An Act To Amend Certain Laws Pertaining to the Maine Public Employees Retirement System
Maine Legislature, Session 130, LD 1922
Committee: Labor and Housing
Sponsors: SYLVESTER
Amends: 3 MRSA §701, 4 MRSA §1201, 4 MRSA §1352, 4 MRSA §1355, 4 MRSA §1357, 5 MRSA §17001, 5 MRSA §17054-A, 5 MRSA §17103, 5 MRSA §17154, 5 MRSA §17706-A, 5 MRSA §17760, 5 MRSA §17804, 5 MRSA §17906, 5 MRSA §17930, 5 MRSA §18252, 5 MRSA §18252-A, 5 MRSA §18252-B, 5 MRSA §18307-A, 5 MRSA §18404, 5 MRSA §18802-A

Legislative Document
No. 1922
H.P. 1430
House of Representatives, January 14, 2022
An Act To Amend Certain Laws Pertaining to the Maine Public 
Employees Retirement System
Submitted by the Maine Public Employees Retirement System pursuant to Joint Rule 203.
Received by the Clerk of the House on January 12, 2022.  Referred to the Committee on 
Labor and Housing pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 
401.
ROBERT B. HUNT
Clerk
Presented by Representative SYLVESTER of Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  3 MRSA §701, sub-§2, as enacted by PL 1985, c. 507, §1, is amended to 
read:
2.  Actuarial equivalent.  "Actuarial equivalent" means a benefit which is an amount 
of equal value when computed at regular interest, based on the mortality and service tables 
the discount rate contained in actuarial assumptions adopted by the board of trustees.
Sec. 2.  4 MRSA §1201, sub-§2, as enacted by PL 1983, c. 853, Pt. C, §§15 and 18, 
is amended to read:
2.  Actuarial equivalent.  "Actuarial equivalent" means a benefit which is an amount 
of equal value when computed at regular interest, based on the mortality and service tables 
the discount rate contained in actuarial assumptions adopted by the board of trustees.
Sec. 3.  4 MRSA §1352, sub-§5, as amended by PL 1997, c. 643, Pt. M, §12, is 
repealed.
Sec. 4.  4 MRSA §1355, as amended by PL 2007, c. 491, §52, is further amended to 
read:
§1355.  Ordinary death benefits
If a member who is in service or a former member who is a recipient of a disability 
retirement allowance dies, the member's beneficiary, or relative if the member has no 
designated beneficiary, is entitled to benefits on the same basis as provided for beneficiaries 
of state employees who are members of the State Employee and Teacher Retirement 
Program by Title 5, chapter 423, subchapter 5, article 3 4.
Sec. 5.  4 MRSA §1357, sub-§2, as amended by PL 2007, c. 491, §§54 to 57, is 
further amended by amending the 2nd blocked paragraph to read:
For the purposes of this subsection, "qualifying member" means a member or a former 
member who is has been receiving a disability retirement benefit and changes to service 
retirement under section 1353, subsection 7.
Sec. 6.  5 MRSA §17001, sub-§2, as amended by PL 1993, c. 387, Pt. A, §3, is 
further amended to read:
2.  Actuarial equivalent.  "Actuarial equivalent" means an amount of equal value 
when computed at an interest the discount rate contained in actuarial assumptions adopted 
by the board and upon the basis of mortality and service tables adopted by the board.  
"Actuarial equivalent," when used to indicate the amount that must be paid in order to 
purchase service credit, means the amount that equals the cost of additional benefits that 
become payable as a result of the service credit, including, when applicable, the projected 
cost of a member's earlier eligibility for retirement.
