An Act To Amend the Laws Governing Participating Local Districts in the Maine Public Employees Retirement System
Maine Legislature, Session 127, LD 0995
Committee: Appropriations and Financial Affairs
Sponsors: FOLEY, COLLINS, GERRISH, MAKER, PRESCOTT
Amends: 5 MRSA §17103, 5 MRSA §18201, 5 MRSA §18804

Legislative Document 
No. 995 
H.P. 690 
House of Representatives, March 19, 2015 
An Act To Amend the Laws Governing Participating Local Districts 
in the Maine Public Employees Retirement System 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative FOLEY of Wells. 
Cosponsored by Senator COLLINS of York and 
Representatives: GERRISH of Lebanon, MAKER of Calais, PRESCOTT of Waterboro. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §17103, sub-§6, as amended by PL 2009, c. 322, §2, is further 
amended to read: 
6.  Rights, credits and privileges; decisions. The board shall in all cases make the 
final and determining administrative decision in all matters affecting the rights, credits 
and privileges of all members of all programs of the retirement system whether in 
participating local districts or in the state service.  The board has no jurisdiction to hear a 
matter or make an administrative decision regarding a claim of an employee of a local 
plan for which membership is optional pursuant to section 18252, if that claim applies to 
a time when the employee was not a member of the retirement system. 
Whenever the board finds that, because of an error or omission on the part of the 
employer of a member or retired member, a member or retired member is required to 
make a payment or payments to the retirement system, the board may waive payment of 
all or part of the amount due from the member or retired member.  In these instances of 
recovery of overpayments from members of the retirement system, the retirement system 
is governed by section 17054, subsection 3. 
Sec. 2.  5 MRSA §18201, sub-§3, as amended by PL 1991, c. 619, §11 and 
affected by §18, is further amended to read: 
3.  Exempt employees. The local district shall designate in its approval any class of 
employees that the district determines to be exempt from this Part.  If the local district 
enters into an agreement with an employee or class of employees previously eligible for 
participation in the plan and the agreement provides for an alternative retirement plan, the 
employees subject to the agreement are governed by that agreement with respect to all 
issues related to plan participation, including but not limited to eligibility, enrollment, 
terms of participation, plan selection and funding.  For the purposes of this subsection, 
"agreement" includes any personnel policies, governing ordinance or other legislation, 
labor agreements, individual employment agreements or any other determination made by 
the district with respect to the terms of the employees' employment. 
Sec. 3.  5 MRSA §18201, sub-§§5 and 6 are enacted to read: 
5.  Limitations on claims for participation.  If an employee claims that employee 
was not offered participation in the plan at the commencement of or during the course of 
employment with the local district, that employee may not request eligibility for 
retirement benefits under the plan for any dates of service earlier than 6 years prior to the 
date on which the claim for eligibility for retirement benefits was first made to the 
retirement system in writing. 
6.  Participation in other retirement plans.  If an employee requests retroactive 
participation in the plan, and during the time for which these retroactive retirement 
benefits are sought the local district offered and the employee participated in another 
retirement plan, upon that election by the employee all contributions made to the 
alternative plan by the employer and a pro rata share of interest earned on those 
contributions must be paid to the retirement system, up to the amount that the employer is 
required by the retirement system to pay to fund retroactive benefits under the plan. 
Sec. 4.  5 MRSA §18804, sub-§3, as enacted by PL 1989, c. 811, §3, is amended 
to read: 
3.  Excluded employees.  The local district shall designate in its approval any class 
of employees otherwise provided for by local pension provisions who are excluded from 
membership in the plan established under this chapter.  If the local district enters into an 
agreement with an employee or class of employees previously eligible for participation in 
the plan and the agreement provides for an alternative retirement plan, the employees 
subject to the agreement will be governed by that agreement with respect to all issues 
related to plan participation, including but not limited to eligibility, enrollment, terms of 
participation, plan selection and funding.  For the purposes of this subsection, 
"agreement" includes any personnel policies, governing ordinance or other legislation, 
labor agreements, individual employment agreements or any other determination made by 
the district with respect to the terms of the employees' employment. 
Sec. 5.  5 MRSA §18804, sub-§§5 and 6 are enacted to read: 
5.  Limitations on claims for participation.  If an employee claims that employee 
was not offered participation in the plan at the commencement of or during the course of 
employment with the local district, that employee may not request eligibility for 
retirement benefits under the plan for any dates of service earlier than 6 years prior to the 
date on which the claim for eligibility for retirement benefits was first made to the 
retirement system in writing 
6.  Participation in other retirement plans.  If an employee requests retroactive 
participation in the plan, and during the time for which these retroactive retirement 
benefits are sought the local district offered and the employee participated in another 
retirement plan, upon that election by the employee all contributions made to the 
alternative plan by the employer and a pro rata share of interest earned on those 
contributions must be paid to the retirement system, up to the amount that the employer is 
required by the retirement system to pay to fund retroactive benefits under the plan. 
SUMMARY 
This bill restricts the jurisdiction of the Board of Trustees of the Maine Public 
Employees Retirement System in making final and determining administrative decisions 
regarding claims of certain participating local district employees.  This bill also makes 
changes to the laws governing participation and claims for prior service credit for certain 
participating local district employees.