An Act to Make Long-term Disability Insurance Coverage Available to Public Employees
Maine Legislature, Session 131, LD 1152
Committee Amendment CA_A_S592 (Senate)
Amends: 5 MRSA §18101, 5 MRSA §18701

COMMITTEE AMENDivfENT" A "to S.P. 479, L.D. 1152, "An Act to Make Long-
term Disability Insurance Coverage Available to Public Employees" 
Amend the bill by striking out the title and substituting the following: 
'An Act to Require Public Employers to Provide Long-term Disability Insurance 
Coverage' 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec.1. 5 MRSA §18101, as enacted by PL 2017, c. 378, §1, is amended to read: 
§18101. Long-term disability insurance coverage aa-th.arized required 
+he Beginning July 1, 2025, the board may shall offer long-term disability insurance 
coverage to members through their employer and may contract with one or more insurance 
companies to provide this coverage. An employer shall provide the long-term disability 
insurance coverage or substantially equivalent coverage from another source to the 
employer's employees who are members. 
1. Premiums. All premiums and any other amounts due to an insurance company or 
other 3rd party in connection with coverage offered by the board or provided by the 
employer under this subchapter must be borne by the eo¾'ered person, the covered person's 
employer or l:ioth the eoyered person B:Bd the OO'rered person's efBPlo:yer. 
1-A. Benefits. The coverage offered by the board or provided by the employer under 
this subchapter must provide for a monthly benefit payment amount of not more than 
$8,000 and not less than $100, including applicable offsets. The monthly benefit payment 
must be in an amount to replace: 
A. For a member who would receive a disability retirement benefit equal to 59% of 
the member's average final compensation if qualified for disability retirement benefits, 
59% of the covered member's income from the employer providing the coverage: or 
COMMITTEE AMENDMENT 
ROS 
COMMITTEE AMENDMENT" A 
"to S.P. 479, L.D. 1152 { S,:::ff )'J 
B. For a member who would receive a disability retirement benefit equal to 66 2/3% 
of the member's average final compensation if qualified for disability retirement 
benefits, 66 2/3% of the covered member's income from the employer providing the 
coverage. 
2. Rules. The board may adopt rules to implement this subchapter. Rules adopted 
pursuant to this subsection are routine technical rules pursuant to chapter 375, subchapter 
2-A. 
3. Costs. The State shall pay 100% of the costs of the premiums and any other amounts 
due to an insurance company or other 3rd party in connection with coverage offered by the 
board or provided by the employer under this section. 
Sec. 2. 5 MRSA §18701, as enacted by PL 2017, c. 378, §2, is amended to read: 
§18701. Long-term disability insurance coverage authorized required 
:i:he Beginning July 1, 2025, the board may shall offer long-term disability insurance 
coverage to members and employees who choose not to become members but participate 
in the defmed contribution plan pursuant to section 18801, subsection 1 through their 
employer and may contract with one or more insurance companies to pro11ide offer this 
coverage. An employer shall provide the long-term disability insurance coverage or 
substantially equivalent coverage from another source to the employer's employees who 
are members or participants in the defmed contribution plan pursuant to section 18801, 
subsection 1. 
1. Premiums. All premiums and any other amounts due to an insurance company or 
other 3rd party in connection with coverage offered by the board or provided by the 
employer under this subchapter must be borne by the severed person, the covered person's 
employer or both the e01,,ered person a-nd the eo1,,ered person's eH1ployer. 
1-A. Benefits. The coverage offered by the board or provided by the employer under 
this subchapter must provide for a monthly benefit amount of not more than $8,000 and 
not less than $100, including applicable offsets. The monthly benefit payment must be in 
an amount to replace: 
A. For a member or a participant who would receive a disability retirement benefit 
equal to 59% of the member's or participant's average fmal compensation if qualified 
for disability retirement benefits, 59% of the member's or participant's income from the 
employer providing the coverage; 
B. For a member or a participant who would receive a disability retirement benefit 
equal to 60% of the member's or participant's annual compensation if qualified for 
disability retirement benefits, 60% of the member's or the participant's income from 
the employer providing the coverage; or 
C. For a member or a participant who would receive a disability retirement benefit 
equal to 66 2/3% of the member's or the participant's average fmal compensation if 
qualified for disability retirement benefits, 66 2/3% of the member's or the participant's 
income from the employer providing the coverage. 
