An Act To Amend the Retirement Laws Pertaining to Participating Local Districts
Sec. 1. 5 MRSA §18301, sub-§5 is enacted to read:
Sec. 2. 5 MRSA §18309, sub-§1, as amended by PL 2007, c. 491, §221, is further amended to read:
Sec. 3. 5 MRSA §18309, sub-§3 is enacted to read:
Sec. 4. 5 MRSA §18310, sub-§1, as amended by PL 2007, c. 491, §222, is further amended to read:
Sec. 5. 5 MRSA §18310, sub-§3 is enacted to read:
Sec. 6. 5 MRSA §18407, sub-§4, as amended by PL 2009, c. 473, §§5 and 6, is further amended to read:
Sec. 7. 5 MRSA §18407, sub-§6, as amended by PL 1993, c. 595, §10, is further amended to read:
Sec. 8. 5 MRSA §18407, sub-§§7 and 8 are enacted to read:
Sec. 9. 5 MRSA §18451, as amended by PL 2007, c. 491, §§239 to 243, is further amended to read:
§ 18451. Qualification for benefits for members not covered under chapter 427
A member's qualification Qualification for service retirement benefits for a member not covered under chapter 427 is governed by subsection 1, 2 or 3, unless the requirements of section 18453 are satisfied, in which case , one or more of the subsections of section 18453 governs.
(1) Was in service on October 1, 1999;
(2) Had left prior to October 1, 1999 with or without withdrawing contributions and on or after October 1, 1999 returned to service; or
(3) Was first in service on or after October 1, 1999.
(1) Was in service on October 1, 1999;
(2) Had left service prior to October 1, 1999 with or without withdrawing contributions and on or after October 1, 1999 returned to service; or
(3) Was first in service on or after October 1, 1999.
For those members to whom the 5-year minimum creditable service requirement does not apply, the 10-year minimum creditable service requirement for eligibility to receive service retirement benefits remains in effect on and after October 1, 1999.
Sec. 10. 5 MRSA §18451-A is enacted to read:
§ 18451-A. Qualification for benefits for members covered under chapter 427
Qualification for service retirement benefits for a member covered under chapter 427 is governed by subsection 1 or 2, unless the requirements of a special plan, as established by the board by rule, have been met.
(1) Retires upon or after reaching 65 years of age and has been in service for a minimum of one year immediately before retirement; and
(2) Has at least 5 years of creditable service, which, for the purposes of determining completion of the 5-year requirement, may include creditable service as a member of the Legislative Retirement Program.
(1) Retires upon or after reaching 65 years of age; and
(2) Has at least 5 years of creditable service, which, for the purposes of determining completion of the 5-year requirement, may include creditable service as a member of the Legislative Retirement Program.
Sec. 11. 5 MRSA §18452, sub-§3, as enacted by PL 1985, c. 801, §§5 and 7, is amended to read:
The amount of the service retirement benefit for members qualified under section 18451-A, subsection 2, paragraph C is computed in accordance with subsection 1, except that the benefit is reduced by 6% for each year that the member's age precedes 65 years of age.
Sec. 12. 5 MRSA §18453, first ¶, as enacted by PL 1985, c. 801, §§5 and 7, is amended to read:
A participating local district may, by filing with the board a duly certified copy of its action, provide, in lieu of any other retirement benefit in this Part, special retirement benefit plans in this section. If a member retires after becoming qualified to retire under section 18451 or 18451-A, his the member's retirement benefit will must be computed in accordance with section 18452, if that amount is greater than the amount computed under this section.
Sec. 13. 5 MRSA §18462, sub-§3, as amended by PL 2001, c. 699, §6, is further amended to read:
(1) If the member completes the service or service and age requirements for retirement under the special plan the member was under previously, the retirement benefit shall may not be reduced; or
(2) If the member does not complete the service or service and age requirements for retirement under the special plan the member was under previously, the retirement benefit shall must be reduced in accordance with section 18452, subsection 3.
Sec. 14. 5 MRSA §18506, sub-§1, as amended by PL 2001, c. 443, §3 and affected by §7, is further amended to read:
Sec. 15. 5 MRSA §18506, sub-§3, as amended by PL 2007, c. 491, §245, is further amended to read:
(1) The person again becomes a member of the Participating Local District Retirement Program and begins contributing at the current rate; and
(2) When the person again retires, the person must receive benefits computed on the person's entire creditable service and in accordance with the law in effect at that time.
Sec. 16. 5 MRSA §18530, sub-§2, as amended by PL 2001, c. 443, §4 and affected by §7, is further amended to read:
summary
This bill amends specific defined benefit plan provisions that apply to members of the Participating Local District Consolidated Retirement Plan administered by the Maine Public Employees Retirement System. Specifically, the bill:
1. Allows the Board of Trustees of the Maine Public Employees Retirement System to establish by rule the rate at which plan members contribute;
2. Reduces the cost-of-living adjustment cap from 4% to 3%;
3. Increases from 6 to 12 months the length of time that a retiree must be retired in order to receive a cost-of-living increase;
4. Raises the normal retirement age from 60 to 65 years of age for new hires; and
5. Increases the early retirement reduction from 2 1/4% to 6% for new hires.
The proposed amendments are the recommendations of the Participating Local District Advisory Committee, a committee established by statute that represents both the labor and management interests of participating local districts.