An Act To Improve the Disability Retirement Program of the Maine Public Employees Retirement System
Maine Legislature, Session 129, LD 1978
Committee Amendment CA_A_S447 (Senate)
Amends: 3 MRSA §701, 3 MRSA §734, 4 MRSA §1201, 4 MRSA §1234, 4 MRSA §1353, 5 MRSA §11007, 5 MRSA §17001, 5 MRSA §17106, 5 MRSA §17106-A, 5 MRSA §17911, 5 MRSA §17921, 5 MRSA §17926, 5 MRSA §17927, 5 MRSA §17929, 5 MRSA §17930, 5 MRSA §17953, 5 MRSA §18502, 5 MRSA §18503, 5 MRSA §18512, 5 MRSA §18521, 5 MRSA §18525, 5 MRSA §18526, 5 MRSA §18527, 5 MRSA §18529, 5 MRSA §18530, 5 MRSA §18553

COMMITTEE AMENDMENT " ft " to S.P. 680, L.D. 1978, Bill, "An Act To 
Improve the Disability Retirement Program of the Maine Public Employees Retirement 
System" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 3 MRSA §701, sub-§9-A is enacted to read: 
9-A. Health care provider. "Health care provider" means an appropriately licensed. 
certified or registered provider of mental or physical health care, either in the public or 
private sector. 
Sec. 2. 3 MRSA §701, sub-§11-A, as enacted by PL 2017, c. 88, §1, is repealed. 
Sec. 3. 3 MRSA §734, as amended by PL 2017, c. 88, §2, is repealed. 
Sec. 4. 4 MRSA §1201, sub-§6-A, ,iB, as enacted by PL 1989, c. 133, § 17, is 
amended to read: 
B. Regardless of age or marital status, any other progeny certified by the medieal 
ooara an independent health care provider to be permanently mentally incompetent or 
permanently physically incapacitated and determined by the executive director to be 
unable to engage in any substantially gainful employment. 
Sec. 5. 4 MRSA §1201, sub-§9-A is enacted to read: 
9-A. Health care provider. "Health care provider" means an appropriately licensed, 
certified or registered provider of mental or physical health care, either in the public or 
private sector. 
Sec. 6. 
MRSA §1201, sub-§12-A, as enacted by PL 2017, c. 88, §4, is 
repealed. 
Sec. 7. 4 MRSA §1234, as amended by PL 2017, c. 88, §5, is further amended to 
read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" /i "to S.P. 680, L.D. 1978 c~-tit{l) 
§1234. Medical baa-ro review of disability 
A medical board of the other programs of the Maine Public Employees Retirement 
System established in section 17106, subsection 1 is the medical board of the Judicial 
Retirement Program. The medical board shall arrange for and pass upon all medical 
~aminations required under this chapter ,vith respect to disability retirements and shall 
report in writing to the Supreme Judicial Court its conclusions and recommendations 
upon all the matters referred to it. The board of trustees may designate other medical 
health care providers to provide medical consultation on judicial disability cases. 
Sec. 8. 4 MRSA §1353, sub-§1, as amended by PL 2017, c. 88, §6, is further 
amended to read: 
1. Conditions. Any member who becomes disabled while in service may receive a 
disability retirement allowance by order of at least 5 Justices of the Supreme Judicial 
Court or upon written application to the executive director, re,view· and report of the 
application by the medical board and approval of that application by at least 5 of the 
Justices of the Supreme Judicial Court if that member is mentally or physically 
incapacitated to the extent that it is impossible for that member to perform the duties as a 
judge and the incapacity is expected to be permanent, as shown by medical examination 
or tests. A qualified medical health care provider mutually agreed upon by the executive 
director and member shall conduct the examinations or tests at an agreed upon place, and 
the costs must be paid by the Maine Public Employees Retirement System. 
Sec. 9. 4 MRSA §1353, sub-§4, 1C, as amended by PL 2017, c. 88, §7, is further 
amended to read: 
C. The executive director may require the beneficiary to undergo annual medical 
examinations or tests for the purpose of determining whether the beneficiary is 
incapacitated. These examinations or tests must be conducted by a qualified medical 
health care provider, mutually agreed upon by the executive director and beneficiary, 
at a place also mutually agreed upon, and the costs of the examination or tests must 
be paid by the Maine Public Employees Retirement System. If the beneficiary refuses 
to submit to an examination or tests, the beneficiary's disability allowance ceases 
until the beneficiary agrees to the examination or tests. If the beneficiary's refusal 
continues for one year, all rights to any further benefits under this section terminate. 
