An Act To Implement the Recommendations Contained in the State Government Evaluation Act Review of the Maine Public Employees Retirement System
Maine Legislature, Session 126, LD 1806
Committee: Appropriations and Financial Affairs
Amends: 5 MRSA §17152, 5 MRSA §18312, 5 MRSA §18453

Legislative Document 
No. 1806 
H.P. 1297 
House of Representatives, March 11, 2014 
An Act To Implement the Recommendations Contained in the State 
Government Evaluation Act Review of the Maine Public Employees 
Retirement System 
Reported by Representative ROTUNDO of Lewiston for the Joint Standing Committee on 
Appropriations and Financial Affairs pursuant to the Maine Revised Statutes, Title 3, section 
955, subsection 4. 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed pursuant to Joint Rule 218. 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-1.  5 MRSA §17152, first ¶, as amended by PL 1995, c. 368, Pt. G, §6, is 
further amended to read: 
The board may combine the assets of the State Employee and Teacher Retirement 
Program with the assets of other programs of the retirement system for investment 
purposes.  The assets of the State Employee and Teacher Retirement Program may not be 
combined with the assets of another program for benefit purposes or for administrative 
expenses.  All of the assets of the retirement system must be credited according to the 
purpose for which they are held among the several funds created by this section, namely: 
PART B 
Sec. B-1.  5 MRSA §18312 is enacted to read: 
§18312.  Emergency medical services persons 
1.  Contribution rate.  Except as provided in subsections 2 and 3, an emergency 
medical services person as defined in Title 32, section 83, subsection 12, including but 
not limited to a first responder, emergency medical technician, advanced emergency 
medical technician and paramedic, employed by a participating local district that provides 
a special retirement benefit under section 18453, subsection 4 or 5 shall contribute to the 
Participating Local District Retirement Program or must have pick-up contributions made 
by the employer at a rate of 8% of earnable compensation as long as the person is 
employed as an emergency medical services person. 
2.  Exception.  A participating local district may elect to reduce the rate of 
contribution set out in subsection 1 to 6.5% of earnable compensation for all emergency 
medical services persons who continue employment after attaining eligibility for 
retirement during the remainder of their employment as emergency medical services 
persons. 
3.  Member contributions to Participating Local District Consolidated 
Retirement Plan.  The board may establish by rule the rate at which emergency medical 
services persons who participate in the consolidated plan described in chapter 427 
contribute to that plan.  Rules adopted pursuant to this subsection are routine technical 
rules pursuant to chapter 375, subchapter 2-A. 
Sec. B-2.  5 MRSA §18453, sub-§2, as amended by PL 2001, c. 368, §1, is 
further amended to read: 
2.  Employee Special Plan #2. A retirement benefit to police officers, firefighters, 
sheriffs, full-time deputy sheriffs, county corrections employees, emergency medical 
services persons as defined in Title 32, section 83, subsection 12, including but not 
limited to first responders, emergency medical technicians, advanced emergency medical 
technicians and paramedics, or any other participating local district employees who have 
completed 20 to 25 years of creditable service, the number of years to be selected by the 
participating local district.  For the purposes of this subsection, "county corrections 
employees" means employees of the county who are employed at a county jail and whose 
duties include contact with prisoners or juvenile detainees.  The benefits must be 
computed as follows:  
A.  Except as provided in paragraph B, 1/2 of the member's average final 
compensation; or 
B.  If the member's benefit would be greater, the part of the service retirement benefit 
based upon membership service before July 1, 1977, is determined, on a pro rata 
basis, on the member's current annual salary on the date of retirement or current final 
compensation, whichever is greater, and the part of the service retirement benefit 
based upon membership service after June 30, 1977, is determined in accordance 
with paragraph A. 
Sec. B-3.  5 MRSA §18453, sub-§3, as enacted by PL 1985, c. 801, §§5 and 7, is 
amended to read: 
3.  Firefighter and Emergency Medical Services Person Special Plan #1. A 
retirement benefit equal to 1/2 of his the member's average final compensation to a 
firefighter, including the chief of a fire department, and an emergency medical services 
person as defined in Title 32, section 83, subsection 12, including but not limited to a first 
responder, emergency medical technician, advanced emergency medical technician and 
paramedic, who has completed at least 25 years of creditable service in that capacity and 
who retires upon or after reaching age 55. 
Sec. B-4.  5 MRSA §18453, sub-§4, as amended by PL 1993, c. 387, Pt. A, §22, 
is further amended to read: 
4.  Firefighter and Emergency Medical Services Person Special Plan #2. A 
retirement benefit to a firefighter, including the chief of a fire department, and an 
emergency medical services person as defined in Title 32, section 83, subsection 12, 
including but not limited to a first responder, emergency medical technician, advanced 
emergency medical technician and paramedic, who has completed at least 25 years of 
creditable service in that capacity and who retires upon or after reaching age 55. The 
benefits shall be computed as follows:  
A.  Except as provided in paragraph B, 2/3 of his the member's average final 
compensation; or 
B.  If the member's benefit would be greater, the part of the service retirement benefit 
based upon membership service before July 1, 1977, is determined, on a pro rata 
basis, on the member's current final compensation and the part of the service 
retirement benefit based upon membership service after June 30, 1977, is determined 
in accordance with paragraph A. 
