‘An Act To Include Certain Mental Health Workers under the 1998 Special Plan for Retirement’
Amend the bill by striking out the title and substituting the following:
Amend the bill by striking out everything after the enacting clause and inserting the following:
‘Sec. 1. 5 MRSA §17851-A, sub-§1, ¶N, as enacted by PL 2019, c. 541, §4, is reallocated to 5 MRSA §17851-A, sub-§1, ¶O.
O. Detectives in the employment of the office of investigations within the Department of the Secretary of State, Bureau of Motor Vehicles on July 1, 2020 who elect to participate in the 1998 Special Plan or hired thereafter.
Sec. 2. 5 MRSA §17851-A, sub-§1, ¶N, as enacted by PL 2019, c. 542, §3, is reallocated to 5 MRSA §17851-A, sub-§1, ¶P.
P. Detectives in the employment of the Office of the Attorney General on July 1, 2020 who elect to participate in the 1998 Special Plan or hired thereafter.
Sec. 3. 5 MRSA §17851-A, sub-§1, ¶Q is enacted to read:
Q. Persons in the employment of the Department of Health and Human Services on March 1, 2021 or hired thereafter who have responsibility for providing direct care to persons in need of mental health services in a community-based or residential setting or to residents or patients of mental health institutions in this State. For purposes of this paragraph, "direct care" means services or treatment essential to a person's security, health or well-being, except for case management services.
Sec. 4. 5 MRSA §17851-A, sub-§2, as amended by PL 2019, c. 537, §4; c. 541, §5; and c. 542, §4, is repealed and the following enacted in its place:
2. Qualification for benefits. A member employed in any one or a combination of the capacities specified in subsection 1 after June 30, 1998 and before September 1, 2002 for employees identified in subsection 1, paragraphs A and B; after June 30, 1998 for employees identified in subsection 1, paragraphs C to H; after December 31, 1999 for employees identified in subsection 1, paragraphs I to K; any employee identified in subsection 1, paragraph M; after June 30, 2020 for employees identified in subsection 1, paragraphs N to P; after February 28, 2021 for employees identified in subsection 1, paragraph Q; and any employee identified in subsection 1, paragraph L, qualifies for a service retirement benefit if that member either:
A. Is at least 55 years of age and has completed at least 10 years of creditable service under the 1998 Special Plan in any one or a combination of the capacities; or
B. Has completed at least 25 years of creditable service in any one or a combination of the capacities specified in subsection 1, whether or not the creditable service included in determining that the 25-year requirement has been met was earned under the 1998 Special Plan or prior to its establishment.
Sec. 5. 5 MRSA §17851-A, sub-§3, ¶A, as amended by PL 2019, c. 537, §5; c. 541, §6; and c. 542, §5, is further amended by repealing subparagraph (1) and enacting the following in its place:
A. For the purpose of meeting the qualification requirement of subsection 2, paragraph A:
(1) Service credit purchased by repayment of an earlier refund of accumulated contributions following termination of service is included only to the extent that time to which the refund relates was served after June 30, 1998 and before September 1, 2002 for employees identified in subsection 1, paragraphs A and B; after June 30, 1998 for employees identified in subsection 1, paragraphs C to H; after December 31, 1999 for employees identified in subsection 1, paragraphs I to K; and after June 30, 2020 for employees identified in subsection 1, paragraphs N to P in any one or a combination of the capacities specified in subsection 1. Service credit may be purchased for service by an employee identified in subsection 1, paragraphs L, M and Q regardless of when performed; and
(2) Service credit purchased other than as provided under subparagraph (1), including but not limited to service credit for military service, is not included.