Sec. 10. 5 MRSA §11007, sub-§3, as enacted by PL 1977, c. 551, §3, is amended 
to read: 
3. Judgment. The court shall may not substitute its judgment for that of the agency 
on questions of fact. except that. with respect to a timely appeal by an individual of a 
denial of a disability determination by a hearing officer pursuant to sections 171 Q6-A and 
17106--B. the court shall review the matter de novo. 
Sec. 11. 5 MRSA §17001, sub-§12, ~, as enacted by PL 1985, c. 801, §§5 and 
7, is amended to read: 
B. 
Regardless of age or marital status, any other progeny certified by the medical 
beard an independent health care provider to be permanently mentally incompetent or 
permanently physically incapacitated and determined by the executive director to be 
unable to engage in any substantially gainful employment. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A "to S.P. 680, L.D. 1978 ( $· 4 /,fl) 
Sec. 12. 5 MRSA §17001, sub-§18-B is enacted to read: 
18-B. 
Health care provider.· "Health care provider" means an appropriately 
licensed. certified or registered provider of mental or physical health care. either in the 
public or private sector. 
Sec. 13. 5 MRSA §17001, sub-§19-A, as enacted by PL 2017, c. 88, §8, is 
repealed. 
Sec. 14. 5 MRSA §17106, as amended by PL 2017, c. 88, §§14 to 16, is repealed. 
Sec. 15. 5 MRSA §17106-A, first ,r, as enacted by PL 2009, c. 322, §7, is 
amended to read: 
A hearing offieer employed, eontraeted or otherwise provided by the board The board 
shall contract with qualified attorneys to act as hearing officers to implement the 
provisions of this chapter is. Hearing officers are subject to the provisions of this section. 
Hearing officers are not employees of the board but independent contractQrs who serve as 
neutral and independent decision makers. 
Sec. 16. 5 MRSA §17106-A, sub-§6, as amended by PL 2017, c. 88, §18, is 
further amended to read: 
6. 
Engagement and termination. 
The board shall engage contract with only 
qualifi6d hearing officers, who must be monitored by the board. A contract with a 
hearing officer may be terminated for misconduct. 
Retaliatory action of any kind, 
including reprimand or termination, may not be taken against a hearing officer on the 
basis of that hearing officer's having issued decisions contrary to the decision of the 
executive director. In the event of termination, the retirement system shall set forth in 
writing the basis for the termination, the propriety of which may then be considered by 
the joint standing committee of the Legislature having jurisdiction over public employee 
retirement matters pursuant to subsection 5. 
Sec. 17. 5 MR.SA §17106-B is enacted to read: 
§17106-B. Disability retirement; medical review 
1. Disability retirement forms; assessment. The executive director shall develop 
and make easily accessible to health care providers in this State a disability form that 
allows a health care provider to provide an assessment of a member's ability to work after 
taking into account the member's mental or physical disability under the standards of this 
Part. References in this section to "disability form" refer to the form developed by the 
executive director. A member seeking disability retirement shall obtain an assessment 
from the health care provider of the member's ability to work after taking into account the 
member's mental or physical disability. and, if the health care provider finds that the 
member is disabled under the standards of this Part. the health care provider, at the 
request of the member, shall file with the executive director a disability form signed by 
the health care provider. The health care provider shall also provide a copy of the form to 
the member. The executive director may find that a member has a mental or physical 
disability and is eligible for disability retirement based on the information provided in the 
form or by the long-term disability insurance carrier providing coverage und~r this Part. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" It "to S.P. 680, L.D. 1978 ( $-4 tfl) 
2. Medical review, If the executive director is unable to determine whether a 
member is eligible for disability retirement based on the information provided in the 
disability form or by the insurance carrier under subsection 1, the executive director shall 
direct the member to have an independent medical examination by an independent health 
care provider. 
A. The retirement system shall pay all fees of the independent health care provider. 
The independent health care provider may not be a state employee and may not have 
any association with the retirement system other than providing independent medical 
examinations or medical consultations and receiving payment for these services and, 
unless the member consents in writing. may not have previously examined ~or. treated 
the member with respect to the member's mental or physical disability. 
B. 
