. Other physicians. If detennined advisable by the board, the board may designate 
other physicians to provide medical consultation on disability cases. 
3. Powers and duties. The medical board is advisory only to the retirement system. 
The medical board or other physioian physicians designated by the board shall, .at the 
request of the exeoutive direotor, review the file of an applicant for disability retirement 
and as requested shall respond on any or all of the following: 
A. 
Recommend an additional medical review in those instances where there are 
conflicting medical opinions; 
B. 
Recommend additional medical tests to be perfonned on an applicant to obtain 
objective evidence of a penn anent disability; 
C. 
Assist the executive director in detennining if a disability review of a recipient 
of a disability allowance is warranted; 
D .. Inform theexec\:ltive direotor and board in writing of its vie",,, as to the eJdstenoe 
of a disability Provide a written report of its analysis of how the applicant's medical 
records do or do not demonstrate the existence of physical or mental functional 
limitations entitling an applicant to benefits under chapter 423, subchapter ¥ .2., 
articles 3 and 3-A, or chapter 425, subchapter ¥ .2., articles 3 or 3-A; and . 
E. 
Advise the exeoutive director and board at the request of either retirement system 
. whether there are medical indications that a person who is the recipient of a disability 
retirement benefit under chapter 423, subchapter ¥ .2., article 3-A or chapter 425, 
subchapter ¥ .2., article 3-A should not engage in a rehabilitation program or whether 
a recipient is too severely disabled to benefit from rehabilitation in accordance with 
the purposes of chapter 423, subchapter¥ .2., article 3-A or chapter 425, subchapter ¥ 
.2., article 3-A. 
4. Medical evidence. The provisions of this subsection. apply to medical evidence 
lIsed for a disability retirement detennination. 
A. 
The retirement system shall consider the applicant's disability application,. 
medical records and the medical board's analysis in making a disability retirement 
deterinination. 
. 
B. Explicit or implicit preferential weight may not be afforded any medical evidence 
or source of evidence, whether provided by the retirement system, its medical board 
or contracted examiners, or by any member, in connection with the application, 
review or hearing processes. 
C. When addressing the weight to be given any medical evidence upon which a 
determination to award, deny or discontinue benefits is made, the retirement system, 
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COMMITTEE AMENDMENT" Ir to S.P. 474, L.D. 1292 
hearing officers and board of trustees shall consider, at least, the expertise of the 
medical source, the foundation of information upon which the opinion is rendered 
and its consistency with other medical evidence in the record. 
D. 
The retirement system shall offer to review ,the decision and the records 
supporting that decision with the applicant prior to issuing a determination. 
Sec. 7. 5 MRSA §17106-A is enacted to read: 
§17106-A. Use of bearing officers 
A hearing officer employed, contracted or otherwise provided by the board to 
implement the provisions of this chapter is subject to the provisions of this section. ' 
1. Independent decision mal{ers. All hearing officers are independent decision 
makers and are authorized to make recommended final decisions in regard to matters that 
come before them, consistent with applicable' statutes and rules. 
A decision' of the 
hearing officer must be based upon the record as a whole. The board shall accept the 
recommended decision of the hearing officer unless the recommended decision is not 
supported by the record as a' whole, the retirement system is advised by the Attorney 
General that the hearing officer has made an error of law or the decision exceeds the 
authority or jurisdiction conferred upon the hearing officer. A decision of the board upon 
a recommended decision of the hearing officer constitutes final agency action. The board 
shall retain its decision-making 'authority in all retirement system policy areas. 
2. No direct or indirect influence. A party to the appeal, including the appellant, 
the board, the executive director or the staff of the board may not exert direct or indirect 
influence on a hearing officer with regard to decisions of the hearing officer or the 
decision-making process. 
3. Decision-maldng process. In the course of the decision-making process, hearing 
officers may accept, reject or determine the amount of weight to be given any information 
offered into evidence, including, but not limited to, medical evidence submitted by any of 
the parties to the appeal. 
4. 
Discussion of issues before tbe bearing officers. All parties to an appeal, 
including the appellant, the board, the executive director and the retirerrient system staff 
are prohibited from ex parte communication with' the hearing officer. 
