summary
Introduced
03/05/2025
03/05/2025
In Committee
03/05/2025
03/05/2025
Crossed Over
05/27/2025
05/27/2025
Passed
05/28/2025
05/28/2025
Dead
Introduced Session
Potential new amendment
132nd Legislature
Bill Summary
This bill provides that for fiscal year 2026-27, the Board of Trustees of the Maine Public Employees Retirement System, whenever there is a percentage increase in the Consumer Price Index from July 1st to June 30th, must automatically make an equal percentage increase in retirement benefits up to a maximum annual increase of 4%. Beginning in fiscal year 2028-29, the board must automatically make an equal percentage increase up to a maximum annual increase of 5%. The bill provides that, effective July 1, 2026, cost-of-living increases for retired state employees and teachers and their beneficiaries apply to the first $40,000 of the retirement benefit. Effective July 1, 2028, the cost-of-living increases for retired state employees and teachers and their beneficiaries apply to the first $50,000 of the retirement benefit and must be increased in subsequent years by the same percentage adjustment.
AI Summary
This bill modifies cost-of-living adjustments (COLAs) for Maine Public Employees Retirement System retirees by implementing a graduated approach to pension increases tied to the Consumer Price Index (CPI), which measures inflation. For fiscal year 2026-27, the bill allows for a maximum annual retirement benefit increase of 4% when the CPI increases, and starting in fiscal year 2028-29, this maximum increases to 5%. The bill also adjusts the base amount of retirement benefits eligible for these increases: effective July 1, 2026, COLAs will apply to the first $40,000 of a retiree's benefit, and then effective July 1, 2028, this increases to $50,000. These changes mean that as the cost of living goes up, retirees will receive more proportional increases to help maintain their purchasing power, with a particular focus on protecting the lower and middle portions of retirement benefits from the effects of inflation. The adjustments will be automatic and applied annually in September based on the previous year's CPI change.
Committee Categories
Labor and Employment
Sponsors (2)
Last Action
CARRIED OVER, in the same posture, to any special or regular session of the 132nd Legislature, pursuant to Joint Order SP 800. (on 06/25/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://legislature.maine.gov/legis/bills/display_ps.asp?LD=900&snum=132 |
| Senate: C-A (S-146) | https://legislature.maine.gov/legis/bills/getPDF.asp?paper=SP0389&item=2&snum=132 |
| Fiscal Note: C-A (S-146) | https://legislature.maine.gov/legis/bills/bills_132nd/fiscalpdfs/FN090002.pdf |
| BillText | https://legislature.maine.gov/legis/bills/getPDF.asp?paper=SP0389&item=1&snum=132 |
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