123rd MAINE LEGISLATURE
		LD 1693		LR 2016(04)
	An Act To Restore Equity to the Maine State Retirement System
	Fiscal Note for Senate Amendment "     " to Committee Amendment "A"
	Sponsor: Sen. Sherman of Aroostook
	Fiscal Note Required: Yes
Fiscal Note
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Net Cost (Savings)
	General Fund		$0	$0	($4,474,108)	($4,686,628)
	Highway Fund		$0	$0	($313,240)	($328,119)
Appropriations/Allocations
	General Fund		$0	$0	($4,474,108)	($4,686,628)
	Highway Fund		$0	$0	($313,240)	($328,119)
	Federal Expenditures Fund		$0	$0	($477,401)	($500,077)
	Other Special Revenue Funds		$0	$0	($287,717)	($301,383)
	Federal Block Grant Fund		$0	$0	($28,424)	($29,774)
	Other Funds		$0	$0	($219,848)	($230,291)
Fiscal Detail and Notes
	This amendment reduces the 2008-2009 biennial cost of the bill by $53,600,000 with $51,900,000 being the decreased cost to the unfunded actuarial liability and $1,700,000 being the decreased cost associated with the normal cost component for fiscal year 2008-09.
	This amendment reduces the total cost of the bill through June 30, 2028 by $172,122,287.  Of that amount, the decrease to the unfunded liability payments will be $119,072,708 and the decrease to the normal cost component payments will be $53,049,579.
	As amended, reducing the early retirement reduction factor from 6% to 3% for only those teachers who were members of the Maine Public Employees Retirement System as of June 30, 1993 and are currently subject to the 6% reduction factor will result in a 2008-2009 biennial cost of $43,200,000, with $42,000,000 being the increased cost to the unfunded actuarial liability and $1,200,000 being the increased normal cost component for fiscal year 2008-09.
	As amended, because this legislation proposes to fund the current biennium cost of this provision by utilizing a portion of the $199,295,540 already appropriated and/or allocated in fiscal year 2007-08 to the Maine Public Employees Retirement System (MainePERS) for the employer's contribution to the unfunded liability, no additional General Fund appropriation is required in the 2008-2009 biennium. However, based on current projections, reducing the amount of funds to be applied to existing unfunded actuarial liability in fiscal year 2007-08 and providing the additional benefit will result in total additional payments through June 30, 2028 of $133,415,808. Of that amount, the total increase to the unfunded liability payments will be $95,969,047 and the increase to the normal cost component payments will be $37,446,761.