131st MAINE LEGISLATURE
		LD 1096		LR 208(02)
	An Act to Help Retired Teachers and State Employees Keep Pace with Inflation by Matching the Cost-of-living Adjustment for Social Security Benefits
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Labor and Housing
	Fiscal Note Required: Yes
Fiscal Note
			FY 2023-24	FY 2024-25	Projections  FY 2025-26	Projections  FY 2026-27
Net Cost (Savings)
	General Fund		$182,000,000	$0	$0	$0
Appropriations/Allocations
	General Fund		$182,000,000	$0	$0	$0
Fiscal Detail and Notes
	This legislation will increase the cost-of-living adjustment (COLA) awarded to eligible retirees in State-sponsored plans in fiscal year 2022-23 only from 3% to 5%. Pursuant to the Constitution of Maine, Article IX, Section 18-A, unfunded liabilities may not be created except those that result from experience losses. This bill includes a one-time General Fund appropriation of $182,000,000 to the Retirement Allowance Fund within the Maine Public Employees Retirement System for an increase in the unfunded actuarial liability as a result of providing an additional 2% cumulative COLA for eligible retirees effective September 2022.
	This provision may also result in an increase in the normal cost component of the employer retirement rate beginning in the 2026-2027 biennium.