§17160.__Minimum level of employer contribution

Beginning in fiscal year 2002-03 and continuing until the unfunded liabilities of the Maine State Retirement System attributable to state employees and teachers are retired as provided in the Constitution of Maine, Article IX, Section 18-B, the portion of the employer contribution rate devoted to paying the unfunded liabilities of the system attributable to state employees and teachers expressed as a percentage of the earnable compensation of state employees and teachers may not be less than the rate paid for that purpose during fiscal year 2001-02.__After the unfunded liabilities have been retired, the rate may rise and fall above the fiscal year 2001-02 rate as determined necessary by actuarial valuation.

Sec. 2. Task force established. The Task Force to Study Methods of Addressing Inequities in the Retirement Benefits of State Employees and Teachers, referred to in this section as the "task force," is established.

1. Membership. The task force consists of 9 members as follows:

A. Three Legislators, one of whom is appointed by the President of the Senate and one of whom is appointed by the Speaker of the House, who shall serve as cochairs of the task force. The 3rd Legislator must be appointed jointly by the President of the Senate and the Speaker of the House;

B. The Executive Director of the Maine State Retirement System or the director's designee;

C. One of the gubernatorial appointees to the Board of Trustees of the Maine State Retirement System who has training or experience in the field of investments, accounting or banking or as an actuary, appointed by the President of the Senate;

D. The Commissioner of Administrative and Financial Services or the commissioner's designee; and

E. A representative from each of the following organizations, appointed by each respective organization: the Maine State Employees Association, Maine Education Association and American Federation of State, County and Municipal Employees.

2. Appointments. All appointments must be made no later than 30 days following the effective date of this Act. The appointing authorities shall notify the Executive Director of the Legislative Council upon making their appointments. When the appointment of all members is complete, the Chair of the Legislative Council shall call and convene the first meeting of the task force no later than June 1, 2002.

3. Duties. The task force shall:

A. Identify the advantages and possible methods of further reductions in the amortization schedule for paying off the unfunded liabilities of the Maine State Retirement System attributable to state employees and teachers;

B. Identify and list the differences in retirement benefits available to state employees and teachers who had 10 years of creditable service on July 1, 1993 and those who did not;

C. Assess the impact of that difference on state employees and teachers and on State Government and school administrative units;

D. Calculate the immediate and future cost of restoring the level of benefits for all state employees and teachers who did not have 10 years of creditable service on July 1, 1993;

E. Recommend whether those who were employed as state employees or teachers when the benefit reductions were made should be treated differently than those employed after the changes were enacted; and

F. Identify possible methods of funding the restoration of benefits.

4. Staff assistance. The task force may request staffing and clerical assistance from the Legislative Council. The Maine State Retirement System shall provide information and actuarial assistance upon request of the task force.

5. Reimbursement. Task force members who are Legislators are entitled to receive the legislative per diem, as defined in the Maine Revised Statutes, Title 3, section 2, for each day's attendance at meetings of the task force. Public members not otherwise compensated are entitled to receive reimbursement of necessary expenses and a per diem equal to the legislative per diem for their attendance at authorized meetings of the task force.

6. Report. The task force shall submit its report with any accompanying legislation to the Joint Standing Committee on Labor by December 1, 2002.

7. Extension. If the task force requires a limited extension of time to complete its study and make its report, it may apply to the Legislative Council, which may grant an extension.

8. Budget. The chairs of the task force, with assistance from the task force staff, shall administer the budget of the task force. Within 10 days after its first meeting, the task force shall present a work plan and proposed budget to the Legislative Council for approval. The task force may not incur expenses that would result in the task force exceeding its approved budget. Upon request from the task force, the Executive Director of the Legislative Council shall provide the task force chairs and staff with a status report on the task force's budget, expenditures incurred and paid and available funds.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill:

1. Requires the State to retire the unfunded liabilities of the Maine State Retirement System at a specific rate that is no less than the rate paid during fiscal year 2001-02; and

2. Establishes the Task Force to Study Methods of Addressing Inequities in the Retirement Benefits of State Employees and Teachers to study the impact of the changes made to the law that treat state employees and teachers who did not have 10 years of creditable service on July 1, 1993 less favorably than those with 10 years of creditable service before July 1, 1993.