An Act to Decrease
Maine Legislature, Session 132, LD 1611
Committee Amendment CA_A_H364 (House)
Amends: 5 MRSA §17154, 5 MRSA §17701-B, 5 MRSA §17701-C

COM~TTEE AMENDMENT "A" to H.P. 1065, L.D. 1611, "An Act to Decrease 
the Retirement Contributions Required for Teachers and State Employees'' 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
• 
'Sec. 1. 5 MRSA §17154, sub-§6, 1{( is enacted to read: 
K. Notwithstanding this section, beginning July 1, 2027, the additional employer 
retirement costs that are applicable to the ncirmal cost of retirement fo1• a teachet 
pursuant to section 17701-C must be paid by the State. 
Sec. 2. 5 MRSA §17701-B, as amended by PL 2007, c. 491, §104, is further 
amended to read: 
§17701-B. Member contributions on and after July 1, 1993 until June 30. 2027 
Notwithstanding sections 17701 and 17701-A, on and after July 1, 1993 until June 30, 
2027, all members shall contribute to the State Employee and Teacher Retirement Program 
or have pick-up contributions made at a rate of 7 .65% of earnable compensation except as 
otherwise provided in this Part. 
Sec. 3, 5 MRSA §17701-C is enacted to read: 
§17701-C. Member contributions on and after July 1. 2027 
1. Member contributions on and after July 1. 2027. Notwithstanding sections 
17701, 17701-A and 17701-B, on and after July 1, 2027, except as otherwise provided in 
this Patt, all members shall contribute to the State Employee and Teacher Retirement 
Program or have pick-up contributions made at a rate of eamable compensation as follows: 
A. From July 1, 2027 until June 30, 2028, 7.4%: 
B. Frnm July 1, 2028 until June 30, 2029, 7.15%; 
C. From July 1, 2029 until June 30, 2030, 6.9%; 
D. From July 1, 2030 until June 30, 2031, 6.65%: 
COMMITTEE AMENDMENT 
~pS 
COMMITTEE AMENDMENT 'A" to H.P. 1065, L.D. 1611 
E. From July L 2031 until June 30, 2032, 6.4%; and 
F. On and after July 1, 20321 6.2%.' 
Amend the bill by relettering or renumbering any nonconsecutive Patt letter or section 
number to read consecutively. 
SUMMARY 
This amendment, which is the majority repo1t of the committee, replaces the bill. The 
amendment provides that, beginning on July 1, 2027, the percentage of contributions that 
members of the Maine Public Employees Retirement System must contribute will gradually 
reduce from the current rate of earnable compensation of 7.65% to 6.2% by July 1, 2032. 
The amendment also requires increased employer retirement costs applicable to the normal 
cost of retirement for teachers due to this change to be paid by the State. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/20/25 LRL 
LD 1611 
LR 1215(02) 
An Act to Decrease the Retirement Contributions Required for Teachers and State Employees 
Fiscal Note for Bill as Amended by Committee Amendment ~, { H-3 (p 4) 
Committee: Labor 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2025-26 
$0 
$0 
FY 2026-27 
$0 
$0 
Projections 
FY 2027-28 
$5,510,000 
$5,510,000 
Projections 
FY 2028-29 
$11,200,000 
$11,200,000 
Under current law, the contribution rate paid by state employees and teachers who participate in the regular State 
Employee and Teacher Retirement Plan toward their retirement benefit is set at 7.65 % of earnable compensation, 
This bill gradually reduces this rate from 7.65% in fiscal year 2026-27 to 6.2% begimtlng in fiscal year 2032-33, 
However, because the total cost of the benefits are shared by the employee and the employe1·, the employer 
contribution must increase by the same rate as the employee contribution mte decreases, The cost to the General Fund, 
for both the state employee and teacher share, is estimated to be $5.51 million in fiscal year 2027-28 and $11.2 million 
in fiscal year 2028-29. By fiscal year 2032-33, the employer contribution is estimated to increase by $36.3 million, 
LRl 215(02) - Fiscal Note - Page 1 of 1