MaineRetirement fund can raise the base for annual benefit adjustments
The retirement system administers a fund that can raise beneficiaries’ adjustment base when enough money is available, and must report on it starting in 2029.
What it does
The law provides for an interest-bearing fund to pay for retirement benefit improvements. It may receive transfers and other money made available, including legislative appropriations.
When the fund has enough money, it must raise by at least $1,000 the benefit base used to calculate annual cost-of-living adjustments for all beneficiaries. Increases stop at a $40,000 benefit base.
The retirement system must report each year on fund transfers, benefit increases, payments toward the remaining pension shortfall, and the fund balance.
Argument forWhen the fund has enough money, raising the benefit base could increase the amount used to calculate annual cost-of-living adjustments for beneficiaries.
Argument againstBeneficiaries could wait for larger adjustments if the fund does not have enough money, and increases stop once the benefit base reaches $40,000.
More detail
The retirement system administers an interest-bearing fund to pay for retirement benefit improvements. The fund is administered within the state retirement system. The fund may receive transfers and other money made available to it, including legislative appropriations; no particular funding amount is promised.
When the fund has enough money, it must pay for an increase of at least $1,000 in the benefit base used for annual cost-of-living adjustments. The provision covers all beneficiaries in the retirement system. The increase applies to all beneficiaries in the retirement system. Further increases stop when the benefit base reaches $40,000.
The retirement system must report each year on the fund and benefit increases to the legislative committee responsible for retirement matters. Reports must cover fund transfers, benefit base increases, payments made or due toward the remaining unfunded actuarial liability, and the fund balance. Each report must cover that fiscal year and the prior three fiscal years. The first report is due March 1, 2029, with reports due annually after that.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 16Signed by Governor Janet MillsLatest
- Apr 14PASSED TO BE ENACTED, in concurrence.Major
- Apr 14Sent for concurrence. ORDERED SENT FORTHWITH.
- Apr 14PASSED TO BE ENACTED.Passed 2nd Chamber
- Apr 13ORDERED SENT FORTHWITH.
- Apr 13The House RECEDED and CONCURRED to PASSAGE TO BE ENGROSSED as Amended by Committee Amendment "A" (H-362) as Amended by Senate Amendment "A" (S-705) thereto.Minor
- Apr 13Sent down for concurrence.
- Apr 13PASSED TO BE ENGROSSED AS AMENDED BY Committee Amendment "A" (H-362) as Amended by Senate Amendment "A" (S-705) thereto in NON-CONCURRENCE.Minor
- Apr 13Committee Amendment "A" (H-362) as Amended by Senate Amendment "A" (S-705) thereto ADOPTED.Minor
- Apr 13On further motion by Same Senator Senate Amendment "A" (S-705) to Committee Amendment "A" (H-362) READ and ADOPTED.
- Apr 13On further motion by Same Senator the Senate SUSPENDED THE RULES to RECONSIDER their actions whereby Committee Amendment "A" (H-362) was ADOPTED.Minor
- Apr 13On motion by Same Senator the Senate SUSPENDED THE RULES to RECONSIDER their actions whereby the Bill was PASSED TO BE ENGROSSED AS AMENDED by Committee Amendment "A" (H-362) in concurrence.Minor
- Apr 13On motion by Senator ROTUNDO of Androscoggin taken from the Special Appropriations Table
- 2025
- Jun 25CARRIED OVER, in the same posture, to any special or regular session of the 132nd Legislature, pursuant to Joint Order SP 800.
- Jun 5On motion by Senator ROTUNDO of Androscoggin PLACED ON THE SPECIAL APPROPRIATIONS TABLE pending ENACTMENT in concurrence.
- Jun 4Sent for concurrence. ORDERED SENT FORTHWITH.
- Jun 4PASSED TO BE ENACTED.Became Law
- Jun 3Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED by Committee Amendment "A" (H-362) in concurrence.Minor
- Vote recorded ACCEPT MAJORITY OUGHT TO PASS AS AMENDED REPORT. Result: pass.Upper
- Jun 3Committee Amendment "A" (H-362) READ and ADOPTED.Minor
- Jun 3Bill READ ONCEMinor
- Jun 3Roll Call Ordered Roll Call Number 322 Yeas 19 - Nays 14 - Excused 2 - Absent 0
- Jun 3On motion by Senator TIPPING of Penobscot the Majority Ought to Pass as Amended Report ACCEPTED PREVAILED
- Jun 3Reports Read
- Jun 2Sent for concurrence. ORDERED SENT FORTHWITH.
- Jun 2The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (H-362).Minor
- Jun 2Under suspension of the rules, the Bill was given its SECOND READING without REFERENCE to the Committee on Bills in the Second Reading.
- Jun 2Committee Amendment "A" (H-362) was READ and ADOPTED.Minor
- Jun 2The Bill was READ ONCE.Minor
- Jun 2On motion of Representative ROEDER of Bangor, the Majority Ought to Pass as Amended Report was ACCEPTED.
- Jun 2Reports READ.
- May 29Reported Out - OTP-AM/ONTP
- May 14Voted - Divided Report
- May 14Work Session Held
- Apr 1Work Session Held - TABLED
- Mar 21Carried over, in the same posture, to the next special or regular session of the 132nd Legislature, pursuant to Joint Order SP 519.
- Mar 11The Bill was REFERRED to the Committee on LABOR in concurrenceMinor
- Mar 11Sent for concurrence. ORDERED SENT FORTHWITH.
- Mar 11The Bill was REFERRED to the Committee on LABOR.Minor
- Mar 11Committee on Labor suggested and ordered printed.Introduced
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