An Act To Protect Teacher Retirement Income
Maine Legislature, Session 124, LD 1776
Committee Amendment CA_A_S405 (Senate)
Amends: 5 MRSA §18305-C

COMMITTEE AMENDMENT "4" to S.P. 683, L.D. 1776, Bill, "An Act To 
Protect Teacher Retirement Income" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Protect Retirement Income' 
Amend the bill by insel1ing after the title before the enacting clause the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, there are members of the retirement system who are subject to furloughs 
and who may be planning to retire for fiscal years ending June 30, 2010 and June 30, 
2011; 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,' 
. 
Amend the bill in section I in paragraph A in the 3rd line from the end (page 1, line 
in L.D.) by insel1ing after the following: "June 30, 1993," the following: 'or if a 
member is subject to' days off without pay during the fiscal year beginning July I, 2009 or 
July I, 2010 as a result of actions of a paI1icipating local district and the member elects to 
make the payments as set fOl1h in section 18305-C,' 
Amend the bill by insel1ing after section 1 the following: 
'Sec. 2. 5 MRSA §18305-C is enacted to read: 
§18305-C. Back contributions for certain days off without pay 
1. Election. If the retirement system determines at the time a member retires that the 
member's benefit would be increased as a result of the inclusion of compensation that 
would have been paid for days off without pay in fiscal year 2009-10 or 20 I 0-11, or a 
Pagel - 124LR2S39(02)-1 
COMMITTEE AMENDMENT 
rh~ 
~" 
I 
II 
COMMITTEE AMENDMENT" A" to S.P. 683, L.D. 1776 
combination thereof, as provided in section 17001, subsection 4, paragraph A, the 
retirement system shall advise the member of that result and shall allow the member to 
elect to have that compensation included in the calculation of the member's benefit and to 
make payments as set forth in subsection 2. 
2. Payment. 
The amount that a member who makes the election permitted in 
subsection I 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 pay during fiscal year 2009-10 or 20 I 0-11, or a combination thereof, as 
provided in section 1700 I, subsection 4, paragraph A, plus interest at the same rate as that 
required for repayment of withdrawn contributions pursuant to section 18304. If the 
member elects to make the payment, the retirement system shall withhold the required 
amount from the member's first retirement benefit check. 
3. Benefit calculation. If a member fails to make the election within 31 days of the 
notification provided under subsection I, the retirement system shall calculate the 
member's retirement benefit without inclusion of compensation that would have been 
paid for days off without pay during fiscal year 2009-10 or 20 10-11, or a com bination 
thereof, as provided in section 1700 I, subsection 4, paragraph A. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved.' 
SUMMARY 
This amendment allows pm1icipatilig local district employees covered by the Maine 
Public Employees Retirement System to make payments equal to retirement contributions 
that would have been made if the employees had been paid on days off without pay as a 
result of budget decisions made by a participating local district for the fiscal years ending 
June 30, 20 10 and June 30, 20 II. This amendment provides to those ~mployees the same 
benefits available to other system members. 
FISCAL :\OTE REQUiRED 
(See attached) 
COMMITTEE AMENDMENT 
) 
"') 
/ 
) 
''---j 
'"'~, 
Approved: 03/08/1 0 
~ac:.. 
LD 1776 
LR 2539(02) 
An Act To Protect Teacher Retirement Income 
Fiscal Note for Bill as Amended by Committee Amendment ,A" 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
Potential future biennium cost increase -General Fund 
Fiscal Detail and Notes 
Allowing teachers and pal1icipating local district employees covered by the Maine Public Employees Retirement 
System to purchase time attributable to days off without pay during fiscal year 2009-10 and fiscal year 20 to-II as a 
.. ' 
result of actions taken by a school administrative unit or participating local district will not increase the unfunded 
actuarial liability of the State Enlployee and Teacher program or result in an unfunded actuarial liability to the 
Pal1icipating Local District Program. The potential impact on the employers' future contribution rate can not be 
determined at this time and will be based on the future experience of each plan. Because the State pays 100% of the 
employer's share of teacher retirement costs, any increase in the employers' contribution rate for teachers will be borne 
fully by the General Fund. 
LR2539(02) - Fiscal Note - Page 1 of 1