Maine Legislature, Session 128, LD 0723
Committee: Appropriations and Financial Affairs
Sponsors: KATZ, GATTINE, BREEN, CUSHING, WHITTEMORE, FREY, HUBBELL, POULIOT

Legislative Document
No. 723
S.P. 240
In Senate, February 28, 2017
RESOLUTION, Proposing an Amendment to the Constitution of 
Maine To Reduce Volatility in State Pension Funding Requirements 
Caused by the Financial Markets
Submitted by the Maine Public Employees Retirement System pursuant to Joint Rule 204.
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed.
HEATHER J.R. PRIEST
Secretary of the Senate
Presented by Senator KATZ of Kennebec.
Cosponsored by Representative GATTINE of Westbrook and
Senators: BREEN of Cumberland, CUSHING of Penobscot, WHITTEMORE of Somerset, 
Representatives: FREY of Bangor, HUBBELL of Bar Harbor, POULIOT of Augusta.
Constitutional amendment. Resolved: Two thirds of each branch of the 
Legislature concurring, that the following amendment to the Constitution of Maine be 
proposed: 
Constitution, Art. IX, §18-A is amended to read: 
Section 18-A.  Funding of retirement benefits under the Maine Public 
Employees Retirement System.  Beginning with the fiscal year starting July 1, 1997, 
the normal cost of all retirement and ancillary benefits provided to participants under the 
Maine State Public Employees Retirement System must be funded annually on an 
actuarially sound basis.  Unfunded liabilities may not be created except those resulting 
from experience losses.  Unfunded liability resulting from experience losses must be 
retired over a period not exceeding 10 20 years. 
; and be it further 
Constitutional referendum procedure; form of question; effective date. 
Resolved:  That the municipal officers of this State shall notify the inhabitants of their 
respective cities, towns and plantations to meet, in the manner prescribed by law for 
holding a statewide election, at a statewide election held in the month of November 
following the passage of this resolution, to vote upon the ratification of the amendment 
proposed in this resolution by voting upon the following question: 
"Do you favor amending the Constitution of Maine to reduce volatility in 
state pension funding requirements caused by the financial markets by 
increasing the length of time over which experience losses are amortized 
from 10 years to 20 years, in line with pension industry standards?" 
The legal voters of each city, town and plantation shall vote by ballot on this question 
and designate their choice by a cross or check mark placed within the corresponding 
square below the word "Yes" or "No."  The ballots must be received, sorted, counted and 
declared in open ward, town and plantation meetings and returns made to the Secretary of 
State in the same manner as votes for members of the Legislature.  The Governor shall 
review the returns.  If it appears that a majority of the legal votes are cast in favor of the 
amendment, the Governor shall proclaim that fact without delay and the amendment 
becomes part of the Constitution of Maine on the date of the proclamation; and be it 
further 
Secretary of State shall prepare ballots. Resolved: That the Secretary of State 
shall prepare and furnish to each city, town and plantation all ballots, returns and copies 
of this resolution necessary to carry out the purposes of this referendum. 
SUMMARY 
This resolution proposes to amend the Constitution of Maine to reduce volatility in 
state pension funding requirements caused by the financial markets by increasing the 
length of time over which experience losses are amortized from 10 years to 20 years.