An Act To Allow Members of the State Employee and Teacher Retirement Program To Reapply for Disability Retirement Benefits after Denial and To Allow the Board of Trustees of the Maine Public Employees Retirement System To Offer Long-term Disability Insurance Coverage
Maine Legislature, Session 127, LD 1463
Committee: Appropriations and Financial Affairs
Sponsors: FOLEY, COLLINS, BEAVERS, HANLEY, HARRINGTON, ORDWAY, PICCHIOTTI, TIMBERLAKE, VACHON
Amends: 5 MRSA §17925, 5 MRSA §18525

Legislative Document 
No. 1463 
H.P. 1004 
House of Representatives, December 21, 2015 
An Act To Allow Members of the State Employee and Teacher 
Retirement Program To Reapply for Disability Retirement Benefits 
after Denial and To Allow the Board of Trustees of the Maine Public 
Employees Retirement System To Offer Long-term Disability 
Insurance Coverage 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Clerk of the House on December 17, 2015.  Referred to the Committee on 
Appropriations and Financial Affairs pursuant to Joint Rule 308.2 and ordered printed pursuant 
to Joint Rule 401. 
ROBERT B. HUNT 
Clerk 
Presented by Representative FOLEY of Wells. 
Cosponsored by Senator COLLINS of York and 
Representatives: BEAVERS of South Berwick, HANLEY of Pittston, HARRINGTON of 
Sanford, ORDWAY of Standish, PICCHIOTTI of Fairfield, TIMBERLAKE of Turner, 
VACHON of Scarborough. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §17925, as amended by PL 1995, c. 643, §§9 and 10, is further 
amended to read: 
§17925.  Application 
In order to receive a benefit under this article: 
1.  Written application.  The In order to receive a benefit under this article, a person 
must apply in writing to the executive director in the format specified by the executive 
director. 
A.    The executive director shall obtain medical consultation on each applicant for 
disability in accordance with related rules established by the board, which must 
include provisions indicating when a case must be reviewed by a medical board and 
when alternative means of medical consultation are acceptable.  Rules adopted 
pursuant to this paragraph are routine technical rules as defined in chapter 375, 
subchapter II-A 2-A.  Whether provided by the medical board or by an alternative 
means, medical consultation obtained by the executive director must be objective and 
be provided by a physician or physicians qualified to review the case by specialty or 
experience and to whom the applicant is not known. 
2.  Workers' compensation.  If the incapacity upon which the application is based is 
a result of an injury or accident received in the line of duty, the application must include 
proof that the member has made application for benefits under the workers' compensation 
laws;. 
3.  Social security.  If the employment for which creditable service with the 
employer is allowed was also covered under the United States Social Security Act, the 
application must include proof that the member has made application for benefits under 
this Act; and. 
4.  Approval.  The written application shall must be approved by the executive 
director upon finding that the member has met the requirements of section 17924. 
5.  Reapplication.  A member who has had a disability retirement benefit application 
denied may file a new application based on the same medical conditions or other medical 
conditions if that member has had a bona fide return to service with an employer whose 
employees are covered by this article or chapter 425, subchapter 5, article 3-A.  If the 
executive director finds that the member has met the requirements of section 17924, the 
new application must be approved notwithstanding the earlier denial. 
Sec. 2.  5 MRSA c. 423, sub-c. 7 is enacted to read: 
SUBCHAPTER 7 
LONG-TERM DISABILITY INSURANCE 
§18101.  Authorization 
The board may offer long-term disability insurance coverage to members and may 
contract with one or more insurance companies to provide this coverage. 
1.  Premiums.  All premiums and any other amounts due to an insurance company or 
other 3rd party in connection with coverage under this subchapter must be borne by the 
covered person or the covered person's employer. 
2.  Rules.  The board may adopt rules to implement this subchapter.  Rules adopted 
pursuant to this subsection are routine technical rules pursuant to chapter 375, subchapter 
2-A. 
Sec. 3.  5 MRSA §18525, sub-§5 is enacted to read: 
5.  Reapplication.  A member who has had a disability retirement benefit application 
denied may file a new application based on the same medical conditions or other medical 
conditions if that member has had a bona fide return to service with an employer whose 
employees are covered by this article or chapter 423, subchapter 5, article 3-A.  If the 
executive director finds that the member has met the requirements of section 18524, the 
new application must be approved notwithstanding the earlier denial. 
Sec. 4.  5 MRSA c. 425, sub-c. 7 is enacted to read: 
SUBCHAPTER 7 
LONG-TERM DISABILITY INSURANCE 
§18701.  Authorization 
The board may offer long-term disability insurance coverage to members and 
employees who choose not to become members but participate in the defined contribution 
plan pursuant to section 18801, subsection 1 and may contract with one or more 
insurance companies to provide this coverage. 
1.  Premiums.  All premiums and any other amounts due to an insurance company or 
other 3rd party in connection with coverage under this subchapter must be borne by the 
covered person or the covered person's employer. 
2.  Rules.  The board may adopt rules to implement this subchapter.  Rules adopted 
pursuant to this subsection are routine technical rules pursuant to chapter 375, subchapter 
2-A. 
Sec. 5.  Study.  The Maine Public Employees Retirement System shall conduct a 
study on the feasibility of procuring and offering long-term disability insurance pursuant 
to the Maine Revised Statutes, Title 5, chapter 423, subchapter 7 and Title 5, chapter 425, 
subchapter 7, including the means by which the Maine Public Employees Retirement 
System would procure and offer the insurance, the anticipated administrative burdens and 
expenses associated with offering the insurance and any other factors determined relevant 
by the Maine Public Employees Retirement System.  The Maine Public Employees 
Retirement System shall report the results of its study under this section together with any 
recommendations and suggested legislation to the joint standing committee of the 
Legislature having jurisdiction over appropriations and financial affairs no later than 
January 4, 2017.  The joint standing committee may report out a bill based on the report 
to the First Regular Session of the 128th Legislature. 
Sec. 6.  Effective date.  Those sections of this Act that enact the Maine Revised 
Statutes, Title 5, chapter 423, subchapter 7 and Title 5, chapter 425, subchapter 7 take 
effect January 5, 2017. 
SUMMARY 
This bill provides that a denial of a disability retirement benefit application to the 
Maine Public Employees Retirement System does not bar the filing and approval of a 
subsequent application for the same or different medical conditions if the applicant has 
returned to service with an employer covered under the Maine Public Employees 
Retirement System. 
It authorizes the Board of Trustees of the Maine Public Employees Retirement 
System, beginning January 5, 2017, to procure and offer long-term disability insurance to 
the retirement system's members and nonmembers who participate in the retirement 
system defined contribution plan.  Persons who elect this coverage or their employers are 
responsible for premiums and other 3rd-party costs. 
It directs the Maine Public Employees Retirement System to study how it would 
procure and offer long-term disability insurance and to report the results of its study to 
the joint standing committee of the Legislature having jurisdiction over appropriations 
and financial affairs, which is authorized to report out a bill to the First Regular Session 
of the 128th Legislature.