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The following legislation pertaining to either the
programs or the operations of the Retirement System
was passed during the Second Regular Session of the
124th Legislature.
L.D. 1582 – IRS Determination Letter
This bill updates Maine law to comply with the
Internal Revenue Code and maintain the qualified tax
status of the programs administered by the System.
The most substantive change in the bill is to
membership rights for optional members.
Specifically, the bill implements a one-time
membership election whereby individuals have only
one opportunity to select the retirement plan by
which they will be covered.
Members eligible to purchase service for
periods of optional membership prior to August 1,
2010 retain their eligibility to make those
purchases.
The bill authorizes the Board of Trustees to
adopt rules necessary to maintain the qualified tax
status of the programs administered by the System.
This bill was signed by the Governor and enacted as
PL 2009, c. 474.
It will become effective
July 12, 2010.
L.D. 1671 – State budget
This bill is the Supplemental State budget for
fiscal years 2010 and 2011.
It includes two sections that pertain to
System members.
First, it permits teachers who are subject to
furlough days in FYs 2010 and 2011 to pay the
employee contributions on the missed earnings in
order to increase average final compensation at
retirement.
Second, it includes as earnable compensation
lost earnings for judges for whom the FY11 salary
cost-of-living adjustment has not been funded.
This is consistent with how unfunded COLAs in
FYs 2004 and 2005 are treated.
This bill was signed by the Governor and enacted as
PL 2009, c. 571.
It became effective
May 17, 2010.
L.D. 1776 – Teacher Furlough Days
Although the title of this bill refers to teachers,
it pertains to participating local district members.
It gives the same treatment to PLD members as
teachers were given in c. 571 (see L.D. 1671 above);
specifically, those members who are subject
to furlough days in FYs 2010 and 2011 can pay the
employee contributions on the missed earnings in
order to increase average final compensation at
retirement.
This bill was signed by the Governor and enacted as
PL 630.
It became effective April 9, 2010.
L.D. 1595 – COST OF LIVING ADJUSTMENT
(COLA)
This bill is a follow up to legislation passed in
the First Regular Session that ensured that no
reduction in benefits would occur if the CPI-U, the
index on which cost-of-living adjustments are based,
was negative, as it was in 2009.
This follow up legislation further ensures no
reduction in benefits if the CPI-U is negative for
multiple years or if, in the year subsequent to a
negative CPI-U year, it is not sufficient enough to
offset the prior year.
In this case, the offset will be spread over
multiple years.
This bill was signed by the Governor and enacted as
PL 2009, c. 473.
It will become effective
July 12, 2010.
L.D. 1657 – MainePERS’ Life Insurance Policies
This bill changes how the System disburses group
life insurance proceeds when there is no beneficiary
designation (i.e., no beneficiary named or
beneficiary predeceased participant).
If there is no designated beneficiary or
surviving spouse, the proceeds go to the appointed
executor or personal representative for distribution
according to a lawfully executed will.
If the System is not notified of the
appointment of an executor or personal
representative within six months of the death of the
member, or if there is no lawfully executed will,
the proceeds will instead be paid according to the
next listed in the law (i.e., children).
This bill was signed by the Governor and enacted as
PL 2009, c. 515.
It became effective
March 17, 2010.
L.D. 1558 – Accidental Death Benefits
This bill makes the spouse and/or dependent child(ren)
of a firefighter potentially eligible for an
accidental death benefit if the firefighter dies as
a result of either cardiovascular injury or disease
or pulmonary disease.
If the death is within thirty days of
fighting a fire or participating in training or a
drill that involves fighting a fire, it is deemed to
be work related.
If the death is after thirty days but within
six months of having participated in one of these
events, there is a rebuttable presumption that the
death is work related.
The Board of Trustees is required to adopt a
rule to administer this benefit.
The rule governing the provisions of the
Participating Local District Consolidated Plan must
also be amended if this expanded benefit provision
is to apply to members of that plan.
This bill was signed by the Governor and enacted as
PL 2009, c. 513.
It will become effective
July 12, 2010.
L.D. 1 – an act to stimulate capital investments in
maine businesses
This bill encourages investment in venture capital
opportunities, which typically are start-up
businesses needing capital in order to get started.
The bill authorizes, but does not require,
MainePERS to invest in these funds.
Any investment opportunity that arises as a
result of this bill would be analyzed under the
Board’s Investment Policy, as is the case with all
investment opportunities.
This bill also makes certain information pertaining
to investment activity confidential and not open to
public inspection under the Freedom of Access laws.
This bill was signed by the Governor and enacted as
PL 2009, c. 633.
It will become effective
July 12, 2010.
L.D. 1551 – Public Bodies Communication
This bill was introduced to further enhance
constituent access to government.
The bill was amended to a Resolve that
directs the Right To Know Advisory Committee to
further study the freedom of access laws and how
those laws can address the use of communication
technologies to ensure that decisions of public
bodies are made in proceedings that are open and
accessible to the public.
This Resolve was signed by the Governor and enacted
as Resolve, c. 171.
It will become effective
July 12, 2010.
L.D. 1791 – Recordings of Public Proceedings
This bill was introduced to clarify what must be
included in the recordings of public proceedings.
This bill was amended to a Resolve that
directs the Right To Know Advisory Committee to
further study issues related to requiring public
bodies to keep records of public proceedings.
This study includes the form, content and
maintenance of records.
This Resolve was signed by the Governor and enacted
as Resolve, c. 186. It will become effective
July 12, 2010.
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