Code of Maine Rules › 94 - INDEPENDENT AGENCIES › 411 - MAINE PUBLIC EMPLOYEES RETIREMENT SYSTEM (MAINEPERS) › Chapter 803 - PARTICIPATING LOCAL DISTRICT CONSOLIDATED RETIREMENT PLAN › Section 411-803-5 - CONTRIBUTIONS

Current through 2024-29, July 17, 2024
1.
Member contributions
A.
Active Member
. Each member
				under The Plan shall contribute to the Retirement System or have pick-up
				contributions made by the employer at a rate provided by Sections
				7,
				8, and
				9. The contribution rate for a member
				is the rate assigned to the retirement benefit plan under which the member is
				accruing service credits.
B.
Former Members; Service under The Plan
. Any former member who,
				after having terminated service while a member under The Plan and having
				withdrawn accumulated contributions, again becomes a member under The Plan may
				repay the withdrawn contributions to the Members' Contribution Fund under the
				following conditions:
(1)
Time
.
				The repayment must be made before the date any retirement benefit becomes
				effective for the member.
(2)
Manner of Repayment
. The repayment must be made to the Retirement
				System consistent with Chapter 406 (94-411 CMR 406) of the rules of the
				Board.
(3)
Amount of
				Repayment
. The amount of repayment must be equal to the withdrawn
				accumulated contributions plus interest on the amount of those accumulated
				contributions, beginning on the date of withdrawal to the date the repayment or
				repayments are made, at a rate to be set by the Board not to exceed regular
				interest by 5 or more percentage points.
(4)
Credit under The Plan
.
				Except as provided in paragraph C, only withdrawn contributions relating to
				creditable service under The Plan may be repaid for service credit under The
				Plan.
C.
Service
				Not under The Plan
(1)
Withdrawn
				Contributions
(a) Any member who had
				service while not a member under The Plan and having withdrawn contributions
				relating to that service may repay the withdrawn contributions to the Members
				Contribution Fund under the conditions specified in paragraph B, subparagraphs
				1 to 3. Creditable service related to these repaid contributions is used in
				determining eligibility to retire under the applicable regular service
				retirement benefit plan under Section
				7. Benefits for that service are
				calculated based on that service and on earnable compensation related to that
				service in accordance with applicable provisions of 5 M.R.S., Part
				2 0 in effect with respect to the
				previous employer's regular service retirement plan immediately before that
				employer's employees became members under The Plan. The additional liability
				relating to the service credits granted under this division becomes part of the
				previous employer's unpooled unfunded actuarial liability as provided in
				subsection 2, paragraph A, subparagraph 2.
(b) Any member who had service while not a
				member under The Plan and having withdrawn contributions relating to that
				service may repay the withdrawn contributions to the Members Contribution Fund
				under the conditions specified in paragraph B, subparagraphs 1 to 3. Creditable
				service related to these repaid contributions is used in determining that a
				member is qualified to retire and in the computation of retirement benefit
				under the applicable service retirement benefit plan under Section
				7 or Section
				8. Unless the service was with the
				same employer that is the member's employer at the time the contributions are
				repaid, the contributions provided for under this subparagraph may be repaid
				only after the participating local district that is the member's employer at
				the time the contributions are repaid agrees to assume the additional liability
				incurred as part of the district's unpooled unfunded actuarial liability as
				provided in subsection
				2, paragraph A, subparagraph
				2.
(2)
Non-member
				Service
(a) Subject to the personnel
				rules or policies of the member's employer at the time of the service; provided
				the member has continued to be employed by that employer; and subject to 5
				M.R.S. §
												18305- B, a member who had
				service as an employee of a participating local district for which
				contributions were not made may receive service credit for that service upon
				paying the appropriate contributions to the Members Contribution Fund under the
				conditions specified in paragraph B, subparagraphs 2 and 3. Creditable service
				related to these contributions is used in determining that a member is
				qualified to retire and in the computation of retirement benefit under the
				applicable service retirement benefit plan under Section
				7 or Section
				8. The additional liability relating
				to the service credits granted under this division becomes part of the
				district's unpooled unfunded actuarial liability as provided in subsection
				2, paragraph A, subparagraph
				2.
