Sec. 2. 3 MRSA §731, sub-§4, as corrected by RR 1997, c. 2, §5, is amended to read:

4. Oath. Each trustee shall, within 10 days after September 19, 1985 and thereafter, within 10 30 days after that trustee's appointment or election, take an oath of office to faithfully discharge the duties of a trustee, in the form prescribed by the Constitution of Maine. This oath must be subscribed to by the trustee making it, certified by the officer before whom it is taken and immediately filed in the office of the Secretary of State.

Sec. 3. 4 MRSA §1205 is enacted to read:

§1205.__Single plan

Notwithstanding any other provision of law, for purposes of financial reporting and related financial administration, the Maine State Retirement System administers a single retirement plan, the accumulated assets of which may be used to pay benefits, including refunds of member contributions, to members or beneficiaries of members under any plan administered by the Maine State Retirement System under this chapter, Title 3, chapter 29 or Title 5, Part 20.__With respect to any employer that provides for retirement benefits for its employees through the Maine State Retirement System, nothing in this section obligates or may be construed to obligate that employer to fund any liability other than that arising or accruing to it under the Maine State Retirement System plan or plans provided by that employer for its employees, which obligation is hereby explicitly affirmed.

Sec. 4. 4 MRSA §1231, sub-§4, as amended by PL 1999, c. 127, Pt. A, §1, is further amended to read:

4. Oath. Each trustee shall, within 10 days after December 1, 1984 or, thereafter, within 10 30 days after that trustee's appointment or election, take an oath of office to faithfully discharge the duties of a trustee, in the form prescribed by the Constitution of Maine. The oath must be subscribed to by the trustee making it, certified by the officer before whom it is taken and immediately filed in the office of the Secretary of State.

Sec. 5. 5 MRSA §17001, sub-§9, ¶¶A and B, as enacted by PL 1985, c. 801, §§5 and 7, are amended to read:

A. The Consumer Price Index for Urban Wage Earners and Clerical Workers: United States City Average, All items, 1967 = 100 All Urban Consumers, CPI-U, as compiled by the Bureau of Labor Statistics, United States Department of Labor; or

B. If the index described in paragraph A is revised or superseded, the Consumer Price Index shall be the index represented by the Bureau of Labor Statistics as reflecting most accurately the board must employ the Consumer Price Index compiled by the Bureau of Labor Statistics, United States Department of Labor that the board finds to be most reflective of changes in the purchasing power of the dollar for the broadest population of consumers, including retired consumers.

Sec. 6. 5 MRSA §17053-A is enacted to read:

§17053-A.__Single plan

Notwithstanding any other provision of law, for purposes of financial reporting and related financial administration, the retirement system administers a single retirement plan, the accumulated assets of which may be used to pay benefits, including refunds of member contributions, to members or beneficiaries of members under any plan administered by the retirement system under this Part, Title 3, chapter 29 or Title 4, chapter 27.__With respect to any employer that provides for retirement benefits for its employees through the retirement system, nothing in this section obligates or may be construed to obligate that employer to fund any liability other than that arising and accruing to it under the retirement system plan or plans provided by the employer for its employees, which obligation is hereby explicitly affirmed.

Sec. 7. 5 MRSA §17102, sub-§4, as enacted by PL 1985, c. 801, §§5 and 7, is amended to read:

4. Oath. Each trustee shall, within 10 30 days after his the trustee's appointment or election, take an oath of office to faithfully discharge the duties of a trustee, in the form prescribed by the Constitution of Maine.

A. The oath shall must be subscribed to by the trustee making it.

B. The oath shall must be certified by the officer before whom it was taken and immediately filed in the office of the Secretary of State.

Sec. 8. 5 MRSA §17107, sub-§2, ¶E, as enacted by PL 1985, c. 801, §§5 and 7, is amended to read:

E. The actuary shall make whatever investigations he deems the actuary considers necessary of the experience of the retirement system with respect to the factors which that affect the cost of the benefits provided by the retirement system.

(1) The purpose of the investigations is to determine the actuarial assumptions to be recommended to the board for adoption in connection with actuarial determinations required under this Part.

(2) These investigations shall be made as frequently as the actuary deems expedient, but shall be made at least once in each 3-year period following January 1, 1976.

(2-A)__These investigations must be made whenever the board, on recommendation of the actuary, determines an investigation to be necessary to the actuarial soundness or prudent administration of the plan or plans to which the investigation is related.__The determination must take into account plan demographics and changes in plan demographics, employment patterns and projections, relevant economic measures and expectations and other factors that the board or actuary considers significant.__With respect to the retirement system plan for state employees and teachers, if 6 fiscal years have elapsed without an investigation being conducted, the board must either conduct an investigation within the next fiscal year or must record in the official minutes of a meeting of the board, in each fiscal year until the year in which an investigation is conducted, its decision not to do so and the reason or reasons for its decision.

Sec. 9. 5 MRSA §17655, sub-§1, ¶B, as amended by PL 1991, c. 479, §1, is further amended to read:

B. Any employee who enlists in or is inducted or drafted into the service of the Armed Forces of the United States in a federally recognized period of conflict, as defined in Title 37-B, section 504, subsection 4, paragraph A-1, subparagraph (3), including:;

(1) During World War I between April 6, 1917, and March 3, 1921; and

Sec. 10. 5 MRSA §17851, sub-§4, ¶B, as amended by PL 1999, c. 731, Pt. CC, §3, is further amended to read:

B. Became a state police officer after September 15, 1984 or a special agent investigator before June 21, 1982 and completed 25 years of creditable service as a state police officer or special agent investigator, which may include creditable service under section 17760.

