An Act To Improve the Disability Retirement Program of the Maine Public Employees Retirement System
Maine Legislature, Session 130, LD 1644
Committee: Labor and Housing
Sponsors: MIRAMANT, TALBOT ROSS, JACKSON, DUNPHY, FECTEAU
Amends: 3 MRSA §701, 3 MRSA §734, 4 MRSA §1201, 4 MRSA §1234, 4 MRSA §1353, 5 MRSA §11007, 5 MRSA §17001, 5 MRSA §17106, 5 MRSA §17106-A, 5 MRSA §17106-B, 5 MRSA §17902, 5 MRSA §17911, 5 MRSA §17921, 5 MRSA §17925, 5 MRSA §17926, 5 MRSA §17927, 5 MRSA §17929, 5 MRSA §17930, 5 MRSA §17932, 5 MRSA §17953, 5 MRSA §18502, 5 MRSA §18503, 5 MRSA §18512, 5 MRSA §18521, 5 MRSA §18525, 5 MRSA §18526, 5 MRSA §18527, 5 MRSA §18529, 5 MRSA §18530, 5 MRSA §18553

Legislative Document
No. 1644
S.P. 529
In Senate, May 5, 2021
An Act To Improve the Disability Retirement Program of the Maine 
Public Employees Retirement System
Received by the Secretary of the Senate on May 3, 2021.  Referred to the Committee on 
Labor and Housing pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator MIRAMANT of Knox.
Cosponsored by Representative TALBOT ROSS of Portland and
Senator: President JACKSON of Aroostook, Representatives: DUNPHY of Old Town, Speaker 
FECTEAU of Biddeford.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  3 MRSA §701, sub-§11-A, as enacted by PL 2017, c. 88, §1, is repealed.
Sec. 2.  3 MRSA §734, as amended by PL 2017, c. 88, §2, is repealed.
Sec. 3.  4 MRSA §1201, sub-§6-A, ¶B, as enacted by PL 1989, c. 133, §17, is 
amended to read:
B.  Regardless of age or marital status, any other progeny certified by the medical board 
an independent health care provider or the medical review service provider to be 
permanently mentally incompetent or permanently physically incapacitated and 
determined by the executive director to be unable to engage in any substantially gainful 
employment.
Sec. 4.  4 MRSA §1201, sub-§10-A is enacted to read:
10-A.  Health care provider.  "Health care provider" means an appropriately licensed, 
certified or registered provider of mental or physical health care, in either the public or 
private sector.
Sec. 5.  4 MRSA §1201, sub-§12-A, as enacted by PL 2017, c. 88, §4, is repealed.
Sec. 6.  4 MRSA §1201, sub-§12-B is enacted to read:
12-B.  Medical review service provider.  "Medical review service provider" means 
an entity with whom the executive director has contracted for the review of medical records 
and the provision of recommendations, opinions and certifications under this chapter by 
health care providers employed by the entity.
Sec. 7.  4 MRSA §1234, as amended by PL 2017, c. 88, §5, is further amended to 
read:
§1234.  Medical board review of disability
A medical board of the other programs of the Maine Public Employees Retirement 
System established in section 17106, subsection 1 is the medical board of the Judicial 
Retirement Program.  The medical board shall arrange for and pass upon all medical 
examinations required under this chapter with respect to disability retirements and shall 
report in writing to the Supreme Judicial Court its conclusions and recommendations upon 
all the matters referred to it.  The board of trustees may designate other medical health care 
providers to provide medical consultation on judicial disability cases.
Sec. 8.  4 MRSA §1353, sub-§1, as amended by PL 2017, c. 88, §6, is further 
amended to read:
1.  Conditions.  Any member who becomes disabled while in service may receive a 
disability retirement allowance by order of at least 5 Justices of the Supreme Judicial Court 
or upon written application to the executive director, review and report of the application 
by the medical board and approval of that application by at least 5 of the Justices of the 
Supreme Judicial Court if that member is mentally or physically incapacitated to the extent 
that it is impossible for that member to perform the duties as a judge and the incapacity is 
expected to be permanent, as shown by medical examination or tests.  A qualified medical 
health care provider mutually agreed upon by the executive director and member shall 
conduct the examinations or tests at an agreed upon place, and the costs must be paid by 
the Maine Public Employees Retirement System.
