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: Appropriations and Financial Affairs
Sponsors: WINSOR
Amends: 5 MRSA §17651

Legislative Document 
No. 1032 
H.P. 715 
House of Representatives, March 24, 2015 
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 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative WINSOR of Norway. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §17651, as amended by PL 2007, c. 491, §94, is further amended 
to read: 
§17651.  Mandatory membership 
All state employees and teachers hired prior to July 1, 2017 become members of the 
State Employee and Teacher Retirement Program as a condition of their employment. 
Sec. 2.  5 MRSA c. 429 is enacted to read: 
CHAPTER 429 
ADJUSTABLE PENSION PLAN PROGRAM 
SUBCHAPTER 1 
GENERAL PROVISIONS 
§18821.  Information from departments 
1.  State employees.  The head of each department shall submit to the board, on 
behalf of the employee: 
A.  A statement showing the name, title, compensation, sex, date of birth and length 
of service of each member of the Adjustable Pension Plan Program in that department 
and any other information required to administer this Part in the format specified by 
the executive director; and 
B.  A statement giving whatever information regarding other employees in that 
department the board may require. 
2.  Teachers.  Each superintendent or chief administrator of a public school shall 
submit the information set out in subsection 1 to the board for all teachers. 
§18822.  Establishment 
The Adjustable Pension Plan Program is established as a governmental qualified 
retirement plan pursuant to Sections 401(a) and 414(d) of the Internal Revenue Code and 
such other provisions of the Internal Revenue Code and United States Treasury 
regulations and other guidance as are applicable for state employees and teachers, to be 
administered by the Maine Public Employees Retirement System. 
SUBCHAPTER 2 
MEMBERSHIP 
§18851.  Mandatory membership 
All state employees and teachers hired on or after July 1, 2017 are covered by the 
United States Social Security Act, participate in the federal social security system and 
become members of the Adjustable Pension Plan Program as a condition of their 
employment. 
Sec. 3.  Review; implementing legislation.  The Maine Public Employees 
Retirement System, referred to in this section as "the system," shall review the laws 
governing the State Employee and Teacher Retirement Program, established in the Maine 
Revised Statutes, Title 5, chapter 423.  The system shall develop proposed legislation 
necessary to implement the Adjustable Pension Plan Program, established in Title 5, 
chapter 429, in accordance with the plan document developed by the system and 
submitted in March 2012 to the Joint Standing Committee on Appropriations and 
Financial Affairs pursuant to Public Law 2011, chapter 380, Part U, section 2.  
Specifically, the system shall propose corrective amendments to the laws governing 
retirement that are in existence on the effective date of this Act and shall propose detailed 
statutory language necessary to inform affected persons of the legal rights, 
responsibilities and duties resulting from the enactment of the Adjustable Pension Plan 
Program.  The system may request assistance from the Legislative Council in drafting the 
legislation. 
No later than December 2, 2015, the system shall submit the proposed legislation to 
the joint standing committee of the Legislature having jurisdiction over state employee 
and teacher retirement matters. After receipt and review of the suggested legislation, the 
joint standing committee of the Legislature having jurisdiction over state employee and 
teacher retirement matters may submit a bill to the Second Regular Session of the 127th 
Legislature to implement the Adjustable Pension Plan Program. 
SUMMARY 
This bill establishes the Adjustable Pension Plan Program, a combined defined 
benefit and defined contribution retirement plan, to replace the State Employee and 
Teacher Retirement Program for state employees and teachers hired on or after July 1, 
2017.  Under the bill, all state employees and teachers hired on or after July 1, 2017 are 
covered by the United States Social Security Act, participate in the federal social security 
system and become members of the Adjustable Pension Plan Program as a condition of 
their employment.  This bill also directs the Maine Public Employees Retirement System 
to review the laws governing the existing retirement program and develop proposed 
legislation necessary to implement the Adjustable Pension Plan Program in accordance 
with the plan document developed by the Maine Public Employees Retirement System 
and submitted in March 2012 to the Joint Standing Committee on Appropriations and 
Financial Affairs pursuant to Public Law 2011, chapter 380, Part U, section 2.