CHAPTER 324
S.P. 514 - L.D. 1535
An Act To Authorize Certain Former Members of the Maine State Retirement System To Rejoin the Maine State Retirement System
Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, with the passage of Public Law 2001, chapter 442, several retirees who would otherwise be eligible to return to state service and rejoin the retirement system are precluded from joining the system; and
Whereas, this legislation must be enacted as an emergency measure in order to correct a hardship created by this result; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1. PL 2001, c. 442, §6 is enacted to read:
Sec. 6. Application; benefit recipient option. A recipient of a service retirement benefit from the Maine State Retirement System who returned to covered employment under the retirement system in a position that would otherwise be covered by the retirement plan for state employees and teachers and whose total earnable compensation for 2001 would have eliminated the retirement benefit requiring the recipient to be restored to membership by operation of the Maine Revised Statutes, Title 5, former section 17855 as it existed immediately prior to the effective date of this Act may exercise the option to be covered by that section rather than the other provisions of this Act. The option may be exercised to apply retroactively or prospectively and may be exercised only once.
1. Retroactive application of option. A benefit recipient who exercises the retroactive option provided under this section is restored to membership effective on January 1, 2002. The restored member is responsible for repaying the retirement system for any retirement benefits received from the system after that date and for paying an amount that, together with regular interest on that amount, is the actuarial equivalent, at the effective date of the retirement benefit, of the portion of the retirement benefit based on the additional creditable service for the period between January 1, 2002 and the date the employer again begins to report that person as an active member of the retirement system. The restored member is also responsible for repaying the retirement system for any over earnings under Title 5, former section 17855 based on earnings between September 21, 2001 and January 1, 2002. Payment of the full actuarial cost of the additional creditable service must be made by a single direct payment or by annual direct payments as provided in Title 5, section 17701, subsection 4. Repayment of benefits received after January 1, 2002 and repayment of over earnings received between September 21, 2001 and January 1, 2002 must be by a single direct payment made within 60 days of the exercise of the option under this subsection. Repayment not completed by that date is subject to interest at the rate of regular interest as defined in Title 5, section 17001, subsection 31.
2. Prospective application of option. A benefit recipient who exercises the option provided under this section prospectively is restored to membership effective on the first day of the month following the month in which the option is exercised. The restored member is responsible for repaying the system for any over earnings under Title 5, former section 17855 based on earnings between September 21, 2001 and January 1, 2002. Repayment of over earnings received between September 21, 2001 and January 1, 2002 must be by a single direct payment made within 60 days of the exercise of the option under this subsection. Repayment not completed by that date is subject to interest at the regular interest rate as defined in Title 5, section 17001, subsection 31.
3. Exercise of option. A benefit recipient who exercises the option provided in this section to be restored to membership and who later retires under the retirement system is covered by the provisions of sections 1 to 5 of this Act and may not again be restored to membership.
Sec. 2. Retroactivity. This Act applies retroactively to September 21, 2001.
Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.
Effective May 27, 2003.
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