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This legislation
provides that, for fiscal year 2024-25 only, the cost-of-living adjustment
(COLA) awarded to retired state employees and teachers and their
beneficiaries applies to the first $40,000 of the retirement benefit.
According to the Maine Public Employees Retirement System, this provision
will create an unfunded actuarial liability (UAL) totaling $39,836,000 that,
pursuant to the Maine Constitution, will have to be funded immediately. This
bill includes a one-time General Fund appropriation in that amount to the
Retirement Allowance Fund within the Maine Public Employees Retirement System
in fiscal year 2024-25 to pay for the cost of the COLA provision. |