LD 901, Page 1 - 122th Legislature, FIRST REGULAR Session

	Sec. 1. Maine State Retirement System to design new retirement system for newly hired
teachers and state employees. Resolved: That the Maine State Retirement
System shall design a new uniform supplemental pension system for
all teachers from participating local districts and state
employees hired after December 31, 2005. The new pension system
must make participation in the federal Social Security system
mandatory for participants and contain a defined benefit
component that has an actuarial cost of 4% of payroll, with 3%
allocated to the State and 1% to the employee. The defined
benefit must be modeled on current law pursuant to the Maine
Revised Statutes, Title 5, Part 20, with a normal retirement age
of 62 years but with the penalty for early retirement of 4% per
year. The system must also provide an optional benefit package
of up to 6% of payroll with the State matching the employee's
contribution on a 2-for-1 basis; and be it further

Sec. 2. Rules. Resolved: That the Board of Trustees of the Maine
State Retirement System may adopt major substantive rules to
carry out the purposes of this resolve pursuant to the Maine
Revised Statutes, Title 5, chapter 375, subchapter 2-A; and be it
further

Sec. 3. Report. Resolved: That the Board of Trustees of the Maine
State Retirement System shall report to the Joint Standing
Committee on Labor on the progress of the development of a new
pension system pursuant to section 1 and any proposed legislation
no later than December 5, 2005. After receipt and review of the
report, the Joint Standing Committee on Labor may report out a
bill to the Second Regular Session of the 122nd Legislature.

SUMMARY

This resolve directs the Maine State Retirement System to
develop a new uniform supplemental pension system for teachers
from participating local districts and state employees hired
after December 31, 2005 that:

1. Makes participation in the federal Social Security system
mandatory;

2. Contains a defined benefit component that has an actuarial
cost of 4% of payroll, with 3% allocated to the State and 1% to
the employee;

3. Contains a defined benefit modeled on current law with a
normal retirement age of 62 years but with the penalty for early
retirement of 4% per year; and

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