Sec. 6. 5 MRSA §17851-A, sub-§4, ¶A, as amended by PL 2019, c. 537, §6; c. 541, §7; and c. 542, §6, is repealed and the following enacted in its place:
A. If all of the member's creditable service in any one or a combination of the capacities specified in subsection 1 was earned after June 30, 1998 and before September 1, 2002 for employees identified in subsection 1, paragraphs A and B; after June 30, 1998 for employees identified in subsection 1, paragraphs C to H; after December 31, 1999 for employees identified in subsection 1, paragraphs I to K; after December 31, 2001 for employees identified in subsection 1, paragraph L; after June 30, 2002 for employees identified in subsection 1, paragraph M; after June 30, 2020 for employees identified in subsection 1, paragraphs N to P; and after February 28, 2021 for employees identified in subsection 1, paragraph Q; if service credit was purchased by repayment of an earlier refund of accumulated contributions for service in any one or a combination of the capacities specified in subsection 1 after June 30, 1998 and before September 1, 2002 for employees identified in subsection 1, paragraphs A and B; after June 30, 1998 for employees identified in subsection 1, paragraphs C to H; after December 31, 1999 for employees identified in subsection 1, paragraphs I to K; after December 31, 2001 for employees identified in subsection 1, paragraph L; after June 30, 2002 for employees identified in subsection 1, paragraph M; after June 30, 2020 for employees identified in subsection 1, paragraphs N to P; and after February 28, 2021 for employees identified in subsection 1, paragraph Q; or if service credit was purchased by other than the repayment of an earlier refund and eligibility to make the purchase of the service credit, including, but not limited to, service credit for military service, was achieved after June 30, 1998 and before September 1, 2002 for employees identified in subsection 1, paragraphs A and B; after June 30, 1998 for employees identified in subsection 1, paragraphs C to H; after December 31, 1999 for employees identified in subsection 1, paragraphs I to K; after December 31, 2001 for employees identified in subsection 1, paragraph L; after June 30, 2002 for employees identified in subsection 1, paragraph M; after June 30, 2020 for employees identified in subsection 1, paragraphs N to P; and after February 28, 2021 for employees identified in subsection 1, paragraph Q, the benefit must be computed as provided in section 17852, subsection 1, paragraph A.
(1) If the member had 10 years of creditable service on July 1, 1993, the benefit under subsection 2, paragraph B must be reduced as provided in section 17852, subsection 3, paragraphs A and B.
(2) If the member had fewer than 10 years of creditable service on July 1, 1993, the benefit under subsection 2, paragraph B must be reduced by 6% for each year that the member's age precedes 55 years of age.
Sec. 7. 5 MRSA §17851-A, sub-§4, ¶B, as amended by PL 2019, c. 537, §7; c. 541, §8; and c. 542, §7, is repealed and the following enacted in its place:
B. Except as provided in paragraphs D, E, F and G, if some part of the member's creditable service in any one or a combination of the capacities specified in subsection 1 was earned before July 1, 1998 for employees identified in subsection 1, paragraphs A to H; before January 1, 2000 for employees identified in subsection 1, paragraphs I to K; before January 1, 2002 for employees identified in subsection 1, paragraph L; before July 1, 2002 for employees identified in subsection 1, paragraph M; before July 1, 2020 for employees identified in subsection 1, paragraphs N to P; and before March 1, 2021 for employees identified in subsection 1, paragraph Q and some part of the member's creditable service in any one or a combination of the capacities specified in subsection 1 was earned after June 30, 1998 and before September 1, 2002 for employees identified in subsection 1, paragraphs A and B; after June 30, 1998 for employees identified in subsection 1, paragraphs C to H; after December 31, 1999 for employees identified in subsection 1, paragraphs I to K; after December 31, 2001 for employees identified in subsection 1, paragraph L; after June 30, 2002 for employees identified in subsection 1, paragraph M; after June 30, 2020 for employees identified in subsection 1, paragraphs N to P; and after February 28, 2021 for employees identified in subsection 1, paragraph Q, then the member's service retirement benefit must be computed in segments and the amount of the member's service retirement benefit is the sum of the segments. The segments must be computed as follows:
