Bill > LD1003

This bill establishes the Retirement Benefit Improvement Fund, a special nonlapsing account designed to help increase retirement benefits for state employees and teachers. The bill requires that after making certain mandatory transfers from the General Fund surplus (such as to the State Contingent Account and Highway and Bridge Capital program), any remaining unappropriated surplus will be transferred to this new fund at the end of each fiscal year starting in 2026. The purpose of the fund is to provide resources to expand the portion of retirement benefits eligible for cost-of-living adjustments (COLAs). If the fund accumulates at least $500, the retirement system can increase the portion of retirement benefits receiving COLAs, starting in September of that year. The retirement system's chief executive officer is required to report annually to legislative committees about the fund's status and activities. This approach aims to incrementally improve retirement benefits for state employees and teachers by using General Fund surplus revenue, providing a dedicated mechanism for potentially enhancing retirees' financial security.

Labor and Employment

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1003&snum=132