The member may have a representative present at the independent medical 
examination, who may be a union representative, an attorney or a health care provider 
of the member's choice. The retirement system shall reimbUJ.Se the member's 
representative as follows: 
(1) If the representative is a health care provider, the retirement system shall pay 
that health care provider a standard per diem rate established by the board and a 
reasonable mileage reimbursement: and 
(2) Any other representative of the member may be paid a reasonable mileage 
reimbursement only. 
3. Disability determination; appeal. After an independent medical review under 
subsection 2, the executive director or designee shall make a determination of eligibility 
for disability retirement based upon the totality of the evidence and in accordance with 
subsection 4. The retirement system shall employ or engage one or more registered 
nurses or health care providers to assist in this determination. Qualifications of these 
persons must include at least a 4-year degree and experience with occupational 
disabilities. A determination by the executive director or designee that the member is not 
disabled may be appealed by the member to a hearing officer, who shall hear the appeal 
in accordance with section 17106-A. The board shall by rule provide for procedures for 
the member to participate in selection of the hearing officer who will hear the member's 
appeal. Rules adopted pursuant to this subsection are routine technical n:iles as defined in 
chapter 375, subchapter 2-A. 
4. Medical evidence. When reviewing medical evidence in making a determination 
of disability, the board, executive director and hearing officers shall primarily consider 
medical opinions in the record and whether the opinions are supported by sound medical 
evidence and are consistent with other medical evidence in the record. 
5, Attorney's fees. If a member has retained services of an attorney to represent the 
member before a hearing officer or in a court proceeding on appeal of a board decision, 
the fee arrangement has been approved by the hearing officer or the court and the 
attorney obtains a favorable result for the member, the attorney's legal fees must be paid 
by the retirement system, up to a maximum of $12,000. The fee arrangement may be a 
contingency fee, in which case the payment by the retirement system must be applied 
toward the s~tisfaction of the contingency fee. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ''f.t "to S.P. 680, L.D. 1978 ( 5~tjlF1J 
Sec. 18. 5 MRSA §17911, first ,r, as enacted by PL 2003, c. 387, §4, is amended 
to read: 
Upon agreement of the executive director and the person, rehabilitation services may 
be provided to any person who is the recipient of a disability retirement benefit under this 
article as a means to the person being able to return to substantially gainful activity. As a 
condition of entering into an agreement to provide rehabilitation services, the executive 
director must determine that rehabilitation is feasible, that rehabilitation is consistent with 
the purposes of this article, that the recipient is suitable for rehabilitation services and that 
rehabilitation services are likely to lead to substantially gainful activity. 
Whoo 
appropriate, determination of suitability must include consultation y,rith the medical board 
to determine aay medical indications that the reci-pient should not engage in a 
rehabilitation program or to identify a recipient too severely disabled to benefit from 
rehabilitation ssrvices in accordance with the purposes of this article. Services must be 
provided by private and public rehabilitation counselors, government agencies and others 
approved by the executive director as qualified to provide rehabilitation services. The 
executive director shall consider a rehabilitation counselor's rate of successfully placing 
rehabilitated employees in jobs relative to the placement rates of other counselors in the 
State as fundamental in deciding whether to approve the counselor as qualified. This 
section does not affect the ongoing requirement that a person remain disabled in order to 
continue to receive disability benefits. 
Sec. 19. 5 MRSA §17921, sub-§1, ,rB, as enacted by PL 1989, c. 409, §§8 and 
12, is amended to read: 
B. That it is impossible to perform the duties of the member is unable to perform the 
essential functions of the member's employment position with reasonable 
accommodation; 
Sec. 20. S MRSA §17925, sub-§1, ,rA, as amended by PL 2017, c. 88, §25, is 
further amended to read: 
A. 
The executive director shall obtain independent medical consultation on 
examinations of each applicant for disability retirement benefits in accordance wfrh 
related rules established by the board, Ylhich must include provisions indicating v,rhen 
a ease must be re:rlie\.ved by a medical board and when alternative means of medical 
consultation are acceptable. Rules adopted pursuant to this paragraph are routine 
technical rules as defined in chapter 375, subehapter 2 A :whether provided by the 
medical board or by an alternative means, medical consultation obtained by the 
executive director must be objeetr;e and be provided by a medical provider or 
medical providers q-aalified to re:viev,r the ease by specialty or experience and to 
whom the applicant is not knovro. section 17106-B. 