Sec. 11. 5 MRSA §18254, first ¶, as enacted by PL 1985, c. 801, §§5 and 7, is amended to read:

The withdrawal of a participating local district from the retirement system has the following effects on an employee of the district and on the district itself.

Sec. 12. 5 MRSA §18254, sub-§3, as enacted by PL 1985, c. 801, §§5 and 7, is amended to read:

3. Former employee receiving or eligible for retirement benefits. For Except as provided in subsection 5, for a former employee who is receiving retirement benefits or is eligible for retirement benefits, the district shall continue continues to be a participating local district and that person shall be is subject to this Part.

Sec. 13. 5 MRSA §18254, sub-§5 is enacted to read:

5.__Conditions under which withdrawn participating local district is no longer participating local district.__A participating local district that has no former employees eligible for retirement benefits under subsection 3 and no former employees covered under subsection 4 is no longer a participating local district when:

A.__The participating local district's status as a participating local district is based solely on the existence of a former employee or employees who are retirees receiving retirement benefits or on the existence of current or potential beneficiaries of such retirees who are receiving or potentially entitled to receive benefits; and

B.__The district satisfies fully all liabilities as measured by the retirement system for those to whom paragraph A applies:

(1)__In accordance with state and federal law; and

(2)__According to standards and procedures approved by the board as determined by the board to protect the

interests of current and potential benefit recipients and any other affected or potentially affected person or entity.__Such procedures may include, but are not limited to, the establishment by purchase or otherwise of an annuity or annuities as a means of satisfying the district's liabilities.

Having satisfied its liabilities in compliance with this subsection, a district is no longer a participating local district, and the retirement system must return to it any assets in the district's retirement system account exceeding the amount necessary to comply.__Satisfaction of district liabilities pursuant to this subsection bars any future claim by any person against the retirement system for liability to or responsibility for any retiree, beneficiary or the district, and a retiree, beneficiary or the district is not thereafter subject to this Part.

Sec. 14. 5 MRSA §18258, sub-§1, ¶B, as amended by PL 1991, c. 479, §4, is further amended to read:

B. Any employee who enlists in or is inducted or drafted into the service of the Armed Forces of the United States in a federally recognized period of conflict, as defined in Title 37-B, section 504, subsection 4, paragraph A-1, subparagraph (3), including:;

(1) During World War I between April 6, 1917, and March 3, 1921; and

Sec. 15. Single plan. In accordance with the provisions of the Maine Revised Statutes, Title 3, section 705, Title 4, section 1205 and Title 5, section 17053-A, for purposes of the reporting standard set out in Government Accounting Standards Board Statement No. 25, paragraph 16, the Maine State Retirement System administers a single retirement plan, the accumulated assets of which may be used to pay benefits, including refunds of member contributions, to members or beneficiaries of members under any plan administered by the Maine State Retirement System.

Sec. 16. Legislative findings. In establishing the Consumer Price Index for All Urban Consumers as the benchmark for the cost-of-living adjustment available under the laws governing the Maine State Retirement System in the Maine Revised Statutes, Title 5, section 17001, subsection 9, paragraph A, the Legislature finds that that index is the most reflective of the purchasing power of the dollar for the broadest population of consumers, including retired consumers.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill makes the following changes to the laws governing the Maine State Retirement System.

1. It replaces the current 10-day period for swearing a newly appointed or reappointed trustee of the Maine Legislative Retirement System, Maine Judicial Retirement System and the Maine State Retirement System with the 30-day period generally provided by law for the swearing of similar appointees.

2. It establishes the CPI-U, Consumer Price Index for All Urban Consumers, as the benchmark for the cost-of-living adjustment available under the statutes governing the Maine State Retirement System, because that index is the most reflective of the purchasing power of the dollar for the broadest population of consumers, including retired consumers.

3. It clarifies that, for purposes of financial reporting and administration, the Maine State Retirement System is a single retirement plan.

4. It establishes standards for the determination by the Board of Trustees of the Maine State Retirement System and the system's actuary that a study of plan experience is necessary for the actuarial soundness or prudent administration of the system's plans, replacing the current fixed 3-year study requirement for the state employee and teacher plan and establishing a standard for studies of plan experience under the system's other plans.

5. It allows service credit in order to qualify for a service retirement benefit under a special plan to a state employee, teacher member or participating local district member interrupting employment for any service in the Armed Forces, removing the current limitation to service during a federally recognized period of conflict as defined by federal law. The federal Uniformed Services Employment and Reemployment Rights Act now mandates that all service in the Armed Forces be recognized under these circumstances by the Maine State Retirement System.

6. It articulates the longstanding policy of the Maine State Retirement System to allow state police officers covered under the post-1984 state police special plan service credit for purchased service in the Armed Forces.

7. It establishes the conditions under which a participating local district that has withdrawn from the Maine State Retirement System may satisfy its liabilities for benefits in order to receive back from the retirement system district assets remaining after liabilities are satisfied and authorizes the retirement system to pay over such assets.