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--- version:LD 1040 HP 669
+++ version:(document, no version)
@@ -1,42 +1,27 @@
-Printed on recycled paper
+Approved: 04/10/25
+LD 1040 LR 36(02)
+FY 2025-26 FY 2026-27
+Projections
+FY 2027-28
+Projections
+FY 2028-29
+Net Cost (Savings)
+General Fund $0 $118,240,000 $0 $0
+Appropriations/Allocations
+General Fund $0 $118,240,000 $0 $0
+Fiscal Detail and Notes
+This legislation requires that, effective July 1, 2026, the cost-of-living adjustment applies to $40,000 of the retirement
+benefit being paid to retired state employees and retired teachers who retired on or before June 30, 2011 or their
+beneficiaries instead of only to the first $26,428.98 as re quired in current law. According to the Maine Public
+Employees Retirement System, this provision will create an unfunded actuarial liability (UAL) totaling $118,240,000
+that, pursuant to the Maine Constitution, will have to be funded immediately. This bill includes a one-time General
+Fund appropriation to the Retirement Allowance Fund within the Maine Public Employees Retirement System for that
+amount in fiscal year 2026-27 to pay for the UAL cost.
+Fiscal Note
 132nd MAINE LEGISLATURE
-FIRST REGULAR SESSION-2025
-Legislative Document No. 1040
-H.P. 669 House of Representatives, March 14, 2025
-An Act to Raise the Cap on Retirement Benefits for Certain State
-Employees and Teachers to Which a Cost-of-living Adjustment Is
-Made
-Received by the Clerk of the House on March 12, 2025.  Referred to the Committee on
-Labor pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
-ROBERT B. HUNT
-Clerk
-Presented by Representative DODGE of Belfast.
-Cosponsored by Senator TIPPING of Penobscot and
-Representatives: BOYER of Cape Elizabeth, BUNKER of Farmington, GRAHAM of North
-Yarmouth, MACIAS of Topsham, MCCABE of Lewiston, ROEDER of Bangor, SATO of
-Gorham, SHAGOURY of Hallowell.
-
-Page 1 - 132LR0036(01)
-1Be it enacted by the People of the State of Maine as follows:
-2Sec. 1.  5 MRSA §17806, sub-§1, ¶A, as amended by PL 2021, c. 635, Pt. NN, §1,
-3 is further amended to read:
-4 A.  Except as provided in paragraphs A‑1, A‑2 and A‑3, whenever there is a percentage
-5 increase in the Consumer Price Index from July 1st to June 30th, the board shall
-6 automatically make an equal percentage increase in retirement benefits, beginning in
-7 September, up to a maximum annual increase of 3%.  Effective July 1, 2011, the
-8 increase applies to that portion of the retirement benefit up to $20,000, which amount
-9 must be indexed in subsequent years by the same percentage adjustments granted under
-10 this section.  Effective July 1, 2022, the increase applies to that portion of the retirement
-11 benefit up to $24,186.25, which amount must be indexed in subsequent years by the
-12 same percentage adjustments granted under this section. Effective July 1, 2026, for
-13 retired state employees and teachers who retired on or before June 30, 2011 or their
-14 beneficiaries, the increase applies to that portion of the retirement benefit up to
-15 $40,000, which amount must be indexed in subsequent years by the same percentage
-16 adjustments granted under this section.
-17SUMMARY
-18 This bill provides that, effective July 1, 2026, the cost-of-living adjustment applies to
-19 $40,000 of the retirement benefit being paid to retired state employees and retired teachers
-20 who retired on or before June 30, 2011 or their beneficiaries.
-18
-19
-20
+An Act to Raise the Cap on Retirement Benefits for Certain State Employees and Teachers to Which a
+Cost-of-living Adjustment Is Made
+Fiscal Note for Bill as Amended by Committee Amendment " "
+Committee: Labor
+Fiscal Note Required: Yes
+LR0036(02) - Fiscal Note - Page 1 of 1