Public Law, Chapter 240, Part U, 123rd Legislature, First Regular Session

Chapter 240 H.P. 383 - L.D. 499

PART U

Sec. U-1. 3 MRSA §753, as enacted by PL 1985, c. 507, §1, is repealed and the following enacted in its place:

§ 753. Expenses

All administrative operating expenses of the Maine Legislative Retirement System must be charged to the assets of the Maine Legislative Retirement System.

Sec. U-2. 3 MRSA §803, sub-§4, as enacted by PL 1985, c. 507, §1, is amended to read:

4. Minimum amount of employer contribution. The aggregate payment by the State into the fund shall must be at least sufficient to provide the benefits payable out of the fund and the administrative operating expenses of the Maine Legislative Retirement System during the current year.

Sec. U-3. 4 MRSA §1253, as enacted by PL 1983, c. 853, Pt. C, §§15 and 18, is repealed and the following enacted in its place:

§ 1253. Expenses

All administrative operating expenses of the Maine Judicial Retirement System must be charged to the assets of the funds of the Maine Judicial Retirement System.

Sec. U-4. 4 MRSA §1303, sub-§4, as enacted by PL 1983, c. 853, Pt. C, §§15 and 18, is amended to read:

4. Minimum amount of employer contribution. The aggregate payment by the State into the fund shall must be at least sufficient to provide the benefits payable out of the fund and the administrative operating expenses of the Maine Judicial Retirement System during the current year.

Sec. U-5. 5 MRSA §17102, sub-§7, as enacted by PL 1985, c. 801, §§5 and 7, is amended to read:

7. Expenses. The necessary expenses incurred by the board in the operation of the retirement system shall must be paid from the funds so allocated according to the purpose for which they are incurred from the assets of the fund or funds established in section 17152.

Sec. U-6. 5 MRSA §17154, sub-§6, as amended by PL 2005, c. 2, Pt. D, §1 and affected by §§72 and 74 and c. 12, Pt. WW, §18, is further amended to read:

6. Payment of employer charges for teachers. For teachers, percentage rates to be predetermined by the actuary and approved by the board shall must be applied to the total earnable compensation of members covering the most recent school year preceding the preparation of the biennial budget.

A. The resulting amount shall must be appropriated and credited to the appropriate funds.

B. Notwithstanding this section, the employer retirement costs and administrative operating expenses related to the retirement system plans applicable to those teachers whose funding is provided from federal grants or through federal reimbursement shall must be paid by local school systems from those federal funds.

C. Notwithstanding this section, the employer retirement cost costs and administrative operating expenses related to the retirement system plan applicable to those teachers who are permitted to continue to accrue service credit while on a one-year leave of absence and participating in the education of prospective teachers by teaching and supervising students enrolled in college-level teacher preparation programs in this State shall must be paid from funds provided by the college employing the teacher during that year.

D. Notwithstanding this section, the employer retirement cost costs and administrative operating expenses related to the retirement system plan applicable to a teacher who is permitted to continue to accrue service credit while on a leave of absence and serving as President of the Maine Education Association must be paid from funds provided by the Maine Teachers Association. For purposes of this paragraph, in computing the employer cost, "earnable compensation" means the amount that the teacher would have earned if the teacher had remained in a teaching position.

E. Notwithstanding this section, the employer retirement costs and administrative operating expenses related to the retirement system plans applicable to those teachers whose funding is provided directly or through reimbursement from private or public grants must be paid by local school systems from those funds. "Public grants" does not include state or local funds provided to school administrative units under Title 20-A, chapters 315 and 606-B.

F. Notwithstanding this section, effective September 1, 1993, the employer retirement cost costs and administrative operating expenses related to the retirement system plans, less the unfunded liability, that are applicable to a teacher who is permitted to continue to accrue service credit while on released time and serving as president of a recognized or certified collective bargaining agent representing teachers must be paid from funds provided by the collective bargaining agent or school administrative unit. For purposes of this paragraph, in computing the employer cost, "earnable compensation" means the amount that the teacher would have earned if the teacher had remained in a teaching position.

Sec. U-7. 5 MRSA §17254, as enacted by PL 1985, c. 801, §§5 and 7, is amended to read:

§ 17254. Minimum state contribution

The aggregate payment by the State into the Retirement Allowance Fund for state employees and teachers shall must be at least sufficient, when combined with the amount in the Retirement Allowance Fund, to provide the benefits payable out of the fund and the administrative operating expenses of the Maine State Retirement System during the current year.

Sec. U-8. Retirement administrative costs. Beginning July 1, 2007, administrative costs and expenses attributable to the administrative operating budget of the Maine State Retirement System's state employee, teacher, legislative and judicial pension funds must be charged against the assets of the applicable fund.

Sec. U-9. Calculation and transfer; General Fund savings; retirement administrative costs. Notwithstanding any other provision of law, the State Budget Officer shall calculate the amount of savings in section 10 of this Part that applies against each General Fund account for all departments and agencies from reducing funding for the administrative costs of the Maine State Retirement System for state employees and state-funded teachers and shall transfer amounts by financial order upon the approval of the Governor. These transfers are considered adjustments to appropriations in fiscal years 2007-08 and 2008-09. The State Budget Officer shall provide the Joint Standing Committee on Appropriations and Financial Affairs a report of the transferred amounts no later than November 1, 2007. The following General Fund accounts are exempt from these calculations: Disproportionate Share - Riverview and Disproportionate Share - Dorothea Dix Psychiatric Center within the Department of Health and Human Services, all General Fund accounts within the Department of Inland Fisheries and Wildlife and the Education Unorganized Territory account within the Department of Education.

Sec. U-10. Appropriations and allocations. The following appropriations and allocations are made.

ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF

Departments and Agencies - Statewide 0016

Initiative: Deappropriates funds to reflect a different methodology for funding the administrative costs of the Maine State Retirement System.


GENERAL FUND	2007-08	2008-09
Personal Services	($1,210,050)	($1,210,187)

GENERAL FUND TOTAL	($1,210,050)	($1,210,187)

ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
DEPARTMENT TOTALS	2007-08	2008-09

GENERAL FUND	($1,210,050)	($1,210,187)

DEPARTMENT TOTAL - ALL FUNDS	($1,210,050)	($1,210,187)

EDUCATION, DEPARTMENT OF

Teacher Retirement 0170

Initiative: Deappropriates funds to reflect a different methodology for funding the administrative costs of the Maine State Retirement System.


GENERAL FUND	2007-08	2008-09
All Other	($5,031,551)	($5,031,551)

GENERAL FUND TOTAL	($5,031,551)	($5,031,551)

EDUCATION, DEPARTMENT OF
DEPARTMENT TOTALS	2007-08	2008-09

GENERAL FUND	($5,031,551)	($5,031,551)

DEPARTMENT TOTAL - ALL FUNDS	($5,031,551)	($5,031,551)

Public Laws

123rd Legislature

First Regular Session

Chapter 240

H.P. 383 - L.D. 499