(b) Subject to 5 M.R.S. §
												18305- B, a member who had
				service as an employee of any participating local district for which
				contributions were not made may receive service credit for that service upon
				paying the appropriate contributions to the Members Contribution Fund under the
				conditions specified in paragraph B, subparagraphs 2 and 3. Creditable service
				related to these contributions is used in determining that a member is
				qualified to retire and in the computation of retirement benefit under the
				applicable service retirement benefit plan under Section
				7 or Section
				8. The contributions provided for
				under this subparagraph may be made only after the participating local district
				that is the member's employer at the time the contributions are made and the
				service credits are granted agrees to assume the additional liability incurred
				as part of the district's unpooled unfunded actuarial liability as provided in
				subsection
				2, paragraph A, subparagraph
				2.
D.
Optional Members with non-member service
. The purchase of service
				credit for a member for whom membership is optional under Section
				3, subsection
				2 who had service as an employee of a
				participating local district for which contributions were not made is governed
				by 5 M.R.S. §
										18305- B, provided that the
				member has continued to be employed by the same employer as that during which
				no contributions were paid.
E.
Former Member
; Withdrawal by Employees Not Covered by Social
				Security. In addition to paragraphs B and C, the repayment of contributions
				that were withdrawn by a member who is an employee of a participating local
				district that is not covered under a Social Security Section
				218 agreement but that has a plan
				that meets the requirements of 5 M.R.S. §
										18252-B is subject to the
				provisions of 5 M.R.S. §
										18252-A as amended by
				PL
				2021, c. 90.
F.
Service in the Armed Forces before
				Becoming a Member
. A member who qualifies under Section
				6, subsection
				4, paragraph B, sub-paragraphs 1
				through 4, shall contribute to the Retirement System for the period of service
				in the Armed Forces under the following terms and conditions:
(1) Contributions are calculated at the
				percentage rate required of active members during the period of time covered by
				the service in the Armed Forces applied to the member's earnable compensation
				during the first year as an employee subsequent to service in the Armed Forces
				under the following terms and conditions:
(a)
				The payment may not be made until the member has accumulated at least 15 years
				of creditable service and must be made before the date any retirement benefit
				becomes effective for the member;
(b) If 2 or more percentage rates were in
				effect during the period of service in the Armed Forces, the highest percentage
				rate is used;
(c) The minimum rate
				is 5%; and
(d) Interest at a rate
				set by the board not to exceed regular interest by 2 or more percentage points
				is paid on the unpaid balance beginning January 1, 1976, or the date of
				attaining 15 years of creditable service, if later, to the date payment is
				made.
(2)
Manner
				of Repayment
. The repayment must be made to the Retirement System
				consistent with Chapter 406 (94-411 CMR 406) of the rules of the
				Board.
G.
Service
				in the Armed Forces after Becoming a Member
. For members who qualify to
				have their membership in the Retirement System continued under Section
				3, subsection
				5 because of service in the Armed
				Forces of the United States, the participating local district shall contribute
				to the Members' Contribution Fund the same amount that the member would have
				been required to contribute if the member had been serving the district during
				the period of service in the Armed Forces in the same capacity in which the
				member was serving at the time the member joined the Armed Forces. Any member
				whose contributions to the Members' Contribution Fund are paid by the district
				under this subsection, who withdraws or ceases to be a member of the Retirement
				System, may not withdraw any of the contributions made by the district under
				this subsection. Upon receiving written certification and substantiation from
				the member's employer that a member has met the requirements of Section
				3, subsection
				5 and Section
				6, subsection
				4, paragraph A, the System shall
				calculate the member contributions applicable to the period of service in the
				Armed Forces. The participating local district by which the member is employed
				is responsible for those contributions and will be billed by the
				System.
H.
Out-of-state
				Service
. A member who qualifies under Section
				6, subsection
				5, must make contributions into the
				Members' Contribution Fund for the years of out-of-state service under the
				following terms and conditions:
(1)
				Contributions are calculated on the same basis as the member would have made
				contributions had the service been in the State;
(a) The payment may not be made until the
				member has accumulated at least 20 years of creditable service in the
				Retirement System and must be made before the date any retirement benefit
				becomes effective for the member; and
(b) Interest at a rate, to be set by the
				Board, not to exceed regular interest by 5 or more percentage points is paid on
				the unpaid balance. Interest shall be computed from the end of the year when
				those contributions would have been made, if the service had been in the State,
				to the date of payment.