Sec. 7.  5 MRSA §17001, sub-§42, as amended by PL 2021, c. 6, §1, is further 
amended to read:
42.  Teacher.  "Teacher" means:
A.  Any employee of a public school or a school management and leadership an 
education service center established pursuant to Title 20‑A, chapter 123 who fills any 
position that the Department of Education requires be filled by a person who holds the 
appropriate certification or license required for that position, other than an educational 
technician position for which certification is not required under Title 20‑A, section 
13019‑H, and:
(1)  Holds appropriate certification from the Department of Education, including 
an employee whose duties include, in addition to those for which certification is 
required, either the setup, maintenance or upgrading of a school computer system 
the use of which is to assist in the introduction of new learning to students or 
providing school faculty orientation and training related to use of the computer 
system for educational purposes; or
(2)  Holds an appropriate license issued to a professional employee by a licensing 
agency of the State;
B.  Any employee of a public school or a school management and leadership an 
education service center established pursuant to Title 20‑A, chapter 123 who fills any 
position not included in paragraph A, the principal function of which is to introduce 
new learning to students, except that a coach who is employed by a public school and 
who is not otherwise covered by the definition of teacher as defined in this subsection 
or an employee who is employed in adult education as defined in Title 20‑A, section 
8601‑A, subsection 1 and who is not otherwise covered by the definition of teacher 
defined in this subsection may not be considered a teacher for purposes of this Part;
C.  Any employee of a public school on June 30, 1989, in a position not included in 
paragraph A or B which that was included in the definition of teacher in effect on June 
30, 1989, as long as:
(1)  The employee does not terminate employment; or
(2)  The employee terminates employment and returns to employment in a position 
in the same classification within 2 years of the date of termination.
Regardless of any subsequent employment history, any employee of a public school in 
a position which that was included in the definition of teacher in effect on June 30, 
1989, is entitled to creditable service as a teacher for all service in that position on or 
before that date;
D.  Any employee of a public school or a school management and leadership an 
education service center established pursuant to Title 20‑A, chapter 123 in a position 
not included in paragraph A, B or C who was a member of the State Employee and 
Teacher Retirement Program of the retirement system as a teacher on August 1, 1988, 
as long as:
(1)  The employee does not terminate employment; or
(2)  The employee terminates employment and returns to employment in a position 
in the same classification within 2 years of the date of termination;
E.  Any former employee of a public school or a school management and leadership an 
education service center established pursuant to Title 20‑A, chapter 123 in a position 
not included in paragraph A, B or C who was a member of the State Employee and 
Teacher Retirement Program of the retirement system as a teacher before August 1, 
1988, as long as the former employee returns to employment in a position in the same 
classification before July 1, 1991; or
F.  For service before July 1, 1989, any employee of a public school in a position which 
that was included in the definition of teacher before July 1, 1989.
"Teacher" includes a person who is on a one-year leave of absence from a position as a 
teacher and is participating in the education of prospective teachers by teaching and 
supervising students enrolled in college-level teacher preparation programs in this State.
"Teacher" also includes a person who is on a leave of absence from a position as a teacher 
and is duly elected as President of the Maine Education Association.
"Teacher" also includes a person who, subsequent to July 1, 1981, has served as president 
of a recognized or certified bargaining agent representing teachers for which released time 
from teaching duties for performance of the functions of president has been negotiated in 
a collective bargaining agreement between the collective bargaining agent and the teacher's 
school administrative unit and for whom contributions related to the portion of the person's 
salary attributable to the released time have been paid as part of the regular payroll of the 
school administrative unit.
Sec. 8.  5 MRSA §17054-A, as enacted by PL 2009, c. 474, §12, is amended to read:
§17054-A.  Responsibilities of employers and the retirement system
Employers are responsible for providing procedures by which employees for whom 
membership in the retirement system is optional make a membership election, for 
maintaining all records relevant to the election process and an individual employee's 
election and for informing the retirement system as to employee elections in accordance 
with procedures established by the chief executive director officer.  The retirement system 
is responsible to ensure that its records accurately reflect the information provided by the 
employer.  With respect to matters related to participation and membership in the retirement 
system other than those specified in this section, the retirement system and the board retain 
responsibility and authority according to applicable retirement system law and rules as to 
the employer and the employees to whom this Part applies, including the authority to make 
final administrative decisions on membership eligibility based on employee membership 
elections as reported by the employer pursuant to this section, the applicable retirement 
system laws and rules and the requirements of the Internal Revenue Code and United States 
Treasury regulations applicable to governmental qualified defined benefit plans.
Sec. 9.  5 MRSA §17103, sub-§6, as amended by PL 2015, c. 384, §1, is further 
amended to read:
6.  Rights, credits and, privileges and membership eligibility; decisions.  The board 
shall in all cases make the final and determining administrative decision in all matters 
affecting the rights, credits and privileges of all members of all programs of the retirement 
system whether in participating local districts or in the state service.  The board shall also 
in all cases make the final and determining administrative decision on membership 
eligibility based on employee membership elections as reported by the employer pursuant 
to section 17054-A, the applicable retirement system laws and rules and the requirements 
of the Internal Revenue Code and United States Treasury regulations applicable to 
governmental qualified defined benefit plans.  The board otherwise has no jurisdiction to 
hear a matter or make an administrative decision regarding a claim of an employee of a 
local plan for which membership is optional pursuant to section 18252, if that claim applies 
to a time when the employee was not a member of the retirement system.
