An Act to Increase the State's Share of the Cost of Health Insurance for Retired Teachers
Maine Legislature, Session 131, LD 1773
Committee Amendment CA_A_H762 (House)
Amends: 20-A MRSA §13451

COMMITTEE AMENDMENT " A" to H.P, 1136, L.D, 1773, "An Act to Increase
the State's Share of the Cost of Health Insurance for Retired Teachers"
Amend the bill by striking out everything after the enacting clause and before the
emergency clause and insertmg the following:
'See. 1. 20-A MRSA §13451, sub-§3, ^E, as amended by PL 2023, c. 412, Pt.
00000, §2, is further amended to read:
E, Fifty-five percent from July 1,2021 to June 3 0,2023;aad
Sec. 2. 20-A MRSA §13451, sub-§3, ^pF, as enacted by PL 2023, c. 412, Pt.
00000, §3, is amended to read:
F. Sixty percent afiw from July 1.2023T to June 30.2024:and
Sec. 3. 20-A MRSA §13451, sub-§3, ^G is enacted to read:
G. Sixtv-five percent after July 1.2024,
Sec. 4. Additional amount for fiscal year 2024-25. Notwithstanding the Maine
Revised Statutes, Title 5, section 1536 and Title 20-A, section 13451, subsection 3,
paragraphs F and G, after the transfers pursuant to Title 5, sections 1507, 1511 and 1519,
the State Controller shall transfer at the close of fiscal year 2023-24 an amount equal to
10% of the amount available from the unappropriated surplus of the General Fund after all
required deductions of appropriations, budgeted fmancial commitments and adjustments
considered necessary by the State Controller have been made to a Retired Teachers' Health
Insurance program, Other Special Revenue Funds account, for the purpose of increasing
the percentage of a retired teacher's share of the premium for group accident and sickness
or health insurance that the State is required to pay,
Sec. 5. Appropriations and allocations. The following appropriations and
allocations are made.
EDUCATION, DEPARTMENT OF
Retired Teachers' Health Insurance 0854
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT "A. "toH.P. 1136, L.D. 1773
»C^? ^ Initiative: Provides ongoing funds to increase the State's contribution toward the retired
teachers' share of health insurance premiums from 60% to 65% beginning in fiscal year
2024-25.
GENERAL FUND 2023-24 2024-25
AHOther $0 $3,647,589
.
GENERAL FUND TOTAL $0 $3,647,589
Retired Teachers' Health Insurance 0854
Initiative: Allocates funds for the purpose of mcreasing the percentage of the retired
teachers' share of the premium for group accident and sickness or health insurance that the
State is required to pay,
OTHER SPECIAL REVENUE FUNDS 2023-24 2024-25
AllOther $0 $500
OTHER SPECIAL REVENUE FUNDS TOTAL $0 $500
EDUCATION, DEPARTMENT OF
DEPARTMENT TOTALS 2023-24 2024-25
1920 GENERAL FUND $0 $3,647,589
OTHER SPECIAL REVENUE FUNDS $0 $500
DEPARTMENT TOTAL-ALL FUNDS $0 $3,648,089
Amend the bill by relettering or renumbermg any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment requires the State to pay 65% of a retired teacher's share of the
premium for group accident and sickness or health insurance after July 1, 2024. It also
requires that 10% of the amount available from the unappropriated surplus of the General
Fund at the close of fiscal year 2023-24, after certain transfers, be used to increase the
percentage of a retired teacher's share of the premium for group accident and sickness or
health insurance that the State is required to pay.
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Approved; 02/06/24 ^^ci-
LD 1773 LR 1812(02)
An Act to Increase the State's Share of the Cost of Health Insurance for Retired Teachers
Fiscal Note for Bill as Amended by Committee Amendment '^" ( [} - '^(ff 2- )
Committee: Education and Cultural Affairs
Fiscal Note Required: Yes
Fiscal Note
Reduces distribution to final priority transfers
Projections Projections
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Net Cost (Savings)
General Fund $0 $3,647,589 $3,809,906 $3,979,447
Appropriations/AHocations
General Fund , $0 $3,647,589 $3,809,906 $3,979,447
Other Special Revenue Funds $0 $500 $500 $500
Fiscal Detail and Notes
This bill in.cludes ongoing General Fund appropriations of $3,647,589 in fiscal year 2024-25 to the Retired Teachers'
Health Insurance program within the Department of Education for the costs associated with increasing the State's
contribution to. the retired teachers' cost of health insurance premiums from 60% to 65% effective July 1,2024, The
estimated cost of this bill assumes an average increase in premiums of 4.45% per year. The total cost of this provision
over time will depend on actual health premium cost inflation and the number of retired teachers in the future.
Current law requires that, at the close of any fiscal year, balances remaining in the unappropriated surplus of the
General Fund be distributed as part of the so called cascade". This bill also requires that 10% of the amount available
from the unappropriated surplus of the General Fund at the end of fiscal year 2023-24 as the 4th priority after transfers
to the Contingent Account, the Loan Insurance Reserve within the Finance Authority of Maine and the Retiree Health
Insurance Internal Service Fund be used to increase the percentage of a retired teacher's share of the premium for
group accident and sickness or health insurance that the State is required to pay. This will reduce the amount of
funding available to be distributed to the remaining final priorities, including the Maine Budget Stabilization Fund and
the Highway and Bridge Capital program. As the amount of funds that will be available for distribution through the
"cascade" is not known at this time, it is not Imown how much, if any, will be available for this purpose. This bill
includes base Other Special Revenue Funds allocations of $500 per year beginning in fiscal year 2024-25 to a newly
established Retired Teachers' Health Insurance program, Other Special Revenue Funds account to allow expenditures
in the event funds are available to be transferred,
LR1812(02) - Fiscal Note - Page 1 of 1