(2)
Manner of Payment
. The
				payment must be made to the Retirement System consistent with Chapter 406
				(94-411 CMR 406) of the rules of the Board.
I.
Refund of Contributions
.
				Refunds of contributions to members under The Plan are subject to 5 M.R.S.
				§§
										18306-A and
				18307- A.
J.
Teachers in Private, Parochial and
				Other Schools
. A member who qualifies under Section
				6, subsection
				8, must make contributions into the
				Members' Contribution Fund for the years of private, parochial or other school
				service under the following terms and conditions:
(1) Contributions are calculated on the same
				basis as the member would have made contributions had the service been as a
				state employee or teacher in the State. The member's earnings for the years of
				private or parochial teaching must be assumed to have been the same as the
				average salary for teachers in the State as determined by the Department of
				Education for each of the years when the private or parochial school teaching
				took place.
(a) The payment may not be made
				until the member has accumulated at least 20 years of creditable service in the
				Retirement system as a member of the participating local district and must be
				made before the date any retirement benefit becomes effective for the
				member;
(b) Interest at a rate, to
				be set by the Board, not to exceed regular interest by 5 or more percentage
				points is paid on the unpaid balance. Interest shall be computed from the end
				of the year when those contributions would have been made, if the service had
				been as a state employee or teacher in the State, to the date of
				payment.
(2)
Manner of Payment
. The payment must be made to the Retirement
				System consistent with Chapter 406 (94-411 CMR 406) of the rules of the
				Board.
K.
Portability of Service
. A member who elects under 5 M.R.S. §
										18253, sub-§
										1, paragraph E to include all or part
				of the creditable service and earnable compensation from a prior plan with
				service earned under The Plan may do so under the following terms and
				conditions:
(1) Before any retirement benefit
				becomes effective for that member, the member must pay into the Members'
				Contribution Fund an amount that, together with regular interest on that
				amount, is the actuarial equivalent, at the effective date of the retirement
				benefit, of the portion of the retirement benefit based on the inclusion of the
				prior plan creditable service and earnable compensation with service earned
				under The Plan.
(2)
Manner of
				Payment
. The payment must be made to the Retirement System consistent
				with Chapter 406 (94-411 CMR 406) of the rules of the Board.
L.
Back contributions for
				certain days off without pay
. A member who elects under 5 M.R.S. §
										18305-C to include compensation
				that would have been paid for days off without pay in order to include those
				earnings in the calculation of the member's average final compensation as
				provided in 5 M.R.S. §
										17001, sub-§
										4, paragraph A, may do so under the
				following terms and conditions:
(1)
Election
. If the retirement system determines at the time a member
				retires that the member's benefit would be increased as a result of the
				inclusion of compensation that would have been paid for days off without pay,
				the retirement system shall advise the member of that result and shall allow
				the member to elect to have that compensation included in the calculation of
				the member's benefit and to make payments as set forth in subsection
				2.
(2)
Payment
. The amount that a
				member who makes the election permitted in subsection
				1 must pay is the amount equal to the
				employee contribution that member would have made on compensation that would
				have been paid to that member on the days off without pay, plus interest at the
				same rate as that required for repayment of withdrawn contributions pursuant to
				section 18304. If the
				member elects to make the payment, the retirement system shall withhold the
				required amount from the member's first retirement benefit check.
(3)
Benefit calculation
. If a
				member fails to make the election within 31 days of the notification provided
				under subsection 1, the retirement system shall calculate the member's
				retirement benefit without inclusion of the compensation that would have been
				paid for the days off without pay.
M.
Law enforcement service before
				becoming a member.
A member who qualifies under Section
				6, subsection
				10 must make contributions into the
				Members' Contribution Fund for the period of law enforcement service under the
				following terms and conditions:
(1) Before
				any retirement benefit becomes effective for that member, the member must pay
				into the Members' Contribution Fund an amount that, together with regular
				interest on that amount, is the actuarial equivalent, at the effective date of
				the retirement benefit, of the portion of the retirement benefit based on the
				inclusion of the prior law enforcement service credit with service earned under
				The Plan.
(2)
Manner of
				Payment
. The payment must be made to the Retirement System consistent
				with Chapter 406 (94-411 CMR 406) of the rules of the Board.