122nd MAINE LEGISLATURE
		LD 901		1158(01)
	Resolve, To Create a New Pension System for Newly Hired Teachers and State Employees
	Fiscal Note for Original Bill
	Sponsor: Sen. Mills of Somerset
	Committee:  Labor
	Fiscal Note Required: Yes
Fiscal Note
Undetermined current biennium cost increase - All Funds
Fiscal Detail and Notes
	Establishing a new pension system for all teachers from participating local districts and state employees hired after December 31, 2005 may increase the normal cost component of the employer retirement rate resulting in increased employer contributions to the Maine State Retirement System for those state employees and teachers in the existing defined benefit plan.  This is a result of no new new hires being added to the existing plan to offset the aging population.
	Making participation in the federal Social Security system mandatory for the members of the new pension system will require contributions from the State as an employer.  The additonal cost to the State can not be determined at this time.
	Providing for an optional benefit package of up to 6% of payroll with the State providing a 2-for-1 match of the employee's contributions will result in additional General Fund and Other Funds costs to the State.  The amounts can not be determined at this time.
	The additional costs to the Maine State Retirement System to establish the new pension plan, which may require the services of outside actuarial and financial expertise, as well as the ongoing costs to administer the new plan may require an adjustment to the System's operating budget.  The amounts can not be determined at this time but may be significant.