Sec. 9.  4 MRSA §1353, sub-§4, ¶C, as amended by PL 2017, c. 88, §7, is further 
amended to read:
C.  The executive director may require the beneficiary to undergo annual medical 
examinations or tests for the purpose of determining whether the beneficiary is 
incapacitated.  These examinations or tests must be conducted by a qualified medical 
health care provider, mutually agreed upon by the executive director and beneficiary, 
at a place also mutually agreed upon, and the costs of the examination or tests must be 
paid by the Maine Public Employees Retirement System. If the beneficiary refuses to 
submit to an examination or tests, the beneficiary's disability allowance ceases until the 
beneficiary agrees to the examination or tests.  If the beneficiary's refusal continues for 
one year, all rights to any further benefits under this section terminate.
Sec. 10.  5 MRSA §11007, sub-§3, as enacted by PL 1977, c. 551, §3, is amended 
to read:
3.  Judgment.  The court shall may not substitute its judgment for that of the agency 
on questions of fact, except that, with respect to a timely appeal by an individual of a denial 
of a disability determination by a hearing officer pursuant to sections 17106-A and 
17106-B, the court shall review the matter de novo.
Sec. 11.  5 MRSA §17001, sub-§12, ¶B, as enacted by PL 1985, c. 801, §§5 and 
7, is amended to read:
B.  Regardless of age or marital status, any other progeny certified by the medical board 
an independent health care provider or the medical review service provider to be 
permanently mentally incompetent or permanently physically incapacitated and 
determined by the executive director to be unable to engage in any substantially gainful 
employment.
Sec. 12.  5 MRSA §17001, sub-§18-B is enacted to read:
18-B.  Health care provider.  "Health care provider" means an appropriately licensed, 
certified or registered provider of mental or physical health care, in either the public or 
private sector.
Sec. 13.  5 MRSA §17001, sub-§19-A, as enacted by PL 2017, c. 88, §8, is 
repealed.
Sec. 14.  5 MRSA §17001, sub-§19-B is enacted to read:
19-B.  Medical review service provider.  "Medical review service provider" means 
an entity with whom the executive director has contracted for the review of medical records 
and the provision of recommendations, opinions and certifications under this Part by health 
care providers employed by the entity.
Sec. 15.  5 MRSA §17106, as amended by PL 2017, c. 88, §§14 to 16, is repealed.
Sec. 16.  5 MRSA §17106-A, first ¶, as enacted by PL 2009, c. 322, §7, is amended 
to read:
A hearing officer employed, contracted or otherwise provided by the board The board 
shall contract with qualified attorneys to act as hearing officers to implement the provisions 
of this chapter is.  Hearing officers are subject to the provisions of this section. Hearing 
officers are not employees of the board but independent contractors who serve as neutral 
and independent decision makers.
Sec. 17.  5 MRSA §17106-A, sub-§6, as amended by PL 2017, c. 88, §18, is further 
amended to read:
6.  Engagement and termination.  The board shall engage contract with only qualified 
hearing officers, who must be monitored by the board.  A contract with a hearing officer 
may be terminated for misconduct.  Retaliatory action of any kind, including reprimand or 
termination, may not be taken against a hearing officer on the basis of that hearing officer's 
having issued decisions contrary to the decision of the executive director.  In the event of 
termination, the retirement system shall set forth in writing the basis for the termination, 
the propriety of which may then be considered by the joint standing committee of the 
Legislature having jurisdiction over public employee retirement matters pursuant to 
subsection 5.
Sec. 18.  5 MRSA §17106-B is enacted to read:
§17106-B.  Disability retirement; medical review
1.  Disability retirement forms; assessment.  The executive director shall develop 
and make easily accessible to health care providers in this State a disability form that allows 
a health care provider to provide an assessment of a member's ability to work after taking 
into account the member's mental or physical disability under the standards of this Part. 
