123rd MAINE LEGISLATURE
		LD 1693		LR 2016(02)
	An Act To Restore Equity to the Maine State Retirement System
	Fiscal Note for Bill as Amended by Committee Amendment "     "
	Committee: Labor
	Fiscal Note Required: Yes
Fiscal Note
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Net Cost (Savings)
	General Fund		$0	$0	$7,942,636	$8,319,911
	Highway Fund		$0	$0	$556,077	$582,491
Appropriations/Allocations
	General Fund		$0	$0	$7,942,636	$8,319,911
	Highway Fund		$0	$0	$556,077	$582,491
	Federal Expenditures Fund		$0	$0	$847,503	$887,759
	Other Special Revenue Funds		$0	$0	$510,767	$535,029
	Federal Block Grant Fund		$0	$0	$50,459	$52,856
	Other Funds		$0	$0	$390,284	$408,822
Fiscal Detail and Notes
	Reducing the early retirement reduction factor from 6% to 3% for members of the State Employee and Teacher Retirement Plan, the Legislative Retirement Plan and the Judicial Retirement Plan who are currently subject to the 6% reduction factor will result in a 2008-2009 biennial cost of $96,800,000, with $93,900,000 being the increased cost to the unfunded actuarial liability and $2,900,000 being the increased normal cost component for fiscal year 2008-09.
	Because this legislation proposes to fund the current biennium cost of this provision by utilizing a portion of the $199,295,540 already appropriated and/or allocated in fiscal year 2007-08 to the Maine Public Employees Retirement System (MainePERS) for the employer's contribution to the unfunded liability, no additional General Fund appropriation is required in the 2008-2009 biennium. However, based on current projections, reducing the amount of funds to be applied to existing unfunded actuarial liability in fiscal year 2007-08 and providing the additional benefit will result in total additional payments through June 30, 2028 of $305,538,095. Of that amount, the total increase to the unfunded liability payments will be $215,041,755 and the increase to the normal cost component payments will be $90,496,340.