Whenever the board finds that, because of an error or omission on the part of the employer 
of a member or retired member, a member or retired member is required to make a payment 
or payments to the retirement system, the board may waive payment of all or part of the 
amount due from the member or retired member.  In these instances of recovery of 
overpayments from members of the retirement system, the retirement system is governed 
by section 17054, subsection 3.
Sec. 10.  5 MRSA §17103, sub-§8, as amended by PL 1989, c. 483, Pt. A, §§27 
and 63, is further amended to read:
8.  Executive director Chief executive officer.  The board shall appoint an a chief 
executive director officer, whose salary shall must be set by the board subject to the 
requirements of Title 2, section 6‑D.
Sec. 11.  5 MRSA §17103, sub-§11, ¶J, as enacted by PL 2009, c. 322, §4, is 
amended by repealing subparagraph (2).
Sec. 12.  5 MRSA §17103, sub-§11, ¶J, as enacted by PL 2009, c. 322, §4, is 
amended by amending subparagraph (3) to read:
(3)  The net number of applicants for disability retirement who appealed decisions 
that denied disability retirement status; and
Sec. 13.  5 MRSA §17103, sub-§12, as enacted by PL 1993, c. 387, Pt. A, §4, is 
amended to read:
12.  Defined contribution plan, deferred compensation and tax sheltered annuity 
plans.  The board shall establish a one or more defined contribution plan by July 1, 1994 
that is, deferred compensation or tax sheltered annuity plans consistent with the applicable 
requirements of the United States Internal Revenue Code and may be a defined contribution 
plan for other purposes.  The board may establish a separate defined contribution plan or 
plans for other purposes, with employer agreement, offer participation in such plans to 
employees eligible for membership in a retirement program of the retirement system.
Sec. 14.  5 MRSA §17154, sub-§6, ¶J, as enacted by PL 2019, c. 460, §2, is 
amended to read:
J.  Notwithstanding this section, the employer retirement costs and administrative 
operating expenses related to the retirement programs applicable to those teachers 
employed by a school management and leadership an education service center, as 
defined in Title 20‑A, section 3801, subsection 1, paragraph B, whose funding is 
provided from local and state funds must be paid by that school management and 
leadership education service center.
Sec. 15.  5 MRSA §17706-A, sub-§1, as amended by PL 2011, c. 449, §8, is further 
amended by amending the first blocked paragraph to read:
Pursuant to the Code, Section 401(a)(31)(B), the amount of an automatic refund under this 
section for a member who has not reached the later of 62 years of age or normal retirement 
age may not exceed $1,000.
Sec. 16.  5 MRSA §17760, sub-§3, ¶A, as amended by PL 2007, c. 491, §137, is 
further amended by amending subparagraph (3) to read:
(3)  Was awarded an Armed Forces Expeditionary Medal, a Combat Action 
Ribbon, a Combat Infantry Badge or any other campaign or expeditionary medal 
and the receipt of such a medal would allow the member to be considered 
"preference eligible" under 5 United States Code, Section 2108(3)(A) or 
2108(3)(B).  A member described in this subparagraph is entitled to purchase 
service credit at the cost set forth in subsection 4 only if a cost subsidy for that 
member's service credit has been paid to the State Employee and Teacher 
Retirement Program as provided in subsection 6.
Sec. 17.  5 MRSA §17804, sub-§5-A, as enacted by PL 1999, c. 744, §8 and 
affected by §17, is amended to read:
5-A.  Option 4.  The qualifying member may elect to have a reduced retirement benefit 
payable to the qualifying member while alive and at the qualifying member's death to have 
some benefit other than that available under subsection 3 or 4 payable to the beneficiary 
that the qualifying member has designated, if the beneficiary survives the qualifying 
member.  The total value of the benefit paid to the qualifying member during the qualifying 
member's life plus the benefit paid after the qualifying member's death is the actuarial 
equivalent of the benefit that the qualifying member would have received without optional 
modification.  The method used to determine the benefit must be approved by the board, 
and the beneficiary must be designated by written designation, duly notarized 
acknowledged and filed with the chief executive director officer on a form provided or 
specified by the retirement system.