Sec. 21. 5 MRSA §17926, as amended by PL 2017, c. 88, §26, is further amended 
to read: 
§17926. Examinations or tests 
Any examinations or tests recommended by the medical board in accordance with 
conducted und~ section -l-7W6 1710_6-B or required by the executive director under 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT IC fr "to S.P. 680, L.D. 1978 ( ~:,r44~·0 
section 17921, subsection 1, paragraph D; section 17924; section 17929, subsection 2, 
paragraph B; or section 17933, subsection 3, paragraph A, are governed as follows. 
1. Agreed upon medieal health care provider. The examinations or tests must be 
conducted by a qualified medical health care provider mutually agreed upon by the 
executive director and the member claiming to be disabled. 
2. Agreed upon place. The examinations or tests shall must be conducted at the 
health care provider's office or facility or at a place mutually agreed upon by the 
executive director and the member claiming to be disabled. 
3. Costs. The costs incurred under subsections 1 and 2 shall must be paid by the 
retirement system. 
Sec. 22. 5 MRSA §17927, first 1, as amended by PL 2003, c. 387, §5, is further 
amended to read: 
Upon agreement of the executive director and the person, rehabilitation services may 
be provided to any person who is the recipient of a disability retirement benefit under this 
article as a means to the person being able to return to substantially gainful activity. As a 
condition of entering into an agreement to provide rehabilitation services, the executive 
director must determine that rehabilitation is feasible, that rehabilitation is consistent with 
the purposes of this article, that the recipient is suitable for rehabilitation services and that 
rehabilitation services are likely to lead to substantially gainful activity. 
When 
appropriate, determination of suitability must include consaltation with the medical board 
to determine any medical indications that the recipisn.t should not engage in a 
rehabilitation program or to identify a recipient too severely disabled to benefit from 
rehabilitation services in accordance with the purposes of this article. Services must be 
provided by private and public rehabilitation counselors, government agencies and others 
approved by the executive director as qualified to provide rehabilitation services. The 
executive director shall consider a rehabilitation counselor's rate of successfully placing 
rehabilitated employees in jobs relative to the placement rates of other counselors in the 
State as fundamental in deciding whether to approve the counselor as qualified. This 
section does not affect the ongoing requirement that a person remain disabled in order to 
continue to receive disability benefits. 
Sec. 23. 5 MRSA §17929, sub-§2, ,rB, as amended by PL 2003, c. 675, §2, is 
further amended to read: 
B. 
The executive director may require, once each year, that the person undergo 
examinations or tests, conducted in accordance with section 17926, to determine the 
person's disability. The ~ecutiYe director may refer the records documenting the 
results of the examinations or tests and the person's file to the medical board for 
medical consultation regarding rehabilitation in accordance with section 17106, 
subsection 3, paragraph E. 
(1) After the disability has continued for 2 years, the disability must render the 
person unable to engage in any substantially gainful activity that is consistent 
with the person's training, education or experience and average final 
compensation adjusted by the same percentage adjustment as has been received 
under section 17806. The disability retirement benefit continues if the person can 
effectively demonstrate to the executive director that the person is actively 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ",4 "to S.P. 680, L.D. 1978 ( ~ -~ Yt(l} 
seeking work. For the purposes of this subparagraph, the ability to engage in 
substantially gainful activity is demonstrated by the ability to perform work 
resulting in annual earnings that exceed $20,000 or 80% of the recipient's average 
final compensation at retirement, whichever is greater, adjusted by the same 
percentage adjustments granted under section 17806. 
(2) If the person refuses to submit to the examinations or tests under this 
paragraph, the disability retirement benefit is discontinued until that person 
withdraws the refusal. 
(3) If the person's refusal under subparagraph (2) continues for one year, all 
rights to any further benefits under this article cease. 
(4) If it is determined, on the basis of the examinations or tests under this 
paragraph, that the disability of a person no longer exists, the payment of the 
disability retirement benefit ceases. 
(5) The executive director shall notify the person in writing of the decision to 
discontinue the disability retirement allowance under subparagraph (2) or ( 4). 
(a) The decision is subject to appeal under section 17451. 
(b) If the person appeals the executive director's decision, the disability 
retirement allowance may not be discontinued until all appeals have been 
exhausted. 
Sec. 24. 5 MRSA §17930, sub-§2, 1C, as enacted by PL 1989, c. 409, §§8 and 
12, is amended to read: 
C. 
