An Act To Achieve the Savings Required under Part F of the Biennial Budget and To Change Certain Provisions of the Law for Fiscal Years Ending June 30, 2014 and June 30,2015
Maine Legislature, Session 126, LD 1858
House Amendment HA_C_H834 (House)
Amends: 36 MRSA §5122

HOUSE AMENDMENT "C!-." to H.P. 1349, L.D. 1858, Bill, "An Act To Achieve 
the Savings Required under Part F of the Biennial Budget and To Change Certain 
Provisions of the Law for Fiscal Years Ending June 30, 2014 and June 30,2015" 
Amend the bill by inserting after Part Z the following: 
'PART AA 
Sec. AA-l. 36 MRSA §5122, sub-§2, ~-1, as enacted by PL 2011, c. 657, Pt. 
R, §2 and affected by §3, is amended to read: 
M-l. For tax years beginning on or after January 1,2014, for each individual who is 
a primary recipient of retirement plan benefits under an employee retirement plan or 
an individual retirement account, an amount that is the lesser of the aggregate of 
retirement plan benefits under employee retirement plans or individual retirement 
accounts included in the individual's federal adjusted gross income and the pension 
deduction amount reduced by the total amount of the individual's social security 
benefits and railroad retirement benefits paid by the United States, but not less than 
$0. The social security benefits and railroad retirement benefits reduction does not 
apply to benefits paid under a military retirement plan. 
For purposes of this paragraph, the following terms have the following meanings. 
(1) "Employee retirement plan" means a state, federal or military retirement plan 
or any other retirement benefit plan established and maintained by an employer 
for the benefit of its employees under the Code, Section 401(a), Section 403 or 
Section 457(b), except that distributions made pursuant to a Section 457(b) plan 
are not eligible for the deduction provided by this paragraph if they are made 
prior to age 55 and are not part of a series of substantially equal periodic 
payments made for the life of the primary recipient or the joint lives of the 
primary recipient and that recipient's designated beneficiary. 
(2) 
"Individual retirement account" means an individual retirement account 
under Section 408 of the Code, a Roth IRA under Section 408A of the Code, a 
simplified employee pension under Section 408(k) of the Code or a simple 
retirement account for employees under Section 408(p) ofthe Code. 
HOUSE AMENDMENT 
~o~~ 
HOUSE AMENDMENT"~ to H.P. 1349, L.D. 1858 
(3) "Military retirement plan" means benefits received as a result of service in 
the active or reserve components of the Army, Navy, Air Force, Marines or Coast 
Guard. 
(4) "Pension deduction amount" means $10,000 for tax years beginning efl-6f 
after JaRuary 1, in 2014, $15,000 for tax years beginning in 2015 or 2016, 
$20,000 for tax years beginning in 2017 or 2018, $25,000 for tax years beginning 
in 2019 or 2020 and $30,000 for tax years beginning on or after January 1, 2021. 
(5) 
"Primary recipient" means the individual upon whose earnings or 
contributions the retirement plan benefits are based or the surviving spouse of 
that individual. 
(6) "Retirement plan benefits" means employee retirement plan benefits, except 
pick-up contributions for which a subtraction is allowed under paragraph E, 
reported as pension or annuity income for federal income tax purposes and 
individual retirement account benefits reported as individual retirement account 
distributions for federal income tax purposes. "Retirement plan benefits" does 
not include distributions that are subject to the tax imposed by the Code, Section 
net); 
Sec. AA-2. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Information Services 0155 
Initiative: Reduces funding for the Office of Information Technology. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2013-14 
$0 
$0 
2014-15 
($3,692,650) 
($3,692,650) 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment increases the maximum Maine individual income tax pension 
deduction amount from $10,000 to $15,000 beginning in 2015, $20,000 beginning in 
2017, $25,000 beginning in 2019 and $30,000 beginning in 2021. 
It includes a 
HOUSE AMENDMENT 
" 
",()i~ 
HOUSE AMENDMENT '6' to H.P. 1349, L.D. 1858 
deappropriation from the Department of Administrative and Financial Services, Office of 
Information Technology to pay for the increase in the pension deduction for the current 
biennium. 
FISCAL NOTE REQUIRED 
~~ 
SPONSORED BY: _ 
(Representative LOCKMAN) 
TOWN: Amherst 
HOUSE AMENDMENT 
Approved: 04/14/14 ;tvae 
LD 1858 
LR 2710(07) 
An Act To Achieve the Savings Required under Part F of the Biennial Budget and To Change Certain 
Provisions of the Law for Fiscal Years Ending June 30,2014 anel June 30,2015 
Fiscal Note for House Amendment '~to Original Bill 
Sponsor: Rep. Lockman of Amherst 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2013-14 
FY 2014-15 
FY 2015-16 
FY 2016-17 
Net Cost (Savings) 
General Fund 
$0 
$0 
$8,737,150 
$13,886,150 
Appropriations/Allocations 
General Fund 
$0 
($3,692,650) 
($3,692,650) 
($3,692,650, 
Revenue 
General Fund 
$0 
($3,692,650) 
($12,429,800) 
($17,578,800) 
Other Special Revenue Funds 
$0 
($194,350) 
($654,200) 
($925,200) 
Fiscal Detail and Notes 
This amendment has no net General Fund impact in fiscal year 2014-15. The budgeted revenue loss from the changes 
to the maximum Maine individual income tax pension deduction amounts is offset by a General Fund de appropriation 
from the Department of Administrative and Financial Services, Office ofInformation Technology in fiscal year 2014-
15. 
LR271O(07) - Fiscal Note - Page 1 of 1