Sec. 18.  5 MRSA §17804, sub-§5-B, as enacted by PL 1999, c. 744, §8 and 
affected by §17, is amended to read:
5-B.  Option 5.  The qualifying member may elect to have a reduced retirement benefit 
payable in part to the qualifying member and in part to the beneficiary, who must be the 
sole beneficiary, while both are alive and, at the death of either, to have the higher benefit 
paid to the survivor for the survivor's life.  The total value of the benefit paid to the 
qualifying member and beneficiary, during the qualifying member's life, plus the benefit to 
be paid after the death of either is the actuarial equivalent of the benefit that the qualifying 
member would have received without optional modification.  The method used to 
determine the benefit must be approved by the board, and the beneficiary must be 
designated by written designation, duly notarized acknowledged and filed with the chief 
executive director officer on a form provided or specified by the retirement system.
Sec. 19.  5 MRSA §17804, sub-§5-C, as enacted by PL 1999, c. 744, §8 and 
affected by §17, is amended to read:
5-C.  Option 6.  The qualifying member may elect to have a reduced retirement benefit 
payable to the qualifying member while alive and, at the qualifying member's death, to 
have the benefit continued in the same amount for the life of the beneficiary, who must be 
the sole beneficiary, that the qualifying member has designated by written designation, duly 
notarized acknowledged and filed with the chief executive director officer on a form 
provided or specified by the retirement system, if the beneficiary survives the qualifying 
member.  If the qualifying member's beneficiary predeceases the qualifying member, the 
qualifying member's benefit must be changed, effective the first day of the month following 
the date of the beneficiary's death, to be the actuarial equivalent of the benefit that the 
qualifying member would have received without optional modification.  The reduced 
retirement benefit must be actuarially calculated to reflect the fact that the benefit may be 
changed to the larger amount should the beneficiary predecease the member.
Sec. 20.  5 MRSA §17804, sub-§5-D, as enacted by PL 1999, c. 744, §8 and 
affected by §17, is amended to read:
5-D.  Option 7.  The qualifying member may elect to have a reduced retirement benefit 
payable to the qualifying member while alive and, at the qualifying member's death, to 
have the benefit continued at 1/2 that amount for the life of the beneficiary, who must be 
the sole beneficiary, that the qualifying member has designated by written designation, duly 
notarized acknowledged and filed with the chief executive director officer on a form 
provided or specified by the retirement system, if the beneficiary survives the qualifying 
member.  If the qualifying member's beneficiary predeceases the qualifying member, the 
qualifying member's benefit must be changed, effective the first day of the month following 
the date of the beneficiary's death, to the actuarial equivalent of the benefit that the 
qualifying member would have received without optional modification.  The reduced 
retirement benefit must be actuarially calculated to reflect the fact that the benefit may be 
changed to the larger amount should the beneficiary predecease the member.
Sec. 21.  5 MRSA §17804, sub-§5-F, as amended by PL 2007, c. 523, §2, is further 
amended to read:
5-F.  Change of beneficiary.  If the recipient of a service retirement benefit has elected 
an optional method of payment under subsection 3, 4, 5, 5-A, 5-B, 5-C, 5-D or 5-E, and 
has designated someone other than a spouse or ex-spouse as sole beneficiary, the recipient 
is permitted a one-time change in the designated beneficiary except as provided in 
paragraph D, but may not change the already elected payment option or the amount of the 
benefits under that option, by filing a written designation of the new beneficiary, duly 
notarized acknowledged, with the chief executive director officer on a form provided or 
specified by the retirement system.  The change of beneficiary permitted by this subsection 
may only be made prior to the death of the prior designated beneficiary.
A.  The benefit payable to the recipient and the new beneficiary must be paid under the 
same payment option.  The amount of the recipient's benefit may not change, and the 
amount of the new beneficiary's benefit must be the same as the amount of the prior 
beneficiary's benefit.
B.  The effective date of the designation of the new beneficiary is the date the 
designation is received by the chief executive director officer.  As of the first day of 
the month following the effective date of the designation of the new beneficiary, the 
prior beneficiary is no longer entitled to any benefit payment and, if concurrent 
payment under subsection 5‑B has been elected, the new beneficiary's benefit must 
become effective on the same date.
