An Act To Improve Retirement Security for Retired Public Employees
Maine Legislature, Session 127, LD 0086
Committee Amendment CA_A_H502 (House)
Amends: 5 MRSA §17806

COMMITTEE AMENDMENT "~,, to H.P. 69, L.D. 86, Bill, "An Act To Improve 
Retirement Security for Retired Public Employees" 
Amend the bill in the emergency preamble by striking out all of the 3rd paragraph 
(page 1, lines 5 and 6 in L.D.) and inserting the following: 
'Whereas, the projections that provide the basis for the calculation of retirement 
costs for the 2016-2017 biennium assumed that there would be a 2.55% cost-of-living 
adjustment awarded in September 2015 and September 2016; and' 
Amend the bill by striking out everything after the enacting clause and before the 
emergency clause and inserting the following: 
'Sec. 1. 5 MRS A §17806, sub-§l, ~A, as amended by PL 2013, c. 424, Pt. B, §l, 
is further amended to read: 
A. Except as provided in paragraph paragraphs A-I and A-2, 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 3%. Effective July 1, 
2011, 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 and paragraph A-2. 
Sec. 2. 5 MRSA §17806, sub-§l, ~A-2 is enacted to read: 
A-2. Regardless of the amount of increase in the Consumer Price Index, for cost-of-
living adjustments awarded in fiscal year 2015-16 and fiscal year 2016-17 only, the 
board shall automatically make a percentage increase in retirement benefits of no less 
than 2.55%. The increase applies to that portion of the retirement benefit that would 
otherwise be subject to an increase under subsection A.' 
Page I - 127LR0903(02)-1 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A "to H.P. 69, L.D. 86 
SUMMARY 
This amendment provides a minimum cost-of-living adjustment of 2.55% for benefits 
received by retired state employees, teachers, judges and Legislators for fiscal year 2015-
and fiscal year 2016-17 only. 
FISCAL NOTE REQUIRE» 
(See attached) 
\ 
COMMITTEE AMENDMENT 
Approved: 06/25/15 
~C 
LD86 
LR903(02) 
An Act To Improve Retirement Security for Retired Public Employees 
Fiscal Note for Bill as Amended by Committee Amendment 'n' [/1-00 ~ 
Committee: Appropriations and Financial Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Potential future biennium cost increase - All Funds 
Fiscal Detail and Notes 
Current law requires a cost-of-living adjustment (COLA) equal to the Consumer Price Index (CPI) each fiscal year, up 
to a maximum of3%, be applied to the first $20,000, also indexed to the CPI, of pension benefits received by retired 
state employees, teachers, judges and Legislators. This legislation sets a minimum COLA of at least 2.55% for fiscal 
year 2015-16 and fiscal year 2016-17 only. This 2.55% is the actuarial assumption used in developing employer 
contribution rates for the 2016-2017 biennium. 
According to Maine Public Employees Retirement System, providing a minimum COLA of2.55% for benefits 
received by retired state employees, teachers, judges and legislators in fiscal year 2015-16 and fiscal year 2016-17 
will not result in an actuarially significant cost to the plans due to the provision being provided on a one-time basis. If, 
however, this provision were to be provided repeatedly in future years, it could result in future costs, as the actuarial 
assumption for the COLA may need to be increased. 
The provisions in this bill may also result in higher costs to the State in future bienniums if the CPI is lower than the 
actuarial assumption for the COLA in the 2016-2017 biennium due to potential actuarial gains that may have been 
realized being unavailable to be factored into the development of future employer contribution rates. 
LR0903(02) - Fiscal Note - Page 1 of 1