132nd MAINE LEGISLATURE
		LD 1040		LR 36(01)
	An Act to Raise the Cap on Retirement Benefits for Certain State Employees and Teachers to Which a Cost-of-living Adjustment Is Made
	Preliminary Fiscal Impact Statement for Original Bill
	Sponsor: Rep. Dodge of Belfast
	Committee: Labor
	Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
			FY 2025-26	FY 2026-27	Projections  FY 2027-28	Projections  FY 2028-29
Net Cost (Savings)
	General Fund		$0	$118,240,000	$0	$0
Appropriations/Allocations
	General Fund		$0	$118,240,000	$0	$0
Fiscal Detail and Notes
	This legislation requires that, effective July 1, 2026, the cost-of-living adjustment applies to $40,000 of the retirement benefit being paid to retired state employees and retired teachers who retired on or before June 30, 2011 or their beneficiaries instead of only to the first $26,428.98 as required in current law. According to the Maine Public Employees Retirement System, this provision will create an unfunded actuarial liability (UAL) totaling $118,240,000 that, pursuant to the Maine Constitution, will have to be funded immediately. A one-time General Fund appropriation to the Retirement Allowance Fund within the Maine Public Employees Retirement System for that amount will be required in fiscal year 2026-27 to pay for the UAL cost.