Sec. 1. 5 MRSA §17852, sub-§3-A, ¶¶C and D, as enacted by PL 1999, c. 489, §17, are amended to read:

C. The benefit is reduced by 6% for each year that the member's age precedes 62 years of age; and

D. Effective October 1, 1999, the reduction to be applied to the service retirement benefit of a member to whom this subsection applies may not be greater than that in effect on October 1, 1999 under paragraph C for a member who, on October 1, 1999 or thereafter, meets the creditable service requirement for eligibility to receive a service retirement benefit under section 17851, subsection 1-C, paragraph A; section 17851, subsection 1-C, paragraph B; section 17851, subsection 2-C, paragraph A; section 17851, subsection 2-C, paragraph B; or section 17851-A, subsection 2, paragraph A. For a member to whom section 17851-A applies, this paragraph must be applied in accordance with the requirements of section 17851-A, subsection 4.; and

Sec. 2. 5 MRSA §17852, sub-§3-A, ¶E is enacted to read:

E.__Notwithstanding paragraph C, the benefit is reduced by 2 1/2% for a retired teacher for each year that the member's age precedes 62 years of age.

SUMMARY

This bill lowers the penalty for early withdrawal by a teacher of retirement benefits from 6% to 2 1/2%.