(1) The segment or, if the member served in more than one of the capacities specified in subsection 1 and the benefits related to the capacities are not interchangeable under section 17856, segments that reflect creditable service earned before July 1, 1998 for employees identified in subsection 1, paragraphs A to H; before January 1, 2000 for employees identified in subsection 1, paragraphs I to K; before January 1, 2002 for employees identified in subsection 1, paragraph L; before July 1, 2002 for employees identified in subsection 1, paragraph M; before July 1, 2020 for employees identified in subsection 1, paragraphs N to P; and before March 1, 2021 for employees identified in subsection 1, paragraph Q or purchased by repayment of an earlier refund of accumulated contributions for service before July 1, 1998, for employees identified in subsection 1, paragraphs A to H; before January 1, 2000 for employees identified in subsection 1, paragraphs I to K; before January 1, 2002 for employees identified in subsection 1, paragraph L; before July 1, 2002 for employees identified in subsection 1, paragraph M; before July 1, 2020 for employees identified in subsection 1, paragraphs N to P; and before March 1, 2021 for employees identified in subsection 1, paragraph Q in a capacity or capacities specified in subsection 1 or purchased by other than the repayment of a refund and eligibility to make the purchase of the service credit, including, but not limited to, service credit for military service, was achieved before July 1, 1998 for employees identified in subsection 1, paragraphs A to H; before January 1, 2000 for employees identified in subsection 1, paragraphs I to K; before January 1, 2002 for employees identified in subsection 1, paragraph L; before July 1, 2002 for employees identified in subsection 1, paragraph M; before July 1, 2020 for employees identified in subsection 1, paragraphs N to P; and before March 1, 2021 for employees identified in subsection 1, paragraph Q, must be computed under section 17852, subsection 1, paragraph A. If the member is qualified under subsection 2, paragraph B and:
(a) Had 10 years of creditable service on July 1, 1993, the amount of the segment or segments must be reduced as provided in section 17852, subsection 3, paragraphs A and B; or
(b) Had fewer than 10 years of creditable service on July 1, 1993, the amount of the segment or segments must be reduced as provided in section 17852, subsection 3-A; and
(2) The segment that reflects creditable service earned after June 30, 1998 and before September 1, 2002 for employees identified in subsection 1, paragraphs A and B; after June 30, 1998 for employees identified in subsection 1, paragraphs C to H; after December 31, 1999 for employees identified in subsection 1, paragraphs I to K; after December 31, 2001 for employees identified in subsection 1, paragraph L; after June 30, 2002 for employees identified in subsection 1, paragraph M; after June 30, 2020 for employees identified in subsection 1, paragraphs N to P; and after February 28, 2021 for employees identified in subsection 1, paragraph Q or purchased by repayment of an earlier refund of accumulated contributions for service after June 30, 1998 and before September 1, 2002 for employees identified in subsection 1, paragraphs A and B; after June 30, 1998 for employees identified in subsection 1, paragraphs C to H; after December 31, 1999 for employees identified in subsection 1, paragraphs I to K; after December 31, 2001 for employees identified in subsection 1, paragraph L; after June 30, 2002 for employees identified in subsection 1, paragraph M; after June 30, 2020 for employees identified in subsection 1, paragraphs N to P; and after February 28, 2021 for employees identified in subsection 1, paragraph Q in any one or a combination of the capacities specified in subsection 1, or purchased by other than the repayment of a refund and eligibility to make the purchase of the service credit, including, but not limited to, service credit for military service, was achieved after June 30, 1998 and before September 1, 2002 for employees identified in subsection 1, paragraphs A and B; after June 30, 1998 for employees identified in subsection 1, paragraphs C to H; after December 31, 1999 for employees identified in subsection 1, paragraphs I to K; after December 31, 2001 for employees identified in subsection 1, paragraph L; after June 30, 2002 for employees identified in subsection 1, paragraph M; after June 30, 2020 for employees identified in subsection 1, paragraphs N to P; and after February 28, 2021 for employees identified in subsection 1, paragraph Q must be computed under section 17852, subsection 1, paragraph A. If the member is qualified under subsection 2, paragraph B and:
(a) Had 10 years of creditable service on July 1, 1993, the segment amount must be reduced in the manner provided in section 17852, subsection 3, paragraphs A and B for each year that the member's age precedes 55 years of age; or
(b) Had fewer than 10 years of creditable service on July 1, 1993, the segment amount must be reduced by 6% for each year that the member's age precedes 55 years of age.
Sec. 8. 5 MRSA §17851-A, sub-§4, ¶G is enacted to read:
G. The service retirement benefit of a member to whom subsection 1, paragraph Q applies and who qualifies for service retirement benefits under subsection 2 must be computed under section 17852, subsection 1, paragraph A on the basis of all of the member's creditable service in the capacity specified in subsection 1, paragraph Q, regardless of when that creditable service was earned, except that for a member qualifying under subsection 2, paragraph B:
(1) If the member had 10 years of service on July 1, 1993, the benefit must be reduced as provided in section 17852, subsection 3, paragraphs A and B for each year the member's age precedes 55 years of age; or
(2) If the member had fewer than 10 years of creditable service on July 1, 1993, the benefit must be reduced by 6% for each year that the member's age precedes 55 years of age.
