Sec. 1. 5 MRSA §17701-B, as enacted by PL 1993, c. 410, Pt. L, §28, is amended to read:

§17701-B. Member contributions on and after July 1, 1993

Notwithstanding sections 17701 and 17701-A, on and after July 1, 1993 all members shall contribute to the retirement system or have pick-up contributions made at a rate of 7.65% 6.5% of earnable compensation except as otherwise provided in this Part.

Sec. 2. 5 MRSA §17806, sub-§3, as amended by PL 1993, c. 595, §6, is further amended to read:

3. Eligibility. Cost-of-living adjustments under this section must be applied to the retirement benefits of all retirees who have been retired for at least 12 months before the date that the adjustment becomes payable, except that a member who has less than 10 years of creditable service on July 1, 1993 may not receive a cost-of-living adjustment until at least 12 months after reaching normal retirement age. Beneficiaries of deceased retirees and members are eligible for the cost-of-living adjustment at the same time the deceased retiree or member would have become eligible. A member who is eligible to retire as of June 30, 1993 and who actually retires effective no later than July 1, 1994 is eligible for the cost-of-living adjustment if that member has been retired for at least 6 months before the date that the adjustment becomes payable.

SUMMARY

This bill repeals the 1.15% increase in employee contributions and reinstates the cost-of-living adjustment for retirement system members retiring before normal retirement age.