Public Laws

124th Legislature

First Regular Session


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Chapter 213

H.P. 274 - L.D. 353

PART N

Sec. N-1. 5 MRSA §286-B, sub-§2,  as enacted by PL 2007, c. 240, Pt. RRR, §1, is amended to read:

2. Establishment.   The Irrevocable Trust Fund for Other Post-employment Benefits is established to meet the State's unfunded liability obligations for retiree health benefits for eligible participants , as described in section 285, subsections 1-A and 11-A who are the beneficiaries of the irrevocable trust fund and beginning July 1, 2011 for eligible participants as described in Title 20-A, section 13451, subsections 2, 2-A, 2-B and 2-C , who are the beneficiaries of the irrevocable trust fund. Funds appropriated for the irrevocable trust fund must be held in trust and must be invested or disbursed for the exclusive purpose of providing for retiree health benefits and may not be encumbered for, or diverted to, other purposes. Funds appropriated for the irrevocable trust fund may not be diverted or deappropriated by any subsequent action.

Annually, beginning with the fiscal year starting July 1, 2007, the Legislature shall appropriate funds to meet the State's obligations under any group health plan, policy or contract purchased by the State Employee Health Commission to provide retiree health benefits pursuant to section 285, subsection 5 and, if applicable, to meet the State's obligations under any self-insured group health plan pursuant to section 285, subsection 9. Unfunded liabilities may not be created except those resulting from experience losses. Unfunded liability resulting from experience losses must be retired over a period not exceeding 10 years.

Annually, beginning with the fiscal year starting July 1, 2009, the Legislature shall appropriate funds that will retire, in 30 years or less from July 1, 2007, the unfunded liability for retiree health benefits for eligible participants as described in this section. The unfunded liability referred to in this section is that determined by the Department of Administrative and Financial Services, Office of the State Controller's actuaries and certified by the Commissioner of Administrative and Financial Services as of June 30, 2006.

Sec. N-2. Work group. The Treasurer of State shall convene a work group to explore issues associated with compliance with Governmental Accounting Standards Board Statements Number 43 and Number 45 related to the unfunded liability obligations for retiree health benefits for individuals described in the Maine Revised Statutes, Title 20-A, section 13451, subsections 2, 2-A, 2-B and 2-C.

1. Participants. In convening the work group the Treasurer of State shall include representatives from the Office of the Treasurer of State, Maine Educational Association, Maine School Management Association and Maine Municipal Association and the Commissioner of Administrative and Financial Services or the commissioner's designee and the Executive Director of the Maine Public Employees Retirement System. Members of the work group may have professional advisors in attendance at the meetings of the group. The Treasurer of State shall serve as chair of the work group and may accept resources as approved and provided by work group participants.

2. Duties. The work group shall:

A. Review unfunded liabilities for post-employment health benefits with respect to individuals described in the Maine Revised Statutes, Title 20-A, section 13451, subsections 2, 2-A, 2-B and 2-C;
B. Review Governmental Accounting Standards Board Statements Number 43 and Number 45 with respect to determining responsibility for meeting the requirements of the standards in order to be in compliance with those standards;
C. Review the status of the unfunded liability obligation for other post-employment benefits for retiree health benefits with respect to individuals described in Title 20-A, section 13451, subsections 2, 2-A, 2-B and 2-C;
D. Review the responsibility for the unfunded liability obligations for retiree health benefits with respect to individuals described in Title 20-A, section 13451, subsections 2, 2-A, 2-B and 2-C based on the requirements of the Governmental Accounting Standards Board Statements Number 43 and Number 45; and
E. Recommend one or more methods and timelines for the funding of unfunded liability obligations required to be disclosed in order to be in compliance with Governmental Accounting Standards Board Statements Number 43 and Number 45 and possible trust and trustee options for other post-employment benefit contributions.

3. Report. The work group shall submit its report, including any recommended implementing legislation to the Joint Standing Committee on Appropriations and Financial Affairs by January 15, 2010.

Following receipt and review of the report, the Joint Standing Committee on Appropriations and Financial Affairs may report out legislation to the Second Regular Session of the 124th Legislature.

Office of the Revisor of Statutes
State House, Room 108
Augusta, ME 04333