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130th MAINE LEGISLATURE |
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LD 1041 |
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LR 579(02) |
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An Act To Include
Certain Mental Health Workers under the 1998 Special Plan for Retirement |
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Fiscal Note for
Bill as Amended by Committee Amendment " " |
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Committee: Labor and Housing |
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Fiscal Note Required: Yes |
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Fiscal Note |
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FY 2021-22 |
FY 2022-23 |
Projections FY 2023-24 |
Projections FY 2024-25 |
Net Cost
(Savings) |
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General Fund |
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$119,590 |
$37,382 |
$38,579 |
$39,812 |
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Appropriations/Allocations |
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General Fund |
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$119,590 |
$37,382 |
$38,579 |
$39,812 |
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Other Special Revenue Funds |
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$13,903 |
$28,687 |
$29,605 |
$30,552 |
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Fiscal Detail
and Notes |
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This legislation
adds certain mental health workers employed in the Department of Health and
Human Services (DHHS) on October 1, 2021, or hired thereafter, who have a
responsibility for providing crisis outreach and crisis services to adults
with developmental and intellectual disabilites in a community-based or
residential setting, except for an institutional setting, to the 1998 Special
Plan and allows the service retirement benefits already earned by those
employees under the State Employee and Teacher program to be calculated under
the 1998 Special Plan. This bill
includes General Fund appropriations totaling $119,590 in fiscal year 2021-22
and $37,382 in fiscal year 2022-23 for the cost of this provision. Other
Special Revenue Funds allocations of $13,903 and $28,687 are also provided in
fiscal years 2021-22 and 2022-23, respectively. |
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Of the total
General Fund appropriations included in the bill, $101,483 is provided on a
one-time basis to the Retirement Allowance Fund within the Maine Public
Employees Retirement System (MainePERS) for the increase in the unfunded
actuarial liability created as a result of the retroactive provision in this
bill. Pursuant to the Constitution of
Maine, Article IX, Section 18-A, unfunded liabilities may not be created
except those that result from experience losses. |
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Additionally, this
bill includes General Fund appropriations totaling $18,107 in fiscal year
2021-22 and $37,382 in fiscal year 2022-23 to the Crisis Outreach program and
the Developmental Services - Community program within DHHS for the increase
in the employer's contribution to the normal cost component and unfunded
actuarial liability for those employees that elect to participate in the 1998
Special Plan. This legislation
includes a transition provision for those eligible mental health workers
hired by DHHS prior to October 1, 2021 which allows them to elect to
participate in the 1998 Special Plan by December 31, 2021. An analysis
provided by MainePERS identified 33 eligible mental health workers that may
elect to participate in the 1998 Special Plan as soon as the option becomes
available. |
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If any of the
eligible mental health workers hired by DHHS prior to October 1, 2021 who
choose to remain in the regular State Employee and Teacher Plan eventually
retire or otherwise vacate their positions, any newly hired direct care
workers will be placed in the 1998 Special Plan. The additional cost to DHHS to fill these
positons at the higher employer contribution rate is estimated to be between
$2,000 and $3,000 per position annually.
When this additional cost will be incurred and which fund will be
impacted cannot be determined at this time. |
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