An Act To
Maine Legislature, Session 128, LD 0247
Committee Amendment CA_A_H716 (House)
Amends: 5 MRSA §17001, 5 MRSA §18252, 5 MRSA §18302, 5 MRSA §18356, 5 MRSA §18407, 5 MRSA §18452, 5 MRSA §18457-A, 5 MRSA §18801, 5 MRSA §18804

COMMITTEE AMENDMENT "A" to H.P. 180, L.D. 247, Bill, "An Act To 
Amend the Retirement Laws Pertaining to Participating Local Districts" 
Amend the bill by striking out everything after the title and inserting the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the Participating Local District Advisory Committee has recommended 
changes to the participating local district retirement plan in order to improve future 
funding levels, reduce rate volatility and protect member benefits; and 
Whereas, this legislation requires the Board of Trustees of the Maine Public 
Employees Retirement System to adopt rules in order for the changes to take effect; and 
Whereas, the changes to the participating local district retirement plan must be in 
effect prior to July 1, 2018 in order for the actuarial calculations used to establish plan 
costs for the next fiscal year to be based on the amended plan; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §17001, sub-§13, ,rB, as amended by PL 2009, c. 274, §1, is 
further amended to read: 
B. 
"Eamable For members other than members of the Participating Local District 
Retirement Program under chapters 425 and 427. "earnable compensation" does not 
include: 
(1) For any member who has 10 years of creditable service by July 1, 1993 or 
who has reached 60 years of age and has been in service for a minimum of one 
year immediately before that date, payment for more than 30 days of unused 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" {+, to H.P. 180, L.D. 247 
accumulated or accrued sick leave, payment for more than 30 days of unused 
vacation leave or payment for more than 30 days of a combination of both and, 
effective October 1, 1999, whether or not the member is in service on October 1, 
1999, the 30-day limitation may not be decreased and the exclusion set out in 
subparagraph (2) may not be made applicable to such a member; 
(2) For any member who is not covered by subparagraph (1), payment for any 
unused accumulated or accrued sick leave or payment for any unused vacation 
leave; or 
(3) Any other payment that is not compensation for actual services rendered or 
that is not paid at the time the actual services are rendered. 
A payment for unused sick leave or unused vacation leave may not be included as 
part of earnable compensation unless it is paid upon the member's last termination 
before the member applies for retirement benefits. 
Sec. 2. 5 MRSA §17001, sub-§13, ~-1 is enacted to read: 
B-1. "Earnable compensation" does not include any exclusion in the plan provisions 
adopted by rule pursuant to section 18801. 
Sec. 3. 5 MRSA §18252, sub-§6, as repealed and replaced by PL 2009, c. 415, 
Pt. A, § 5, is amended to read: 
6. Restoration to service. If Except as provided in section 18457-A. if any person 
who is the recipient of a service retirement benefit is covered by the United States Social 
Security Act upon being restored to service, continuation of that person's benefit is 
governed by the following. 
A. The person may elect to have the service retirement benefit continued during the 
period of time the person is restored to service and the person may not accumulate 
any additional service credits. 
B. The person may elect to have the service retirement benefit terminated, again 
become a member of the Participating Local District Retirement Program and begin 
contributing at the current rate. 
(1) The person is entitled to accumulate additional service credits during the 
period of time the person is restored to service. 
(2) When the person again retires, the person is entitled to receive benefits 
computed on the person's entire creditable service and in accordance with the law 
in effect at the time. 
C. Upon being restored to service, the person must elect to have benefits either 
continued or terminated. If written notification of the person's election is not 
received by the executive director within 60 days of restoration to service, the person 
is deemed to have elected the provisions of paragraph A. The election, regardless of 
how it is made, is irrevocable during the period of restoration to service. 
Sec. 4. 5 MRSA §18302, sub-§3 is enacted to read: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ·A "to H.P. 180, L.D. 247 
3. Employer contributions to the Participating Local District Consolidated 
Retirement Plan. The board may establish by rule the rate at which employers who 
participate in the Participating Local District Consolidated Retirement Plan in accordance 
with chapter 427 contribute to that plan. Rules established pursuant to this subsection are 
routine technical rules pursuant to chapter 375, subchapter 2-A. 
Sec. 5. 5 MRSA §18356, sub-§4 is enacted to read: 
4. 
Treatment of members of the Participating Local District Consolidated· 
Retirement Plan covered by chapter 427. Notwithstanding the provisions of this 
section, for members of the Participating Local District Consolidated Retirement Plan, 
the plan provisions adopted by rule pursuant to section 18801 govern any service credit 
for unused accrued or accumulated sick leave or unused vacation leave. 
Sec. 6. 5 MRSA §18407, sub-§7, as amended by PL 2013, c. 588, Pt. E, §3, is 
repealed and the following enacted in its place: 
7. Determination of adjustment for participating local districts covered by 
chapter 427. The plan provisions adopted by rule pursuant to section 18801 govern any 
cost-of-living adjustment. 
Sec. 7. 5 MRSA §18407, sub-§8, as enacted by PL 2013, c. 391, §8, is repealed. 
Sec. 8. 5 MRSA §18452, sub-§3, as amended by PL 2013, c. 391, §11, is further 
amended to read: 
3. Member with creditable service of 25 years or more. The amount of the 
service retirement benefit for members qualified under section 18451, subsection 3 is 
computed in accordance with subsection 1, except that: 
A. The amount arrived at under subsection 1 is reduced by applying to that amount 
the percentage that a life annuity due at 60 years of age bears to the life annuity due 
at the age ofretirement. 
