An Act To
Maine Legislature, Session 129, LD 0467
Committee Amendment CA_A_H550 (House)

COMMITTEE AMENDMENT "A" to H.P. 351, L.D. 467, Bill, "An Act To 
Amend the Eligibility Criteria for Creditable Service in the Armed Forces of the United 
States under the State Retirement System" 
Amend the bill by adding after section 2 the following: 
'Sec. 3. Appropriations and allocations. The following appropriations and 
allocations are made. 
RETIREMENT SYSTEM, MAINE PUBLIC EMPLOYEES 
Retirement System - Retirement Allowance Fund 0085 
Initiative: Provides one-time funds for the unfunded actuarial liability created as a result 
of expanding the periods of conflict for which members of the State Employee and 
Teacher Retirement Program who served in the armed forces during those conflicts can 
purchase service credit at a subsidized rate. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2019-20 
$5,600,000 
$5,600,000 
2020-21 
$0 
$0 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment is the majority report of the committee. It adds an appropriations 
and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/20/19 ~ac=.. 
LD467 
LR 554(02) 
An Act To Amend the Eligibility Criteria for Creditable Service in the Armed Forces of the United 
States under the State Retirement System 
Fiscal Note for Bill as Amended by Committee Amendment A{µ .. sso) 
Committee: Labor and Housing 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2019-20 
FY 2020-21 
$5,600,000 
$0 
$5,600,000 
$0 
Projections 
FY 2021-22 
$0 
$0 
Projections 
FY2022-23 
$0 
$0 
Expanding the periods of conflict in which members of the State Employee and Teacher Retirement Plan who served 
in the armed forces during those periods of conflicts can purchase service credit at a subsidizable rate will increase the 
unfunded actuarial liability (UAL) of the Maine Public Employees Retirement System (MainePERS). Pursuant to the 
Constitution of Maine, Article IX, Section 18-A, unfunded liabilities may not be created except those that result from 
experience losses. 
Because the number of members who have served in the expanded periods of conflict and how many of those eligible 
members would choose to purchase the additional service credits are not known, MainePERS could not determine the 
actual cost of this provision. However, on average MainePERS receives approximately 8 inquiries per year from 
members in the State Employee and Teacher Retirement Plan who, had this provision been in place, would have been 
eligible to purchase the service credits at the subsidized rate. The subsidized portion of the total cost for the 
additional service credits for those members that requested estimates range from $60,000 to $80,000 per member. 
Assuming 8 members per year purchase service credits each year and that the members are within 10 to 15 years of 
retirement age, the total cost of this provision could range from $5.6 million to $8.4 million, which will need to be 
funded immediately in order to avoid the creation of an unfunded actuarial liability. This bill includes a one-time 
General Fund appropriation of $5,600,000 to the Retirement Allowance Fund within MainePERS to fund the UAL at 
the lower estimated cost. However, additional funding may need to be provided immediately if the actual cost of this 
provision is greater than the funding provided in this bill. 
LR0554(02) - Fiscal Note - Page 1 of 1