Maine Legislature, Session 125, LD 0513
Committee: Appropriations and Financial Affairs
Sponsors: SAVIELLO

Legislative Document 
No. 513 
S.P. 146 
In Senate, February 15, 2011 
RESOLUTION, Proposing an Amendment to the Constitution of 
Maine To More Equitably Fund the Liabilities of the Maine Public 
Employees Retirement System 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
JOSEPH G. CARLETON, JR. 
Secretary of the Senate 
Presented by Senator SAVIELLO of Franklin. 
Constitutional amendment. Resolved:  Two thirds of each branch of the 
Legislature concurring, that the following amendment to the Constitution of Maine be 
proposed: 
Constitution, Art. IX, §18-A is amended to read: 
Section 18-A.  Funding of retirement benefits under the Maine Public 
Employees Retirement System.  Beginning with the fiscal year starting July 1, 1997, 
the normal cost of all retirement and ancillary benefits provided to participants under the 
Maine State Public Employees Retirement System must be funded annually on an 
actuarially sound basis.  Unfunded liabilities may not be created except those resulting 
from experience losses.  Unfunded liability resulting from experience losses must be 
retired over a period not exceeding 10 years in accordance with the time periods set forth 
in section 18-B. 
Constitution, Art. IX, §18-B is amended to read: 
Section 18-B.  Payment of unfunded liabilities of the Maine Public 
Employees Retirement System.  Each fiscal year beginning with the fiscal year 
starting July 1, 1997 2012, the Legislature shall appropriate funds that will retire in 31 
years or less over an open or rolling period of no more than 25 years the unfunded 
liabilities of the Maine State Public Employees Retirement System that are attributable to 
state employees and teachers.  The unfunded liabilities referred to in this section are those 
determined by the Maine State Public Employees Retirement System's actuaries and 
certified by the Board of Trustees of the Maine State Public Employees Retirement 
System as of June 30, 1996 the end of each fiscal year of the Maine Public Employees 
Retirement System. 
; and be it further 
Constitutional referendum procedure; form of question; effective date. 
Resolved:  That the municipal officers of this State shall notify the inhabitants of their 
respective cities, towns and plantations to meet, in the manner prescribed by law for 
holding a statewide election, at a statewide election held in the month of November 
following the passage of this resolution, to vote upon the ratification of the amendment 
proposed in this resolution by voting upon the following question: 
"Do you favor amending the Constitution of Maine to spread out over a 
longer period of time the costs associated with Maine Public Employees 
Retirement System benefits, and thereby reduce the funds necessary to 
provide such retirement benefits during the period from 2012 to 2028?" 
The legal voters of each city, town and plantation shall vote by ballot on this question 
and designate their choice by a cross or check mark placed within the corresponding 
square below the word "Yes" or "No."  The ballots must be received, sorted, counted and 
declared in open ward, town and plantation meetings and returns made to the Secretary of 
State in the same manner as votes for members of the Legislature.  The Governor shall 
review the returns.  If it appears that a majority of the legal votes are cast in favor of the 
amendment, the Governor shall proclaim that fact without delay and the amendment 
becomes part of the Constitution of Maine on the date of the proclamation; and be it 
further 
Secretary of State shall prepare ballots. Resolved: That the Secretary of State 
shall prepare and furnish to each city, town and plantation all ballots, returns and copies 
of this resolution necessary to carry out the purposes of this referendum. 
SUMMARY 
This resolution proposes to amend the Constitution of Maine to remove the 
requirement that experience losses incurred by the Maine Public Employees Retirement 
System be retired in only 10 years and to change the required amortization schedule of 
unfunded liabilities from a fixed 31-year schedule to a so-called open or rolling 25-year 
schedule.