An Act To Protect Teachers from a Decrease in Retirement Benefits Arising from the COVID-19 Pandemic
Maine Legislature, Session 130, LD 0509
Committee: Labor and Housing
Sponsors: DODGE, CURRY, CROCKETT, CUDDY, HEPLER, PEBWORTH, SALISBURY, RAFFERTY
Amends: 5 MRSA §17768

Legislative Document
No. 509
H.P. 372
House of Representatives, February 19, 2021
An Act To Protect Teachers from a Decrease in Retirement Benefits 
Arising from the COVID-19 Pandemic
Received by the Clerk of the House on February 17, 2021.  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 DODGE of Belfast.
Cosponsored by Senator CURRY of Waldo and
Representatives: CROCKETT of Portland, CUDDY of Winterport, HEPLER of Woolwich, 
McCREA of Fort Fairfield, PEBWORTH of Blue Hill, SALISBURY of Westbrook, Senator: 
RAFFERTY of York.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §17768 is enacted to read:
§17768.  Service credit for teachers
A member who is a teacher and who experiences a reduction in income from an 
extracurricular or cocurricular position due to circumstances related to coronavirus disease 
2019, referred to in this section as "COVID-19," may purchase service credit for the period 
during which the extracurricular or cocurricular position was eliminated or otherwise 
unavailable under the following conditions. 
1.  Eligibility requirements.  A teacher may purchase service credit under this section 
only if: 
A.  During the 12 months preceding the start of the period of the service credit, the 
teacher received income from employment in an extracurricular or cocurricular 
position that was eliminated or otherwise unavailable during the period between 
January 1, 2020 to July 1, 2022 due to circumstances related to COVID-19; and
B.  The teacher is in the final 3 years of service during the period between January 1, 
2020 to July 1, 2022.
2.  Limit on service credit.  The additional service credit under this section may be 
purchased only for the period between January 1, 2020 to July 1, 2022. 
3.  Payment.  A member purchasing service credit under this section must, before any 
retirement benefit becomes effective, pay into the Members' Contribution Fund by a single 
payment or annual direct payments to the State Employee and Teacher Retirement Program 
an amount that, together with regular interest on that amount, is the actuarial equivalent, at 
the effective date of the retirement benefit, of the portion of the retirement benefit based on 
the additional service credit purchased under this section.  Payments must be made as 
provided in section 17701, subsection 4.
If any retirement benefit becomes effective before the completion of the payment under 
this subsection, the member is entitled to the additional creditable service that the total 
amount of payments actually made, plus regular interest on those payments to the date the 
retirement benefit becomes effective, bears to the actuarial equivalent of the total portion 
of the retirement benefit based on the additional creditable service.
4.  Limitation on use of purchased service credit.  Notwithstanding any provision of 
law to the contrary, service credit purchased under this section may be used only for the 
purpose of increasing the amount of a member's service retirement benefit by inclusion of 
the purchased service credit and may not be used to establish a member's qualification for 
a service retirement benefit.
SUMMARY
This bill allows a teacher nearing retirement who experiences a reduction in income 
from the elimination of an extracurricular or cocurricular position due to circumstances 
related to COVID-19 to purchase service credit in the state retirement system for the period 
of income loss from the extracurricular or cocurricular position. The opportunity to 
purchase service credit is limited to teachers who are in their last 3 years of service and 
who previously earned income from an extracurricular or cocurricular position that is 
eliminated or otherwise unavailable during the period between January 1, 2020 to July 1, 
2022.