An Act To Improve the Disability Retirement Program of the Maine Public Employees Retirement System
Maine Legislature, Session 129, LD 1978
Committee: Labor and Housing
Sponsors: MIRAMANT, INGWERSEN, BELLOWS, JACKSON, POULIOT, BERRY, HARNETT, HUBBELL, TALBOT ROSS
Amends: 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 §17106-B, 5 MRSA §17902, 5 MRSA §17911, 5 MRSA §17921, 5 MRSA §17925, 5 MRSA §17926, 5 MRSA §17927, 5 MRSA §17929, 5 MRSA §17930, 5 MRSA §17953, 5 MRSA §18502, 5 MRSA §18512, 5 MRSA §18525, 5 MRSA §18526, 5 MRSA §18527, 5 MRSA §18529, 5 MRSA §18530, 5 MRSA §18553

Legislative Document
No. 1978
S.P. 680
In Senate, January 8, 2020
An Act To Improve the Disability Retirement Program of the Maine 
Public Employees Retirement System
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203.
Reference to the Committee on Labor and Housing suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator MIRAMANT of Knox.
Cosponsored by Representative INGWERSEN of Arundel and
Senators: BELLOWS of Kennebec, President JACKSON of Aroostook, POULIOT of 
Kennebec, SANBORN, H. of Cumberland, Representatives: BERRY of Bowdoinham, 
HARNETT of Gardiner, HUBBELL of Bar Harbor, TALBOT ROSS of Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  3 MRSA §734, as amended by PL 2017, c. 88, §2, is repealed.
Sec. 2.  4 MRSA §1201, sub-§6-A, ¶B, 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 medical 
board 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. 3.  4 MRSA §1234, as amended by PL 2017, c. 88, §5, is further amended to 
read:
§1234.  Medical board 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 
examinations required under this chapter with 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 
providers to provide medical consultation on judicial disability cases.
Sec. 4.  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, review 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 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. 5.  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 17106-A and 
17106-B, the court shall review the matter de novo.
Sec. 6.  5 MRSA §17001, sub-§12, ¶B, 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 
board 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. 7.  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, or any business establishment providing health care services.
Sec. 8.  5 MRSA §17106, as amended by PL 2017, c. 88, §§14 to 16, is repealed.
Sec. 9.  5 MRSA §17106-A, first ¶, as enacted by PL 2009, c. 322, §7, is 
amended to read:
A hearing officer employed, contracted 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 contractors that serve as 
neutral and independent decision makers.
Sec. 10.  5 MRSA §17106-A, sub-§1, as enacted by PL 2009, c. 322, §7, is 
amended to read:
1.  Independent decision makers.  All hearing officers are independent decision 
makers and are authorized to make recommended final decisions in regard to matters that 
come before them, consistent with applicable statutes and rules.  A decision of the 
hearing officer must be based upon the record as a whole.  The Except as provided in 
section 17106-B, the board shall accept the recommended decision of the hearing officer 
unless the recommended decision is not supported by the record as a whole, the 
retirement system is advised by the Attorney General that the hearing officer has made an 
error of law or the decision exceeds the authority or jurisdiction conferred upon the 
hearing officer.  A decision of the board upon a recommended decision of the hearing 
officer constitutes final agency action.  The board shall retain its decision-making 
authority in all retirement system policy areas.
Sec. 11.  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 
qualified 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. 12.  5 MRSA §17106-B is enacted to read:
§17106-B.  Disability retirement; medical review
1.  Disability retirement forms; assessment; preapproval benefit.  The board shall 
develop and make easily accessible to health care providers in this State a residual 
functional capacity form that allows a provider to provide an assessment of a member's 
ability to work after taking into account the member's mental or physical disability.  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, the 
health care provider, at the request of the member, shall file with the board a residual 
functional capacity form signed by a health care provider.  The provider shall also 
provide a copy of the form to the member.  The board 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.
A.  Beginning with the first full month following the receipt of a residual functional 
capacity form that states a member is unable to perform essential functions of a job 
due to a disability that is expected to last at least 12 months, the member must be 
granted a preapproval benefit calculated at 50% of full disability retirement for 6 
months or until a determination of disability is made entitling the member to full 
disability retirement, whichever comes first.  This preapproval payment may be made 
upon a disability application only once within a 5-year period.
