An Act Regarding Calculation of Benefits under Special Plans under the Maine Public Employees Retirement System
Maine Legislature, Session 125, LD 1231
Committee: Appropriations and Financial Affairs
Sponsors: DAVIS, BLACK, BURNS, CRAFTS, FREDETTE, KESCHL, SARTY, TIMBERLAKE
Amends: 5 MRSA §17001, 5 MRSA §17852

Legislative Document 
No. 1231 
H.P. 922 
House of Representatives, March 22, 2011 
An Act Regarding Calculation of Benefits under Special Plans under 
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 DAVIS of Sangerville. 
Cosponsored by Representatives: BLACK of Wilton, BURNS of Whiting, CRAFTS of Lisbon, 
FREDETTE of Newport, KESCHL of Belgrade, SARTY of Denmark, TIMBERLAKE of 
Turner. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §17001, sub-§13, ¶C, as repealed and replaced by PL 1999, c. 
489, §2, is amended to read: 
C.  The following provisions govern limitations on earnable compensation. 
(1)  Notwithstanding the other provisions of this subsection, for the purposes of 
determining average final compensation, "earnable compensation" does not 
include any increase that exceeds the prior year's earnable compensation by more 
than 5% or that results in a total increase of more than 10% during the 3-year 
period used in the calculation of average final compensation, unless the cost of 
the additional actuarial liability arising from the excess increase is paid by the 
employer as provided in section 17154.  Notwithstanding subparagraph (2), the 
other provisions of this subsection and subsection 17, for a person whose service 
retirement benefit is computed under subsections 4 to 16, beginning October 1, 
2011, for the purposes of determining average final compensation, "earnable 
compensation" does not include any increase that exceeds the prior year's 
earnable compensation by more than 2% or that results in a total increase of more 
than 6% during the 3-year period used in the calculation of average final 
compensation, unless the cost of the additional actuarial liability arising from the 
excess increase is paid by the employer as provided in section 17154.  Any 
payment made under paragraph B, subparagraph (1) must be included in 
determining the amount of increase in the year in which the payment is made.  
This subparagraph does not apply to excess increases resulting from 
compensation paid prior to July 1, 1993, from compensation paid in accordance 
with an individual employment contract executed prior to July 1, 1993 or a 
collective bargaining agreement executed or ratified in its final form by final vote 
of one party to the agreement prior to July 1, 1993 for the initial term of that 
contract or agreement or from other action by the governing body of a school 
administrative unit in effect on July 1, 1993.  This subparagraph does not apply to 
increases in compensation of state employees during fiscal year 1993-94 and 
fiscal year 1994-95.  In all circumstances in which this subparagraph does not 
apply to earnable compensation of state employees and teachers, the provisions 
of this subparagraph that were in effect prior to June 30, 1993 apply.  This 
subparagraph does not apply to earnable compensation of employees of 
participating local districts. 
(2)  Effective October 1, 1999, the 5% limitation and the 10% limitation on 
increases in earnable compensation set out in subparagraph (1) may not be 
changed to a lower percentage for members who, on October 1, 1999 or 
thereafter, meet the creditable service requirement for eligibility to receive a 
service retirement benefit, at the applicable age if so required, under section 
17851 or section 17851-A, subsection 2. 
Sec. 2.  5 MRSA §17852, sub-§18 is enacted to read: 
18.  Maximum benefit.  Notwithstanding the other provisions of this section, a 
benefit calculated under subsections 4 to 16 may not exceed 60% of average final 
compensation. 
SUMMARY 
This bill limits retirement benefits to state employees under special plans to 60% of 
average final compensation and provides that the earnable compensation that is counted 
to calculate average final compensation for those employees may not include any annual 
increase larger than 2%.