References in this section to "disability form" refer to the form developed by the executive 
director. A member seeking disability retirement shall cooperate with the executive director 
in obtaining the member's medical records and may obtain an assessment from the health 
care provider of the member's ability to work after taking into account the member's mental 
or physical disability, and, if the health care provider finds that the member is disabled 
under the standards of this Part, the health care provider, at the request of the member, may 
file with the executive director a disability form signed by the health care provider. The 
health care provider shall also provide a copy of the form to the member. The executive 
director may find that a member has a mental or physical disability and is eligible for 
disability retirement based on the information provided in the form and medical records.  
The executive director may seek, receive and consider recommendations and opinions from 
the medical review service provider in making this determination.
2.  Medical review.  If the executive director is unable to determine whether a member 
is eligible for disability retirement based on the information provided under subsection 1, 
the executive director shall direct the member to have an independent medical examination 
by an independent health care provider.  The member may waive the independent medical 
examination, in which case the executive director may determine that the member is not 
eligible for disability retirement.  The member may appeal this determination under 
subsection 3.
A.  The retirement system shall pay all fees of the independent health care provider. 
The independent health care provider may not be a state employee and may not have 
any association with the retirement system other than providing independent medical 
examinations or medical consultations and receiving payment for these services and, 
unless the member consents in writing, may not have previously examined or treated 
the member with respect to the member's mental or physical disability.
B.  The member may have a representative present at the independent medical 
examination, who may be a union representative, an attorney or a health care provider 
of the member's choice. The retirement system shall reimburse the member's 
representative as follows:
(1) If the representative is a health care provider, the retirement system shall pay 
that health care provider a standard per diem rate established by the board and a 
reasonable mileage reimbursement; and
(2) Any other representative of the member may be paid a reasonable mileage 
reimbursement only.
3.  Disability determination; appeal.  After an independent medical review under 
subsection 2, the executive director or the executive director's designee shall make a 
determination of eligibility for disability retirement based upon the totality of the evidence 
and in accordance with subsection 4.  The executive director or the executive director's 
designee may obtain recommendations or opinions from the medical review service 
provider to assist in this determination.  A determination by the executive director or the 
executive director's designee that the member is not disabled may be appealed by the 
member to a hearing officer, who shall hear the appeal in accordance with section 17106-A.  
The board shall by rule provide for procedures for the member to participate in selection 
of the hearing officer who will hear the member's appeal. Rules adopted pursuant to this 
subsection are routine technical rules as defined in chapter 375, subchapter 2-A.
4.  Medical evidence.  When reviewing medical evidence in making determinations of 
disability, the board, executive director and hearing officers shall primarily consider 
medical opinions in the record and whether the opinions are supported by sound medical 
evidence and are consistent with other medical evidence in the record.
5.  Attorney's fees.  If a member has retained services of an attorney to represent the 
member before a hearing officer or in a court proceeding on appeal of a board decision, the 
fee arrangement has been approved by the hearing officer or the court and the attorney 
obtains a favorable result for the member, the attorney's fees must be paid by the retirement 
system, up to a maximum of $12,000. The fee arrangement may be a contingency fee, in 
which case the payment by the retirement system must be applied toward the satisfaction 
of the contingency fee.
Sec. 19.  5 MRSA §17902, sub-§1, ¶A, as amended by PL 2017, c. 88, §22, is 
further amended to read:
A.  The executive director shall obtain medical consultation on each applicant for 
disability retirement benefits in accordance with related rules established by the board, 
which must include provisions indicating when a case must be reviewed by a medical 
board and when alternative means of medical consultation are acceptable.  Rules 
adopted pursuant to this paragraph are routine technical rules as defined in chapter 375, 
subchapter 2‑A.  Whether provided by the medical board or by an alternative means, 
medical Medical consultation obtained by the executive director must be objective and 
be provided by a medical provider or medical providers qualified to review the case by 
specialty or experience and to whom the applicant is not known.
