123rd MAINE LEGISLATURE
		LD 1693		LR 2016(09)
	An Act To Restore Equity to the Maine State Retirement System
	Fiscal Note for Senate Amendment "     " to Committee Amendment "A"
	Sponsor: Sen. Raye of Washington
	Fiscal Note Required: Yes
Fiscal Note
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Net Cost (Savings)
	General Fund		$0	$0	($2,653,266)	($2,779,296)
	Highway Fund		$0	$0	($182,760)	($194,583)
Appropriations/Allocations
	General Fund		$0	$0	($2,653,266)	($2,779,296)
	Highway Fund		$0	$0	($182,760)	($194,583)
	Federal Expenditures Fund		$0	$0	($283,111)	($296,559)
	Other Special Revenue Funds		$0	$0	($170,624)	($178,728)
	Federal Block Grant Fund		$0	$0	($16,856)	($17,657)
	Other Funds		$0	$0	($130,376)	($136,569)
Fiscal Detail and Notes
	This amendment reduces the 2008-2009 biennial cost of the bill by $31,900,000 with $30,900,000 being the decreased cost to the unfunded actuarial liability and $1,000,000 being the decreased cost associated with the normal cost component for fiscal year 2008-09.
	This amendment reduces the total cost of the bill through June 30, 2028 by $102,071,666.  Of that amount, the decrease to the unfunded liability payments will be $70,866,032 and the decrease to the normal cost component payments will be $31,205,634.
	As amended, reducing the early retirement reduction factor from 6% to 3% for those members of the State Employee and Teacher Retirement Plan, the Legislative Retirement Plan and the Judicial Retirement Plan who were members as of July 1, 1993, excluding those members whose normal retirement age is 55, and are currently subject to the 6% reduction factor will result in a 2008-2009 biennial cost of $64,900,000, with $63,000,000 being the increased cost to the unfunded actuarial liability and $1,900,000 being the increased normal cost component for fiscal year 2008-09.
	As amended, because this legislation proposes to fund the current biennium cost of this provision by utilizing a portion of the $199,295,540 already appropriated and/or allocated in fiscal year 2007-08 to the Maine Public Employees Retirement System (MainePERS) for the employer's contribution to the unfunded liability, no additional General Fund appropriation is required in the 2008-2009 biennium. However, based on current projections, reducing the amount of funds to be applied to existing unfunded actuarial liability in fiscal year 2007-08 and providing the additional benefit will result in total additional payments through June 30, 2028 of $203,466,429. Of that amount, the total increase to the unfunded liability payments will be $144,175,723 and the increase to the normal cost component payments will be $59,290,706.