121st Maine Legislature
		Office of Fiscal and Program Review
		LD 1836
		An Act To Amend the Laws Governing Purchase of Military Time Served under the Maine State Retirement System
		LR 2648(01)
		Fiscal Note for Original Bill
		Sponsor: Rep. Duprey of Medway
		Committee: Labor
		Fiscal Note Required: Yes
Fiscal Note
Potential future biennium cost increase - All Funds
Fiscal Detail and Notes
	This bill as drafted does not increase the number of Maine State Retirement System members who can purchase military service at a subsidized rate, and, therefore, does not increase costs to the Maine State Retirement System.
	If the bill is amended to allow members who were awarded an Armed Forces Expeditionary Medal to purchase service at a subsidized cost regardless of when the military service was actually served, there would be a cost to the Retirement System.  Increasing the number of members who are eligible to purchase subsidized military service credit will increase the unfunded liability of the Maine State Retirement System.  Pursuant to the Constitution of Maine, Article IX, Section 18-A, unfunded liabilities may not be created except those that result from experience losses.  The Maine State Retirement System will require one-time additional General Fund appropriations and Highway Fund and other funds allocations representing the full actuarial value of the increase to the unfunded liability.  The amount can not be determined at this time and will depend on the number of members who would be eligible to purchase the subsidized military credit.
	The fiscal impact of an amended bill on the normal cost component can not be determined at this time.  However, it is expected to be minimal, and would emerge over time through plan experience.