An Act to Clarify the Disability Retirement Program of the Maine Public Employees Retirement System
Maine Legislature, Session 131, LD 1759
Committee: Labor and Housing
Sponsors: DUSON, OSHER, HICKMAN, INGWERSEN, TIPPING, BRENNAN, DODGE, MALON, ROEDER, TALBOT ROSS
Amends: 4 MRSA §1201, 4 MRSA §1353, 5 MRSA §17103, 5 MRSA §17901, 5 MRSA §17907, 5 MRSA §17921, 5 MRSA §17929, 5 MRSA §18501, 5 MRSA §18507, 5 MRSA §18521, 5 MRSA §18529

Legislative Document
No. 1759
S.P. 706
In Senate, April 24, 2023
An Act to Clarify the Disability Retirement Program of the Maine 
Public Employees Retirement System
Reference to the Committee on Labor and Housing suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator DUSON of Cumberland.
Cosponsored by Representative OSHER of Orono and
Senators: HICKMAN of Kennebec, INGWERSEN of York, TIPPING of Penobscot, 
Representatives: BRENNAN of Portland, DODGE of Belfast, MALON of Biddeford, 
ROEDER of Bangor, Speaker TALBOT ROSS of Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  4 MRSA §1201, sub-§10-B is enacted to read:
10-B.  Gainful occupation.  "Gainful occupation" means work done by a retiree for 
pay or for the generation of profit primarily by means of the retiree's own productive work 
activity.
Sec. 2.  4 MRSA §1353, sub-§4, ¶B, as corrected by RR 2021, c. 1, Pt. B, §45, is 
amended to read:
B.  After that period, the allowance continues only if the beneficiary is unable to engage 
in any substantially gainful activities for which the beneficiary is qualified by training, 
education or experience. The board, chief executive officer and hearing officers shall 
consider medical and vocational evidence in determining whether the beneficiary has 
the physical, mental and vocational capabilities to perform substantially gainful 
activity.
Sec. 3.  5 MRSA §17103, sub-§11, as amended by PL 2021, c. 548, §§12 to 16, is 
further amended to read:
11.  Report to Legislature.  The board shall make a written report to the appropriate 
legislative committee on or before March 1st of each year that must contain:
A.  A discussion of any areas of policy or administration that, in the opinion of the 
board, should be brought to the attention of the committee;
B.  Any proposed legislation amending the retirement system law that the board 
recommends to improve the retirement system.  The joint standing committee of the 
Legislature having jurisdiction over public employee retirement matters may submit 
legislation required to implement recommendations made pursuant to this paragraph;
D.  A review of the operations of the retirement system, including a summary of 
administrative expenses and improvements in the delivery of services to members of 
the retirement system;
E.  A budget report showing the budget status of the administrative operations and 
functions of the system for the current fiscal year relative to the budget for the current 
fiscal year;
F.  The number of individuals who retired in the previous calendar year categorized by 
plan status;
G.  The number of new active members of the retirement system who became members 
during the previous year, by plan status;
H.  The amount of earnings on investment in the previous calendar year;
I.  The total amount of employee and employer contributions to the retirement system 
in the previous calendar year and the total amount of payout amounts to retirees service 
retirement members and to disability beneficiaries, categorized by plan status;
J.  The number of persons who applied for disability retirement during the previous 
calendar year including:
(1)  The number of applicants for disability retirement who were awarded benefits 
at the application stage;
(3)  The number of applicants for disability retirement who appealed decisions that 
denied disability retirement status; and
(4)  The number of applicants who were granted disability retirement following 
their appeals; and
K.  Data from a survey of members and employees that measures the level of 
satisfaction and experience that members and employees have with the retirement 
system. For the purposes of this paragraph, "employee" means an employee of the 
retirement system.;
L.  The number of service retirement members and number of disability beneficiaries 
on January 1st in the previous calendar year;
M.  The number of administrative decisions during the previous calendar year 
concerning a disability beneficiary's ability to engage in substantially gainful activity;
N.  The number of disability beneficiaries who were actively seeking work at any time 
during the previous calendar year under section 17929, subsection 2, paragraph B, 
subparagraph (1) and section 18529, subsection 2, paragraph B, subparagraph (1) and 
rules adopted pursuant to those sections regarding standards for actively seeking work;
O.  The status of disability beneficiaries whose benefits were suspended, reduced or 
terminated during the previous calendar year, including:
(1)  The number of disability beneficiaries whose benefits were suspended for 
failure to submit an annual statement of compensation or earnings in a timely 
manner;
(2)  The number of disability beneficiaries whose benefits were reduced because 
they exceeded the limit of allowable annual earnings;
(3)  The number of disability beneficiaries whose benefits were terminated because 
they exceeded the limit of allowable annual earnings;
(4)  The number of appeals of decisions to suspend, reduce or terminate disability 
retirement benefits; and
(5)  The results of appeals of decisions to suspend, reduce or terminate disability 
retirement benefits.
Sec. 4.  5 MRSA §17901, as enacted by PL 1985, c. 801, §§5 and 7, is amended by 
enacting at the end a new paragraph to read:
As used in this article, unless the context otherwise indicates, "gainful occupation" 
means work done by a retiree for pay or for the generation of profit primarily by means of 
the retiree's own productive work activity.
