An Act To Improve Retirement Security for Retired Public Employees
Emergency preamble. Whereas, acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, cost-of-living adjustments are applied to the applicable portion of an eligible retiree's benefit amount beginning in September of each year; and
Whereas, this legislation requires a retroactive adjustment to the cost-of-living increase applied to the eligible portion of a retiree's benefit in September 2014; and
Whereas, this legislation may impact the percentage increase to be applied to the applicable portion of an eligible retiree's benefit amount beginning in September 2015; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
Sec. 1. 5 MRSA §17806, sub-§1, ¶A-2 is enacted to read:
Sec. 2. Adjustment to September 2014 cost-of-living increase to retirement benefits. Notwithstanding any other provision of law, the cost-of-living percentage applied to retirement benefits in September of 2014 must be adjusted to reflect a cost-of-living percentage of 2.55%. The Executive Director of the Maine Public Employees Retirement System shall determine the additional amount of funding necessary to adjust the retirement benefit for all eligible members that received a cost-of-living increase in September 2014 to reflect a percentage increase of 2.55% and provide each eligible retiree with a one-time lump-sum payment no later than August 31, 2015.
Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.
This bill provides a minimum cost-of-living adjustment of 2.55% for benefits received by retired state employees, teachers, judges and Legislators for fiscal year 2014-15, fiscal year 2015-16 and fiscal year 2016-17 only.