CHAPTER 657
H.P. 1503 - L.D. 2006
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 3 MRSA §801, sub-§1, as amended by PL 1989, c. 133, §7, is further amended to read:
1. Membership mandatory. Every Legislator serving in the Legislature on or after December 3, 1986, shall be is a member of the Maine Legislative Retirement System, except that any Legislator who is a member of the Maine State Retirement System on December 2, 1986, may continue to be a member of that system instead of becoming a member of the Maine Legislative Retirement System, and any Legislator who is a public school teacher or an employee of the Vocational-Technical Institute Maine Technical College System on leave of absence shall continue for the purpose of serving in the Legislature continues to be a member of the Maine State Retirement System and to have contributions deducted from the member's legislative salary earnable compensation as provided by Title 5, section 17701. A Legislator who is the recipient of a retirement allowance from the Maine State Retirement System shall become becomes a member of the Maine Legislative Retirement System, but no creditable service granted under the Maine State Retirement System shall may be transferred to the Maine Legislative Retirement System. A member shall cease ceases to be a member when the member withdraws the member's contributions, becomes a beneficiary as a result of the member's own retirement or dies.
Sec. 2. 3 MRSA §806 is enacted to read:
§806. Additional member contributions by certain members
1. Application. This section applies to a Legislator who is a public school teacher or an employee of the Maine Technical College System who is on a leave of absence for the purpose of serving in the Legislature on or after July 1, 2002.
2. Additional member contributions on difference in earnable compensation. A Legislator subject to this section whose earnable compensation as a Legislator is less than the earnable compensation that would have been earned in the position from which the Legislator is on a leave of absence may make member contributions on the amount that represents the difference between the legislative earnable compensation received and the earnable compensation that would have been received in the position from which the Legislator is on a leave of absence.
3. Maximum total earnable compensation; total member contributions. The total earnable compensation on which a Legislator makes member contributions under this section may not be greater than the earnable compensation that the Legislator would have received had the Legislator remained in the position from which the Legislator is on a leave of absence. The Legislator's total member contributions under this section may not be greater than the member contributions that would have been paid on the earnable compensation that the Legislator would have received had the Legislator remained in that position from which the Legislator is on a leave of absence.
4. Method of member contribution. A Legislator may make member contributions under this section by either a single lump sum payment or by annual direct payments as provided by Title 5, section 17701, subsection 4.
5. Interest. If the Legislator makes member contributions under this section in the year in which the Legislator is on leave of absence, no interest accrues. If payment of member contributions under this section is made at any later time, interest accrues at a rate to be set by the board of trustees not to exceed regular interest by 5% or more, computed beginning at the end of the year in which the contributions would have been made to date of payment.
6. Written agreement. A Legislator who elects to make additional member contributions under this section must enter into a written agreement with the Maine State Retirement System for the making of the contributions. The agreement must be in a form specified by the Maine State Retirement System and according to terms and procedures specified by the Maine State Retirement System.
7. Employer contribution. Whenever a Legislator elects to make member contributions under this section, the State shall pay the employer share of contributions on the amount that represents the difference between the legislative earnable compensation received by the Legislator and the earnable compensation that would have been received by the Legislator in the position from which the Legislator is on a leave of absence.
Sec. 3. 5 MRSA §17701, sub-§5 is enacted to read:
5. Earnable compensation for certain members. The earnable compensation of a public school teacher or employee of the Maine Technical College System who is on leave of absence for the purpose of serving as a Legislator is the total amount of earnable compensation upon which the teacher or employee makes member contributions as specified in and subject to the limitations of Title 3, section 801, subsection 1.
Effective July 25, 2002, unless otherwise indicated.
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