131st MAINE LEGISLATURE
		LD 185		LR 236(02)
	An Act to Reduce the Benefit Penalty Imposed on Career Educators Who Retire After 35 Years of Service
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Labor and Housing
	Fiscal Note Required: Yes
Fiscal Note
Future biennium cost increase - Local school administrative units
			FY 2023-24	FY 2024-25	Projections  FY 2025-26	Projections  FY 2026-27
Net Cost (Savings)
	General Fund		$12,234,707	$0	$0	$0
Appropriations/Allocations
	General Fund		$12,234,707	$0	$0	$0
Fiscal Detail and Notes
	This bill includes a one-time General Fund appropriation of $12,234,707 to the Teacher Retirement program within the Department of Education for the cost of the unfunded actuarial liability created by allowing all teachers with at least 35 years of service to retire with an early retirement reduction of 5% per year regardless of the normal retirement age of the plan in which they participate.  Current law stipulates that members in the regular state employee and teacher retirement plan that did not have 10 year of creditable service on July 1, 1993 are subject to a 6% per year early retirement reduction.
	This provision will also increase the normal cost component of the employer retirement rate beginning in the 2026-2027 biennium.  The increase in the employer contribution rate for teachers under the state employee and teacher retirement program is estimated to be 0.2%.