LD 1670
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LD 1670 Title Page An Act To Include Disability Retirement Income in Retirement Income Eligible fo... Page 2 of 2
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LR 2235
Item 1

 
Be it enacted by the People of the State of Maine as follows:

 
Sec. 1. 36 MRSA §5122, sub-§2, śM, as amended by PL 2003, c. 391, §5,
is further amended to read:

 
M. For each individual who is a primary recipient of
benefits under an employee retirement plan or disability
retirement plan, an amount that is the lesser of:

 
(1) Six thousand dollars reduced by the total amount
of the individual's social security benefits and,
railroad retirement benefits and disability retirement
plan benefits paid by the United States, but not less
than $0. The reduction does not apply to benefits paid
under a military retirement plan; or

 
(2) The aggregate of benefits received by the primary
recipient as disability income or under employee
retirement plans included in the individual's federal
adjusted gross income.

 
For purposes of this paragraph, the following terms have the
following meanings. "Primary recipient" means the individual
upon whose earnings the employee retirement plan benefits are
based or the surviving spouse of that individual. "Disability
retirement plan benefits" means benefits received pursuant to
Title 5, chapter 423, subchapter 5, article 3 or 3-A. "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
the Code, Section 401(a), Section 403 or Section 457(b), except
that distributions made pursuant to a section 457(b) plan are not
eligible for the deduction provided by this paragraph if they are
made prior to age 55 and are not part of a series of
substantially equal periodic payments made for the life of the
primary recipient or the joint lives of the primary recipient and
that recipient's designated beneficiary. "Employee retirement
plan" does not include an individual retirement account under
Section 408 of the Code, a Roth IRA under Section 408A of the
Code, a rollover individual retirement account, a simplified
employee pension under Section 408(k) of the Code or an
ineligible deferred compensation plan under Section 457(f) of the
Code. Benefits under an employee retirement plan do not include
distributions that are subject to the tax imposed by the Code,
Section 72(t). "Military retirement plan" means benefits
received as a result of service in the active or


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