Sec. 9. 5 MRSA §17851-A, sub-§5, as amended by PL 2019, c. 537, §8; c. 541, §9; and c. 542, §8, is repealed and the following enacted in its place:
5. Contributions. Notwithstanding any other provision of subchapter 3, after June 30, 1998 and before September 1, 2002 for employees identified in subsection 1, paragraphs A and B; after June 30, 1998 for employees identified in subsection 1, paragraphs C to H; after December 31, 1999 for employees identified in subsection 1, paragraphs I to K; after December 31, 2001 for employees identified in subsection 1, paragraph L; after June 30, 2002 for employees identified in subsection 1, paragraph M; after June 30, 2020 for employees identified in subsection 1, paragraphs N to P; and for employees identified in subsection 1, paragraph Q, a member in the capacities specified in subsection 1 must contribute to the State Employee and Teacher Retirement Program or have pick-up contributions made at the rate of 8.65% of earnable compensation until the member has completed 25 years of creditable service as provided in this section and at the rate of 7.65% thereafter.
Sec. 10. 5 MRSA §17851-A, sub-§6-B, as enacted by PL 2019, c. 541, §10, is amended to read:
6-B. Consequences of participation in retirement plan under section 17851, subsection 14. A member in the capacity specified in subsection 1, paragraph N O who, prior to July 1, 2020, elected the retirement option provided in section 17851, subsection 14 is treated as follows under the 1998 Special Plan.
A. A member who made the election at the time of first employment in a position covered under section 17851, subsection 14 is considered to be a member under the 1998 Special Plan as of the date of hire. Beginning July 1, 2020, a member covered by this paragraph shall contribute to the State Employee and Teacher Retirement Program or have pick-up contributions made at a rate of 8.65% of earnable compensation until completion of 25 years of creditable service and shall contribute at a rate of 7.65% thereafter.
B. A member who was serving in a position covered under section 17851, subsection 14 at the time of the election and who elected to participate in the retirement option prospectively from the time of election is considered to be a member under the 1998 Special Plan as of the effective date of the election. Beginning July 1, 2020, a member covered by this paragraph shall contribute to the State Employee and Teacher Retirement Program or have pick-up contributions made at a rate of 8.65% of earnable compensation until completion of 25 years of creditable service and shall contribute at a rate of 7.65% thereafter.
C. A member who was serving in a position covered under section 17851, subsection 14 at the time of the election and who elected to participate in the retirement option prospectively from the time of election and also elected to purchase credit for service earned while serving in the same capacity before exercising the election is considered to be a member under the 1998 Special Plan as of the beginning date of the service for which credit is purchased, as long as all of the payments required under section 17852, subsection 15 are made before retirement. If all the required payments are not made before retirement, that member is considered to be a member under the 1998 Special Plan as of the effective date of the election. Beginning July 1, 2020, for employees identified in subsection 1, paragraph N O, a member covered by this paragraph shall contribute to the State Employee and Teacher Retirement Program or have pick-up contributions made at a rate of 8.65% of earnable compensation until completion of 25 years of creditable service and shall contribute at a rate of 7.65% thereafter.
Employee contributions and actuarial and administrative costs paid to the State Employee and Teacher Retirement Program by a member covered by this subsection may not be returned to that member, except that these employee contributions may be refunded to a member who terminates service and requests a refund under section 17705-A.
Sec. 11. Transition. If an employee described in the Maine Revised Statutes, Title 5, section 17851-A, subsection 1, paragraph Q who is employed on March 1, 2021 elects to participate in the 1998 Special Plan of the Maine Public Employees Retirement System, as provided in Title 5, section 17851-A, subsection 1, that employee must make that election no later than June 30, 2021 and that employee's participation in the 1998 Special Plan becomes effective July 1, 2021.
Sec. 12. Appropriations and allocations. The following appropriations and allocations are made.
