An Act to Make Long-term Disability Insurance Coverage Available to Public Employees
Maine Legislature, Session 131, LD 1152
Committee: Health Coverage, Insurance and Financial Services
Sponsors: INGWERSEN, MALON, DAUGHTRY, TIPPING, BRENNAN, GERE, PLUECKER, SHEEHAN
Amends: 5 MRSA §18101, 5 MRSA §18701

Legislative Document
No. 1152
S.P. 479
In Senate, March 13, 2023
An Act to Make Long-term Disability Insurance Coverage Available 
to Public Employees
Reference to the Committee on Health Coverage, Insurance and Financial Services 
suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator INGWERSEN of York.
Cosponsored by Representative MALON of Biddeford and
Senators: DAUGHTRY of Cumberland, TIPPING of Penobscot, Representatives: BRENNAN 
of Portland, GERE of Kennebunkport, PLUECKER of Warren, SHEEHAN of Biddeford.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §18101, as enacted by PL 2017, c. 378, §1, is amended to read:
§18101.  Long-term disability insurance coverage authorized required
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 offer the long-term disability insurance coverage or 
substantially equivalent coverage from another source to the employer's employees that 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 under this subchapter 
must be borne by the covered person, the covered person''s employer or both the covered 
person and the covered person''s employer.
1-A.  Benefits.  The coverage offered by the board 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
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.
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
The board may shall offer long-term disability insurance coverage to members and 
employees who choose not to become members but participate in the defined contribution 
plan pursuant to section 18801, subsection 1 through their employer and may contract with 
one or more insurance companies to provide offer this coverage.  An employer shall 
provide the long-term disability insurance or substantially equivalent coverage from 
another source to the employer's employees who are members or participants in the defined 
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 under this subchapter 
must be borne by the covered person, the covered person''s employer or both the covered 
person and the covered person''s employer.
1-A.  Benefits.  The coverage offered by the board 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 final 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 final 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.
SUMMARY
This bill requires the Maine Public Employees Retirement System to offer long-term 
disability insurance coverage and requires employers to provide the coverage at employer 
expense to members of the system and certain employees who participate in the system's 
defined contribution plan or provide substantially equivalent coverage obtained from 
another source.