B. For the purpose of making the computation under paragraph A, the board-
approved tables of annuities in effect at the date of the member's retirement is used. 
The amount of the service retirement benefit for members qualified under section 
18451-A, subsection 2, paragraph G is computed in accordance with subsection 1, except 
that the benefit is reduced by 6% for each year tha-t the member's age precedes 65 years of 
age any benefit reduction for retiring prior to 60 years of age for members qualified under 
section 18451-A, subsection 1 or prior to 65 years of age for members qualified under 
section 18451-A, subsection 2 must be contained in the plan provisions adopted by rule 
pursuant to section 18801 that provide for the payment of the full actuarial cost of retiring 
prior to 60 years of age or 65 years of age as applicable. 
Sec. 9. 5 MRSA §18457-A is enacted to read: 
§18457-A. Restoration to service 
The plan provisions adopted by rule pursuant to section 18801 govern the return of a 
retiree to employment by an employer participating in the Participating Local District 
Consolidated Retirement Plan. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT «A" to H.P. 180, L.D. 247 
Sec. 10. 5 MRSA §18801, first 1, as repealed and replaced by PL 2009, c. 474, 
§44, is amended to read: 
There is established the Participating Local District Consolidated Retirement Plan as 
a governmental qualified defined benefit plan pursuant to Sections 401(a) and 414(d) of 
the Internal Revenue Code and such other provisions of the Internal Revenue Code and 
United States Treasury regulations and other guidance as are applicable, which has the 
powers and privileges of a corporation. The purpose of the Participating Local District 
Consolidated Retirement Plan is to provide retirement allowances and other benefits 
under this chapter for employees of participating local districts that contract with the 
retirement system in accordance with section 18804. The board shall establish by rule the 
plan provisions of the Participating Local District Consolidated Retirement Plan m 
accordance with section 18804. 
Rules adopted pursuant to this section are routine 
technical rules as defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 11. 5 MRSA §18801, sub-§3, as enacted by PL 1989, c. 811, §3, is amended 
to read: 
3. No reduction of benefits. The level of service retirement benefits for employees 
of participating local districts that adopt the plan may not be reduced with relation to 
either benefits based upon service before adoption of the plan or benefits based upon 
service after adoption of the plan. As used in this subsection, "level of service retirement 
benefits" means the service credit accrual rate, the number of years included in the 
definition of "average final compensation," the age and creditable service requirements 
for receiving an unreduced benefit and the basic benefit formula of years of creditable 
service multiplied by the service credit accrual rate and average final compensation. 
Sec. 12. 5 MRSA §18804, sub-§7 is enacted to read: 
7. Withdrawal from participation. The plan provisions adopted by rule pursuant 
to section 18801 govern the withdrawal of a local district from participation in the plan 
and must include withdrawal liability payments by the local district of amounts calculated 
in an actuarially sound manner and appropriate to protect the funding of the plan and treat 
members, the withdrawing local district and nonwithdrawing local districts in a fair 
manner. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved.' 
SUMMARY 
This amendment replaces the bill, which is a concept draft. The amendment clarifies 
the rule-making authority for the Board of Trustees of the Maine Public Employees 
Retirement System to implement changes to the Participating Local District Consolidated 
Retirement Plan. The changes are based on recommendations made by the Participating 
Local District Advisory Committee, which is authorized by statute to propose changes to 
the retirement plan. 
The amendment also does the following. 
COMMITTEE AMENDMENT 
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COM::tvflTTEE AMENDMENT "4" to H.P. 180, L.D. 247 
1. It makes clear that plan provisions that pertain to contribution rates, earnable 
compensation, service credit for unused sick or vacation leave, cost-of-living 
adjustments, early retirement reduction, return to work after retirement and withdrawal 
liability payments that apply to employers and members of the Participating Local 
District Consolidated Retirement Plan are those adopted by rule pursuant to the Maine 
Revised Statutes, Title 5, section 18801. 
2. It clarifies the meaning of "level of service retirement benefits" as it pertains to 
permissible changes to service retirement benefits. 
3. It provides guidance for the adoption of rules on return to work after retirement 
and withdrawal liability. 
4. It makes clear that any rules adopted by the board relating to the Participating 
Local District Consolidated Retirement Plan are routine technical rules. 
5. It adds an emergency preamble and emergency clause. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/29/18 ;:!Wac 
.._ 
LD247 
LR 1436(02) 
An Act To Amend the Retirement Laws Pertaining to Participating Local Districts 
l ~~/1 l,) 
Fiscal Detail and Notes 
Fiscal Note for Bill as Amended by Committee Amendment 'A' 
Committee: Appropriations and Financial Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
No state fiscal impact 
This legislation gives rnlemaking authority to the Board of Trnstees of the Maine Public Employees Retirement 
System (MainePERS) to make changes to the Participating Local District (PLD) Consolidated Retirement Plan based 
on recommendations of the PLD Advisory Committee. Additional costs to MainePERS associated with the 
rnlemaking process can be absorbed within existing budgeted resources. The fiscal impact to the PLD Consolidated 
Retirement Plan will depend on what recommendations are implemented and the effective date of any implemented 
recommendations. 
LR1436(02) - Fiscal Note - Page 1 of 1