LD 1096 LR 208(02)
An Act to Help Retired Teachers and State Employees Keep Pace with Inflation by Matching the Cost-of-living Adjustment for Social Security Benefits
Fiscal Note for Bill as Amended by Committee Amendment " "
Committee: Labor and Housing
Fiscal Note Required: Yes
Fiscal Note
FY 2023-24 FY 2024-25 Projections  FY 2025-26 Projections  FY 2026-27
Net Cost (Savings)
General Fund $182,000,000 $0 $0 $0
General Fund $182,000,000 $0 $0 $0
Fiscal Detail and Notes
This legislation will increase the cost-of-living adjustment (COLA) awarded to eligible retirees in State-sponsored plans in fiscal year 2022-23 only from 3% to 5%. Pursuant to the Constitution of Maine, Article IX, Section 18-A, unfunded liabilities may not be created except those that result from experience losses. This bill includes a one-time General Fund appropriation of $182,000,000 to the Retirement Allowance Fund within the Maine Public Employees Retirement System for an increase in the unfunded actuarial liability as a result of providing an additional 2% cumulative COLA for eligible retirees effective September 2022. 
This provision may also result in an increase in the normal cost component of the employer retirement rate beginning in the 2026-2027 biennium.