C.  The new beneficiary's entitlement to benefits ceases on the earlier of:
(1)  The date of the new beneficiary's death; or and
(2)  The date established when the amount of the prior beneficiary's benefit was 
established, which is the initial commencement date of benefits to the retiree 
increased by the life expectancy of the prior beneficiary computed in years and 
months using actuarial equivalence assumptions recommended by the system's 
actuary.
Payment of benefits to the new beneficiary must cease as of the first day of the month 
following the earlier of subparagraph subparagraphs (1) or and (2).
D.  A recipient who exercises a one-time option under this subsection may revert back 
to the original designated beneficiary, who will be treated as the new beneficiary for 
purposes of paragraphs A to C.
Sec. 22.  5 MRSA §17804, sub-§7, ¶A, as enacted by PL 1999, c. 744, §9 and 
affected by §17, is amended to read:
A.  By written certification of the spouse, duly notarized acknowledged and filed with 
the chief executive officer, on a form provided or specified by the retirement system, 
indicating that notice has been received from the qualifying member; or
Sec. 23.  5 MRSA §17804, sub-§7, ¶B, as enacted by PL 1999, c. 744, §9 and 
affected by §17, is amended to read:
B.  When notice has been given but certification by the spouse has not been provided, 
by written certification of the qualifying member, duly notarized acknowledged and 
filed with the chief executive officer, on a form provided or specified by the retirement 
system, indicating that notice has been given to the spouse.
Sec. 24.  5 MRSA §17906, sub-§1, as amended by PL 2001, c. 443, §1 and affected 
by §7, is further amended to read:
1.  Excess compensation.  If the compensation received from engaging in any gainful 
occupation by a beneficiary of a disability retirement benefit exceeds $20,000 in calendar 
year 2000 or in any subsequent calendar year exceeds that amount as cumulatively 
increased or decreased by the same percentage adjustments granted under section 17806, 
subsection 1, paragraphs A and B:
A.  The excess must be deducted from the disability or service retirement benefits 
during the next calendar year, the deductions to be prorated on a monthly basis in an 
equitable manner prescribed by the board over the year or part of the year for which 
the benefits are received; and
B.  The beneficiary shall reimburse the retirement system for any excess payments not 
deducted under paragraph A.
Sec. 25.  5 MRSA §17906, sub-§3, as amended by PL 2007, c. 491, §176, is further 
amended to read:
3.  Restoration to service.  If any recipient of a disability retirement benefit is restored 
to service and if the total of the recipient's monthly retirement benefit for any year and the 
recipient's total earnable compensation for that year exceeds his the recipient's average final 
compensation at retirement, increased or decreased by the same percentage adjustments as 
have been received under section 17806, the excess shall must be deducted from the 
disability retirement benefit payments during the next calendar year.
A.  The deductions shall must be prorated on a monthly basis over the year or part of 
the year for which benefits are received in an equitable manner prescribed by the board.
B.  The recipient of the disability retirement benefit shall reimburse the retirement 
system for any excess payments not deducted under this section.
C.  If the retirement benefit payments are eliminated by operation of this subsection:
(1)  The person again becomes a member of the State Employee and Teacher 
Retirement Program and begins contributing at the current rate; and
(2)  When the person again retires, the person shall must receive benefits computed 
on the person's entire creditable service and in accordance with the law in effect at 
that time.
