An Act Relating to the Computation of Benefits for Correctional Officers in the 1998 Special Retirement Plan Reported by the Majority from the Committee for the Joint Standing Committee on Labor and Housing pursuant to Joint Order 2019, S.P. 584.
Maine Legislature, Session 129, LD 1842

Legislative Document
No. 1842
S.P. 627
In Senate, June 14, 2019
An Act Relating to the Computation of Benefits for Correctional 
Officers in the 1998 Special Retirement Plan
Reported by the Majority from the Committee for the Joint Standing Committee on Labor 
and Housing pursuant to Joint Order 2019, S.P. 584.
DAREK M. GRANT
Secretary of the Senate
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  Computation of service retirement benefits for certain employees 
of the Department of Corrections.  Notwithstanding the Maine Revised Statutes, 
Title 5, section 17851-A, subsection 4 or any other provision of law to the contrary, the 
service retirement benefit of a qualified member must be computed on the basis of all of 
the qualified member's creditable service in the capacity specified in Title 5, section 
17851-A, subsection 1, paragraph I, regardless of when that creditable service was 
earned, except that for a member qualifying for a retirement benefit under Title 5, section 
17851-A, subsection 2, paragraph B:
1.  If the member had 10 years of service on July 1, 1993, the benefit must be reduced 
as provided in Title 5, section 17852, subsection 3, paragraphs A and B for each year the 
member's age precedes 55 years of age; or
2.  If the member had fewer than 10 years of creditable service on July 1, 1993, the 
benefit must be reduced by 6% for each year that the member's age precedes 55 years of 
age.
Sec. 2.  Qualified member; definition. As used in this Act, "qualified member" 
means a member on the effective date of this Act to whom the Maine Revised Statutes, 
Title 5, section 17851-A, subsection 1, paragraph I applies and who:
1.  Was employed by the Department of Corrections prior to January 1, 2000;
2.  Is employed in a correctional facility as defined in Title 34-A, section 1001, 
subsection 6; and
3.  Receives a direct care stipend pursuant to a collective bargaining agreement in 
effect on the effective date of this Act. 
As used in this Act, the terms "creditable service," "member" and "retirement benefit" 
have the same meanings as in Title 5, section 17001.
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 cost of the unfunded actuarial liability created 
by allowing service retirement benefits of certain workers in the Department of 
Corrections who receive a direct care stipend and who are currently under the 1998 
Special Plan but had previously earned retirement benefits under the regular state 
employee and teacher plan to have all their benefits calculated under the 1998 Special 
Plan.
SUMMARY
This bill is being reported out by the Joint Standing Committee on Labor and 
Housing pursuant to Joint Order 2019, S.P. 584, and is the majority report of the 
committee. The bill requires that service retirement benefits for employees of the 
Department of Corrections included in the 1998 Special Plan as of the effective date of 
the bill who receive a direct care stipend pursuant to a collective bargaining agreement 
and who were employed prior to January 1, 2000 be computed on the same basis as 
benefits for other members under the plan are computed; creditable service is included 
regardless of when that service was earned.
The bill includes an appropriations and allocations section to provide funding. 
FISCAL NOTE REQUIRED
(See attached)
GENERAL FUND
2019-20
2020-21
All Other
$543,000
$0
GENERAL FUND TOTAL
$543,000
$0
Revised: 06/09/19
LD  1842     
LR 2549(01)
FY 2019-20
FY 2020-21
Projections 
FY 2021-22
Projections 
FY 2022-23
Net Cost (Savings)
General Fund
$543,000
$0
$0
$0
Appropriations/Allocations
General Fund
$543,000
$0
$0
$0
Fiscal Detail and Notes
This bill includes a one-time General Fund appropriation of $543,000 in fiscal year 2019-20 to the Retirement System 
- Retirement Allowance Fund for the cost of the unfunded actuarial liability created by allowing service retirement 
benefits of certain workers in the Department of Corrections who received a direct care stipend and who are currently 
under the 1998 Special Plan but had previously earned retirement benefits under the regular state employee and 
teacher plan to have all their benefits calculated under the 1998 Special Plan.
Fiscal Note Required: Yes
Fiscal Note
An Act To Amend the Laws Relating to the Computation of Benefits for Correctional Officers in the 
1998 Special Retirement Plan
Fiscal Note for Original Bill
Committee: Labor and Housing
LR2549(01) - Fiscal Note - Page 1 of 1