An Act to Standardize Service Credit Qualifications for State Retirees
Maine Legislature, Session 131, LD 0106
Committee: Labor and Housing
Sponsors: PARRY, JACKSON, COLLINGS, GATTINE, TERRY, DAUGHTRY, HARRINGTON, INGWERSEN
Amends: 5 MRSA §17857

Legislative Document
No. 106
H.P. 74
House of Representatives, January 9, 2023
An Act to Standardize Service Credit Qualifications for State 
Retirees
Reference to the Committee on Labor and Housing suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative PARRY of Arundel.
Cosponsored by President JACKSON of Aroostook and
Representatives: COLLINGS of Portland, GATTINE of Westbrook, TERRY of Gorham, 
Senators: DAUGHTRY of Cumberland, HARRINGTON of York, INGWERSEN of York.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §17857, sub-§2, as amended by PL 2001, c. 442, §2 and PL 2021, 
c. 548, §45, is further amended to read:
2.  Additional creditable service.  Additional creditable service is earned by a former 
participant in a special plan as follows.
A.  A member who has completed the service requirements for retirement under a 
special plan, including a member who completes the requirements of section 17851‑A, 
subsection 2, paragraph A, may transfer to a position not under a special plan and earn 
service credit for additional service retirement benefits.
(1)  The part of the member's service retirement benefit based upon membership 
service before being transferred must be computed according to the formula for 
computing benefits under the special plan that the member was under previously.
(2)  The part of the member's benefit based upon membership service after being 
transferred must be computed in accordance with section 17852, subsection 1, 
except that, if the member has completed 80% of the member’s service under the 
special plan, the member’s benefit must be computed according to the formula for 
computing benefits under the special plan that the member was under previously.
C.  A member who has not completed the service requirements for retirement under a 
special plan may transfer to a position not under a special plan and receive service 
retirement benefits as follows.  This paragraph does not apply to section 17851‑A, 
subsection 2, paragraph A.
(1)  If the benefit is greater, the part of the member's service retirement benefit 
based upon membership service before being transferred must be computed 
according to the formula for computing benefits under the special plan that the 
member was under previously.
(2)  The part of the member's benefit based upon membership service after being 
transferred must be computed in accordance with section 17852, subsection 1, 
except that, if the member has completed 80% of the member’s service under the 
special plan, the member’s benefit must be computed according to the formula for 
computing benefits under the special plan that the member was under previously.
D.  A member who has not completed the service requirements for retirement under a 
special plan, including a member who completes the requirements of section 17851‑A, 
subsection 2, paragraph A, on becoming disabled as defined in section 17901, or, after 
September 30, 1989, section 17921, and on becoming reemployed in a position not 
under a special plan on retirement receives retirement benefits as follows.
(1)  The part of the member's service retirement based on membership service 
before becoming disabled must be computed according to the formula for 
computing benefits under the member's previous special plan.
(2)  The part of the member's service retirement based on membership service after 
becoming reemployed in a position not under a special plan must be computed 
according to the formula for computing benefits under the member's previous 
special plan, except that, if the member has completed 80% of the member’s 
service under the special plan, the member’s benefit must be computed according 
to the formula for computing benefits under the special plan that the member was 
under previously.
(3)  If the member is found to be no longer disabled, as defined in section 17901, 
or, after September 30, 1989, section 17921, the member may:
(a)  Return to a position under the member's previous special plan; or
(b)  Remain in the position that is not under a special plan and have the part of 
the member's service retirement benefit based on post-disability service 
computed in accordance with section 17852, subsection 1, except that, if the 
member has completed 80% of the member’s service under the special plan, 
the member’s benefit must be computed according to the formula for 
computing benefits under the special plan that the member was under 
previously.
(4)  The chief executive officer may require that a member subject to this paragraph 
undergo medical examinations or tests once each year to determine the member's 
disability in accordance with section 17903 or, after September 30, 1989, section 
17926.
(a)  If the member refuses to submit to the examination or tests under this 
subparagraph, the member's retirement benefit must be based on section 
17852, subsection 1, until the member withdraws the refusal.
(b)  If the member's refusal under division (a) continues for one year, all the 
member's rights to any further benefits under this paragraph shall cease.
SUMMARY
This bill specifies that when a member of the Maine Public Employees Retirement 
System in a position covered by a special plan transfers to a position that is not covered by 
a special plan and has completed 80% of the member's service under the special plan, that 
additional time in the position not covered by the special plan is calculated as though the 
member had remained in the special plan.