If, during the first 5 years of reemployment, the person again becomes disabled, 
terminates employment and is not covered by any other disability program, the 
retirement system shall resume paying the disability retirement benefit payable prior 
to the reemployment with all applicable cost-of-living adjustments and shall provide 
rehabilitation services l:HlOOf in accordance with section 17927 if recommended by 
the medical board. If the benefit payable under the other disability program is not 
equal to or greater than the benefit under this article, the retirement system shall pay 
the difference between the amount of the benefit payable under the other disability 
program and the amount of the benefit payable under this article. The executive 
director shall require examinations or tests to determine whether the person is 
disabled as described in section 17921; and 
Sec. 25. 5 MRSA §17930, sub-§3, ,rE, as enacted by PL 1989, c. 409, §§8 and 
12, is amended to read: 
E. If, during the first 5 years of reemployment, the person again becomes disabled 
and terminates employment, the retirement system shall resume paying the disability 
retirement benefit payable prior to the reemployment with all applicable cost-of-
living adjustments, or if greater, a disability retirement benefit based upon the 
person's current average fmal compensation and shall provide rehabilitation services 
l:Hlder in accordance with section 17927 if recommended by the medical board. The 
COMMITTEE AMENDMENT 
.,..,_ 
't,.r.; 
·.) 
COMMITTEE AMENDMENT" f}-" to S.P. 680, L.D. 1978 {. $ •lllfl} 
executive director shall require examinations or tests to determine whether the person 
is disabled as defined in section 17921; and 
Sec. 26. 51\fRSA §17932, sub-§2, as amended by PL 2017, c. 88, §27, is further 
amended to read: 
2. Dispute over mental or physical capacity. If there is a dispute between the 
person and the former employer over the person's mental or physical capacity to perform 
a specific job, at the option of the person that dispute must be resolved by a majority of 3 
medical health care providers, one appointed and reimbursed by the person, one 
appointed and reimbursed by the employer and one appointed and reimbursed by the 
retirement system. If the 3 medical health care providers resolve the dispute in favor of 
the person, the former employer must reimburse the medical health care provider 
appointed by the person. 
Sec. 27. 5 l\fRSA §17953, sub-§3, 1A, as amended by PL 1991, c. 469, §2, is 
further amended to read: 
A. A surviving spouse of the qualifying member is paid a $150 benefit each month 
beginning the first month after the death occurs and continuing during the surviving 
spouse's lifetime, if: 
(1) The deceased qualifying member had 10 years of creditable service at the 
time of death; or 
(2) The surviving spouse is certified by the medical board an independent health 
care provider to be permanently mentally incompetent or permanently physically 
incapacitated and is determined by the executive director to be unable to engage 
in any substantially gainful employment. 
A full month's benefit is paid to the estate of the surviving spouse for the month in 
which the surviving spouse dies. 
Sec. 28. 5 MRSA §17953, sub-§5-A, 1A, as amended by PL 1991, c. 469, §2, is 
further amended to read: 
A. A designated beneficiary who is alive at the time of the death of the qualifying 
member is paid $150 per month beginning the first month after the death occurs and 
continuing until the date of the designated beneficiary's death, if the designated 
beneficiary is certified by the medical board an independent health care provider to 
be permanently mentally incompetent or permanently physically incapacitated and is 
determined by the executive director to be unable to engage in any substantially 
gainful employment. 
Sec. 29. 5 MRSA §18502, sub-§1, 1A, as amended by PL 2017, c. 88, §30, is 
further amended to read: 
A. 
The executive director shall obtain independent medical consultation on 
examinations of each applicant for disability retirement benefits in accordance with 
related rules established by the board, which must include pro11isions indicating when 
a case must be re>liewed by a medical board and ·.vhen alternative means of medical 
consultation are acceptable. Rules adopted pursuant to this paragraph are routine 
technical rules as defmed in chapter 375, subchapter 2 A. Whether provided by the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" /t" to S.P. 680, L.D. 1978 ( ~ 
~ l{ 9)) 
medical board or by an alternative means, medical eonsultation obtained by the 
exeoutive direetor must be objeetive and be provided by a medioal provider or 
medical providers qualified to revis>.v the ease by speeialty or experienee and to 
whom the applieant is not known section 17106-B. 
