An Act Establishing the Retirement Benefit Improvement Fund
Maine Legislature, Session 132, LD 1003
Committee: Labor
Sponsors: DODGE
Amends: 5 MRSA §1536

Legislative Document
No. 1003
H.P. 650
House of Representatives, March 11, 2025
An Act Establishing the Retirement Benefit Improvement Fund
Reference to the Committee on Labor suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative DODGE of Belfast.
Cosponsored by Representatives: BECK of South Portland, BOYER of Cape Elizabeth, DILL 
of Old Town, GRAHAM of North Yarmouth, MACIAS of Topsham, MCCABE of Lewiston, 
RAY of Lincolnville, ROEDER of Bangor.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §1536, sub-§1, as amended by PL 2021, c. 398, Pt. ZZZ, §§2 and 
3, is further amended to read:
1.  Final priority reserves.  After the transfers to the State Contingent Account 
pursuant to section 1507, the transfers to the Loan Insurance Reserve pursuant to section 
1511, the transfers pursuant to section 1522, a transfer of $2,500,000 for the Reserve for 
General Fund Operating Capital and, the transfers to the Retiree Health Insurance Internal 
Service Fund pursuant to section 1519 and the transfer to the Retirement Benefit 
Improvement Fund pursuant to section 17446, the State Controller shall transfer at the close 
of each fiscal year from the unappropriated surplus of the General Fund an amount equal 
to the amount available from the unappropriated surplus after all required deductions of 
appropriations, budgeted financial commitments and adjustments considered necessary by 
the State Controller have been made as follows:
A.  Eighty percent to the stabilization fund; and
G.  Twenty percent to the Highway and Bridge Capital program, Other Special 
Revenue Funds account.
Sec. 2.  5 MRSA c. 421, sub-c. 4, art. 10 is enacted to read:
ARTICLE 10
RETIREMENT BENEFIT IMPROVEMENT FUND
§17446. Retirement Benefit Improvement Fund
1. Establishment of fund.  The Retirement Benefit Improvement Fund, referred to in 
this section as "the fund," is established as an interest-bearing, nonlapsing fund for the 
purpose of providing the resources necessary to increase the portion of the retirement 
benefit in which cost-of-living adjustments are applied pursuant to section 17806, 
subsection 1, paragraph A.
2. Content of fund. The fund consists of all resources transferred to the fund under 
section 1536, subsection 1 and other resources made available to the fund.
Notwithstanding any provision of law to the contrary, at the close of the fiscal year ending 
June 30, 2026 and each subsequent fiscal year thereafter, until such time as the cost-of-
living adjustment as described in section 17806, subsection 1, paragraph A is applied to a 
retiree's full retirement benefit, as the next priority after the transfers authorized pursuant 
to sections 1507, 1511 and 1522, the transfer of $2,500,000 for the Reserve for General 
Fund Operating Capital pursuant to section 1536 and the transfers to the Retiree Health 
Insurance Internal Service Fund pursuant to section 1519 and after all required deductions 
of appropriations, budgeted financial commitments and adjustments considered necessary 
by the State Controller have been made, and prior to the transfers required under section 
1536, subsection 1, paragraphs A and G, the State Controller shall transfer the remaining 
balance of the unappropriated surplus of the General Fund to the fund established in 
subsection 1.
3. Use of fund.   Money in the fund must be used to pay for the cost-of-living 
adjustment described by section 17806, subsection 1, paragraph A.  The State Controller 
shall notify the retirement system of the balance in the fund no later than August 1st of 
each year.  If the retirement system determines that the balance in the fund is sufficient to 
increase by at least $500 the portion of the retirement benefit in which cost-of-living 
adjustments are applied, the retirement system shall notify the State Controller. Upon such 
notification, the State Controller shall transfer the funds in the fund to the retirement system 
and the chief executive officer of the retirement system shall increase the portion of the 
retirement benefits in which cost-of-living adjustments are applied beginning in September 
of that year. If the balance in the reserve account is not sufficient to increase the portion of 
the retirement benefits in which cost-of-living adjustments are applied by at least $500, 
then the funds remain in the fund.
4.  Report.  The chief executive officer of the retirement system shall report at least 
annually on or before the 2nd Friday in January to the joint standing committee of the 
Legislature having jurisdiction over appropriations and financial affairs and the joint 
standing committee of the Legislature having jurisdiction over labor on the status of and 
activity in the fund.
SUMMARY
This bill requires that an amount of surplus 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.