PUBLIC Law Chapter 324

retirement plan for state employees and teachers and whose total

earnable compensation for 2001 would have eliminated the retirement

benefit requiring the recipient to be restored to membership by

operation of the Maine Revised Statutes, Title 5, former section

17855 as it existed immediately prior to the effective date of this

Act may exercise the option to be covered by that section rather

than the other provisions of this Act. The option may be exercised

to apply retroactively or prospectively and may be exercised only

once.

1. Retroactive application of option. A benefit recipient
who exercises the retroactive option provided under this section
is restored to membership effective on January 1, 2002. The
restored member is responsible for repaying the retirement system
for any retirement benefits received from the system after that
date and for paying an amount that, together with regular
interest on that amount, is the actuarial equivalent, at the
effective date of the retirement benefit, of the portion of the
retirement benefit based on the additional creditable service for
the period between January 1, 2002 and the date the employer
again begins to report that person as an active member of the
retirement system. The restored member is also responsible for
repaying the retirement system for any over earnings under Title
5, former section 17855 based on earnings between September 21,
2001 and January 1, 2002. Payment of the full actuarial cost of
the additional creditable service must be made by a single direct
payment or by annual direct payments as provided in Title 5,
section 17701, subsection 4. Repayment of benefits received
after January 1, 2002 and repayment of over earnings received
between September 21, 2001 and January 1, 2002 must be by a
single direct payment made within 60 days of the exercise of the
option under this subsection. Repayment not completed by that
date is subject to interest at the rate of regular interest as
defined in Title 5, section 17001, subsection 31.

2. Prospective application of option. A benefit recipient
who exercises the option provided under this section
prospectively is restored to membership effective on the first
day of the month following the month in which the option is
exercised. The restored member is responsible for repaying the
system for any over earnings under Title 5, former section 17855
based on earnings between September 21, 2001 and January 1, 2002.
Repayment of over earnings received between September 21, 2001
and January 1, 2002 must be by a single direct payment made
within 60 days of the exercise of the option under this
subsection. Repayment not completed by that date is subject to
interest at the regular interest rate as defined in Title 5,
section 17001, subsection 31.

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