An Act to Establish the Maine Public Employees Retirement System
Maine Legislature, Session 132, LD 1670
Committee: Labor
Sponsors: KESSLER, GROHOSKI
Amends: 5 MRSA §17063

Legislative Document
No. 1670
H.P. 1105
House of Representatives, April 17, 2025
An Act to Establish the Maine Public Employees Retirement System 
Home Repair and Energy Upgrade Loan Program and Fund
Reference to the Committee on Labor suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative KESSLER of South Portland.
Cosponsored by Senator GROHOSKI of Hancock and
Representative: FOSTER of Dexter, Senator: BENNETT of Oxford.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §17063 is enacted to read:
§17063.  Maine Public Employees Retirement System Home Repair and Energy 
Upgrade Loan Program
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A. "Energy improvement" means a residential energy efficiency improvement, an 
installation of a solar collector on a residence, a purchase of an electric vehicle for 
personal use or an installation of an electric vehicle charging station.
B. "Fund" means the Maine Public Employees Retirement System Home Repair and 
Energy Upgrade Loan Fund established in subsection 5.
C.  "Home repair" means a measure to install, repair or replace a vital housing system 
or building component, including a well, well water filtration system, radon mitigation 
system, electrical system, ventilation system, window, door, roof, chimney, siding or 
structural component or an accessibility improvement for a person with a disability.
D. "Participant" means a member or a terminated member with a retirement allowance 
granted under this chapter.
E. "Program" means the Maine Public Employees Retirement System Home Repair 
and Energy Upgrade Loan Program established in subsection 2.
F.  "Residential energy efficiency improvement" means a measure to enhance the 
energy efficiency of a residence, including a heating system, a cooling system, a 
heating and cooling system control upgrade, lighting, an appliance insulation or air 
sealing.
G.  "Solar collector" has the same meaning as in Title 33, section 1421, subsection 4.
2. Maine Public Employees Retirement System Home Repair and Energy 
Upgrade Loan Program established. The Maine Public Employees Retirement System 
Home Repair and Energy Upgrade Loan Program, administered by the retirement system, 
is established.  The program provides low-interest loans to participants to finance home 
repairs and energy improvements.  The program provides loans through disbursement from 
the fund.
3. Loan parameters.  A loan provided by the program to a participant:
A. Is capped at $25,000 for that participant;
B. Carries an interest rate not to exceed 2% per annum;
C. May not exceed 100% of the participant's cumulative retirement system 
contributions; and
D. Has a maximum term of 10 years.
4. Loan repayment and default mitigation.  A participant shall repay a loan provided 
by the program through payroll deductions if the loan recipient is a member and through 
pension deductions if the loan recipient is a terminated member with a retirement allowance 
granted under this chapter.  If the participant is terminated as an employee or defaults on a 
loan provided through the program, the outstanding loan balance may be deducted from 
the participant's retirement system benefits.
5. Maine Public Employees Retirement System Home Repair and Energy 
Upgrade Loan Fund.  The Maine Public Employees Retirement System Home Repair and 
Energy Upgrade Loan Fund, administered by the retirement system, is established.  The 
fund is a revolving, nonlapsing, interest-bearing fund to support the program.  The fund 
consists of funds from allocation of retirement system portfolio funds, appropriations, other 
allocations and grants, donations and contributions from other public or private sources.  
Interest earned by investments of funds in the fund is credited to the fund. Funds in the 
fund may only be used for making a loan through the program.
6. Reporting. By January 1st of each year, the retirement system shall report to the 
Legislature the prior calendar year's program performance, including loan disbursements, 
repayment rates, default rates and job creation as a result of program activities.
7. Rules.  The retirement system shall adopt rules to carry out the provisions of this 
section. Rules adopted pursuant to this subsection are routine technical rules under chapter 
375, subchapter 2-A.
Sec. 2. Maine Public Employees Retirement System Home Repair and 
Energy Upgrade Loan Fund capitalization. The Maine Public Employees 
Retirement System shall capitalize the Maine Public Employees Retirement System Home 
Repair and Energy Upgrade Loan Fund under the Maine Revised Statutes, Title 5, section 
17063, subsection 5 by allocating annually for 10 years $25 million from the retirement 
system's portfolio sourced by reallocating retirement system portfolio funds currently 
invested in fossil fuel holdings, with the initial yearly allocation of $25 million allocated to 
the fund upon the effective date of this Act.  For purposes of this section, "fossil fuel 
holding" means an investment in a company that engages in the exploration, production, 
use, transportation, sale or manufacture of a fossil fuel or a fossil fuel by-product.
SUMMARY
This bill creates the Maine Public Employees Retirement System Home Repair and 
Energy Upgrade Program to provide low-interest loans to retirement system members and 
retired retirement system pension holders for residential energy efficiency improvements 
and home repairs.  The Maine Public Employees Retirement System Home Repair and 
Energy Upgrade Loan Program is supported by the Maine Public Employees Retirement 
System Home Repair and Energy Upgrade Loan Fund, which is funded by allocations from 
Maine Public Employees Retirement System investment holdings in fossil fuel companies.