Sec. 26.  5 MRSA §17930, sub-§2, as amended by PL 2021, c. 277, §26, is further 
amended to read:
2.  Compensation from employment not covered by this article.  If any person who 
is the recipient of a disability retirement benefit receives compensation in any year from 
engaging in any gainful activity or from employment with an employer whose employees 
are not covered by this article or chapter 425, subchapter V 5, article 3‑A, which that 
exceeds the greater of $20,000 in calendar year 2000 or in any subsequent year that amount 
as cumulatively increased or decreased by the same percentage adjustments granted under 
section 17806, subsection 1, paragraphs A and B, or the difference between the person's 
disability retirement benefit for that year and the person's average final compensation at the 
time that the person became a recipient of a disability retirement benefit, increased or 
decreased by the same percentage adjustments as have been granted by section 17806:
A.  The excess must be deducted from the disability or service retirement benefits 
during the next calendar year; the deductions to be prorated on a monthly basis in an 
equitable manner prescribed by the board over the year or part of the year for which 
the benefits are received;
B.  The person shall reimburse the retirement system for any excess payments not 
deducted under paragraph A.  If the retirement benefit payments are eliminated by this 
subsection, the disability is deemed to no longer exist, the payment of the disability 
retirement benefit must be discontinued and, except as provided in paragraph C, all of 
the person's rights to benefits under this article cease;
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 in accordance with section 17927.  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 chief executive director officer shall require examinations or tests to 
determine whether the person is disabled as described in section 17921; and
D.  At any time before the elimination of disability retirement benefit payments by this 
subsection, the person may request that benefit payments be terminated, and the chief 
executive director officer shall terminate benefit payments at the end of the month in 
which the request is received.
Sec. 27.  5 MRSA §18252, sub-§6, as amended by PL 2017, c. 392, §3, is repealed.
Sec. 28.  5 MRSA §18252-A, sub-§2, ¶C, as enacted by PL 1997, c. 709, §4, is 
amended to read:
C.  The participating local district employer is responsible for providing procedures by 
which employees make elections under this section, for maintaining all records relevant 
to the election process and each employee's elections, for informing the retirement 
system as to employee elections in accordance with procedures established by the chief 
executive director officer and for making all administrative decisions, including the 
final administrative decision, in any dispute related to an employee's elections or 
administrative decision, in any dispute related to over the election process or an 
employee's elections or to any issue as to the plan provided by the employer under 
section 18252-B.  Neither the retirement system nor the system's board of trustees has 
responsibility or jurisdiction to make the final administrative decision with respect to 
any of these matters.  The retirement system is responsible only to ensure that its 
records accurately reflect the information provided by the employer, the employer's 
decision as to any of these matters, and the legally cognizable outcome of any dispute 
related to any of these matters.
Sec. 29.  5 MRSA §18252-A, sub-§2, ¶D, as enacted by PL 1997, c. 709, §4, is 
amended to read:
D.  With respect to matters related to participation and membership other than those 
specified as the responsibility of the employer in paragraph C, the retirement system 
and the board retain responsibility and authority according to applicable retirement 
system law and rules as to the participating local districts and their employees to whom 
this section applies, including the authority to make final administrative decisions on 
membership eligibility based on employee membership elections as reported by the 
employer pursuant to this section, the applicable retirement system laws and rules and 
the requirements of the Internal Revenue Code and United States Treasury regulations 
applicable to governmental qualified defined benefit plans.
Sec. 30.  5 MRSA §18252-B, sub-§3, as amended by PL 2007, c. 491, §196, is 
further amended to read:
3.  Employee contribution.  The employee must contribute as a percentage of 
compensation in each pay period an amount not less than the employee would have been 
required to contribute as of the employee's date of hire had the employee been a member 
under the Participating Local District Retirement Program under the so-called "Regular 
Plan A" of the consolidated plan for participating local districts, consistent with applicable 
contribution limits of federal law.
Sec. 31.  5 MRSA §18307-A, sub-§1, as amended by PL 2011, c. 449, §19, is 
further amended by amending the first blocked paragraph to read:
Pursuant to the Code, Section 401(a)(31)(B), the amount of an automatic refund under this 
subsection for a member who has not reached the later of 62 years of age or normal 
retirement age may not exceed $1,000.
Sec. 32.  5 MRSA §18404, sub-§5-A, as enacted by PL 1999, c. 744, §13 and 
affected by §17, is amended to read:
5-A.  Option 4.  The qualifying member may elect to have a reduced retirement benefit 
payable to the qualifying member while alive and at the qualifying member's death to have 
some benefit other than that available under subsection 3 or 4 payable to the beneficiary 
that the qualifying member has designated, if the beneficiary survives the qualifying 
member.  The total value of the benefit paid to the qualifying member during the qualifying 
member's life plus the benefit paid after the qualifying member's death is the actuarial 
equivalent of the benefit that the qualifying member would have received without optional 
modification.  The method used to determine the benefit must be approved by the board, 
and the beneficiary must be designated by written designation, duly notarized 
acknowledged and filed with the chief executive director officer on a form provided or 
specified by the retirement system.
