An Act To Clarify Health Insurance Benefits for Disabled Participants in the Maine Public Employees Retirement System
Maine Legislature, Session 125, LD 1651
Committee: Appropriations and Financial Affairs
Sponsors: KATZ, HASTINGS, HILL
Amends: 5 MRSA §285

Legislative Document 
No. 1651 
S.P. 550 
In Senate, December 21, 2011 
An Act To Clarify Health Insurance Benefits for Disabled 
Participants in the Maine Public Employees Retirement System 
(EMERGENCY) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Secretary of the Senate on December 19, 2011.  Referred to the Committee 
on Appropriations and Financial Affairs pursuant to Joint Rule 308.2 and ordered printed 
pursuant to Joint Rule 218. 
JOSEPH G. CARLETON, JR. 
Secretary of the Senate 
Presented by Senator KATZ of Kennebec. 
Cosponsored by Senators: HASTINGS of Oxford, HILL of York. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, changes made during the First Regular Session of the 125th Legislature to 
cost-sharing provisions for the health insurance plan covering retired state employees 
require individuals who retire after January 1, 2012 and before normal retirement age to 
pay 100% of the group health plan premium; and 
Whereas, these changes have created unanticipated consequences affecting 
individuals receiving disability retirement benefits who are automatically transferred to 
regular retirement benefits when those regular retirement benefits equal or exceed the 
disability retirement benefits; and 
Whereas, individuals who are transferred from disability status to regular retirement 
status prior to normal retirement age may be required to pay the full cost of the health 
insurance plan; and 
Whereas, such costs would be a significant burden for disabled retirees; and 
Whereas, this situation must be remedied immediately; 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, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §285, sub-§7, ¶J, as enacted by PL 2011, c. 380, Pt. V, §1 and 
affected by §7, is amended to read: 
J.  Those state employees that retire after January 1, 2012, or those state employees 
employed as teachers in the unorganized territory or the Maine Center for the Deaf 
and Hard of Hearing and the Governor Baxter School for the Deaf that retire after 
July 1, 2012, under the provisions of section 17851, subsections 1-B, 1-C, 2-B, 2-C 
and 3 shall contribute 100% of the individual premium until such time as the retiree 
reaches normal retirement age.  This paragraph does not apply to an individual whose 
disability retirement benefit is converted to a service retirement benefit pursuant to 
section 17929, subsection 2 prior to the individual's reaching normal retirement age. 
Sec. 2.  Retroactivity.  This Act is retroactive to January 1, 2012. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill corrects unanticipated consequences of changes made during the First 
Regular Session of the 125th Legislature regarding payment for state retiree health 
insurance.  This bill clarifies that disabled retirees who are automatically converted to a 
regular retirement benefit before normal retirement age are not required to pay 100% of 
the individual premium for health insurance coverage.