An Act To Remove Certain Restrictions Imposed on Retired State Employees Who Return to Work as Educators
Maine Legislature, Session 129, LD 1220
Committee Amendment CA_A_H566 (House)
Amends: 5 MRSA §17859

COMMITTEE AMENDMENT "A" to H.P. 880, L.D. 1220, Bill, "An Act To 
Remove Certain Restrictions Imposed on Retired State Employees Who Return to Work 
as Educators" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Remove Certain Restrictions Imposed on Retired State Employees Who 
Return to Work' 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'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 state employee or teacher who has reached normal 
retirement age an.d V/flO retires after September 1, 2(H 1 may be restored to service fer-ap 
to 5 years. The decision to hire a retired state employee ot 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. 
Effeetive } .. 1:lgl.lst 1, 2014, a elassroom based employee who has reaehed normal 
retirement age and who retires after September 1, 2011 Any retired state employee. 
retired teacher or retired school administrator 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: 
COMMITTEE AMENDMENT 
\( 
COMMITTEE AMENDMENT" A" to H.P. 880, L.D. 1220 
A. In one-year contracts, which may be nonconsecutive. The maximl:l:Bl time that a 
elassreom based employee may be restored to serviee with an ituli-videal sehool 
administrative 1ffiit: a:arseant to this naraeranh is 5 ¥ears:,. 
R 
Sebjeet to the 5 year restrietion St')eoified m s-uaseotion 1 and the 75% 
eompoosation limitation for retired state employees and retired teaehers speeified in 
saaseetion 2, paragraph A,; or 
C. 
IR any eombmation of paragraphs A and B, as long as the total time the 
olassroom based employee is restored to servioe does not 6*eeed 10 years with an 
mdividaal sehool admm.istrative llll.it. 
The retired classroom-based employee 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. 
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. 
l. Cempensatien and benefits, The eompensation and benefits of the retired state 
employee or retired teaeher who retaras to serv:iee after retirement as set out m subseetion 
is gw;smed by this sabseetion. 
A. The eompensation of the retired state employee or retired teaeher y,rho returns to 
serviee must be set at 75% of the eompensation. established for the position to be 
filled, at a step determined by the appointing aathority. The eompensation of the 
retired elassroom eased employee who retums to serviee as a elassroom based 
employee purSliant to suasection 1 A, paragr~ }... m:ast be set at 100% of the 
eompensation established for the position. to l:,e filled, at a step determined by the 
sehool administrative lffiit:, for up to the maximum 5 year period that a elassroom 
based employee may eon.traet \Vith an individual sehool admmistrative umt. 
B. The retired state employee or retired teaeher who returns to serviee uooer this 
seetion is not a member and therefore may not aeeme additional eredital:,le serviee or 
ehange the retired state employee's or retired teaoher's eamaale eompensatioR for 
beRefit ealeulation pllfj:')Oses. 
C. Daring the period of reemployment, the retired state employee or retired teaeher 
is not entitled to health msuranee, dental illsaraRoe or life iHsuran.ee booefits. The 
retired state employee or retired teaeher is ootitled to all other benefits for the 
reemployment positioa lffider eollective eargaillmg agreemeats or eivil serviee lav,s 
and rules. Health msaran.ee eenefits must ee provided llll.der the prov-isioRs of seetioa 
285, sabseetion. 1 A for retired state employees or Title 20 i .. , seotioR 13451 for 
retired teaehers and life illsaran.ee benefits mast be provided llll.der the prov-isioas of 
seetioa 18055. 
2-A. Compensation. The compensation rate of the retired state employee, retired 
teacher or retired school administrator returning to service under subsection 1 or 1-A is 
the same as is required for the position as if the position were filled by an employee who 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to H.P. 880, L.D. 1220 
is not a retired state employee. retired teacher or retired school administrator. 
The 
compensation rate is determined on the basis of the position under any applicable 
collective bargaining agreement or determined through normal salary negotiations when 
the position is not part of a collective bargaining unit. 
2-B. Benefits. The benefits of the retired state employee. retired teacher or retired 
school administrator who returns to service after retirement as set out in subsection 1 or 
1-A are governed by this subsection. 
A. 
During the period of reemployment, a retired teacher or retired school 
administrator continues to receive any retirement benefits that the teacher or 
administrator is entitled to under Title 20-A. section 13451. 
B. During the period of reemployment. a retired state employee continues to receive 
any retirement benefits that the employee is entitled to under sections 285 and 18055. 
