Sec. 1. Department of Administrative and Financial Services' administration of catch- up provisions under tax-deferred arrangement. In administering the program of tax-deferred arrangements for state employees under the Maine Revised Statutes, Title 5, chapter 67, the Department of Administrative and Financial Services shall permit participants to make catch-up contributions in the last 3 years before retirement based on qualification for retirement by either attaining normal retirement age or serving the minimum number of years required to qualify for a service retirement benefit if the penalty for early retirement is not an actuarial reduction in the benefit.

SUMMARY

This bill directs the Department of Administrative and Financial Services to restore the policy that existed previously to allow participants to maximize contributions in the state- deferred compensation plan by permitting catch-up contributions by state employees based on serving the minimum number of years necessary to qualify for an early retirement.