| 124th MAINE LEGISLATURE | ||||||
| LD 830 | LR 1482(02) | |||||
| An Act To Exclude Collectively Bargained Salary and Job Promotion Increases from the Earnable Compensation Limitation for Retirement Purposes | ||||||
| Fiscal Note for Bill as Amended by Committee Amendment " " | ||||||
| Committee: Labor | ||||||
| Fiscal Note Required: Yes | ||||||
| Fiscal Note | ||||||
| 2009-10 | 2010-11 | Projections 2011-12 | Projections 2012-13 | |||
| Net Cost (Savings) | ||||||
| General Fund | $7,300,000 | $0 | $0 | $0 | ||
| Appropriations/Allocations | ||||||
| General Fund | $7,300,000 | $0 | $0 | $0 | ||
| Fiscal Detail and Notes | ||||||
| This bill includes a one-time General Fund appropriation of $7,300,000 in fiscal year 2009-10 to the Retirement Allowance Program within the Maine Public Employment Retirement System for the increase in costs to the unfunded actuarial liability associated with excluding collectively bargained salary or wage increases and salary and wage increases that result from job promotions from the cap on earnable compensation used in the calculation of members' average final compensation. | ||||||
| Because the actual cost of this legislation can not be determined at this time, the System's actuary developed a range of costs based on 1) what percentage of all future retirements will be impacted by this change and 2) how much the average final compensation (AFC) would be increased above the current caps. This fiscal note is based on the assumption that 10% of future retirements will be impacted by this measure and that AFC would be increased by 1% over the current cap. The System's actuary considers this assumption to be at the conservative end of the range. The actual cost of this measure can not be determined at this time and will depend on actual experience. | ||||||