An Act to Amend Maine's Tax Laws
Maine Legislature, Session 131, LD 0457
Committee Amendment CA_B_S644 (Senate)
Amends: 5 MRSA §17806

COMMITTEE AMENDMENT "f?" to S.P, 211, L.D, 457, "An Act to Amend
Maine's Tax Laws"
Amend the bill by striking out the title and substituting the following:
'An Act to Increase the Cost-of-Iiving Adjustment for Certain Government
Retirement Benefits for Fiscal Year 2024-25'
Amend the bill by striking out everything after the enacting clause and inserting the
following:
'See. 1. 5 MRSA §17806, sub-§l, ^A, as amended by PL 2021, c. 635, Pt. NN, § 1,
is further amended to read:
A. Except as provided in paragraphs A-l, A-2 aHd^ A-3 and A-4, whenever there is a
percentage increase in the Consumer Price Index from July 1st to June 30th, the board
shall automatically make an equal percentage increase in retirement benefits, beginning
in September, up to a maximum annual increase of 3%. Effective July 1, 2011, the
increase applies to that portion of the retirement benefit up to. $20,000, which amount
must be indexed in subsequent years by the same percentage adjustments granted under
this section. Effective July 1,2022, the increase applies to that portion of the retirement
benefit up to $24,186,25, which amount must be indexed in subsequent years by the
same percentage adjustments granted under this section.
Sec. 2. 5 MRSA §17806, sub-§l, ^[A-4 is enacted to read:
A-4. For cost-of-livmg adjustments awarded under paragraph A in fiscal year 2024-
25 only. the increase applies to that portion of the retirement benefit up to $40.000.
Sec. 3. Appropriations and allocations. The following appropriations and
allocations are made.
RETIREMENT SYSTEM, MAINE PUBLIC EMPLOYEES
Retirement System - Retirement Allowance Fund 0085
COMMITTEE AMENDMENT
ROS COMMITTEE AMENDMENT "fZ," to S.P. 211, L.D. 457 i^"(.
Initiative: Provides one-time funds to pay the unfunded achiarial liability created by
providing that, for fiscal year 2024-25 only, the cost-of-living adjustment awarded to
. retired state employees and teachers and their beneficiaries applies to the first $40,000 of
the retirement benefit.
GENERAL FUND 2023-24 2024-25
AHOther $0 $39,836,000
GENERAL FUND TOTAL $0 $39,836,000
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment, which is the minority report of the committee, replaces the bill, which
is a concept draft, changes the title and provides that, for the cost-of-living adjustment
awarded to retired state employees and teachers and their beneficiaries in fiscal year 2024-
25 only, which is paid in September 2024, the adjustment applies to the first $40,000 of the
retirement benefit. Effective July 1,2025, the increase applies to the portion that otherwise
would have been in effect absent this one-time change.
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Approved: 03/21/24 ^f^^-
LD 457 LR 2184(03)
An Act to Amend Maine's Tax Laws
Fiscal Note for Bill as Amended by Committee Amendment ",^,5-
Committee: Taxation
Fiscal Note Required: Yes
Fiscal Note
Projections Projections
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Net Cost (Savings)
General Fund $0 $39,836,000 $0 $0
^ppropriations/Allocations
General Fund $0 $39,836,000 $0 $0
Fiscal Detail and Notes
This legislation provides that, for fiscal year 2024-25 only, the cost-of-living adjustment (COLA) awarded to retired
state employees and teachers and their beneficiaries applies to the first $40,000 of the retirement benefit. According to
the Maine Public Employees Retirement System, this provision will create an unfunded actuarial liability (UAL)
totaling $39,836,000 that, pursuant to the Maine Constitution, will have to be funded immediately. This bill includes a
one-time General Fund appropriation in that amount to the Retirement Allowance Fund within the Maine Public
Employees Retirement System in fiscal year 2024-25 to pay for the cost of the COLA provision.
LR2184(03) - Fiscal Note - Page 1 of 1