An Act to Remove
Maine Legislature, Session 132, LD 1021
Committee Amendment CA_A_S255 (Senate)
Amends: 5 MRSA §17806

COMMITTEE AMENDMENT "f^» to S.P. 439> L.D. 1021, "An Act to Remove
Certain Cost-of-living Adjustment Restrictions for Retired Members of the Law
Enforceinent Bargaining Unit Who Are 65 Years of Age or Older"
Amend the bill by striking out all of section 2 and inserting the following:
'See. 2. 5 MRSA §17806, sub-§l, ^fA-4 is enacted to read:
A-4. Beginning in 2025. whenever there is a percentage increase in the Consumer
Price Index from July 1st to June 30th, the board shall automatically make an eanal
percentaee increase in retirement benefits, beeinnine in September, up to a maximum
annual increase of 3% for retirement benefits paid to individuals who are 65 years of
ape or older and who retired from a position as a law enforcement officer as defined in
Tit[e_25^_sectiorL2801 -A. subsection 5 or from a probation or parole officer position as
described in Title 34-A. section 5404.
Sec. 3. Appropriations and allocations. The following appropriations and
ai locations are made.
RETIREMENT SYSTEM, MAINE PUBLIC EMPLOYEES
Retirement System - Retirement Allowance Fund 0085
Initiative; Provides one-time funds to pay the unfunded actuarial liability created by
requiring that cost-of-living increases be applied to a retiree's full benefit amount once the
retiree reaches 65 years of age if that person retired from a law enforcement officer position
or a probation or parole officer position.
GENERAL FUND 2025-26 2026-27
All Other $28,900,000 $0
GENERAL FUND TOTAL $28,900,000 $0
COMMITTEE AMENDMENT
^
COMMITTEE AMENDMENT " ?<' to S.P, 439, L.D.1021
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment clarifies that the limitation on benefits subject to a cost-of-living
adjustment is removed once a retiree reaches 65 years of age. It removes the specific
positions from which a person must have retired and instead requires that tile person must
have retired from a law enforcement officer position or a probation or parole officer
position.
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Approved: 05/28/25 I^KI^-
LD 1021 LR 1355(02)
An Act to Remove Certain Cost-of-Iiving Adjustment Restrictions for Retired Members of the Law
Enforcement Bargaining Unit Who Are 65 Years of Age or Older
Fiscal Note for Bill as Amended by Committee Amendment ^ S"
Committee; Labor
Fiscal Note Required: Yes
Fiscal Note
Projections Projections
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Net Cost (Savings)
General Fund $28,900,000 $0 $0 $0
-xppropriations/AlIocations
General Fund $28,900,000 $0 $0 $0
Fiscal Detail and Notes
This legislation provides that cost-of-living increases be applied to a retiree's full benefit amount once the retiree
reaches 65 years of age if that person retired from a law enforcement officer position or a probation or parole officer
position. According to the Maine Public Employees Retirement System, this provision will create an unfunded
actuarial liability (UAL) totaling $28,900,000 that, pursuant to the Maine Constitution, will have to be funded
immediately. This bill includes a one-time General Fund appropriation for that amount to the Retirement Allowance
Fund in fiscal year 2025-26 to fund the UAL cost.
This provision will also increase the normal cost component of the employer retirement rate beginning in the 2028"
2029 biennium (future costs). Tlie increase in the employer contribution rate for the "1998 Special Plan" is estimated
to be 0.09%; the "25 and Out" plan is expected to increase 0.62% and the "Fire Marshalls" plan is anticipated to
increase 0.40%,
LR1355(02) - Fiscal Note - Page 1 of 1