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MaineLD 1947132nd Maine Legislature (2025-2026)HouseWALLET

An Act to Amend the Laws Pertaining to the Maine Public Employees Retirement System

Sponsored By: Amy Roeder (Democratic)

Became Law

STATE RETIREMENT SYSTEMSTATE RETIREMENT SYSTEM - ADMINISTRATION

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 5 benefits, 2 costs, 3 mixed.

Stricter disability rules and earnings checks

Beginning June 9, 2025, if you have less than 5 years of continuous service, you cannot get a disability retirement for a condition that existed before you joined. You still qualify if a line-of-duty injury caused or substantially worsened it. Disability retirees must file yearly earnings reports when the system asks. If you do not send it within 30 days, payments stop; after one year, you lose future rights. If your earnings plus your disability pay are more than the salary of your last job, the extra is taken from your benefits next calendar year, spread monthly by the board’s method.

Employers must enroll you in right plan

Your employer is responsible for putting you in the correct retirement plan. The retirement system trains employers on how to do this. If you were enrolled in the wrong plan through no fault of your own, you do not lose retirement benefits.

Fairer recovery of pension overpayments

If an overpayment was caused by a system employee or by the recipient, the system cannot charge penalty or interest. Any repayment taken from your benefit must be reasonable and consider your financial stability. You can appeal recovery decisions, except court actions.

More retirement payout and survivor options

The law expands optional forms of retirement pay. You can pick reduced lifetime payments that continue fully or by half to a named beneficiary, and other board‑approved options. Total value paid must equal your unreduced benefit in actuarial terms. If your beneficiary dies first, your payment is reset to the unreduced equivalent the first day of the next month. For death benefits, a written beneficiary on file or postmarked before death is paid first; if none, it goes to surviving children, then next of kin under domicile law.

Some coaches not counted as teachers

The law narrows who counts as a teacher for retirement. Coaches not already covered by the State Employee and Teacher Retirement Program, and some adult education staff who are not covered, are excluded from the teacher group. Affected workers may lose teacher‑specific retirement rules.

New rules for pensionable pay and part-time

Pay that is not for actual work, or not paid when the work happened, does not count toward pensionable pay. Payouts for unused sick or vacation time only count if paid at your last termination before you apply for retirement. Plan rules can add more exclusions. For part‑time, seasonal, or temporary work, pensionable pay is figured as if you worked the days or hours a full‑time worker would have, at your rate. The board can set alternate methods to avoid double reductions.

First retirement payment within 22–60 days

After you end service, the system must pay your retirement between 22 and 60 days after it gets your application and your final payroll. This timing rule applies across covered programs. It gives a clear window for your first retirement check.

Keep old pension rules after plan shift

If your job moved by law from one special plan to another, you can retire under the old rules and benefit formula. You must stay in the job until you would have met the old requirements.

Rules to return to work after retirement

Retired state employees and teachers at normal retirement age may be rehired at the employer’s choice, but only after a real separation from service. You cannot return to the same employer for at least 30 days after you leave. You also cannot return before your retirement effective date.

Pension board and local cost updates

Local school districts, cities, and counties—not the State—must pay their own employer pension contributions and any interest. The system may accept a single payment or annual payments, and can rely on written clarifications from a local chief administrator. The board can act with a quorum of six (including at least two labor and two local‑district reps). Two older statutory provisions are repealed.

Sponsors & Cosponsors

Sponsor

  • Amy Roeder

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. ACTPUB Chapter 221

    5/1/2026

  2. PASSED TO BE ENACTED, in concurrence.

    6/2/2025Senate

  3. PASSED TO BE ENACTED. Sent for concurrence. ORDERED SENT FORTHWITH.

    5/29/2025House

  4. Report READ and ACCEPTED, in concurrence.READ ONCEUnder suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED, in concurrence.Ordered sent down forthwith.

    5/28/2025Senate

  5. CONSENT CALENDAR - FIRST DAYUnder suspension of the rules CONSENT CALENDAR - SECOND DAY.The Bill was PASSED TO BE ENGROSSED.Sent for concurrence. ORDERED SENT FORTHWITH.

    5/27/2025House

  6. The Bill was REFERRED to the Committee on LABOR in concurrence

    5/7/2025Senate

  7. Committee on Labor suggested and ordered printed. The Bill was REFERRED to the Committee on LABOR.Sent for concurrence. ORDERED SENT FORTHWITH.

    5/7/2025House

Bill Text

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