Sec. 1. PL 2001, c. 443, §6 is amended to read:

*Sec. 6. Restoration of benefit reductions. The Maine State Retirement System shall suspend implementation of Private and Special Law 1995, chapter 38, section 1 until January 1, 2003 February 15, 2004 and shall reverse any permanent disability benefit reductions pursuant to that section that have occurred as a result of a benefit recipient's actual earnings in calendar years 1999 and 2000.

FISCAL NOTE

This bill extends the suspension of the implementation of permanent reductions to disability retirement benefits for certain recipients based on earnings in calendar years 1999 and 2000 from January 1, 2003 until February 15, 2004. This results in the payment of disability benefits that otherwise would not have been payable. The impact is that no liabilities are created, but a reduction of the total assets of the Maine State Retirement System would result. The amount of that reduction in total assets can not be determined but would ultimately be reflected in the ongoing normal cost component of the employer retirement rate resulting in increased employer contributions to the Maine State Retirement System for state employees and teachers.

SUMMARY

This bill extends the rollback of disability retirement benefit reductions based on increased earnings capacity by the Maine State Retirement System under Public Law 2001, chapter 443 from January 1, 2003 to February 15, 2004.