HEALTH AND HUMAN SERVICES, DEPARTMENT OF
Crisis Outreach Program Z216
Initiative: Provides ongoing funds for the costs associated with the increase in the employer's contribution rates for the normal cost and unfunded actuarial liability as a result of certain employees within the Department of Health and Human Services being allowed to participate in the 1998 Special Plan effective March 1, 2021.
| GENERAL FUND | 2019-20 | 2020-21 |
|
Personal Services
|
$0 | $3,681 |
 |
|
|
| GENERAL FUND TOTAL | $0 | $3,681 |
Dorothea Dix Psychiatric Center Z222
Initiative: Provides an allocation for the costs associated with the increase in the employer's contribution rates for the normal cost and unfunded actuarial liability as a result of certain employees within the Department of Health and Human Services being allowed to participate in the 1998 Special Plan effective March 1, 2021.
| OTHER SPECIAL REVENUE FUNDS | 2019-20 | 2020-21 |
|
Personal Services
|
$0 | $39,126 |
|
|
|
| OTHER SPECIAL REVENUE FUNDS TOTAL | $0 | $39,126 |
Riverview Psychiatric Center Z219
Initiative: Provides an allocation for the costs associated with the increase in the employer's contribution rates for the normal cost and unfunded actuarial liability as a result of certain employees within the Department of Health and Human Services being allowed to participate in the 1998 Special Plan effective March 1, 2021.
| OTHER SPECIAL REVENUE FUNDS | 2019-20 | 2020-21 |
|
Personal Services
|
$0 | $18,093 |
|
|
|
| OTHER SPECIAL REVENUE FUNDS TOTAL | $0 | $18,093 |
Riverview Psychiatric Center Z219
Initiative: Provides ongoing funds for the costs associated with the increase in the employer's contribution rates for the normal cost and unfunded actuarial liability as a result of certain employees within the Department of Health and Human Services being allowed to participate in the 1998 Special Plan effective March 1, 2021.
| GENERAL FUND | 2019-20 | 2020-21 |
|
Personal Services
|
$0 | $1,089 |
|
|
|
| GENERAL FUND TOTAL | $0 | $1,089 |
| HEALTH AND HUMAN SERVICES, DEPARTMENT OF | ||
| DEPARTMENT TOTALS | 2019-20 | 2020-21 |
|
GENERAL FUND
|
$0 | $4,770 |
|
OTHER SPECIAL REVENUE FUNDS
|
$0 | $57,219 |
|
|
|
| DEPARTMENT TOTAL - ALL FUNDS | $0 | $61,989 |
RETIREMENT SYSTEM, MAINE PUBLIC EMPLOYEES
Retirement System - Retirement Allowance Fund 0085
Initiative: Provides one-time funds for the increase in the unfunded actuarial liability as a result of allowing the service retirement benefits for certain employees within the Department of Health and Human Services earned under the regular state employee and teacher plan to be calculated under the 1998 Special Plan effective March 1, 2021.
| GENERAL FUND | 2019-20 | 2020-21 |
|
All Other
|
$0 | $3,945,571 |
|
|
|
| GENERAL FUND TOTAL | $0 | $3,945,571 |
| RETIREMENT SYSTEM, MAINE PUBLIC EMPLOYEES | ||
| DEPARTMENT TOTALS | 2019-20 | 2020-21 |
|
GENERAL FUND
|
$0 | $3,945,571 |
|
|
|
| DEPARTMENT TOTAL - ALL FUNDS | $0 | $3,945,571 |
| SECTION TOTALS | 2019-20 | 2020-21 |
|
GENERAL FUND
|
$0 | $3,950,341 |
|
OTHER SPECIAL REVENUE FUNDS
|
$0 | $57,219 |
|
|
|
| SECTION TOTAL - ALL FUNDS | $0 | $4,007,560 |
SUMMARY
This amendment replaces the bill and is the majority report of the committee. It adds employees employed on March 1, 2021 and hired thereafter who provide direct care to persons in need of mental health services in a community-based or residential setting or to residents or patients of mental health institutions in this State to the 1998 Special Plan for certain Maine Public Employees Retirement System members.
This amendment also resolves a conflict created when 3 public laws enacted a new paragraph with the same paragraph letter in the Maine Revised Statutes, Title 5, section 17851-A, subsection 1 by reallocating 2 of the paragraphs and fixing all the cross-references to reflect those reallocations.
FISCAL NOTE REQUIRED
(See attached)