Sec. 20.  5 MRSA §17911, first ¶, as enacted by PL 2003, c. 387, §4, is amended 
to read:
Upon agreement of the executive director and the person, rehabilitation services may 
be provided to any person who is the recipient of a disability retirement benefit under this 
article as a means to the person being able to return to substantially gainful activity.  As a 
condition of entering into an agreement to provide rehabilitation services, the executive 
director must determine that rehabilitation is feasible, that rehabilitation is consistent with 
the purposes of this article, that the recipient is suitable for rehabilitation services and that 
rehabilitation services are likely to lead to substantially gainful activity.  When appropriate, 
determination of suitability must include consultation with the medical board to determine 
any medical indications that the recipient should not engage in a rehabilitation program or 
to identify a recipient too severely disabled to benefit from rehabilitation services in 
accordance with the purposes of this article.  Services must be provided by private and 
public rehabilitation counselors, government agencies and others approved by the 
executive director as qualified to provide rehabilitation services.  The executive director 
shall consider a rehabilitation counselor's rate of successfully placing rehabilitated 
employees in jobs relative to the placement rates of other counselors in the State as 
fundamental in deciding whether to approve the counselor as qualified.  This section does 
not affect the ongoing requirement that a person remain disabled in order to continue to 
receive disability benefits.
Sec. 21.  5 MRSA §17921, sub-§1, ¶B, as enacted by PL 1989, c. 409, §§8 and 12, 
is amended to read:
B.  That it is impossible to perform the duties of the member is unable to perform the 
essential functions of the member's employment position with reasonable 
accommodation;
Sec. 22.  5 MRSA §17925, sub-§1, ¶A, as amended by PL 2017, c. 88, §25, is 
repealed.
Sec. 23.  5 MRSA §17926, as amended by PL 2017, c. 88, §26, is further amended 
to read:
§17926.  Examinations or tests
Any examinations or tests recommended by the medical board in accordance with 
conducted under section 17106 17106-B or required by the executive director under section 
17921, subsection 1, paragraph D; section 17924; section 17929, subsection 2, paragraph 
B; or section 17933, subsection 3, paragraph A, are governed as follows.
1.  Agreed upon medical health care provider.  The examinations or tests must be 
conducted by a qualified medical health care provider mutually agreed upon by the 
executive director and the member claiming to be disabled.
2.  Agreed upon place.  The examinations or tests shall must be conducted at the health 
care provider's office or facility or at a place mutually agreed upon by the executive director 
and the member claiming to be disabled.
3.  Costs.  The costs incurred under subsections 1 and 2 shall must be paid by the 
retirement system.
Sec. 24.  5 MRSA §17927, first ¶, as amended by PL 2003, c. 387, §5, is further 
amended to read:
Upon agreement of the executive director and the person, rehabilitation services may 
be provided to any person who is the recipient of a disability retirement benefit under this 
article as a means to the person being able to return to substantially gainful activity.  As a 
condition of entering into an agreement to provide rehabilitation services, the executive 
director must determine that rehabilitation is feasible, that rehabilitation is consistent with 
the purposes of this article, that the recipient is suitable for rehabilitation services and that 
rehabilitation services are likely to lead to substantially gainful activity.  When appropriate, 
determination of suitability must include consultation with the medical board to determine 
any medical indications that the recipient should not engage in a rehabilitation program or 
to identify a recipient too severely disabled to benefit from rehabilitation services in 
accordance with the purposes of this article.  Services must be provided by private and 
public rehabilitation counselors, government agencies and others approved by the 
executive director as qualified to provide rehabilitation services.  The executive director 
shall consider a rehabilitation counselor's rate of successfully placing rehabilitated 
employees in jobs relative to the placement rates of other counselors in the State as 
fundamental in deciding whether to approve the counselor as qualified.  This section does 
not affect the ongoing requirement that a person remain disabled in order to continue to 
receive disability benefits.