Sec. 30. 5 MRSA §18503, sub-§1, as amended by PL 2017, c. 88, §31, is further 
amended to read: 
1. Agreed upon medical health care provider. The examination or tests must be 
conducted by a qualified medieal health care provider mutually agreed upon by the 
executive director and member claiming to be disabled. 
Sec. 31. 5 MRSA §18503, sub-§2, as enacted by PL 1985, c. 801, §§5 and 7, is 
amended to read: 
2. Agreed upon place. The examination or tests shall must be conducted at the 
health care provider's office or facility or at a place mutually agreed upon by the 
executive director and member claiming to be disabled. 
Sec. 32. 5 MRSA §18512, first ,r, as enacted by PL 2003, c. 387, §10, is 
amended to read: 
Upon agreement of the executive director and the person, rehabilitation services may 
be provided to any person who is the recipient of a disability retirement benefit under this 
article as a means to the person being able to return to substantially gainful activity. As a 
condition of entering into an agreement to provide rehabilitation services, the executive 
director must determine that rehabilitation is feasible, that rehabilitation is consistent with 
the purposes of this article, that the recipient is suitable for rehabilitation services and that 
rehabilitation services are likely to lead to substantially gainful activity. 
:when 
appropriate, detennination of suitability must inelude consultation with the medical board 
to determine any medieal indieations that the reeipient should not engage in a 
rehabilitation program or to identify a reeipient too seyerely disabled to benefit from 
rehabilitation serviees in aeeordanee with the purposes of this artiele. Services must be 
provided by private and public rehabilitation counselors, government agencies and others 
approved by the executive director as qualified to provide rehabilitation services. The 
executive director shall consider a rehabilitation counselor's rate of successfully placing 
rehabilitated employees in jobs relative to the placement rates of other counselors in the 
State as fundamental in deciding whether to approve the counselor as qualified. This 
section does not affect the ongoing requirement that a person remain disabled in order to 
continue to receive disability benefits. 
Sec. 33. 5 MRSA §18521, sub-§1, ~' as enacted by PL 1989, c. 409, §§11 and 
12, is amended to read: 
B. That it is impossible to perfoml the duties the member is unable to perform the 
essential functions of the member's employment position with reasonable 
a~~ommodations; 
Sec. 34. 5 MRSA §18525, sub-§1, ,rA, as amended by PL 2017, c. 88, §32, is 
further amended to read: 
COMMITTEE AMENDMENT 
('-· 
'E"<, 
COMMITTEE AMENDMENT" lt "to S.P. 680, L.D. 1978 ( 'S=L1l()/ 
A. 
The executive director shall obtain independent medical oonsultation on 
examinations of each applicant for disability retirement benefits in accordance with 
related rules established by the board, 'Nhich must inolude provisions indioating when 
a case must be revie'.ved by a medioal board and when alternative means of medical 
oonsultation are acceptable. Rules adopted pursuant to this paragraph are routine 
teohnioal rules as defined in chapter 375, subchapter 2 A. Whether provided by the 
medical board or by an alternative means, medical consultation obtained by the 
exeoutive director must be objective and be provided by a medioal provider or 
medical providers qualified to review the case by specialty or experience and to 
1.vhom the applicant is not known section 17106-B. 
Sec. 35. 5 MRSA §18526, as amended by PL 2017, c. 88, §33, is further amended 
to read: 
§18526. Examinations or tests 
Any examinations or tests recommended by the medical board in accordance 1,vith 
conducted under section -1-7--We 17106-B or required by the executive director under 
section 18521, subsection 1, paragraph D; section 18524; section 18529, subsection 2, 
paragraph B; or section 18533, subsection 3, paragraph A, are governed as follows. 
1. Agreed upon medieal health care provider. The examinations or tests must be 
conducted by a qualified medical health care provider mutually agreed upon by the 
executive director and the member claiming to be disabled. 
2. Agreed upon place. The examinations or tests shall must be conducted at the 
health care provider's office or facility or at a place mutually agreed upon by the 
executive director and the member claiming to be disabled. 
3. Costs. The costs incurred under subsections 1 and 2 shall must be paid by the 
retirement system. 
