123rd MAINE LEGISLATURE

LD 5

LR 213(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

Current biennium cost increase - All Funds

Fiscal Detail and Notes

Expanding 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.

This provision will also increase the normal cost component of the employer retirement rate. The impact can not be determined at this time.