Sec. C-1. 5 MRSA §1519, sub-§§1-A and 3 to 5 are enacted to read:
1-A. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
A. "Board" means the Board of Trustees, Maine State Retirement System established under section 12004-F, subsection 9.
B. "Commissioner" means the Commissioner of Administrative and Financial Services.
C. "Fund" means the Retiree Health Insurance Internal Service Fund.
3. Investment of the fund. The board shall invest the cash assets of the fund that are not required to pay insurance premiums and other operating expenses at the request of the commissioner in the same manner and according to the same investment policy and practices by which the board invests the assets of the Maine State Retirement System. The board shall treat the fund as held in trust on behalf of the State for the purposes specified in this section and no other and shall separately account for the fund as investment assets, attributing to the fund its proportional share of investment returns and of investment management costs and expenses, including costs and expenses of the retirement system arising because of the board's investment of the fund. The commissioner and the board shall develop jointly a memorandum of understanding that sets out their mutual understanding of the investment of the fund, the related investment accounting and investment return and expense attribution.
4. Audit of the fund. The commissioner shall ensure adequate audit of the investment management of the fund and the expenditures of the fund each fiscal year within the scope of the annual audit of the Maine State Retirement System and the State's single audit or through a separate audit as considered appropriate by the board. Any separate audit must be reported to the Governor, the Legislature, the commissioner and the State Controller in as timely a manner as possible after the close of each fiscal year.
5. Use of the fund. Notwithstanding subsection 1, the fund may be used for necessary audit services, legal expenses, investment management fees and services, general administrative expenses, costs related to the management and administration of the fund and health insurance premium costs.
Sec. C-2. Calculation and transfer; retiree health insurance costs. Notwithstanding the Maine Revised Statutes, Title 5, section 1585, in fiscal year 2002-03, the State Budget Officer shall calculate the amounts set aside at the close of fiscal year 2000-01 pursuant to Title 5, section 1519 that apply against each affected account in the Personal Services appropriations and allocations of the affected accounts based on the proportionate share of retiree health insurance costs in the Personal Services appropriations and allocations of the affected accounts and shall transfer the calculated amounts by financial order upon the approval of the Governor. These transfers are considered adjustments to appropriations and allocations in fiscal year 2002-03. The State Budget Officer shall provide the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs with a report of the transferred amounts no later than January 31, 2004.
Sec. C-3. Retiree health insurance rates. The State Budget Officer shall adjust the retiree health insurance rates in fiscal year 2002-03 based on the actuarial amounts and rates provided by the Department of Administrative and Financial Services, Division of Financial and Personnel Services so that the actual retiree health insurance costs in each account affected by section 2 of this Part approximate the net appropriations and allocations to each account after the adjustments required by section 2.
Sec. C-4. Effective date. That section of this Part that enacts the Maine Revised Statutes, Title 5, section 1519, subsection 1-A and subsections 3 to 5 takes effect June 30, 2001.
| Revisor of Statutes Homepage | Subject Index | Search | Laws of Maine | Maine Legislature |
