An Act Concerning Cost-of-living Adjustments for Certain Retirees
Maine Legislature, Session 127, LD 0212
Committee: Appropriations and Financial Affairs
Sponsors: DAVIS, BURNS, KATZ, SAVIELLO, CRAFTS, HIGGINS, MARTIN, PICCHIOTTI, STEARNS
Amends: 3 MRSA §858, 4 MRSA §1358, 5 MRSA §17806-A

Legislative Document 
No. 212 
S.P. 81 
In Senate, February 3, 2015 
An Act Concerning Cost-of-living Adjustments for Certain Retirees 
(EMERGENCY) 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator DAVIS of Piscataquis. 
Cosponsored by Senators: BURNS of Washington, KATZ of Kennebec, SAVIELLO of 
Franklin, Representatives: CRAFTS of Lisbon, HIGGINS of Dover-Foxcroft, MARTIN of 
Sinclair, PICCHIOTTI of Fairfield, STEARNS of Guilford. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, cost-of-living adjustments are applied to the applicable portion of an 
eligible retiree's benefit amount beginning in September of each year; and 
Whereas, this legislation may affect the percentage increase to be applied to the 
applicable portion of an eligible retiree's benefit amount beginning in September 2015; 
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.  3 MRSA §858, as amended by PL 2007, c. 491, §31, is further amended to 
read: 
§858.  Cost-of-living and other adjustments 
Retirement allowances under this chapter must be adjusted on the same basis as 
provided for members of the State Employee and Teacher Retirement Program by Title 5, 
section sections 17806 and 17806-A. 
Sec. 2.  4 MRSA §1358, sub-§1, as repealed and replaced by PL 2011, c. 380, Pt. 
T, §9, is amended to read: 
1.  Cost-of-living adjustments.  Except as provided in subsection 2, paragraph A, 
retirement allowances under this chapter must be adjusted on the same basis as provided 
for members of the State Employee and Teacher Retirement Program by Title 5, section 
sections 17806 and 17806-A. 
Sec. 3.  5 MRSA §17806-A is enacted to read: 
§17806-A.  Cost-of-living adjustment to retirement benefits for retirees who are 
surviving members 
Notwithstanding section 17806, cost-of-living adjustments to the retirement benefits 
being paid to retired state employees and teachers who are surviving members is 
governed by this section.  As used in this section, "surviving member" means a retired 
member whose spouse received social security benefits and who is deceased. 
1.  Determination of adjustment.  The cost-of-living adjustment is determined as 
follows. 
A.  Except as provided in paragraph B, whenever there is a percentage increase in the 
Consumer Price Index from July 1st to June 30th, the board shall automatically make 
an equal percentage increase in retirement benefits, beginning in September, up to a 
maximum annual increase of 4%.  The increase applies to that portion of the 
retirement benefit up to $20,000, which amount must be indexed in subsequent years 
by the same percentage adjustments granted under this paragraph. 
B.  If there is a percentage decrease in the Consumer Price Index from July 1st to 
June 30th, the board shall set the percentage change at 0% for that September.  The 
adjustment for the following year must be set based on the actuarially compounded 
Consumer Price Index for both years in a cost-neutral manner.  If the Consumer Price 
Index in the subsequent year or years is not sufficient to allow for the adjustment to 
be cost-neutral for the 2 years, then the adjustment needed for cost-neutrality must 
continue to be applied to following years until such time as the cost-neutrality 
requirement is met. 
C.  Whenever the annual percentage increase in the Consumer Price Index from July 
1st to June 30th exceeds 4%, the board shall make whatever adjustments in the 
retirement benefits are necessary to reflect an annual increase of 4% and shall submit 
a supplemental budget request to the Governor for the additional funds that would be 
required to make adjustments in the retirement benefits to reflect the actual increase 
in the Consumer Price Index.  The request must include a report stating the cost of the 
4% increase, the actual percentage increase in the Consumer Price Index and the 
percentage adjustments granted during the previous 5 years.  The board shall make an 
additional adjustment in the retirement benefits in the month following the 
appropriation only in that amount. 
D.  Notwithstanding any other provision of this section, the amount of annual 
retirement benefit otherwise payable under this Part may not be less than the 
retirement benefit the surviving member received on the effective date of that 
surviving member's retirement or on July 1, 1977, whichever amount is greater. 
2.  Cost.  The board shall determine the costs of the adjustments under this section 
and shall include those costs in its budget requests. 
3.  Eligibility.  Cost-of-living adjustments under this section must be applied to the 
retirement benefits of all surviving members who have been retired for at least 12 months 
before the date that the adjustment becomes payable, except that a surviving member who 
has less than 10 years of creditable service on July 1, 1993 may not receive a cost-of-
living adjustment until at least 12 months after reaching normal retirement age.  
Beneficiaries of deceased retirees and surviving members are eligible for the cost-of-
living adjustment under section 17806 at the same time the deceased retiree or surviving 
member would have become eligible. 
4.  Limitation on changes in eligibility.  Effective October 1, 1999: 
A.  The time requirement of subsection 3 that a surviving member be retired for at 
least 12 months before a cost-of-living adjustment becomes payable may not be 
increased for a surviving member who, on October 1, 1999 or thereafter, meets 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; 
B.  The time requirement that a surviving member who had fewer than 10 years of 
creditable service on July 1, 1993 may not receive a cost-of-living adjustment until at 
least 12 months after reaching normal retirement age may not be increased for a 
surviving member who, on October 1, 1999 or thereafter, meets the creditable service 
requirement for eligibility to receive a service retirement benefit, at the applicable age 
if so required, under section 17851, subsection 1-C, paragraph A; section 17851, 
subsection 1-C, paragraph B; section 17851, subsection 2-C, paragraph A; section 
17851, subsection 2-C, paragraph B; or section 17851-A, subsection 2, paragraph A; 
and 
C.  The time requirement that a surviving member who had fewer than 10 years of 
creditable service on July 1, 1993 may not receive a cost-of-living adjustment until at 
least 12 months after reaching normal retirement age may not be made applicable to a 
surviving member who had at least 10 years of creditable service on July 1, 1993. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill restores the previous cost-of-living adjustment cap of 4% for benefits 
received by a retired state employee, teacher, judge and legislator whose spouse received 
social security benefits and has passed away.  Public Law 2011, chapter 380, Part T 
reduced the retirement benefit cost-of-living adjustment cap from 4% to 3%.