An Act To Restore Full Cost-of-living Increases for All Maine State Retirees
Maine Legislature, Session 128, LD 0726
Committee Amendment CA_A_H250 (House)

COMMITTEE AMENDMENT "A" to H.P. 510, L.D. 726, Bill, "An Act To 
Restore Full Cost-of-living Increases for All Maine State Retirees" 
Amend the bill by inserting after section 2 the following: 
'Sec. 3. Appropriations and allocations. The following appropriations and 
allocations are made. 
EDUCATION, DEPARTMENT OF 
General Purpose Aid for Local Schools 0308 
Initiative: Provides funds for the State's share of the increased costs to the normal cost 
component of the teacher retirement portion of the State Employee and Teacher 
Retirement Program as a result of applying the cost-of-living adjustment to the full 
benefit of retirees. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2017-18 
$2,696,110 
$2,696,110 
2018-19 
$2,808,000 
$2,808,000 
Teacher Retirement 0170 
Initiative: Provides one-time funds for the increased costs to the unfunded actuarial 
liability of the teacher retirement portion of the State Employee and Teacher Retirement 
Program as a result of applying the cost-of-living adjustment to the full benefit ofretirees. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2017-18 
$550,000,000 
$550,000,000 
COMMITTEE AMENDMENT 
2018-19 
$0 
$0 
N. cf S. 
COMMITTEE AMENDMENT"A "to H.P. 510, L.D. 726 
EDUCATION, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL FUNDS 
2017-18 
$552,696,110 
$552,696,110 
RETIREMENT SYSTEM, MAINE PUBLIC EMPLOYEES 
Retirement System - Retirement Allowance Fund 0085 
2018-19 
$2,808,000 
$2,808,000 
Initiative: Provides funds for the increased costs to the normal cost component and 
unfunded actuarial liability of the state employee portion of the State Employee and 
Teacher Retirement Program as a result of applying the cost-of-living adjustment to the 
full benefit ofretirees. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
RETIREMENT SYSTEM, MAINE PUBLIC 
EMPLOYEES 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL FUNDS 
SECTION TOTALS 
GENERAL FUND 
SECTION TOTAL - ALL FUNDS 
SUMMARY 
2017-18 
$246,760,000 
$246,760,000 
2017-18 
$246,760,000 
$246,760,000 
2017-18 
$799,456,110 
$799,456,110 
2018-19 
$2,860,000 
$2,860,000 
2018-19 
$2,860,000 
$2,860,000 
2018-19 
$5,668,000 
$5,668,000 
This amendment provides funding to fund the costs of removing the limit on the 
cost-of-living increase for state retirement benefits. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/14/17 feac 
LD726 
LR 879(02) 
An Act To Restore Full Cost-of-living Increases for All Maine State Retirees 
(~-JS~ 
Fiscal Note for Bill as Amended by Committee Amendment 'A' 
Committee: Appropriations and Financial Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Current biennium cost increase - Local School Administrative Units 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Fiscal Detail and Notes 
FY 2017-18 
$799,456,110 
$799 ,456, 110 
FY2018-19 
$5,668,000 
$5,668,000 
Projections 
FY 2019-20 
$5,668,000 
$5,668,000 
Projections 
FY2020-21 
$5,668,000 
$5,668,000 
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 requires that the COLA be applied to the full benefit 
received by the retiree. This will increase both the normal cost and unfunded actuarial liability of the Maine Public 
Employees Retirement System (MainePERS). Pursuant to the Constitution of Maine, Article IX, Section 18-A, 
unfunded liabilities may not be created except those that result from experience losses. Therefore, any unfunded 
liability created by the provisions in this legislation must be funded immediately. 
Based on estimates provided by the MainePERS, applying the COLA to the full benefit received by a retiree will 
increase required employer contributions during the current biennium by a total of $802,060,000 in fiscal year 2017-
and $8,260,000 in fiscal year 2018-19. Of that amount, $2,603,890 and $2,592,000 in fiscal years 2017-18 and 
2018-19, respectively, will be bome by local school administrative units for their share of the normal cost of teacher 
retirement. 
This bill includes a one-time General Fund appropriation of $550,000,000 in fiscal year 2017-18 to the Teacher 
Retirement program within the Department of Education for the increased costs to the unfunded actuarial liability of 
the teacher retirement portion of the State Employee and Teacher plan. This bill also includes General Fund 
appropriations of $2,696,110 in fiscal year 2017-18 and $2,808,000 in fiscal year 2018-19 to the General Purpose Aid 
for Local Schools pro gram for the State's share of the normal cost of teacher retirement. 
LR0879(02) - Fiscal Note - PaQ"e 1 of2 
This bill includes General Fund appropriations of $246, 7 60,000 in fiscal year 2017-18 and $2,860,000 in fiscal year 
2018-19 to the Retirement Allowance Fund within the Maine State Retirement System for the increased costs this 
provision is anticipated to have on the normal cost and unfunded actuarial liability of the State employee portion of the 
State Employee and Teacher plan and the Judicial Retirement plan. 
This provision is not expected to result in increased costs to the Legislative Plan due to the actual benefits paid to 
retired legislators being well below the current $20,000 cap. 
LR0879(02) - Fiscal Note - Pal!e 2 of2