| 122nd MAINE LEGISLATURE | |||||||||
| LD 350 | LR 1495(01) | ||||||||
| An Act To Provide Equal Treatment for All Veterans in the Laws Governing the Maine State Retirement System | |||||||||
| Fiscal Note for Original Bill | |||||||||
| Sponsor: Rep. Campbell of Newfield | |||||||||
| Committee: Labor | |||||||||
| Fiscal Note Required: Yes | |||||||||
| Fiscal Note | |||||||||
| Potential current biennium cost increase - All Funds | |||||||||
| Fiscal Detail and Notes | |||||||||
| This bill removes the provision that allowed individuals who became members of the Maine State Retirement System after January 1, 1976 and who served in the military during a federally recognized period of conflict to purchase that service at a subsidized cost. The bill also removes the provision that allowed recipients of certain military awards or medals to purchase military service at a subsidized cost once an amount sufficient to cover the subsidy has been appropriated by the Legislature. As drafted, this legislation would not result in an increase in costs to the Maine State Retirement System and would require more members to bear the full costs of purchasing military service credit. | |||||||||
| However, if the intent of this bill is to permit additional members who served in the military to purchase service credit at a subsidized cost, whether or not the military time was during a federally recognized period of conflict or the member was awarded certain military awards or medals, additional costs to the Maine State Retirement System would be created. | |||||||||
| 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 additional one-time 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. | |||||||||