An Act To Preserve the State's Public Pension Fund
Maine Legislature, Session 125, LD 0336
Committee: Appropriations and Financial Affairs
Sponsors: CEBRA
Amends: 5 MRSA §17701-C, 5 MRSA §17806

Legislative Document 
No. 336 
H.P. 269 
House of Representatives, February 7, 2011 
An Act To Preserve the State's Public Pension Fund 
(EMERGENCY) 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative CEBRA of Naples. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the Maine Public Employees Retirement System has been significantly 
underfunded in past years and has experienced significantly lower earnings on 
investments in recent years due to economic downturns; and 
Whereas, the system is in immediate need of additional funding in order to maintain 
stability and ensure that it is able to meet the State’s commitment to providing retirement 
benefits anticipated by state employees and teachers; 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 §17701-C is enacted to read: 
§17701-C.  Additional member contribution 
For state fiscal years beginning July 1, 2011 to July 1, 2016, all members shall 
contribute to the State Employee and Teacher Retirement Program or have pick-up 
contributions made at a rate of 1% of earnable compensation in addition to contributions 
required under sections 17701, 17701-A and 17701-B. 
Sec. 2.  5 MRSA §17806, sub-§1, ¶D is enacted to read: 
D.  Notwithstanding the other provisions of this section, cost-of-living adjustments 
from September 2012 to August 2018 are limited as follows. 
(1)  For persons with an annual pension of $25,000 or less, cost-of-living 
adjustments are not limited. 
(2)  For persons with an annual pension greater than $25,000 but not greater than 
$45,000, the cost-of-living adjustment is reduced by 50%. 
(3)  Persons with an annual pension greater than $45,000 receive no cost-of-
living adjustment. 
Sec. 3.  Review.  During the First Regular Session of the 128th Legislature, the 
joint standing committee of the Legislature having jurisdiction over Maine public 
employees retirement system matters shall review the changes made in this Act to 
contribution levels and cost-of-living adjustments for retirement benefits and make 
recommendations whether those changes should be continued. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill makes changes to the State's public pension laws to improve the financial 
condition of the Maine Public Employees Retirement System.  For the next 6 years, the 
bill increases the amount of contributions to the Maine Public Employees Retirement 
System made by state employees and teachers by 1% of earnable compensation.  The bill 
also reduces for 6 years the cost-of-living adjustments for retirement benefits by 50% for 
persons with annual pensions greater than $25,000 but not greater than $45,000 and 
suspends for 6 years cost-of-living adjustments for persons with annual pensions greater 
than $45,000.  Persons with pensions of $25,000 or less continue to receive cost-of-living 
adjustments.  The bill provides for a review of these changes during the 128th 
Legislature.