An Act Establishing
Maine Legislature, Session 132, LD 1003
Committee Amendment CA_A_H362 (House)

COMMITTEE AMENDMENT «A" to H.P. 650, L.D. 1003, "An Act Establishing 
the Retirement Benefit Improvement Fund» 
Amend the bill in section 2 in art. 10 in § 17446 in subsection 4 in the 4th line (page 2, 
line 16 in L.D.) by striking out the following: 
11labor
and inserting the following: 
'retirement matters' 
Amend the bill by inserting after section 2 the following: 
1Sec. 3. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Retirement Benefit Improvement Fund N521 
Initiative: Provides base allocations to authorize the expenditure cif funds to pay for 
retirement benefit improvements for retired state employees and teachers and their 
beneficiaries. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
2025-26 
$500 
$500 
2026-27 
$500 
$500 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
SUMMARY 
This amendment clarifies that the Chief Executive Officer of the Maine Public 
Employees Retirement System must repoti on the status of the Retirement Benefit 
Improvement Fund to the joint standing committee of the Legislature having jurisdiction 
over retirement matters as opposed to the joint standing committee of the Legislature 
Page I - 132LR1598(02) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 650, L.D. 1003 
having jurisdiction over labor matters. The amendment also adds an appropriations and 
allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/20/25 LR.I-
LD 1003 
LR 1598(02) 
An Act Establishing the Retirement Benefit Improvement Fund 
Fiscal Note for Bill as Amended by Committee Amendment A• C/-f ".](o Z) 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
Redistribution of final priority transfers 
FY 2025-26 
FY2026-27 
Projections 
FY 2027-28 
Projections 
FY2028-29 
Appropriations/ Allocations 
Other Special Revenue Funds 
$500 
$500 
$500 
$500 
Fiscal Detail and Notes 
Currently, cost-of-living increases for retired teachet·s, state employees, judges and legislators are applied to a portion 
of a retiree's benefit instead of the full amount In 2024, the cost-of-living adjustment was applied to the first $25,659 
of a retiree's benefit. That amount will increase to $26,429 for 2025. Increasing the potiion of a retiree's benefit to 
which the cost-of-living increase is applied beyond this amount will create an unfunded actuarial liability that, 
pursuant to the Constitution, will need to be funded prior to the increase taking effect. The most recent cost estimate, 
prepared by the Maine Public Employees Retirement System in February 2023, of applying the cost-of-living 
adjustment to a retiree's full benefit amount is $1,192,325,370, 
This bill includes ongoing Other Special Revenue Funds base allocations of $500 per year beginning in fiscal year 
2025-26 to the Retirement Benefit Improvement Fund established within the Depatiment of Administrative and 
Financial Services for the purpose of accumulating funds to pay for retirement benefit improvements for retired state 
employees and teachers and their beneficiaries such as increasing the base in which a retiree's cost-of-living 
adjustment is applied. The bill requires that any remaining balance of the unappropriated surplus of the General Fund 
at the end of each fiscal year be transfened, as the 5th priority, to the fund until such time as the cost-of-living 
adjustment is applied to a retiree's full retirement benefit. Adding this priority will suspend any funding for other 
statutory priorities of the cascade that fall after the Retirement Benefit Improvement Fund. 
LRl 598(02) - Fiscal Note - Page 1 of I