2.  Medical review.  If the board is unable to determine whether a member is eligible 
for disability retirement based on the information provided in the residual functional 
capacity form under subsection 1, the board shall direct the member to have an 
independent medical examination by an independent health care provider.
A.  The board 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 board other than providing the independent medical examination 
and receiving payment for that service 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 board shall reimburse the member's representative as 
follows:
(1)  If the representative is a health care provider, the board shall pay that 
provider a standard per diem rate established by the board and a reasonable 
mileage reimbursement; and
(2)  Any other representative of the member must be paid a reasonable mileage 
reimbursement only.
3.  Disability specialist finding; board determination; appeal.  After an 
independent medical review under subsection 2, the board shall refer the member's 
application to an employee of the board who is a disability specialist, who shall, in 
consultation with the board, make a finding of disability based upon the totality of the 
evidence and in accordance with subsection 4.  A finding by the disability specialist may 
be accepted or rejected by the board.  A final decision of the board 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.
4.  Medical evidence.  When reviewing medical evidence in making a determination 
of disability, the board, disability specialists 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 hearing officer's 
decision and 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 board up to a maximum of $12,000.  The fee arrangement may be a 
contingency fee, in which case the payment by the board must be applied toward the 
satisfaction of the contingency fee.
Sec. 13.  5 MRSA §17902, sub-§1, ¶A, as amended by PL 2017, c. 88, §22, is 
further amended to read:
A.  The executive director shall obtain medical consultation on each applicant for 
disability retirement benefits in accordance with related rules established by the 
board, which must include provisions indicating when a case must be reviewed 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, subchapter 2-A.  Whether provided by the medical board or by an 
alternative means, medical Medical consultation obtained by the executive director 
must be objective and be provided by a medical provider or medical providers 
qualified to review the case by specialty or experience and to whom the applicant is 
not known.
Sec. 14.  5 MRSA §17911, first ¶, 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.  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 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. 15.  5 MRSA §17921, sub-§1, as enacted by PL 1989, c. 409, §§8 and 12, is 
amended to read:
1.  Disabled.  "Disabled" means that the member is mentally or physically 
incapacitated under the following conditions:
A.  The incapacity is expected to be permanent result in death or has lasted or is 
expected to last for a continuous period of at least 12 months;
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 or without reasonable 
and appropriate accommodation;
C.  After the incapacity has continued for 2 years, the incapacity must render the 
member unable either to earn at least 75% of the member's predisability earnings or 
to engage in any substantially gainful activity for which the member is qualified by 
training, education or experience; and
D.  The incapacity may be revealed by examinations or tests conducted in accordance 
with section 17926.
Sec. 16.  5 MRSA §17925, sub-§1, ¶A, as amended by PL 2017, c. 88, §25, is 
further amended to read:
A.  The executive director shall obtain medical consultation on each applicant for 
disability in accordance with related rules established by the board, which must 
include provisions indicating when a case must be reviewed 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, 
subchapter 2-A.  Whether provided by the medical board or by an alternative means, 
medical Medical consultation obtained by the executive director must be objective 
and be provided by a medical provider or medical providers qualified to review the 
case by specialty or experience and to whom the applicant is not known.
Sec. 17.  5 MRSA §17926, first ¶, as amended by PL 1995, c. 643, §11, is further 
amended to read:
Any examinations or tests recommended by the medical board in accordance with 
conducted under section 17106 17106-B or required by the executive director under 
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.