Sec. B-5.  5 MRSA §18453, sub-§5, as amended by PL 1993, c. 387, Pt. A, §23, 
is further amended to read: 
5.  Firefighter and Emergency Medical Services Person Special Plan #3. A 
retirement benefit to a firefighter, including the chief of a fire department, and an 
emergency medical services person as defined in Title 32, section 83, subsection 12, 
including but not limited to a first responder, emergency medical technician, advanced 
emergency medical technician and paramedic, who has completed 20 to 25 years of 
creditable service in that capacity, the number of years to be selected by the participating 
local district and who retires at any age. The benefits shall be computed as follows:  
A.  Except as provided under paragraph B, 2/3 of his the member's average final 
compensation; or 
B.  If the member's benefit would be greater, the part of the service retirement benefit 
based upon membership service before July 1, 1977, is determined, on a pro rata 
basis, on the member's current final compensation and the part of the service 
retirement benefit based upon membership service after June 30, 1977, is determined 
in accordance with paragraph A. 
PART C 
Sec. C-1.  Establishment of a task force.  By September 1, 2014 the Executive 
Director of the Maine Public Employees Retirement System shall establish a task force, 
referred to in this section as "the task force," to further the system's work on corporate 
governance by completing an environmental, social and governance policy that includes, 
without limitation, securities and manager selections; monitoring and proxy voting; 
company engagement; and environmental, social and governance policies within 
investment policy for recommendation to, and consideration for approval by, the Board of 
Trustees of the Maine Public Employees Retirement System.  The task force shall submit 
the recommended policy to the Board of Trustees of the Maine Public Employees 
Retirement System by December 1, 2014. 
1.  Task force membership.  The task force must be composed of experts in the field 
of environmental, social and governance policy who do not have an actual, potential or 
apparent self-interest in the policy outcome.  Members of the task force must collectively 
possess experience with creating investment policies that support the investment goals of 
public pension funds; an understanding of environmental, social and governance policy 
issues as they affect different components of the investment process, including, but not 
limited to, securities and manager selections, monitoring and proxy voting and company 
engagement; practical knowledge or experience implementing environmental, social and 
governance policies within investment policy; and an understanding of the fiduciary 
duties of public pension trustees.  The task force must be composed of 7 members, with a 
majority of members residing in the State, and must include: 
A.  The Executive Director of the Maine Public Employees Retirement System, who 
serves as chair of the task force; 
B.  The chief investment officer of the Maine Public Employees Retirement System; 
C.  A member from the academic community with expertise in environmental, social 
and governance policies; 
D.  A member with a background in public pension, foundation or endowment 
administration and experience in implementing environmental, social and governance 
policies; 
E. A member from a national organization representing institutional investors and 
pension funds; and  
F.  Two members chosen by the members of the task force named under paragraphs 
A to E. 
2.  Stakeholder involvement.  The task force shall actively solicit stakeholder 
advisors to provide information relevant to environmental, social and governance policy 
issues and stakeholder interests and other technical information as required. 
3.  Staff assistance.  The Maine Public Employees Retirement System within 
existing resources shall provide necessary staffing services to the task force. 
4.  Report.  By January 15, 2015, the Executive Director of the Maine Public 
Employees Retirement System shall submit to the joint standing committee of the 
Legislature having jurisdiction over public employee retirement matters a report on the 
task force's recommendations to, and any resulting actions taken by, the Board of 
Trustees of the Maine Public Employees Retirement System. 
SUMMARY 
This Act implements the recommendations contained in the State Government 
Evaluation Act review of the Maine Public Employees Retirement System. 
Part A permits the Board of Trustees of the Maine Public Employees Retirement 
System to combine the assets of the State Employee and Teacher Retirement Program 
with the assets of other programs for investment purposes, but specifies that the assets of 
the State Employee and Teacher Retirement Program may be used only for the benefit of 
the employees and beneficiaries of that program and may not be used to satisfy the 
liabilities of any other program within the Maine Public Employees Retirement System. 
Part B adds emergency medical services persons to the category of participating local 
district employees for which a special retirement plan is available. 
Part C requires the Executive Director of the Maine Public Employees Retirement 
System to establish a task force to make recommendations to the Board of Trustees of the 
Maine Public Employees Retirement System on an environmental, social and governance 
policy and to report by January 15, 2015 to the joint standing committee of the 
Legislature having jurisdiction over public employee retirement matters on the 
recommendations made and the board's resulting action.