Sec. 36. 5 MRSA §18527, first ,r, as amended by PL 2003, c. 387, §11, is further 
amended to read: 
Upon agreement of the executive director and the person, rehabilitation services may 
be provided to any person who is the recipient of a disability retirement benefit under this 
article as a means to the person being able to return to substantially gainful activity. As a 
condition of entering into an agreement to provide rehabilitation services, the executive 
director must determine that rehabilitation is feasible, that rehabilitation is consistent with 
the purposes of this article, that the recipient is suitable for rehabilitation services and that 
rehabilitation services are likely to lead to substantially gainful activity. 
When 
appropriate, determination of suitability must include consultation with the medical board 
to determine any medical indications that the recipient should not engage in a 
rehabilitation program or to identify a recipient too se:verely disabled to beMfit from 
rehabilitation services in accordance with the purposes of this article. Services must be 
provided by private and public rehabilitation counselors, government agencies and others 
approved by the executive director as qualified to provide rehabilitation services. The 
executive director shall consider a rehabilitation counselor's rate of successfully placing 
rehabilitated employees in jobs relative to the placement rates of other counselors in the 
State as fundamental in deciding whether to approve the counselor as qualified. This 
COMMITTEE AMENDMENT 
C. 
~,::5 
COMMITTEE AMENDMENT" ft" to S.P, 680, L.D. 1978 [s .,f141) 
section does not affect the ongoing requirement that a person remain disabled in order to 
continue to receive disability benefits. 
Sec. 37. 5 MRSA §18529, sub-§2, ~' as amended by PL 2003, c. 675, §4, is 
further amended to read: 
B. The executive director may require, once each year, that the person undergo 
examinations or tests, conducted in accordance with section 18526, to determine the 
person's disability. The exeeutive director may refer the records dooumea-ting the 
results of the ffiEaminations or tests and the person's file to the medical board for 
medical consultation regarding rehabilitation in accordance vlith section 17106, 
subsection 3, paragraph E. 
(1) After the disability has continued for 2 years, the disability must render the 
person unable to engage in any substantially gainful activity that is consistent 
with the person's training, education or experience and average final 
compensation adjusted by the same percentage adjustment as has been received 
under section 18407. The disability retirement benefit continues if the person can 
effectively demonstrate to the executive director that the person is actively 
seeking work. 
For purposes of this subparagraph, the ability to engage in 
substantially gainful activity is demonstrated by the ability to perform work 
resulting in annual earnings that exceed $20,000 or 80% of the recipient's average 
final compensation at retirement, whichever is greater, adjusted by the same 
percentage adjustments granted under section 18407. 
(2) If the person refuses to submit to the examinations or tests under this 
paragraph, the disability retirement benefit is discontinued until that person 
withdraws the refusal. 
(3) If the person's refusal under subparagraph (2) continues for one year, all 
rights to any further benefits under this article cease. 
(4) If it is determined, on the basis of the examinations or tests under this 
paragraph, that the disability of a person no longer exists, the payment of the 
disability retirement benefit ceases. 
(5) The executive director shall notify the person in writing of the decision to 
discontinue the disability retirement allowance under subparagraph (2) or ( 4 ). 
(a) The decision is subject to appeal under section 17451. 
(b) If the person appeals the executive director's decision, the disability 
retirement allowance may not be discontinued until all appeals have been 
exhausted. 
Sec. 38. 5 MRSA §18530, sub-§2, ,re, as enacted by PL 1989, c. 409, §§11 and 
12, is amended to read: 
C. If, during the first 5 years of reemployment, the person again becomes disabled, 
terminates employment and is not covered by any other disability program, the 
retirement system shall resume paying the disability retirement benefit payable prior 
to the reemployment with all applicable cost-of-living adjustments and shall provide 
COMMITTEE AMENDMENT 
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~~; 
COMMITTEEAMENDMENT";j "to S.P. 680, L.D. 1978 / ~ .. ,·L-/U'~ 
IT 
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rehabilitation services ffi½deF in accordance with section 18527 if recommended by 
the medical board. If the benefit payable under the other disability program is not 
equal to or greater than the benefit under this article, the retirement system shall pay 
the difference between the amount of the benefit payable under the other disability 
program and the amount of the benefit payable under this article. The executive 
director shall require examinations or tests to determine whether the person is 
disabled as described in section 18521; and 
Sec. 39. 5 MRSA §18530, sub-§3, ,IE, as enacted by PL 1989, c. 409, §§ 11 and 
12, is amended to read: 
E. If, during the first 5 years of reemployment, the person again becomes disabled 
and terminates employment, the retirement system shall resume paying the disability 
retirement benefit payable prior to the reemployment with all applicable cost-of-
living adjustments, or if greater, a disability retirement benefit based upon the 
person's current average final compensation and shall provide rehabilitation services 
ffi½deF in accordance with section 18527 if recommended by the medical board. The 
executive director shall require examinations or tests to determine whether the person 
is disabled as defmed in section 18521; and 
Sec. 40. 5 MRSA §18553, sub-§3, 1A, as amended by PL 1991, c. 469, §5, is 
further amended to read: 
A. 
