An Act to Reinvest in the Pension Funds of the Maine Public
Maine Legislature, Session 132, LD 1872
Sponsors: SKOLD, HICKMAN, FECTEAU, DAUGHTRY

Legislative Document
No. 1872
H.P. 1243
House of Representatives, May 5, 2025
An Act to Reinvest in the Pension Funds of the Maine Public 
Employees Retirement System
Received by the Clerk of the House on May 1, 2025.  Referred to the Committee on Labor 
pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative SKOLD of Portland.
Cosponsored by Senator HICKMAN of Kennebec and
Representatives: DODGE of Belfast, Speaker FECTEAU of Biddeford, GATTINE of 
Westbrook, HASENFUS of Readfield, ROEDER of Bangor, Senators: President DAUGHTRY 
of Cumberland, PIERCE of Cumberland, TIPPING of Penobscot.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA c. 421, sub-c. 4, art. 10 is enacted to read:
ARTICLE 10
RETIREMENT IMPROVEMENT FUND
§17445.  Retirement Improvement Fund
1.  Establishment of fund.  The Retirement Improvement Fund, referred to in this 
section as "the fund," is established within and administered by the retirement system as an 
interest-bearing, nonlapsing fund for the payment of retirement benefit improvements. 
2.  Content of fund.  The fund consists of all money transferred to the fund under this 
section and other money made available to the fund.  For fiscal years 2028-29, 2029-30, 
2030-31 and 2031-32, within 30 days of the beginning of each fiscal year, the State 
Controller shall transfer to the fund from the General Fund an amount calculated under 
subsection 3. 
3.  Calculation of transfer amount.  The amount required to be transferred to the fund 
under subsection 2 is equal to the difference between the amount of the payments made 
toward the obligation for the unfunded actuarial liability in the year in which the amount is 
transferred and the amount of those payments for fiscal year 2027-28. 
4.  Use of fund.  Money in the fund must be used to pay for retirement benefit 
improvements.  Whenever the fund has sufficient capital to pay for an increase in the 
amount of at least $1,000 on the benefit base on which the annual cost-of-living adjustment 
is applied pursuant to section 17806, subsection 1, paragraph A, for all beneficiaries in the 
retirement system, that increase must be applied but only until the benefit base reaches 
$40,000. 
5.  Reporting.  By March 1st of 2029, 2030, 2031 and 2032, the retirement system 
shall make a report regarding implementation of this section to the joint standing committee 
of the Legislature having jurisdiction over retirement matters that includes the following 
information for that fiscal year and the prior 3 fiscal years:
A. The amount of money transferred to the fund pursuant to subsection 2; 
B. The total increases made to the benefit base on which the annual cost-of-living 
adjustment must be applied in accordance with subsection 4; 
C. The amount of payment made or required to be made toward the obligation for the 
unfunded actuarial liability; and 
D.  The balance in the fund. 
SUMMARY
This bill requires that, for fiscal years 2028-29, 2029-30, 2030-31 and 2031-32, 
General Fund revenue be transferred annually to a nonlapsing fund to be used to pay for 
retirement benefit improvements for retired state employees and teachers and their 
beneficiaries.