*Sec. 6.__Interpretation and application; rulemaking.__The provisions of this Act that establish the opportunity to retire from a position covered under the retirement system and to thereafter return to work in a position covered under the retirement system with no reduction of retirement benefits or limitation on compensation must be interpreted and applied in a manner that meets applicable requirements of federal law and regulation, including, but not limited to, the Internal Revenue Code and Internal Revenue Service regulations.__The retirement system shall adopt rules for the interpretation and application of the provisions that reflect these requirements.__Rules adopted under this section are routine technical rules as defined in the Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A.

*Sec. 7.__Reporting requirements.__Retirement system employers are required to identify and report to the retirement system, in the manner specified by the retirement system, each individual who is a retiree who becomes an employee of the employer.__The employer shall report each such employee whenever and so long as an employee is the employer's employee.__The employer shall inquire of individuals hired to ascertain whether an individual is a retiree and the individual shall disclose that.__"Employer" includes the State, all school administrative units and all participating local districts.__"Employee" means an already retired individual receiving a Maine State Retirement System retirement benefit, regardless of the retirement system plan retired under, who after retirement is employed by an employer as defined in this section.__"Retire" means to receive a retirement benefit from the retirement system.__"Retiree" means an individual who receives a retirement benefit from the retirement system under any of the retirement system's retirement plans.

Sec. 16. PL 2001, c. 699, §8 is amended to read:

*Sec. 8. Status of employees who have retired and returned to covered participating local district employment under Maine State Retirement System. Notwithstanding the Maine Revised Statutes, Title 5, section 18251, subsection 1 section 18252 and section 18252-A, recipients of a service retirement benefit from the Maine State Retirement System for service in the employment of a participating local district who have returned to covered employment under the retirement system in a position that would otherwise be covered by the retirement plan for a participating local district may not contribute to rejoin the retirement system, do not earn creditable service for their employment after retirement and do not earn any additional retirement benefits as a result of that employment. By retiring