Sec. 5.  5 MRSA §17907, sub-§2, ¶B, as amended by PL 2003, c. 675, §1 and PL 
2021, c. 548, §45, is further amended to read:
B.  After the disability has continued for 5 years, the disability of the beneficiary must 
render the beneficiary unable to engage in any substantially gainful activity for which 
the beneficiary is qualified by training, education or experience.  The board, chief 
executive officer and hearing officers shall consider medical and vocational evidence 
in determining whether the beneficiary has the physical, mental and vocational 
capabilities to perform substantially gainful activity.  For purposes of this paragraph, 
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.
(1)  The chief executive officer may require, once each year, a recipient of a 
disability retirement benefit to undergo medical examinations or tests, conducted 
in accordance with section 17903, to determine the disability of the beneficiary.
(2)  If the beneficiary refuses to submit to the examination or tests under 
subparagraph (1), the beneficiary's disability retirement benefit is discontinued 
until the beneficiary withdraws the refusal.
(3)  If the beneficiary's refusal under subparagraph (2) continues for one year, all 
the beneficiary's rights to any further benefits under this article cease.
(4)  If it is determined, on the basis of the examination or tests under subparagraph 
(1), that the disability of a beneficiary no longer exists, the payment of the 
beneficiary's disability retirement benefit ceases;
Sec. 6.  5 MRSA §17921, sub-§3 is enacted to read:
3.  Gainful activity.  "Gainful activity" means work done by a retiree for pay or for 
the generation of profit primarily by means of the retiree's own productive work activity.
Sec. 7.  5 MRSA §17929, sub-§2, ¶B, as amended by PL 2021, c. 277, §25 and c. 
548, §45, is further amended by amending subparagraph (1) to read:
(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 board, chief executive officer and hearing officers shall consider 
medical and vocational evidence in determining whether the beneficiary has the 
physical, mental and vocational capabilities to perform substantially gainful 
activity.  The disability retirement benefit continues if the person can effectively 
demonstrate to the chief executive officer 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.  
Sec. 8.  5 MRSA §18501, as enacted by PL 1985, c. 801, §§5 and 7, is amended by 
enacting at the end a new paragraph to read:
As used in this article, unless the context otherwise indicates, "gainful occupation" 
means work done by a retiree for pay or for the generation of profit primarily by means of 
the retiree's own productive work activity.
Sec. 9.  5 MRSA §18507, sub-§2, ¶B, as amended by PL 2003, c. 675, §3 and PL 
2021, c. 548, §45, is further amended to read:
B.  After the disability has continued for 5 years, the disability of the beneficiary must 
render the beneficiary unable to engage in any substantially gainful activity for which 
the beneficiary is qualified by training, education or experience.  The board, chief 
executive officer and hearing officers shall consider medical and vocational evidence 
in determining whether the beneficiary has the physical, mental and vocational 
capabilities to perform substantially gainful activity.  For purposes of this paragraph, 
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.
(1)  The chief executive officer may require, once each year, a recipient of a 
disability retirement benefit to undergo medical examinations or tests, conducted 
in accordance with section 18503, to determine the disability of the beneficiary.
(2)  If the beneficiary refuses to submit to the examination or tests under 
subparagraph (1), the beneficiary's disability retirement benefit is discontinued 
until the beneficiary withdraws the refusal.
(3)  If the beneficiary's refusal under subparagraph (2) continues for one year, all 
the beneficiary's rights to any further benefits under this article cease.
(4)  If it is determined, on the basis of the examination or tests under subparagraph 
(1), that the disability of a beneficiary no longer exists, the payment of the 
beneficiary's disability retirement benefit ceases.
Sec. 10.  5 MRSA §18521, sub-§3 is enacted to read:
3.  Gainful activity.  "Gainful activity" means work done by a retiree for pay or for 
the generation of profit primarily by means of the retiree's own productive work activity.
Sec. 11.  5 MRSA §18529, sub-§2, ¶B, as amended by PL 2021, c. 277, §38 and 
c. 548, §45, is further amended by amending subparagraph (1) to read:
(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 board, chief executive officer and hearing officers shall consider 
medical and vocational evidence in determining whether the beneficiary has the 
physical, mental and vocational capabilities to perform substantially gainful 
activity.  The disability retirement benefit continues if the person can effectively 
demonstrate to the chief executive officer 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.
Sec. 12.  Application. This Act applies to the disability retirement benefit program 
of the Maine Public Employees Retirement System on the effective date of this Act.
SUMMARY
This bill amends the laws relating to disability retirement under the Maine Public 
Employees Retirement System. The bill: 
1. Provides that the Board of Trustees of the Maine Public Employees Retirement 
System, the Chief Executive Officer of the Maine Public Employees Retirement System 
and hearing officers shall consider medical and vocational evidence in determining whether 
the beneficiary has the physical, mental and vocational capabilities to perform substantially 
gainful activity;
2. Defines the term "gainful activity" in the article governing disability retirement 
benefits after September 30, 1989 for state employees and teachers and the article 
governing disability retirement benefits for participating local districts;
3. Defines the term "gainful occupation" in the chapter governing judicial retirement 
on or after December 1, 1984, the article governing disability retirement benefits of state 
employees and teachers and the article governing disability retirement benefits for 
participating local districts; and
4. Requires that the retirement system's annual report to the joint standing committee 
of the Legislature having jurisdiction over retirement matters include statistics about 
administrative decisions affecting the benefits of disability beneficiaries, appeals of those 
decisions and the overall numbers of disability retirement beneficiaries.