Sec. 25.  5 MRSA §17929, sub-§2, ¶B, as amended by PL 2003, c. 675, §2, is 
further amended to read:
B.  The executive director may require, once each year, that the person undergo 
examinations or tests, conducted in accordance with section 17926, to determine the 
person's disability.  The executive director may refer the records documenting the 
results of the examinations or tests and the person's file to the medical board for medical 
consultation regarding rehabilitation in accordance with section 17106, subsection 3, 
paragraph E.
(1)  After the disability has continued for 2 years, the disability must render the 
person unable to engage in any substantially gainful activity that is consistent with 
the person's training, education or experience and average final compensation 
adjusted by the same percentage adjustment as has been received under section 
17806.  The disability retirement benefit continues if the person can effectively 
demonstrate to the executive director that the person is actively seeking work.  For 
the purposes of this subparagraph, the ability to engage in substantially gainful 
activity is demonstrated by the ability to perform work resulting in annual earnings 
that exceed $20,000 or 80% of the recipient's average final compensation at 
retirement, whichever is greater, adjusted by the same percentage adjustments 
granted under section 17806.
(2)  If the person refuses to submit to the examinations or tests under this paragraph, 
the disability retirement benefit is discontinued until that person withdraws the 
refusal.
(3)  If the person's refusal under subparagraph (2) continues for one year, all rights 
to any further benefits under this article cease.
(4)  If it is determined, on the basis of the examinations or tests under this 
paragraph, that the disability of a person no longer exists, the payment of the 
disability retirement benefit ceases.
(5)  The executive director shall notify the person in writing of the decision to 
discontinue the disability retirement allowance under subparagraph (2) or (4).
(a)  The decision is subject to appeal under section 17451.
(b)  If the person appeals the executive director's decision, the disability 
retirement allowance may not be discontinued until all appeals have been 
exhausted.
Sec. 26.  5 MRSA §17930, sub-§2, ¶C, as enacted by PL 1989, c. 409, §§8 and 12, 
is amended to read:
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 under in accordance with section 17927 if recommended by the 
medical board.  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 executive 
director shall require examinations or tests to determine whether the person is disabled 
as described in section 17921; and
Sec. 27.  5 MRSA §17930, sub-§3, ¶E, as enacted by PL 1989, c. 409, §§8 and 12, 
is amended to read:
E.  If, during the first 5 years of reemployment, the person again becomes disabled and 
terminates employment, the retirement system shall resume paying the disability 
retirement benefit payable prior to the reemployment with all applicable cost-of-living 
adjustments, or if greater, a disability retirement benefit based upon the person's current 
average final compensation and shall provide rehabilitation services under in 
accordance with section 17927 if recommended by the medical board.  The executive 
director shall require examinations or tests to determine whether the person is disabled 
as defined in section 17921; and
Sec. 28.  5 MRSA §17932, sub-§2, as amended by PL 2017, c. 88, §27, is further 
amended to read:
2.  Dispute over mental or physical capacity.  If there is a dispute between the person 
and the former employer over the person's mental or physical capacity to perform a specific 
job, at the option of the person that dispute must be resolved by a majority of 3 medical 
health care providers, one appointed and reimbursed by the person, one appointed and 
reimbursed by the employer and one appointed and reimbursed by the retirement system.  
If the 3 medical health care providers resolve the dispute in favor of the person, the former 
employer must reimburse the medical health care provider appointed by the person.
Sec. 29.  5 MRSA §17953, sub-§3, ¶A, as amended by PL 1991, c. 469, §2, is 
further amended to read:
A.  A surviving spouse of the qualifying member is paid a $150 benefit each month 
beginning the first month after the death occurs and continuing during the surviving 
spouse's lifetime, if:
(1)  The deceased qualifying member had 10 years of creditable service at the time 
of death; or
(2)  The surviving spouse is certified by the medical board an independent health 
care provider or the medical review service provider to be permanently mentally 
incompetent or permanently physically incapacitated and is determined by the 
executive director to be unable to engage in any substantially gainful employment.
A full month's benefit is paid to the estate of the surviving spouse for the month in 
which the surviving spouse dies.
