An Act To Remove Certain Restrictions Imposed on Retired State Employees Who Return to Work as Educators
Maine Legislature, Session 128, LD 1396
Committee: Appropriations and Financial Affairs
Sponsors: STEARNS, HIGGINS, LYFORD
Amends: 5 MRSA §17859

Legislative Document
No. 1396
H.P. 970
House of Representatives, April 11, 2017
An Act To Remove Certain Restrictions Imposed on Retired State 
Employees Who Return to Work as Educators
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative STEARNS of Guilford.
Cosponsored by Representatives: HIGGINS of Dover-Foxcroft, LYFORD of Eddington.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §17859, as amended by PL 2015, c. 321, §1, is further amended 
to read: 
§17859.  Retiring and returning to work 
1.  Restoration to service.  Any Except for a state employee or teacher under 
subsection 1-A, any state employee or teacher who has reached normal retirement age 
and who retires after September 1, 2011 may be restored to service for up to 5 years.  The 
decision to hire a retired state employee or retired teacher under this section is at the 
discretion of the appointing authority.  The retired state employee or retired teacher must 
have had a bona fide termination of employment in accordance with state and federal 
laws and rules, may not return to employment after retirement with the same employer 
for at least 30 calendar days after the termination of employment and may not return to 
employment before the effective date of the person's retirement. 
1-A.  Restoration to work as classroom-based employees or administrators.  
Effective August 1, 2014, a classroom-based state employee or teacher who has reached 
normal retirement age and who retires after September 1, 2011 may be restored to service 
as a classroom-based employee or school administrator in a school in the unorganized 
territory or with a school administrative unit as defined in Title 20-A, section 1, 
subsection 26: 
A.  In one-year contracts, which may be nonconsecutive. The maximum time that a 
classroom-based employee may be restored to service with an individual school 
administrative unit pursuant to this paragraph is 5 years; 
B.  Subject to the 5-year restriction specified in subsection 1 and the 75% 
compensation limitation for retired state employees and retired teachers specified in 
subsection 2, paragraph A; or 
C.  In any combination of paragraphs A and B, as long as the total time the 
classroom-based employee is restored to service does not exceed 10 years with an 
individual school administrative unit. 
D.  With the same compensation and health insurance, dental insurance and life 
insurance benefits established for the position to be filled; and 
E.  At the same contribution rate of the employer and employee as is required for the 
position if the position were filled by an employee who is not a retired state employee 
or retired teacher. 
The retired classroom-based state employee or retired teacher who returns to service 
under this subsection must have had a bona fide termination of employment in 
accordance with state and federal laws and rules, may not return to employment after 
retirement with the same employer for at least 30 calendar days after the termination of 
employment and may not return to employment before the effective date of the person's 
retirement.  The retired state employee or retired teacher who returns to service under this 
subsection is not a member and therefore may not accrue additional creditable service or 
change the retired state employee's or retired teacher's earnable compensation for benefit 
calculation purposes.  The provisions for health insurance benefits under section 285, 
subsection 1-A for retired state employees or Title 20-A, section 13451 for retired 
teachers and life insurance benefits under the provisions of section 18055 are suspended 
for the reemployment period for a retired state employee or retired teacher who returns to 
service under this subsection. 
For purposes of this section, "classroom-based employee" means a teacher whose 
principal function is to introduce new learning to students in the classroom or to provide 
support in the classroom during the introduction of new learning to students. 
2.  Compensation and benefits.  The compensation and benefits of the retired state 
employee or retired teacher who returns to service after retirement as set out in subsection 
is governed by this subsection. 
A.  The compensation of the retired state employee or retired teacher who returns to 
service must be set at 75% of the compensation established for the position to be 
filled, at a step determined by the appointing authority. The compensation of the 
retired classroom-based employee who returns to service as a classroom-based 
employee pursuant to subsection 1-A, paragraph A must be set at 100% of the 
compensation established for the position to be filled, at a step determined by the 
school administrative unit, for up to the maximum 5-year period that a classroom-
based employee may contract with an individual school administrative unit. 
B.  The retired state employee or retired teacher who returns to service under this 
section is not a member and therefore may not accrue additional creditable service or 
change the retired state employee's or retired teacher's earnable compensation for 
benefit calculation purposes. 
C.  During the period of reemployment, the retired state employee or retired teacher 
is not entitled to health insurance, dental insurance or life insurance benefits.  The 
retired state employee or retired teacher is entitled to all other benefits for the 
reemployment position under collective bargaining agreements or civil service laws 
and rules.  Health insurance benefits must be provided under the provisions of section 
285, subsection 1-A for retired state employees or Title 20-A, section 13451 for 
retired teachers and life insurance benefits must be provided under the provisions of 
section 18055. 
3.  Contributions to the Maine Public Employees Retirement System and state 
group health plan.  The For a retired state employee or retired teacher under subsection 
1-A, the portion of the employer and employee contribution that goes to pay the 
retirement system for the unfunded liability and the state group health plan for health care 
must be continued and based on the retired state employee's or retired teacher's 
compensation as provided under subsection 1-A during the reemployment period. For a 
retired state employee or retired teacher under subsection 2, the portion of the employer 
contribution that goes to pay the retirement system for the unfunded liability and the state 
group health plan for retiree health care must be continued and based on the retired state 
employee's or retired teacher's compensation as provided under subsection 2 during the 
reemployment period. 
4.  Notification requirements.  Employers under this section are required to identify 
and report to the retirement system, in the manner specified by the retirement system, 
each individual who is a retiree who becomes an employee of the employer under the 
option provided in this section.  Departments shall also report each retiree who becomes 
an employee to the Bureau of the Budget in a manner specified by the bureau.  The 
employer shall report each such employee whenever and so long as the employee is the 
employer's employee. 
5.  Exclusion.  A retired state employee or retired teacher who is hired as a substitute 
teacher is not subject to the restoration to service 5-year limitation in subsection 1 or the 
compensation limitation in subsection 2, paragraph A. 
SUMMARY 
This bill amends the provisions of the Maine Public Employees Retirement System 
regarding compensation and service retirement benefits for retired state employees and 
retired teachers who return to service as classroom-based employees or school 
administrators in the following ways. 
1.  It allows a retired state employee or retired teacher to be restored to service as a 
classroom-based employee or school administrator beyond the current 5-year limit. 
2.  It removes the cap of 75% of compensation established for the position that the 
state employee or retired teacher is filling. 
3.  It allows a retired state employee or retired teacher who returns to service as a 
classroom-based employee or school administrator to receive full retirement, health, 
dental and life insurance benefits as offered for the position to be filled and suspends the 
provisions of retiree health, dental and life insurance benefits for retired state employees 
or retired teachers during the period of reemployment. 
4.  It retains the current provisions that a retired state employee or retired teacher who 
returns to service is not a member and therefore may not accrue additional creditable 
service or change the retired state employee's or retired teacher's earnable compensation 
for benefit calculation purposes. 
5.  It requires full employee and employer contributions to the retirement system for 
the unfunded liability and the state group health plan for retiree health care based upon 
the retired state employee's or retired teacher's compensation.