LD 2199
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Page 1 of 2 An Act to Address the Unfunded Liability of the Maine State Retirement System a... LD 2199 Title Page
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LR 3580
Item 1

 
Sec. 1. 5 MRSA §17160 is enacted to read:

 
§17160.__Minimum level of employer contribution

 
Beginning in fiscal year 2002-03 and continuing until the
unfunded liabilities of the Maine State Retirement System
attributable to state employees and teachers are retired as
provided in the Constitution of Maine, Article IX, Section 18-B,
the portion of the employer contribution rate devoted to paying
the unfunded liabilities of the system attributable to state
employees and teachers expressed as a percentage of the earnable
compensation of state employees and teachers may not be less than
the rate paid for that purpose during fiscal year 2001-02.__After
the unfunded liabilities have been retired, the rate may rise and
fall above the fiscal year 2001-02 rate as determined necessary
by actuarial valuation.

 
Sec. 2. Task force established. The Task Force to Study Methods of
Addressing Inequities in the Retirement Benefits of State
Employees and Teachers, referred to in this section as the "task
force," is established.

 
1. Membership. The task force consists of 9 members as
follows:

 
A. Three Legislators, one of whom is appointed by the
President of the Senate and one of whom is appointed by the
Speaker of the House, who shall serve as cochairs of the
task force. The 3rd Legislator must be appointed jointly by
the President of the Senate and the Speaker of the House;

 
B. The Executive Director of the Maine State Retirement
System or the director's designee;

 
C. One of the gubernatorial appointees to the Board of
Trustees of the Maine State Retirement System who has
training or experience in the field of investments,
accounting or banking or as an actuary, appointed by the
President of the Senate;

 
D. The Commissioner of Administrative and Financial
Services or the commissioner's designee; and

 
E. A representative from each of the following
organizations, appointed by each respective organization:
the Maine State Employees Association, Maine Education
Association and American Federation of State, County and
Municipal Employees.

 
2. Appointments. All appointments must be made no later than
30 days following the effective date of this Act. The appointing
authorities shall notify the Executive Director of the
Legislative Council upon making their appointments. When the
appointment of all members is complete, the Chair of the
Legislative Council shall call and convene the first meeting of
the task force no later than June 1, 2002.

 
3. Duties. The task force shall:

 
A. Identify the advantages and possible methods of further
reductions in the amortization schedule for paying off the
unfunded liabilities of the Maine State Retirement System
attributable to state employees and teachers;

 
B. Identify and list the differences in retirement benefits
available to state employees and teachers who had 10 years
of creditable service on July 1, 1993 and those who did not;

 
C. Assess the impact of that difference on state employees
and teachers and on State Government and school
administrative units;

 
D. Calculate the immediate and future cost of restoring the
level of benefits for all state employees and teachers who
did not have 10 years of creditable service on July 1, 1993;

 
E. Recommend whether those who were employed as state
employees or teachers when the benefit reductions were made
should be treated differently than those employed after the
changes were enacted; and

 
F. Identify possible methods of funding the restoration of
benefits.

 
4. Staff assistance. The task force may request staffing and
clerical assistance from the Legislative Council. The Maine
State Retirement System shall provide information and actuarial
assistance upon request of the task force.

 
5. Reimbursement. Task force members who are Legislators are
entitled to receive the legislative per diem, as defined in the
Maine Revised Statutes, Title 3, section 2, for each day's
attendance at meetings of the task force. Public members not
otherwise compensated are entitled to receive reimbursement of
necessary expenses and a per diem equal to the legislative per
diem for their attendance at authorized meetings of the task
force.

 
6. Report. The task force shall submit its report with any
accompanying legislation to the Joint Standing Committee on Labor
by December 1, 2002.

 
7. Extension. If the task force requires a limited extension
of time to complete its study and make its report, it may apply
to the Legislative Council, which may grant an extension.

 
8. Budget. The chairs of the task force, with assistance
from the task force staff, shall administer the budget of the
task force. Within 10 days after its first meeting, the task
force shall present a work plan and proposed budget to the
Legislative Council for approval. The task force may not incur
expenses that would result in the task force exceeding its
approved budget. Upon request from the task force, the Executive
Director of the Legislative Council shall provide the task force
chairs and staff with a status report on the task force's budget,
expenditures incurred and paid and available funds.

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

 
SUMMARY

 
This bill:

 
1. Requires the State to retire the unfunded liabilities of
the Maine State Retirement System at a specific rate that is no
less than the rate paid during fiscal year 2001-02; and

 
2. Establishes the Task Force to Study Methods of Addressing
Inequities in the Retirement Benefits of State Employees and
Teachers to study the impact of the changes made to the law that
treat state employees and teachers who did not have 10 years of
creditable service on July 1, 1993 less favorably than those with
10 years of creditable service before July 1, 1993.


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