An Act To Implement the Combination Defined Benefit and Defined Contribution Retirement Plan Described in a Report Submitted to the Joint Standing Committee on Appropriations and Financial Affairs in March 2012
Maine Legislature, Session 127, LD 1032
Committee Amendment CA_A_H534 (House)

COMMITTEE AMENDMENT "A,, to H.P. 715, L.D. 1032, Bill, "An Act To 
Implement the Combination Defined Benefit and Defined Contribution Retirement Plan 
Described in a Report Submitted to the Joint Standing Committee on Appropriations and 
Financial Affairs in March 2012" 
Amend the bill in section 1 in § 17 651 in the first paragraph in the first line (page 1, 
line 5 in L.D.) by striking out the following: "2017" and inserting the following: '2019' 
Amend the bill in section 2 in § 18851 in the first paragraph in the first line (page 1, 
line 32 in L.D.) by striking out the following: "2017" and inserting the following: '2019' 
Amend the bill in section 3 in the 2nd paragraph in the first line (page 2, line 1 7 in 
L.D.) by striking out the following: "2015" and inserting the following: '2017' 
Amend the bill in section 3 in the 2nd paragraph in the 5th line (page 2, line 21 in 
L.D.) by striking out the following: "127th" and inserting the following: '128th' 
SUMMARY 
This is the minority report of the committee. It changes the hire date on or after 
which state employees andteachers are covered from July 1, 2017 to July 1, 2019. It also 
changes the date by which the Maine Public Employees Retirement System must submit 
proposed legislation to the joint standing committee of the Legislature having jurisdiction 
over state and teacher retirement matters from December 2, 2015 to December 2, 2017. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 02/26/16 ?,;P'ac:.. 
LD 1032 
LR 434(02) 
An Act To Implement the Combination Defined Benefit and Define
1d Contribution Retirement 
Plan Described in a Report Submitted to the Joint Standing Committee on Appropriations and 
Fiscal Detail and Notes 
Financial Affairs in March 2012 
'\ 
Fiscal Note for Bill as Amended by Committee Amendment ,4
{H-534- J 
Committee: Appropriations and Financial Affairs 
Fiscal_Note Required: Yes 
Fiscal Note 
Future biennium cost increase - All funds 
Future biennium cost increase - Local School Administrative Units 
Requiring all state employees and teachers hired on or after July 1, 2019 to participate in the federal social 
security system and become members of the Adjustable Pension Plan Program, a defined contribution/defined 
):,enefit plan, as a condition of employment will result in increased costs to the State and to School Administrative 
Units (SAU's) beginning in fiscal year 2019-20. As updated cost projections are not available, this fiscal note 
f 
utilizes cost estimates included in the March 2012 New Pension Plan Design and Implementation Plan report of """"""' 
the working group established by the 125th Legislature pursuant to Public Law 2011, c. 380, Part U and presents 
them as a proxy for costs during the first four years of implementation of the new plan. These estimates were 
calculated based on the 2011 Actuarial Valuation for the State Employee and Teacher Retirement Program, 
' 
adjusted for the plan changes made pursuant to PL 2011, c. 3 80, and projects the total employer cost of closing 
the State/Teacher Plan to new entrants and enrolling new state employees and educ.ators hired on or after July 1, 
2015. The table below presents the estimated incremental costs (savings) of closing the State/Teacher Retirement 
Plan to new entrants and implementing the new plan, including participation in Social Security. 
Implementation of Adjustable Pension Plan Program (in millions$) 
(Year I) · 
(Year2) 
(Year 3) 
(Year4) 
Closing State/Teacher Plan - Costs (Savings) 
$ 
$ 
$ 
$ 
New Plan (Social Security/DB/DC) - Costs (Savings) 
$ 
IO 
$ 
$ 
$ 
Total Costs (Savings) 
$ 
$ 
$ 
$ 
Allocation of Employer Costs (Savings) 
State: 
Nonna! Cost - State Employees 
$ 
$ 
(3) $ 
(5) $ 
(6) 
Unfunded Actuarial Liability (UAL) - State Employees 
$ 
$ 
$ 
$ 
New Plan (Social Security/DB/DC) - State Employees 
$ 
$ 
$ 
$ 
Unfunded Actuarial Liability (UAL) - Teachers 
$ 
$ 
$ 
$ 
-·· 
Total Costs (Savings) - State 
$ 
$ 
$ 
$ 
LR0434(02) - Fiscal Note - Page I of2 
C,A LH-53Y-) 
(Year 1) 
(Year 2) 
(Year 3) 
(Year 4) 
School Administrative Units (SAU's) 
Normal Cost - Teachers 
$ 
$ 
(4) $ 
(7) $ 
(11) 
New Plan (Social Security/DB/DC) - Teachers 
$ 
$ 
$ 
$ 
Total Costs (Savings) - SAU's 
$ 
$ 
$ 
$ 
State/Local Contribution to K-12 Public Education 
State Share @ 55% 
$ 
$ 
$ 
$ 
Local Share @ 45% 
$ 
$ 
$ 
$ 
Total Costs (Savings) 
$ 
$ 
$ 
$ 
Summary: 
Total Costs (Savings) - State 
$ 
$ 
$ 
$ 
Total Costs (Savings) - SAU's 
$ 
$ 
$ 
$ 
Total Costs (Savings) 
$ 
$ 
$ 
$ 
Note: Totals may differ due to rounding variances. 
LR0434(02) - Fiscal Note - Page 2 of2