122nd MAINE LEGISLATURE
		LD 93		LR 0510(01)
	An Act Concerning Disability Retirement Benefits under the Maine State Retirement System
	Fiscal Note for Original Bill
	Sponsor: Sen. Mayo of Sagadahoc
	Committee: Labor
	Fiscal Note Required: Yes
Fiscal Note
Potential current biennium cost increase - All Funds
Undetermined future biennium cost increase - All Funds
Fiscal Detail and Notes
	Allowing the changes made to the disability retirement benefit program enacted in Public Law 2003, Chapter 675 to be applied retroactively to January 1, 2000 may result in a cost to the Retirement System.  The actual cost can not be determined at this time and will depend on the actual population that is impacted by this legislation.  However, if this measure requires the payment of past benefits that were not paid under the current law, an unfunded liability may be created.  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.
	Also, to the extent that those impacted by this legislation continue to receive prospective benefits that would not have been received under current law, additional costs to the retirement plan are created.  Although these costs do not directly create an unfunded liability, it does result in the existing unfunded liability being paid down at a slower rate than what would have occurred without this legislation.  These costs will ultimately be reflected in the ongoing unfunded liability component of the employer retirement rate, resulting in increased employer contributions to the Maine State Retirement System for state employees and teachers.