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132nd MAINE LEGISLATURE |
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LD 900 |
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LR 1451(02) |
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An Act to Protect
State Retiree Pensions from Inflation |
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Fiscal Note for
Bill as Amended by Committee Amendment " " |
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Committee: Labor |
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Fiscal Note Required: Yes |
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Fiscal Note |
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FY 2025-26 |
FY 2026-27 |
Projections FY 2027-28 |
Projections FY 2028-29 |
Net Cost
(Savings) |
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General Fund |
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$0 |
$1,652,960,000 |
$0 |
$0 |
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Appropriations/Allocations |
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General Fund |
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$0 |
$1,652,960,000 |
$0 |
$0 |
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Fiscal Detail
and Notes |
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This legislation
requires that cost-of-living increases for retirees be applied to the first
$40,000 of the retiree's benefit in fiscal year 2026-27 and fiscal year
2027-28 and the first $50,000 of the retiree's benefit in fiscal year 2028-29
and in each subsequent year thereafter. It also increases the maximum
cost-of-living percentage increase that may be applied to a retiree's benefit
from 3% to 4% in fiscal year 2026-27 and fiscal year 2027-28 and 5% beginning
in fiscal year 2028-29. This bill includes a one-time General Fund
appropriation of $1,652,960,000 in fiscal year 2026-27 to the Maine Public
Employees Retirement System for the unfunded actuarial liability created as a
result of these provisions which, pursuant to the Maine Constitution, must be
funded immediately. |
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These provisions
will also increase the normal cost component of the employer retirement rate
beginning in the 2028-2029 biennium (future costs). The impact in the employer contribution
rate can not be estimated at this time. |
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