Sec. 33.  5 MRSA §18404, sub-§5-B, as enacted by PL 1999, c. 744, §13 and 
affected by §17, is amended to read:
5-B.  Option 5.  The qualifying member may elect to have a reduced retirement benefit 
payable in part to the qualifying member and in part to the beneficiary, who must be the 
sole beneficiary, while both are alive and, at the death of either, to have the higher benefit 
paid to the survivor for the survivor's life.  The total value of the benefit paid to the 
qualifying member and beneficiary, during the qualifying member's life, plus the benefit to 
be paid after the death of either is the actuarial equivalent of the benefit that the qualifying 
member would have received without optional modification.  The method used to 
determine the benefit must be approved by the board, and the beneficiary must be 
designated by written designation, duly notarized acknowledged and filed with the chief 
executive director officer on a form provided or specified by the retirement system.
Sec. 34.  5 MRSA §18404, sub-§5-C, as enacted by PL 1999, c. 744, §13 and 
affected by §17, is amended to read:
5-C.  Option 6.  The qualifying member may elect to have a reduced retirement benefit 
payable to the qualifying member while alive and, at the qualifying member's death, to 
have the benefit continued in the same amount for the life of the beneficiary, who must be 
the sole beneficiary, that the qualifying member has designated by written designation, duly 
notarized acknowledged and filed with the chief executive director officer on a form 
provided or specified by the retirement system, if the beneficiary survives the qualifying 
member.  If the qualifying member's beneficiary predeceases the qualifying member, the 
qualifying member's benefit shall must be changed, effective the first day of the month 
following the date of the beneficiary's death, to be the actuarial equivalent of the benefit 
that the qualifying member would have received without optional modification.  The 
reduced retirement benefit must be actuarially calculated to reflect the fact that the benefit 
may be changed to the larger amount should the beneficiary predecease the member.
Sec. 35.  5 MRSA §18404, sub-§5-D, as enacted by PL 1999, c. 744, §13 and 
affected by §17, is amended to read:
5-D.  Option 7.  The qualifying member may elect to have a reduced retirement benefit 
payable to the qualifying member while alive and, at the qualifying member's death, to 
have the benefit continued at 1/2 that amount for the life of the beneficiary, who must be 
the sole beneficiary, that the qualifying member has designated by written designation, duly 
notarized acknowledged and filed with the chief executive director officer on a form 
provided or specified by the retirement system, if the beneficiary survives the qualifying 
member.  If the qualifying member's beneficiary predeceases the qualifying member, the 
qualifying member's benefit must be changed, effective the first day of the month following 
the date of the beneficiary's death, to the actuarial equivalent of the benefit that the 
qualifying member would have received without optional modification.  The reduced 
retirement benefit must be actuarially calculated to reflect the fact that the benefit may be 
changed to the larger amount should the beneficiary predecease the member.
Sec. 36.  5 MRSA §18404, sub-§5-F, as amended by PL 2007, c. 523, §3, is further 
amended to read:
5-F.  Change of beneficiary.  If the recipient of a service retirement benefit has elected 
an optional method of payment under subsection 3, 4, 5, 5-A, 5-B, 5-C, 5-D or 5-E, and 
has designated someone other than a spouse or ex-spouse as sole beneficiary, the recipient 
is permitted a one-time change in the designated beneficiary except as provided in 
paragraph D, but may not change the already elected payment option or the amount of the 
benefits under that option, by filing a written designation of the new beneficiary, duly 
notarized, acknowledged with the chief executive director officer on a form provided or 
specified by the retirement system.  The change of beneficiary permitted by this subsection 
may only be made prior to the death of the prior designated beneficiary.
A.  The benefit payable to the recipient and the new beneficiary must be paid under the 
same payment option.  The amount of the recipient's benefit may not change, and the 
amount of the new beneficiary's benefit must be the same as the amount of the prior 
beneficiary's benefit.
B.  The effective date of the designation of the new beneficiary is the date the 
designation is received by the chief executive director officer.  As of the first day of 
the month following the effective date of the designation of the new beneficiary, the 
prior beneficiary is no longer entitled to any benefit payment and, if concurrent 
payment under subsection 5‑B has been elected, the new beneficiary's benefit must 
become effective on the same date.
