An Act To Remove the Age Penalty for State Retirees Working at State Correctional Institutions That Are Closing
Maine Legislature, Session 128, LD 0177
Committee Amendment CA_A_H764 (House)
Amends: 5 MRSA §17852

COMMITTEE AMENDMENT "A" to H.P. 133, L.D. 177, Bill, "An Act To 
Remove the Age Penalty for State Retirees Working at State Correctional Institutions 
That Are Closing" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 5 MRSA §17852~A is enacted to read: 
§17852-A. Computation of benefit for certain correctional facility employees 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Client" has the same meaning as in Title 34-A, section 1001, subsection 1-A. 
B. "Closure" means the removal of all clients from a correctional facility pursuant to 
legislation enacted into law approving the removal of all clients. 
C. 
"Correctional facility" has the same meaning as in Title 34-A, section 1001, 
subsection 6. 
2. Correctional facility employees. Notwithstanding section 17852 and any other 
provision of law, the service retirement benefit for a member for whom funding has been 
received under subsection 6 is computed as provided in subsection 3 if the member: 
A. Has creditable service of 25 years or more: 
B. Has not reached what would be the member's normal retirement age absent this 
section: 
C. Was employed in a correctional facility at the time legislation approving the 
closure of that correctional facility was enacted and that correctional facility is 
located more than 100 miles from the nearest correctional facility: and 
D. Retires as a direct result of the closure of the correctional facility described in 
paragraph C. 
COMMITTEE AMENDMENT 
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COMMITTEEAMENDMENT"A "toH.P.133,L.D.177 
3. Benefit. The amount of the service retirement benefit for a member qualified 
under subsection 2 is 1/50 of the member's average final compensation multiplied by the 
number of years of creditable service. 
4. Certification and calculation of required funding. Within 5 days of a closure 
of a con-ectional facility, the Commissioner of Con-ections shall provide certification of 
the closure and the date of enactment and the chapter of the law approving the closure to 
the retirement system. The retirement system shall determine the required funding for 
service retirement benefits under subsection 3 for all members who meet the conditions 
of subsection 2 and shall provide the determined amount to the Commissioner of 
Administrative and Financial Services, the Commissioner of Con-ections and the joint 
standing committee of the Legislature having jurisdiction over retirement matters. 
5. Increase in employer contribution. Upon receipt of the determined required 
funding from the retirement system pursuant to subsection 4, the Department of 
Administrative and Financial Services shall assess a one-time increase in the Department 
of Con-ections' employer contribution rate provided for in section 17253 to fully fund the 
determined amount. 
6. Receipt of funding. The service retirement benefit for a member who meets the 
conditions of subsection 2 is paid under subsection 3 only if the retirement system has 
received the funding from the additional assessment provided for in subsection 5 or 
received an appropriation from the Legislature for the required funding under subsection 
4.' 
SUMMARY 
This amendment, which is the majority report of the committee, differs from the bill 
in the following ways. 
1. It defines 
11closure
as the removal of all clients from a con-ectional facility 
pursuant to legislative action. 
2. It removes the provision that the Commissioner of Administrative and Financial 
Services provide notification to the Maine Public Employees Retirement System of 
closure and replaces it with a provision that requires the Department of Con-ections to 
notify the retirement system of the date of closure and the date of enactment and the 
chapter of the law that provides for the closure. 
3. It provides funding for the unfunded actuarial liability of the additional retirement 
benefits for qualified individuals through a one-time increase in the Department of 
Con-ections' employer contribution rate for payment of the unfunded actuarial liability. 
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(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/12/18 wac 
128th MAINE LEGISLATURE-
LD 177 
LR 2017(02) 
An Act To Remove the Age Penalty for State Retirees Working at State Correctional Institutions That 
Are Closing 
Fiscal Note for Bill as Amended by Committee Amendment f} {JI- 7bQ 
Committee: Appropriations and Financial Affairs 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium cost increase - General Fund 
Potential current biennium cost increase - Federal Expenditures Fund 
Potential current biennium cost increase - Other Special Revenue Funds 
This bill requires the Department of Corrections to provide a one-time payment to the Maine Public Employees 
Retirement System (MainePERS) for the unfunded actuarial cost of allowing eligible employees at certain state 
correctional facilities that close as a result of legislative action who have not reached their normal retirement age to 
retire and receive their full retirement benefit. Funding for the one-time payment will be collected through a one-time 
increase in the percentage assessment of the department's employer share contribution rate for the unfunded actuarial 
liability. The cost to the Department of Corrections cannot be determined at this time and will depend on the actual 
closure of these state correctional facilities through legislative action, the timing of the closure and the number of 
employees that would be eligible for the benefit provision as a result of the closure. 
Additional costs to the Department of Administrative and Financial Services and MainePERS associated with 
implementing the requirements of this legislation can be absorbed within existing budgeted resources. 
LR2017(02) - Fiscal Note - PaR:e 1 of 1