Sec. 30.  5 MRSA §17953, sub-§5-A, ¶A, as amended by PL 1991, c. 469, §2, is 
further amended to read:
A.  A designated beneficiary who is alive at the time of the death of the qualifying 
member is paid $150 per month beginning the first month after the death occurs and 
continuing until the date of the designated beneficiary's death, if the designated 
beneficiary is certified by the medical board an independent health care provider or the 
medical review service provider to be permanently mentally incompetent or 
permanently physically incapacitated and is determined by the executive director to be 
unable to engage in any substantially gainful employment.
Sec. 31.  5 MRSA §18502, sub-§1, ¶A, as amended by PL 2017, c. 88, §30, is 
repealed.
Sec. 32.  5 MRSA §18503, as amended by PL 2017, c. 88, §31, is further amended 
to read:
§18503.  Examination or tests
The examination or tests to determine whether a member is disabled under section 
18501 are governed as follows.
1.  Agreed upon medical health care provider.  The examination or tests must be 
conducted by a qualified medical health care provider mutually agreed upon by the 
executive director and member claiming to be disabled.
2.  Agreed upon place.  The examination or tests shall must be conducted at the health 
care provider's office or facility or at a place mutually agreed upon by the executive director 
and member claiming to be disabled.
3.  Costs.  The costs incurred under subsections 1 and 2 shall must be paid by the 
retirement system.
Sec. 33.  5 MRSA §18512, first ¶, as enacted by PL 2003, c. 387, §10, is amended 
to read:
Upon agreement of the executive director and the person, rehabilitation services may 
be provided to any person who is the recipient of a disability retirement benefit under this 
article as a means to the person being able to return to substantially gainful activity.  As a 
condition of entering into an agreement to provide rehabilitation services, the executive 
director must determine that rehabilitation is feasible, that rehabilitation is consistent with 
the purposes of this article, that the recipient is suitable for rehabilitation services and that 
rehabilitation services are likely to lead to substantially gainful activity.  When appropriate, 
determination of suitability must include consultation with the medical board to determine 
any medical indications that the recipient should not engage in a rehabilitation program or 
to identify a recipient too severely disabled to benefit from rehabilitation services in 
accordance with the purposes of this article.  Services must be provided by private and 
public rehabilitation counselors, government agencies and others approved by the 
executive director as qualified to provide rehabilitation services.  The executive director 
shall consider a rehabilitation counselor's rate of successfully placing rehabilitated 
employees in jobs relative to the placement rates of other counselors in the State as 
fundamental in deciding whether to approve the counselor as qualified.  This section does 
not affect the ongoing requirement that a person remain disabled in order to continue to 
receive disability benefits.
Sec. 34.  5 MRSA §18521, sub-§1, ¶B, as enacted by PL 1989, c. 409, §§11 and 
12, is amended to read:
B.  That it is impossible to perform the duties the member is unable to perform the 
essential functions of the member's employment position with reasonable 
accommodation;
Sec. 35.  5 MRSA §18525, sub-§1, ¶A, as amended by PL 2017, c. 88, §32, is 
repealed.
Sec. 36.  5 MRSA §18526, as amended by PL 2017, c. 88, §33, is further amended 
to read:
§18526.  Examinations or tests
Any examinations or tests recommended by the medical board in accordance with 
conducted under section 17106 17106-B or required by the executive director under section 
18521, subsection 1, paragraph D; section 18524; section 18529, subsection 2, paragraph 
B; or section 18533, subsection 3, paragraph A, are governed as follows.
1.  Agreed upon medical health care provider.  The examinations or tests must be 
conducted by a qualified medical health care provider mutually agreed upon by the 
executive director and the member claiming to be disabled.
2.  Agreed upon place.  The examinations or tests shall must be conducted at the health 
care provider's office or facility or at a place mutually agreed upon by the executive director 
and the member claiming to be disabled.
3.  Costs.  The costs incurred under subsections 1 and 2 shall must be paid by the 
retirement system.