C.  The new beneficiary's entitlement to benefits ceases on the earlier of:
(1)  The date of the new beneficiary's death; or
(2)  The date established when the amount of the prior beneficiary's benefit was 
established, which is the initial commencement date of benefits to the retiree 
increased by the life expectancy of the prior beneficiary computed in years and 
months using actuarial equivalence assumptions recommended by the system's 
actuary.
Payment of benefits to the new beneficiary must cease as of the first day of the month 
following the earlier of subparagraph subparagraphs (1) or and (2).
D.  A recipient who exercises a one-time option under this subsection may revert back 
to the original designated beneficiary, who will be treated as the new beneficiary for 
purposes of paragraphs A to C.
Sec. 37.  5 MRSA §18404, sub-§7, ¶A, as enacted by PL 1999, c. 744, §14 and 
affected by §17, is amended to read:
A.  By written certification of the spouse, duly notarized acknowledged and filed with 
the chief executive officer, on a form provided or specified by the retirement system, 
indicating that notice has been received from the qualifying member; or
Sec. 38.  5 MRSA §18404, sub-§7, ¶B, as enacted by PL 1999, c. 744, §14 and 
affected by §17, is amended to read:
B.  When notice has been given but certification by the spouse has not been provided, 
by written certification of the qualifying member, duly notarized acknowledged and 
filed with the chief executive officer, on a form provided or specified by the retirement 
system, indicating that notice has been given to the spouse.
Sec. 39.  5 MRSA §18802-A, sub-§7 is enacted to read:
7.  Remote meeting policy.  The remote meeting policy in Title 1, section 403-B, 
subsection 2 may be adopted by the chief executive officer on behalf of the advisory 
committee.
Sec. 40. Maine Revised Statutes amended; revision clause. Wherever in the 
Maine Revised Statutes the words "Executive Director of the Maine Public Employees 
Retirement System" appear or reference is made to that position or those words, those 
words are amended to read or mean, as appropriate, "Chief Executive Officer of the Maine 
Public Employees Retirement System" and the Revisor of Statutes shall implement this 
revision when updating, publishing or republishing the statutes. Wherever in the Maine 
Revised Statutes, Title 5, Part 20, the words "executive director" appear or reference is 
made to that position within the Maine Public Employees Retirement System, those words 
are amended to read or mean, as appropriate, "chief executive officer," and the Revisor of 
Statutes shall implement this revision when updating, publishing or republishing the 
statutes.
SUMMARY
This bill makes the following changes to the laws governing the Maine Public 
Employees Retirement System:
1. It removes the provision that provides that the service retirement benefit of a judge 
ceases upon the return to service as a judge and that a judge returned to service continues 
to earn credit toward retirement; 
2. It corrects a cross-reference in the law that governs ordinary death benefits for 
members in the Judicial Retirement Program;
3.  It clarifies the definition of "qualifying member" for the Judicial Retirement 
Program to include retirees who receive a disability retirement benefit and change to 
service retirement;
4. It clarifies that actuarial equivalent calculations are based on the discount rate 
assumption adopted by the Board of Trustees of the Maine Public Employees Retirement 
System;
5.  It changes references to "school management and leadership center" to "education 
service center" in accordance with changes made in Public Law 2019, chapter 219;
6.  It clarifies jurisdiction over administrative decisions on membership;
7.  It specifies the types of retirement plans that the board of trustees may establish and 
offer;
8.  It makes changes to language regarding disability retirement-related information 
that is reported by the system annually to the Legislature;
9.  It aligns the provisions for automatic refunds on inactive accounts with federal law;
10.  It deletes a cross-reference to inapplicable federal law in the military service credit 
purchase provision;
11.  It removes the ability for certain retired participating local district members who 
are restored to service to reenter the plan in order to bring the provisions into compliance 
with federal law;
12.  It clarifies the required minimum contribution rate that participating local district 
employees must contribute to a defined contribution or deferred compensation plan in order 
for it to be considered a qualified replacement plan;
13. It permits the Chief Executive Officer of the Maine Public Employees Retirement 
System to adopt a remote meeting policy for the Participating Local District Advisory 
Committee;
14. It incorporates a change in title from Executive Director of the Maine Public 
Employees Retirement System to Chief Executive Officer of the Maine Public Employees 
Retirement System and directs the Revisor of Statutes to incorporate this change 
throughout the statutes; and
15.  It removes obsolete, unclear or inconsistent language.