| | Sec. 3. Retroactivity. That part of this Act that enacts the Maine | Revised Statutes, Title 5, section 17804, subsection 5-A takes | effect retroactively to July 1, 1996. |
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| | To avoid artificially increasing retirement benefits, current | law limits increases in compensation for state employees and | teachers that may be counted as earnable compensation for | purposes of calculating retirement benefits under the Maine State | Retirement System to 5% in any one year and to 10% over a | member's highest 3 years of compensation. This bill requires the | retirement system to use a member's 4th highest year of | compensation as the base year in determining whether the caps | have been exceeded. |
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| | In the case of a retiree who exercised a benefit payment | option calling for a reduced benefit during the member's lifetime | in return for continued payment of a benefit to a designated | beneficiary after the retiree's death, the bill requires the | recalculation of the retirement benefit if the beneficiary dies | before the retiree. Retroactive to July 1, 1996, the retiree's | benefit would be recalculated as if the option of full benefit | payment had been selected. |
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