(2) The minimum rate is 5%; and

(3) Interest at a rate set by the board not to exceed regular interest by 2 or more percentage points is paid on the unpaid balance beginning the later of January 1, 1976, or the date of attaining 15 5 years of creditable service or the date first subject to the provisions of this subparagraph, if later, to the date payment is made.

Sec. 6. 5 MRSA §18360, sub-§2, ¶A, as enacted by PL 1985, c. 801, §§5 and 7, is amended to read:

A. On the date of retirement, the member must have at least 15 5 years of creditable service.

Sec. 7. 5 MRSA §18360, sub-§2, ¶D, as enacted by PL 1985, c. 801, §§5 and 7, is repealed.

Sec. 8. 5 MRSA 18360, sub-§2, ¶E, as amended by PL 1991, c. 23, §3, is repealed.

Sec. 9. 5 MRSA §18360, sub-§2, ¶F, as enacted by PL 1985, c. 801, §§5 and 7, is amended to read:

F. Except for members qualifying under paragraph E, this This subsection:

(1) Applies to all persons, active or retired, but, for those already retired, the effective date of any adjustment shall be is not earlier than the date on which the time or credit is certified to the retirement system; and.

(2) Does not apply to any member who begins membership on or after January 1, 1976.

SUMMARY

This bill reduces from 15 to 5 the number of years of creditable service a state employee, teacher or participating local district employee who is a member of the Maine State Retirement System must have before the employee is eligible to purchase service credits for service in the Armed Forces of the

United States. It also removes a requirement that members joining the state retirement system after January 1, 1976 have served in a federally recognized period of conflict to be eligible to purchase military service credits.