Sec. 37.  5 MRSA §18527, first ¶, as amended by PL 2003, c. 387, §11, is further 
amended to read:
Upon agreement of the executive director and the person, rehabilitation services may 
be provided to any person who is the recipient of a disability retirement benefit under this 
article as a means to the person being able to return to substantially gainful activity.  As a 
condition of entering into an agreement to provide rehabilitation services, the executive 
director must determine that rehabilitation is feasible, that rehabilitation is consistent with 
the purposes of this article, that the recipient is suitable for rehabilitation services and that 
rehabilitation services are likely to lead to substantially gainful activity.  When appropriate, 
determination of suitability must include consultation with the medical board to determine 
any medical indications that the recipient should not engage in a rehabilitation program or 
to identify a recipient too severely disabled to benefit from rehabilitation services in 
accordance with the purposes of this article.  Services must be provided by private and 
public rehabilitation counselors, government agencies and others approved by the 
executive director as qualified to provide rehabilitation services.  The executive director 
shall consider a rehabilitation counselor's rate of successfully placing rehabilitated 
employees in jobs relative to the placement rates of other counselors in the State as 
fundamental in deciding whether to approve the counselor as qualified.  This section does 
not affect the ongoing requirement that a person remain disabled in order to continue to 
receive disability benefits.
Sec. 38.  5 MRSA §18529, sub-§2, ¶B, as amended by PL 2003, c. 675, §4, is 
further amended to read:
B.  The executive director may require, once each year, that the person undergo 
examinations or tests, conducted in accordance with section 18526, to determine the 
person's disability.  The executive director may refer the records documenting the 
results of the examinations or tests and the person's file to the medical board for medical 
consultation regarding rehabilitation in accordance with section 17106, subsection 3, 
paragraph E.
(1)  After the disability has continued for 2 years, the disability must render the 
person unable to engage in any substantially gainful activity that is consistent with 
the person's training, education or experience and average final compensation 
adjusted by the same percentage adjustment as has been received under section 
18407.  The disability retirement benefit continues if the person can effectively 
demonstrate to the executive director that the person is actively seeking work.  For 
purposes of this subparagraph, the ability to engage in substantially gainful activity 
is demonstrated by the ability to perform work resulting in annual earnings that 
exceed $20,000 or 80% of the recipient's average final compensation at retirement, 
whichever is greater, adjusted by the same percentage adjustments granted under 
section 18407.
(2)  If the person refuses to submit to the examinations or tests under this paragraph, 
the disability retirement benefit is discontinued until that person withdraws the 
refusal.
(3)  If the person's refusal under subparagraph (2) continues for one year, all rights 
to any further benefits under this article cease.
(4)  If it is determined, on the basis of the examinations or tests under this 
paragraph, that the disability of a person no longer exists, the payment of the 
disability retirement benefit ceases.
(5)  The executive director shall notify the person in writing of the decision to 
discontinue the disability retirement allowance under subparagraph (2) or (4).
(a)  The decision is subject to appeal under section 17451.
(b)  If the person appeals the executive director's decision, the disability 
retirement allowance may not be discontinued until all appeals have been 
exhausted.
Sec. 39.  5 MRSA §18530, sub-§2, ¶C, as enacted by PL 1989, c. 409, §§11 and 
12, is amended to read:
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 under in accordance with section 18527 if recommended by the 
medical board.  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 executive 
director shall require examinations or tests to determine whether the person is disabled 
as described in section 18521; and
Sec. 40.  5 MRSA §18530, sub-§3, ¶E, as enacted by PL 1989, c. 409, §§11 and 
12, is amended to read:
E.  If, during the first 5 years of reemployment, the person again becomes disabled and 
terminates employment, the retirement system shall resume paying the disability 
retirement benefit payable prior to the reemployment with all applicable cost-of-living 
adjustments, or if greater, a disability retirement benefit based upon the person's current 
average final compensation and shall provide rehabilitation services under in 
accordance with section 18527 if recommended by the medical  board.  The executive 
director shall require examinations or tests to determine whether the person is disabled 
as defined in section 18521; and
Sec. 41.  5 MRSA §18553, sub-§3, ¶A, as amended by PL 1991, c. 469, §5, is 
further amended to read:
A.  A surviving spouse of the qualifying member is paid a $150 benefit each month 
beginning the first month after the death occurs and continuing during the surviving 
spouse's lifetime, if:
(1)  The deceased qualifying member had 10 years of creditable service at the time 
of death; or
(2)  The surviving spouse is certified by the medical board an independent health 
care provider or the medical review service provider to be permanently mentally 
incompetent or permanently physically incapacitated and is determined by the 
executive director to be unable to engage in any substantially gainful employment.
