132nd MAINE LEGISLATURE
		LD 1021		LR 1355(02)
	An Act to Remove Certain Cost-of-living Adjustment Restrictions for Retired Members of the Law Enforcement Bargaining Unit Who Are 65 Years of Age or Older
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Labor
	Fiscal Note Required: Yes
Fiscal Note
			FY 2025-26	FY 2026-27	Projections  FY 2027-28	Projections  FY 2028-29
Net Cost (Savings)
	General Fund		$28,900,000	$0	$0	$0
Appropriations/Allocations
	General Fund		$28,900,000	$0	$0	$0
Fiscal Detail and Notes
	This legislation provides that cost-of-living increases be applied to a retiree's full benefit amount once the retiree reaches 65 years of age if that person retired from a law enforcement officer position or a probation or parole officer position.  According to the Maine Public Employees Retirement System, this provision will create an unfunded actuarial liability (UAL) totaling $28,900,000 that, pursuant to the Maine Constitution, will have to be funded immediately. This bill includes a one-time General Fund appropriation for that amount to the Retirement Allowance Fund in fiscal year 2025-26 to fund the UAL cost.
	This provision will also increase the normal cost component of the employer retirement rate beginning in the 2028-2029 biennium (future costs). The increase in the employer contribution rate for the "1998 Special Plan" is estimated to be 0.09%; the "25 and Out" plan is expected to increase 0.62% and the "Fire Marshalls" plan is anticipated to increase 0.40%.