LD 1620 LR 1903(03)
An Act To Exclude Collectively Bargained Salary and Job Promotion Increases from the Earnable Compensation Limitation for Retirement Purposes
Fiscal Note for Bill as Engrossed with:
C "A" (S-199)
Committee: Labor and Housing
Fiscal Note
Potential future biennium cost increase - All funds
Fiscal Detail and Notes
Although no immediate unfunded liability is created by the provisions of this bill, excluding salary or wage increases obtained as a result of collective bargaining or a job promotion from the cap on earnings used in the calculation of a member's average final compensation when determining a member's retirement benefit may result in increased future pension costs to the Maine Public Employees Retirement System if the earnings used in the calculation of retirement benefits because of this bill exceed the earnings assumptions used to estimate pension costs.  The impact can not be determined at this time and will depend on actual experience.