A full month's benefit is paid to the estate of the surviving spouse for the month in 
which the surviving spouse dies.
Sec. 42.  5 MRSA §18553, sub-§5-A, ¶A, as amended by PL 1991, c. 469, §5, is 
further amended to read:
A.  A designated beneficiary who is alive at the time of the death of the qualifying 
member is paid $150 per month beginning the first month after the death occurs and 
continuing until the date of the designated beneficiary's death, if the designated 
beneficiary is certified by the medical board an independent health care provider or the 
medical review service provider to be permanently mentally incompetent or 
permanently physically incapacitated and is determined by the executive director to be 
unable to engage in any substantially gainful employment.
Sec. 43.  Implementation plan for mandatory long-term disability 
insurance.  The Maine Public Employees Retirement System shall convene a stakeholder 
group, including representatives of participant employers and employee groups, to develop 
an implementation plan for providing mandatory long-term disability insurance coverage 
to retirement system members through their employers. The Maine Public Employees 
Retirement System shall submit an implementation plan, including any recommended 
legislation, to the joint standing committee of the Legislature having jurisdiction over 
retirement matters no later than January 3, 2023.  The joint standing committee of the 
Legislature having jurisdiction over retirement matters may report out a bill to the 131st 
Legislature on matters related to the report.
Sec. 44.  Report on disability retirement. The Maine Public Employees 
Retirement System shall report to the joint standing committee of the Legislature having 
jurisdiction over retirement matters, no later than January 31, 2023, on the experience of 
the system and its members after the implementation of this Act.  The joint standing 
committee of the Legislature having jurisdiction over retirement matters may report out a 
bill to the 131st Legislature on matters related to the report.
Sec. 45.  Application.  This Act applies to disability retirement benefit applications 
received by the Maine Public Employees Retirement System on or after the effective date 
of this Act.
SUMMARY
This bill amends the laws relating to disability retirement under the Maine Public 
Employees Retirement System and makes other changes relating to the structure of the 
Maine Public Employees Retirement System.  This bill:
1.  Repeals the laws providing for a medical board and permits the executive director 
to contract with a medical review service provider;
2.  Provides that the system’s hearing officers are not employees of the Board of 
Trustees of the Maine Public Employees Retirement System but independent contractors 
that serve as neutral and independent decision makers;
3.  Modifies the definition of "disabled";
4.  Provides that an adverse decision by a hearing officer that is appealed to the court 
must be given de novo review;
5.  Restructures the disability retirement application process so that the executive 
director may grant benefits based on medical records and the member’s health care 
provider’s views, may obtain opinions and recommendations from the medical review 
service provider and may not deny an application for disability retirement benefits without 
first obtaining an independent medical examination unless waived by the member;
6.  Provides that, when reviewing medical evidence in making a determination of 
disability, the board, executive director and hearing officers must primarily consider 
medical opinions in the record and whether the opinions are supported by sound medical 
evidence and are consistent with other medical evidence in the record;
7.  Provides that attorney's fees up to a maximum of $12,000 must be paid by the Maine 
Public Employees Retirement System for a member who appeals the denial of disability 
benefits and who subsequently is awarded those benefits;
8.  Requires the retirement system to report to the joint standing committee of the 
Legislature having jurisdiction over retirement matters on the experience of the retirement 
system and its members under the changes made by the bill; and
9.  Requires formation of a stakeholder group to report to the joint standing committee 
of the Legislature having jurisdiction over retirement matters on implementing mandatory 
long-term disability insurance coverage.