An Act To Ensure Retirement Benefits for Members of the Maine Public Employees Retirement System
Maine Legislature, Session 125, LD 0542
Committee: Appropriations and Financial Affairs
Sponsors: HAMPER, HASTINGS, BICKFORD, CEBRA, DRISCOLL, FITTS, PRESCOTT, WINSOR
Amends: 3 MRSA §755, 3 MRSA §801, 3 MRSA §802, 3 MRSA §805-A, 4 MRSA §1301, 5 MRSA §17651, 5 MRSA §17652, 5 MRSA §17654, 5 MRSA §17659

Legislative Document 
No. 542 
H.P. 425 
House of Representatives, February 15, 2011 
An Act To Ensure Retirement Benefits for Members of the Maine 
Public Employees Retirement System 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative HAMPER of Oxford. 
Cosponsored by Senator HASTINGS of Oxford and 
Representatives: BICKFORD of Auburn, CEBRA of Naples, DRISCOLL of Westbrook, 
FITTS of Pittsfield, PRESCOTT of Topsham, WINSOR of Norway. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  3 MRSA §755, sub-§1, as amended by PL 2007, c. 491, §17, is further 
amended to read: 
1.  Findings.  The Legislature finds that the State owes a great debt to its retired 
Legislators for their years of faithful and productive service. Part of that debt is repaid by 
the benefits provided to Legislators through the Legislative Retirement Program.  The 
Legislature further finds that continued accrual of benefits under the defined benefit plan 
of the Legislative Retirement Program on or after December 5, 2012 is an unnecessary 
expense and is inconsistent with legislative term limits and the concept of a citizen 
Legislature.  Accrual of benefits under the Legislative Retirement Program after 
December 5, 2012 is appropriate only for Legislators who are already qualified in the 
Legislative Retirement Program under section 851 or the Maine Public Employees 
Retirement System on that date. 
Sec. 2.  3 MRSA §801, sub-§1, as amended by PL 2007, c. 491, §18, is further 
amended to read: 
1.  Membership.  Every Until December 5, 2012, every Legislator serving in the 
Legislature on or after December 3, 1986 is a member of the Legislative Retirement 
Program, except that any Legislator who was a member of the former Maine State 
Retirement System on December 2, 1986 may choose to be a member of the State 
Employee and Teacher Retirement Program instead of becoming a member of the 
Legislative Retirement Program, and any Legislator who is a public school teacher or an 
employee of the Maine Community College System on leave of absence for the purpose 
of serving in the Legislature continues to be a member of the State Employee and 
Teacher Retirement Program and to have contributions deducted from the member's 
legislative earnable compensation as provided by Title 5, section 17701.  A Legislator 
who terminates employment from a position requiring membership in the State Employee 
and Teacher Retirement Program no longer contributes to the State Employee and 
Teacher Retirement Program and, if qualified, is eligible to become a benefit recipient 
under Title 5, section 17804.  Upon such termination, the Legislator becomes a member 
of the Legislative Retirement Program.  Except as provided in section 802, subsection 4, 
paragraph A, creditable service granted under the State Employee and Teacher 
Retirement Program may not be transferred to the Legislative Retirement Program. A 
member ceases to be a member when the member withdraws the member's contributions, 
becomes a beneficiary as a result of the member's own retirement or dies.  On or after 
July 1, 2012, unless they have made a previous election, Legislators enrolled in the 
Legislative Retirement Program or the State Employee and Teacher Retirement Program 
may make a one-time election whether to remain a member.  Once an election is made 
under this subsection, the election is irrevocable with respect to all subsequent 
employment with the same employer.  A Legislator who is not vested under section 705, 
subsection 1 or first-time Legislators serving on or after December 5, 2012 may not be 
members of the Legislative Retirement Program. 
Sec. 3.  3 MRSA §801, sub-§1-A, as amended by PL 2009, c. 474, §4, is further 
amended to read: 
1-A.  Waiver provision.  Any Until December 5, 2012, any Legislator may petition 
the presiding officer for a waiver from the membership provisions of subsection 1 if it 
can be demonstrated that membership in the Legislative Retirement Program will create 
or exacerbate a Legislator's federal income tax liability due to the ownership of another 
retirement plan.  The Office of the Executive Director of the Legislative Council shall 
provide assistance as requested by the Legislator or presiding officer.  The presiding 
officer shall respond to the Legislator's petition within 30 days and shall provide copies 
of the decision to the Executive Director of the Legislative Council and the Executive 
Director of the Maine Public Employees Retirement System.  A granted waiver of 
membership constitutes a one-time irrevocable election with respect to all subsequent 
employment with the same employer when membership in the Legislative Retirement 
Program is not mandatory. 
Sec. 4.  3 MRSA §802, sub-§3, as enacted by PL 1985, c. 507, §1, is amended to 
read: 
3.  Disability retirement. The period following the termination of service before 
December 5, 2012 for which a beneficiary receives disability retirement allowance 
payments under section 853 shall be is allowed as membership service.  The period 
following the termination of service on or after December 5, 2012 for which a beneficiary 
receives disability retirement allowance payments under section 853 is allowed as 
membership service only if the beneficiary is a member of the Legislative Retirement 
Program, as provided in section 801, subsection 1. 