A surviving spouse of the qualifying member is paid a $150 benefit each month 
beginning the first month after the death occurs and continuing during the surviving 
spouse's lifetime, if: 
(1) The deceased qualifying member had 10 years of creditable service at the 
time of death; or 
(2) The surviving spouse is certified by the medical board an independent health 
care provider to be permanently mentally incompetent or permanently physically 
incapacitated and is determined by the executive director to be unable to engage 
in any substantially gainful employment. 
A full month's benefit is paid to the estate of the surviving spouse for the month in 
which the surviving spouse dies. 
Sec. 41. 5 MRSA §18553, sub-§5-A, 1A, as amended by PL 1991, c. 469, §5, is 
further amended to read: 
A. A designated beneficiary who is alive at the time of the death of the qualifying 
member is paid $150 per month beginning the first month after the death occurs and 
continuing until the date of the designated beneficiary's death, if the designated 
beneficiary is certified by the medical board an independent health care provider to 
be permanently mentally incompetent or permanently physically incapacitated and is 
determined by the executive director to be unable to engage in any substantially 
gainful employment. 
Sec. 42. 
Implementation plan for mandatory long-term disability 
insurance. 
The Maine Public Employees Retirement System shall convene a 
stakeholder group, including representatives of participant employers and employee 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A "to S.P. 680, L.D. 1978 ( S·-L/L/J) 
groups, to develop an implementation plan for providing mandatory long-term disability 
insurance coverage to retirement system members through their employers. The Maine 
Public Employees Retirement System shall submit an implementation plan, including any 
recommended legislation, to the joint standing committee of the Legislature having 
jurisdiction over retirement matters no later than January 4, 2021. The joint standing 
committee of the Legislature having jurisdiction over retirement matters may report out 
legislation in the First Regular Session of the 130th Legislature based on the report. 
Sec. 43. 
Reports on disability retirement. The Maine Public Employees 
Retirement System shall report twice to the joint standing committee of the Legislature 
0 
having jurisdiction over retirement matters, no later than March 31, 2021 and January 31, 
2022, on the experience of the system and its members after the implementation of this 
Act. The joint standing committee of the Legislature having jurisdiction over retirement 
matters may report out a bill to the 130th Legislature on matters related to the reports. 
Sec. 44. Application. This Act applies to disability retirement benefit applications 
received by the Maine Public Employees Retirement System on or after the effective date 
of this Act.' 
SUMMARY 
This amendment replaces the bill and is the majority report of the committee. The 
amendment makes changes consistent across retirement programs of the Maine Public 
Employees Retirement System; clarifies the decision-making process for disability 
retirement applications; eliminates expansion of the definition of "disability" and creation 
of a preapproval benefit to avoid creating an unfunded actuarial liability; specifies that 
independent medical examinations may take place at the health care provider's office or 
facility; and requires the retirement system to report to the joint standing committee of the 
Legislature having jurisdiction over retirement matters on the experience of the 
retirement system and its members under the changes. The amendment also requires 
formation of a stakeholder group to report to the joint standing committee of the 
Legislature having jurisdiction over retirement matters on implementing mandatory long-
term disability insurance coverage. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/15/20 .;:wac 
LD 1978 
LR2648(02) 
An Act To Improve the Disability Retirement Program of the Maine Public Employees Retirement 
System 
Fiscal Note for Bill as Amended by Committee Amendment '~'(:;;~ljl{J) 
Committee: Labor and Housing 
·· 
Fiscal Note Required: Yes 
Fiscal Note 
Increased administrative costs - Maine Public Employees Retirement System 
Fiscal Detail and Notes 
Implementing the requirements of this legislation will result in increased administrative costs to the Maine Public 
Employees Retirement System. All retirement system administrative costs are charged against the assets held by tJ-v 
system. No General Fund appropriations are required. 
LR2648(02) - Fiscal Note - Page 1 of I