C. During the period of reemployment. a retired state employee. retired teacher or 
retired school administrator who is not receiving any retirement benefits as described 
in paragraphs A and B is eligible for such benefits as per the local collective 
bargaining agreement or established through normal negotiations if the position is not 
part of a collective bargaining unit. 
D. During the period of reemployment. a retiree as described in paragraphs A and B 
may receive additional compensation toward such benefits in an amount not to 
exceed that of the local collective bargaining agreement if applicable. 
3. Con-trihutions to the Maine :Puhlie Employees Retirement System and sta-te 
greUjJ health plan. The portion of the employer eontrimition that goes to pay the 
retkement system. for the l:HlfuRded liability aad the state group health plaB for retiree 
health eare mest 1:,e eontin.ued aad based o:e the retked state emplo;ree's or retired 
teaeher's eomaeBsa-tioB as Brov-ided l:Hlder sHbseetion 2. dl'lrinec the reoomlovment Beriod. 
3-A. Contributions to the Maine Public Employees Retirement System. For a 
reemployed retired state employee. retired teacher or retired school administrator. the 
portion of the employer contribution that goes to pay the retirement system for the 
unfunded liability must be continued at the same contribution rate of the employer as 
described in section 17253 as is required for the position as if the position were filled by 
an employee who is not a retired state employee. retired teacher or retired school 
administrator. A retired state employee. retired teacher or retired school administrator 
who returns to service under this section is not a member and therefore may not accrue 
additional creditable service during the reemployment period or change the retired state 
employee's. retired teacher's or retired school administrator's earnable compensation for 
benefit calculation purposes. 
3-B. Contributions to the state group health plan. For a reemployed retired state 
employee. retired teacher or retired school administrator, the portion of the employer and 
employee contribution that goes to pay the state group health plan for health care must be 
continued at the same contribution rate of the employer and employee as is required for 
the position as if the position were filled by an employee who is not a retired state 
employee. retired teacher or retired school administrator. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT «j}" to H.P. 880, L.D. 1220 
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 an 
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. 
S. Exelusion. A. retked state em11le:yee er rstired teaeher whe is hired as a substitate 
teaeher is aet sl:lejeet to the restoratiea to serviee 5 year limi-taticm in subseetion 1 er the 
O 
eempensation limitatien in subseetien 2, paragraph} ... ' 
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 and replaces the bill. It 
amends the provisions of the Maine Public Employees Retirement System regarding 
compensation and service retirement benefits for retired state employees, retired teachers 
and retired school administrators who return to service as classroom-based employees or 
school administrators in the following ways. 
1. It removes the 5-year limit on a retired state employee or retired teacher to be 
restored to service. 
2. It removes the cap of 75% of compensation established for the position that the 
retired state employee or retired teacher is filling. 
3. It allows a retired state employee, retired teacher or retired school administrator 
who returns to service to receive retirement, health, dental and life insurance benefits as 
negotiated by the retired state employee, retired teacher or retired school administrator or 
as required under collective bargaining agreements. 
4. It requires that the portions of the employer and employee contributions that go to 
pay the retirement system for the unfunded liability and the state group health plan for 
health care must be continued at the same contribution rate of the employer and employee 
as is required for the position as if the position were filled by an employee who is not a 
retired state employee, retired teacher or retired school administrator. A retired state 
employee, retired teacher or retired school administrator who returns to service is not a 
member and therefore may not accrue additional creditable service during the 
reemployment period or change the retired state employee's, retired teacher's or retired 
school administrator's eamable compensation for benefit calculation purposes. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/03/19 fea<=.. 
LD 1220 
LR363(02) 
An Act To Remove Certain Restrictions Imposed on Retired State Employees Who Return to Work as 
Educators 
Fiscal Detail and Notes 
Fiscal Note for Bill as Amended by Committee Amendment A•(/1-5(,{,j 
Committee: Labor and Housing 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium cost increase - All funds 
Removing the requirement that the compensation of a 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 may result in increased costs to the 
State or local school administrative units to fill a position with a retiree versus what it would cost absent this 
legislation if compensation is increased for any employees above 75%. 
Allowing retired state employees and retired teachers to receive compensation greater than 75% when returning to 
work may result in more retirees opting to return to service, resulting in the State and school administrative units 
paying less for certain benefits than would be paid ifreplacement workers had to be hired to fill vacant positions. The 
benefits for returning retired employees are less expensive because they do not accrue additional retirement benefits 
for the time worked after returning to work. To the extent that retirees who return to work are paid higher salaries 
than what would be paid to replacement workers hired to fill a vacant position, any costs from higher wages would be 
partially offset by lower benefit costs. 
LR0363(02) - Fiscal Note - Page 1 of 1