All parties, 
including the appellant, the board, the executive director and the retirement system staff 
are prohibited from initiating or engaging in any discussion with a hearing officer 
regarding the substance of any pending case without first making all parties aware of the 
proposed contact and without also giving all parties the opportunity to participate in any 
communication. 
5. Investigation. The joint standing committee of the Legislature having jurisdiction 
over labor matters shall monitor the compliance of the retirement system and all involved 
paliies with regard to the use of hearing officers and the independence of hearing officers 
in the decision-making process. The joint standing committee of the Legislature having 
jurisdiction over labor matters may request the Attorney General to conduct an 
investigation if a complaint is made by a hearing officer or any participating party 
regarding the independence of the hearing process. 
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COMMITTEE AMENDMENT "A" to S.P. 474, L.D. 1292 
6. Engagement and termination. The board shall engage only qualified hearing 
officers, who must be monitored by the board. A hearing officer may be tenninated for 
misconduct. Retaliatory action of any kind, including reprimand or termination, may not 
be taken against a hearing officer on the basis of that hearing officer's having issued 
decisions contrary to the decision of the executive director. In the event of termination, 
the retirement system shall set forth in writing the basis for the tennination, the propriety 
of which may then be considered by the joint standing committee of the Legislature 
having jurisdiction over labor matters pursuant to subsection 5. 
9' 
Sec. 8. 5 MRSA §17924, sub-§2, as amended by PL 2007, c. 491, §177, is 
further amended to read: 
II 
2. Exception. A member with fewer than 5 years of continuous creditable service, 
immediately preceding that member's application for a disabilij;)' retirement benefit last 
date in service is not eligible for tftata disability retirement benefit if the disability is the 
result of a physical or mental condition that existed before the member's membership in a 
IS 
retirement program of the Maine Public Employees Retirement System, unless the 
disability is a result of, or has been substantially aggravated by, an injury or accident 
received in the line of duty but from events or circumstances not usually encountered 
within the scope of the member's employment. 
Sec. 9. 5 MRSA §18504, sub-§2, as amended by PL 2007, c. 491, §244, is 
further amended to read: 
2. Exception. A member with fewer than 5 years of continuous creditable service 
immediately preceding that member's application for a disability retirement benefit last 
date of service is not eligible for tftat a disability retirement benefit if the disability is the 
result of a physical or mental condition that existed before the member's .J.atest 
membership in a retirement program of the, Maine Public Employees Retirement System, 
unless the disability is a result of, or has been substantially aggravated by, an injury or 
accident received in the line of duty but from events or circumstances not usually 
encountered within the scope of the member's employment. 
Sec. 10. 5 MRSA §18511, sub-§2, as amended by PL 1989, c. 878, Pt. B, §6, is 
further amended to read: 
2. Presumption. In participating local districts ", .. hich have not adopted the disability 
retirement benefits enacted by Public La",.' 1975, chapter 622, section 54, and subsequent 
amendments, it 11 is presumed that a member incurred a disability in the line of duty 
wItisll that occurred while in actual performance of duty at some definite time and place 
and wfl.iel:I. that was not caused by the willful negligence of the member if: 
A. 
The disability is the result of a cardiovascular injury wItisll that occurred, or a 
cardiovascular or pUlmonary disease wItisll that developed, within 6 months of 
having participated in fire fighting firefighting or in a training or drill wfti.c.Il that 
involved fire fighting firefighting; and 
B. 
The member was an active member of a municipal fire department or of a 
volunteer fire association, as defined in Title 30-A, section 3151, for at least 2 years 
before the injury or the onset of the disease~~ 
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COMMITTEE AMENDMENT" It· to S.P. 474, L.D. 1292 
C. 
The member has been granted workers' oompensation benefits for the 
oardiovasoular injury or disease or the pulmonary disease. 