Sec. 5.  3 MRSA §805-A, as amended by PL 2007, c. 491, §22, is further amended 
to read: 
§805-A.  Refund of accumulated contributions 
1.  Conditions for refund.  If Except as provided in section 805-B, if the service of 
any member has terminated, except by death or by retirement under this chapter, the 
member must be paid the amount of the member's accumulated contributions under the 
following conditions: 
A.  The member must have properly applied for a refund of accumulated 
contributions; 
B.  Payment On or after December 5, 2012 concerning a Legislator's membership 
under section 801, subsection 1, for Legislators or former Legislators seeking a 
refund of accumulated contributions, payment must be made after termination of 
service and not less than 22 days nor more than 60 days after receipt of the 
application and receipt of the last payroll upon from which the name of the member 
appears contributions to the Legislative Retirement Program were taken, whichever 
occurs later; 
C.  An application for refund is void if the member filing the application returns to 
membership in any retirement plan administered by the Maine Public Employees 
Retirement System before issuance of the payment; and 
D.  Only accumulated contributions made by the member or picked up by the 
employer may be refunded to that member under this subsection. 
Sec. 6.  4 MRSA §1301, as amended by PL 2009, c. 415, Pt. A, §2, is further 
amended to read: 
§1301.  Membership 
Every judge serving on the court on or after December 1, 1984 must be before July 1, 
2012 is a member of the Judicial Retirement Program as a condition of employment, but 
on or after July 1, 2012, unless the member has made a previous election, may make a 
one-time election whether to remain a member of the Judicial Retirement Program.  On 
or after July 1, 2012, membership in the Judicial Retirement Program for newly 
appointed judges is optional.   A person must make an election at the time of appointment 
whether to be a member of the program.  Once an election is made under this section, the 
election is irrevocable with respect to all subsequent employment with the same 
employer. 
A member shall cease ceases to be a member when he that member withdraws his 
contributions, becomes a beneficiary as a result of his own retirement, elects to withdraw 
from the Judicial Retirement Program or dies. 
The State Court Administrator shall submit to the board a statement showing the 
name, title, compensation, sex, date of birth and length of service of each member and 
any other information as the board may require at such times as the board may require. 
Sec. 7.  5 MRSA §17651, as amended by PL 2007, c. 491, §94, is repealed and the 
following enacted in its place: 
§17651.  Membership 
All employees hired before July 1, 2012 become members of the State Employee and 
Teacher Retirement Program as a condition of their employment, but on or after July 1, 
2012, unless they have made a previous election, employees may make a one-time 
election whether to remain a member of the program.  Once an election is made under 
this subsection, the election is irrevocable with respect to all subsequent employment 
with the same employer. 
Sec. 8.  5 MRSA §17652, sub-§1-A is enacted to read: 
1-A.  Optional membership.  On or after July 1, 2012, membership in the State 
Employee and Teacher Retirement Program is optional.  Notwithstanding section 17659, 
a person must make an election at the time of hire whether to be a member of the 
program.  Once an election is made under this subsection, the election is irrevocable with 
respect to all subsequent employment with the same employer when membership in the 
program is not mandatory. 
Sec. 9.  5 MRSA §17654, sub-§2, as enacted by PL 1985, c. 801, §§5 and 7, is 
amended to read: 
2.  Beneficiary.  Becomes a beneficiary as a result of the member's own retirement; 
or 
Sec. 10.  5 MRSA §17654, sub-§3, as enacted by PL 1985, c. 801, §§5 and 7, is 
amended to read: 
3.  Death. Dies.; or 
Sec. 11.  5 MRSA §17654, sub-§4 is enacted to read: 
4.  Opts out.  Elects to withdraw from the program as provided in section 17651 or 
section 17652, subsection 1-A. 
Sec. 12.  5 MRSA §17659 is enacted to read: 
§17659.  Election to withdraw from the State Employee and Teacher Retirement 
Program 
1.  Exercise option.  The retirement system shall provide an opportunity for each 
member who has not already made a prior election and is a member on July 1, 2012 to 
elect in writing to terminate membership. An election made by a member under this 
subsection is irrevocable.  The retirement system shall accept written elections under this 
subsection from members during the period beginning on January 1, 2012 and ending on 
March 31, 2012.  A member who does not make a written election or who does not file 
the election during the period specified in this subsection continues to be a member of the 
State Employee and Teacher Retirement Program. 
2.  Former members.  If an individual who is a former member on July 1, 2012 is 
later reemployed and by virtue of that reemployment is again eligible for membership, the 
former member shall elect in writing to remain a member or to terminate membership. An 
election made by a former member under this subsection is irrevocable.  The retirement 
system shall accept written elections under this subsection from a former member during 
the period beginning on the date of the commencement of reemployment and ending 90 
days after that date.  A former member who makes and files a written election to remain a 
member retains all rights and is subject to all conditions as a member of the State 
Employee and Teacher Retirement Program.  A former member who does not make a 
written election or who does not file the election during the period specified in this 
subsection continues to be a member of the program. 
3.  Method of election.  The board shall determine the method by which a member or 
former member makes a written election under this section. 
Sec. 13.  Effective date; implementation.  This Act takes effect July 1, 2012, 
except that the Maine Public Employees Retirement System shall review the provisions 
of this Act and report in writing to the joint standing committee of the Legislature having 
jurisdiction over retirement matters no later than December 15, 2011.  The report must 
identify any technical, legal, fiscal or policy issues associated with implementation of this 
Act.  Following review of the report, the committee may report out legislation to address 
those issues. 
SUMMARY 
This bill establishes an option for new employees hired on or after July 1, 2012 to 
become members of the Judicial Retirement Program or the State Employee and Teacher 
Retirement Program.  Current members may make a one-time, irrevocable election to 
remain as members. 
Legislators who are not vested as members in the Legislative Retirement Program 
and first-time Legislators serving on or after December 5, 2012 may not be members of 
the Legislative Retirement Program.  Vested Legislators serving on or after December 5, 
2010 may make a one-time, irrevocable election to remain as members.  
Those who do not elect to become members of the Maine Public Employees 
Retirement System are enrolled in the federal social security program.