Sec. 18.  5 MRSA §17927, first ¶, 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 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 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. 19.  5 MRSA §17929, sub-§2, ¶B, 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 executive 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 
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. 20.  5 MRSA §17930, sub-§2, ¶C, 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 under 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. 21.  5 MRSA §17930, sub-§3, ¶E, 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 final compensation and shall provide rehabilitation services 
under in accordance with section 17927 if recommended by the medical board.  The 
executive director shall require examinations or tests to determine whether the person 
is disabled as defined in section 17921; and
Sec. 22.  5 MRSA §17953, sub-§3, ¶A, 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. 23.  5 MRSA §17953, sub-§5-A, ¶A, 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. 24.  5 MRSA §18502, sub-§1, ¶A, as amended by PL 2017, c. 88, §30, is 
further amended to read:
A.  The executive director shall obtain medical consultation on each applicant for 
disability retirement benefits in accordance with related rules established by the 
board, which must include provisions indicating when a case must be reviewed 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, subchapter 2-A.  Whether provided by the medical board or by an 
alternative means, medical Medical consultation obtained by the executive director 
must be objective and be provided by a medical provider or medical providers 
qualified to review the case by specialty or experience and to whom the applicant is 
not known.
Sec. 25.  5 MRSA §18512, first ¶, 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, 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 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. 26.  5 MRSA §18525, sub-§1, ¶A, as amended by PL 2017, c. 88, §32, is 
further amended to read:
A.  The executive director shall obtain medical consultation on each applicant for 
disability in accordance with related rules established by the board, which must 
include provisions indicating when a case must be reviewed 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, 
subchapter 2-A.  Whether provided by the medical board or by an alternative means, 
medical Medical consultation obtained by the executive director must be objective 
and be provided by a medical provider or medical providers qualified to review the 
case by specialty or experience and to whom the applicant is not known.
Sec. 27.  5 MRSA §18526, first ¶, as amended by PL 1995, c. 643, §23, is further 
amended to read:
Any examinations or tests recommended by the medical board in accordance with 
conducted under section 17106 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.
Sec. 28.  5 MRSA §18527, first ¶, 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 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. 29.  5 MRSA §18529, sub-§2, ¶B, 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 executive 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 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. 30.  5 MRSA §18530, sub-§2, ¶C, 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 
rehabilitation services under 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. 31.  5 MRSA §18530, sub-§3, ¶E, 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 
under 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 defined in section 18521; and
Sec. 32.  5 MRSA §18553, sub-§3, ¶A, 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. 33.  5 MRSA §18553, sub-§5-A, ¶A, 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.
SUMMARY
This bill amends the laws relating to disability retirement under the Maine Public 
Employees Retirement System and makes other changes relating to the structure of the 
Maine Public Employees Retirement System.  This bill:
1.  Repeals the laws providing for a medical board to review applications for 
disability retirement;
2.  Provides that the system's hearing officers are not employees of the Board of 
Trustees of the Maine Public Employees Retirement System but independent contractors 
that serve as neutral and independent decision makers;
3.  Modifies the definition of "disabled";
4.  Provides that a member seeking disability retirement must obtain a residual 
functional capacity assessment from a health care provider.  The bill defines "health care 
provider."  The board may find that a member has a mental or physical disability and is 
eligible for disability retirement based on the information provided through the 
assessment.  If the board is unable to determine whether the member is eligible for 
disability retirement based on the information provided through the assessment, the board 
must direct the member to have an independent medical examination by an independent 
health care provider.  After an independent medical review, the board must refer the 
member's application to a disability specialist, who must, in consultation with the board, 
make a finding of disability based upon the totality of the evidence.  A final decision of 
the board that the member is not disabled may be appealed by the member to a hearing 
officer.  An adverse decision by the hearing officer may be appealed to the court, which 
must review the matter de novo;
5.  Provides that, beginning with the first full month following the receipt of a 
residual functional capacity form that states a member is unable to perform essential 
functions of a job due to a disability that is expected to last at least 12 months, the 
member must be granted a preapproval benefit calculated at 50% of full disability 
retirement for 6 months or until a determination of disability is made entitling the 
member to full disability retirement, whichever comes first.  This preapproval payment 
may be made upon a disability application only once within a 5-year period;
6.  Provides that, when reviewing medical evidence in making a determination of 
disability, the board, disability specialists and hearing officers must 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; and
7.  Provides that, 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 hearing officer's 
decision and 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 board up to a maximum of $12,000.  The attorney may have a contingency 
fee arrangement, in which case any payment from the board must be applied toward the 
satisfaction of the contingency fee.