Sec. 11. 5 MRSA §18524, sub-§2, as amended by PL 2007, c. 491, §246, is 
further amended to read: 
2. Exception. A member with fewer than 5 years of continuous creditable service 
immediately preceding that member's applioation for a disability retirement benefit last 
date of service is not eligible for tflat a disability retirement benefit if the disability is the 
result of a physical or mental condition that existed before the member's membership in a 
retirement program of the Maine Public Employees Retirement System, unless the 
disabilitY is a result of, or has been substantially aggravated by, an injury or accident 
received in the line of duty but from events or circumstances not usually encountered 
within the scope ofthe member's employment. 
' 
Sec. 12. Report. The Maine Public Employees Retirement System shall submit a 
report on the implementation of the new processesesta,blished under this Act and indicate 
whether those processes have resulted in the elimination of the necessity of deposing the 
medical board created pursuant to the Maine Revised Statutes, Title 5, section 17106. 
The retirement system also shall report on whether the pre-Tidd v. MSRS Docket 
Number HOUSC-AP-06-'001 decision status offers enough protection for members with a 
preexisting disability. 
The retirement system shall report to the Joint Standing 
Committee on Labor by January 10, 2010. After receipt arid review of the report, the 
joint standing committee may report out a bill to the Second Regular Session of the 124th 
Legislature.' 
SUMMARY 
This amendment provides more transparency, accountability and protection for public 
employees with respect to the processes and policies of the Maine Public Employees 
Retirement System. The amendment: 
1. 
Provides that persons providing information to prospective retiring public 
employees be well trained and knowledgeable about retirement system laws and rules and 
be able to provide this information in understandable terms; 
2. Provides that mistakes by public employees or employees of the retirement system 
in regard to retirement system benefits, including overpayments, may not' result in 
unreasonable penalties and recovery must consider personal economic stability; 
3. Authorizes hearing officers to make recommended final decisions and requires 
such decisions to be made on the record as a whole; 
4. Implements a finding of the court that opinions of the medical board are advisory 
only; 
5. 
Affords equal weight to medical evidence, regardless of the source of that 
evidence; 
6. 
Entitles a member or retiree along with counsel an opportunity to an informal 
hearing prior to any adverse decision by the retirement staff; 
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COMMITIEE AMENDMENT "It" to S.P. 474, L.D. 1292 
7. 
Requires the Board of Trustees of the Maine Public. Employees Retirement 
System to attempt to appoint to the medical board physicians chosen from those fields of 
medicine for which the retirement system receives the greatest number of appl ications for 
disability retirement benefits; 
8. Requires additional information, as part of the retirement system's annual report, 
including the number of individuals who retired in the previous calendar year categorized 
by plan status; the number of new active members of the retirement system who became 
members during the prev.ious year, by plan status; the amount of earnings on investment 
in the previous calendar year; the total amount of employee and employer contributions 
to the retirement system in the previous calendar year and the total amount of payout to 
retirees, categorized by plan status; and the number of persons who applied for disability 
retirement during the previous calendar year; 
9. 
Addresses a decision of the Superior Court that discriminates against all 
employees who take more than 30 days of unpaid leave during any period of their last 5 
years of retirement system service, regardless of their total service in the retirement 
system; 
10. 
Provides that a member whose employer wrongly or incorrectly enrolls a 
member in the Maine Public Employees Retirement System does not lose any retirement 
benefits. The State does not bear responsibility for the employer's mistake; and 
11. Requires the Maine Public Employees Retirement System to report back to the 
Joint Standing Committee on Labor with the results of the implementation of the changes 
required by this legislation by January 10, 2010. The joint standing committee may 
report out legislation in the Second Regu lar Session of the 124th Legislature. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
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Approved: OS/28/09 Mac. 
LD 1292 
LR 769(02) 
An Act To Provide More Transparency and Protection for Public Employees in the Laws Governing 
the Maine Public Employees Retirement System 
Fiscal Note for Bill as Amended by Committee Amendment ,jlr. 
Committee: Labor 
. 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Funds 
Fiscal Detail and Notes 
Ad~itional costs to the Maine Public Employees Retirement System associated with implementing the requirements of 
this legislation can be absorbed within existing budgeted resources. 
LR0769(02) - Fiscal Note - Page I of I