Sec. 1. 36 MRSA §5122, sub-§2, śM, as amended by PL 2001, c. 396, §34 and affected by §50, is further amended to read:

M. An amount, for each primary recipient of benefits under an employee retirement plan, that is the lesser of:

(1) Six thousand dollars reduced by the total amount of the primary recipient's social security benefits and railroad retirement benefits paid by the United States, but not less than $0. The Except that this reduction does not apply to benefits paid under a military retirement plan; or, the following amounts reduced by the total amount of the primary recipient's social security benefits and railroad retirement benefits paid by the United States, but not less than $0, for each tax year beginning in the following years:

(a)__2004, $8,000;

(b)__2005, $9,000;

(c)__2006, $10,000;

(d)__2007, $11,000;

(e)__2008, $12,000;

(f)__2009, $13,000;

(g)__2010, $14,000;

(h)__2011, $15,000;

(i)__2012, $16,000;

(j)__2013, $17,000; and

(k)__2014 and after, $20,000; and

(2) The aggregate of benefits received by the primary recipient under employee retirement plans and included in federal adjusted gross income.

For purposes of this paragraph, "employee retirement plan" means a state, federal or military retirement plan or any other retirement benefit plan established and maintained by an employer for the benefit of its employees under Section 401(a), Section 403 or Section 457(b) of the Code.