2. Rules. The board may adopt rules to implement this subchapter. Rules adopted 
pursuant to this subsection are routine technical rules pursuant to chapter 375, subchapter 
2-A. 
COMMITTEE AMENDMENT 
ROS. 
COMMITTEE AMENDMENT"~ "to S.P. 479, L.D. 1152 { $-S9'J..) 
3. Costs. The State shall pay 100% of the costs of the premiums and any other amounts 
due to an insurance company or other 3rd party in connection with coverage offered by the 
board or provided by the employer under this section.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
SUMMARY 
This amendment replaces the bill and changes the title. The amendment clarifies that 
the Maine Public Employees Retirement System board of trustees must offer long-term 
disability insurance coverage to members through their employer and that the public 
employer must provide that coverage or substantially equivalent coverage from another 
source to the public employee. It specifies that coverage must be offered beginning July 1, 
2025. The amendment also specifies that the State must pay 100% of the costs of the 
premiums and any other amounts due to an insurance company or other 3rd party in 
connection with coverage offered by the board or provided by the employer. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 03/11/24 ,::k?ae!. 
LD 1152 
LR 754(02) 
An Act to Make Long-term Disability Insurance Coverage Available to Public Employees 
Fiscal Note for Bill as Amended by Committee Amendment ':4'(5-59).J 
Committee: Labor and Housing 
State Man'd·ates 
Required Activity 
Fiscal Note Required: Yes 
Fiscal Note 
State Mandate - Funded 
Future biennium cost increase - All Funds 
Requires public employers to provide long-tenn disability coverage offered by the 
Maine Public Employees Retirement System or a substantially equivalent coverage 
from another som;ce to its public employees effective July 1, 2025. 
Unit Affected 
All Public 
Employers 
Local Cost 
$3.2M to 
$7.7M 
The required local activities in this bill may represent a state mandate pursuant to the Constitution of Maine. If the r:" 
does requite ·a local unit of government to expand or modify its activities so as to necessitate additional expenditure. 
from local revenue, the state mandate provisions of the Constitution of Maine require either: (J) General Fund 
appi"bpriations be provided to fund at least 90% of any additional necessitated local costs of the mandate; or (2) a 
Mandate Preamble be added to the bill and two-thirds of the members of each House vote to exempt the mandate from 
the funqing requirement. If the bill does represent a state mandate and neither one of these actions occurs, the local 
units of go_vemment will not be required to implement the mandated activities. 
Fiscal·Detail and.Notes 
This bill requires the Maine Public Employees Retirement System (MainePERS) to offer long-tenn disability 
insurance (L TDI) coverage to a public employer and requires the public employer to provide that coverage or 
substantially equivalent coverage from another source to its employees beginning July 1, 2025. The bill also requires 
the State to pay 100% of the costs of the premiums and any other amounts due an insurance company or other 3rd 
party in connection with the coverage offered by MainePERS or a substantially equivalent coverage from another 
source offered by the employer to fund the mandated requirement. 
According to MainePERS, it has received bids from 3 insurance caniers to provide the LTDI but has not yet awarded 
a contract to a can-ier. Based on the bids received, the expected annual premium to cover all eligible individuals 
ranges from $3.2 million per year to $7.7 million per year, depending on the canier selected. The estimated costs 
were detem1ined based on the most recent payroll data collected by MainePERS from employers that participate in the 
retirement system and assume that coverage is provided under the MainePERS program. To the extent that the cost of 
alternative coverage provided by an employer differs from the MainePERS offered program, the total cost of 
providing !,,TDI coverage may differ from these estimates. It is important to note that as payroll costs increase, the 
total premium costs will increase proportionately. 
LR0754(02) - Fiscal Note - Page I of l