Bill
Bill > LD1040
ME LD1040
An Act to Raise the Cap on Retirement Benefits for Certain State Employees and Teachers to Which a Cost-of-living Adjustment Is Made
summary
Introduced
03/12/2025
03/12/2025
In Committee
03/12/2025
03/12/2025
Crossed Over
05/07/2025
05/07/2025
Passed
05/13/2025
05/13/2025
Dead
Introduced Session
Potential new amendment
132nd Legislature
Bill Summary
This bill provides that, effective July 1, 2026, the cost-of-living adjustment applies to $40,000 of the retirement benefit being paid to retired state employees and retired teachers who retired on or before June 30, 2011 or their beneficiaries.
AI Summary
This bill modifies the cost-of-living adjustment (COLA) for retired state employees and teachers who retired on or before June 30, 2011, by increasing the cap on retirement benefits eligible for an annual percentage increase. Currently, the COLA applies to the first $24,186.25 of a retiree's annual benefit, with increases tied to the Consumer Price Index (CPI) and capped at 3%. Effective July 1, 2026, the bill raises this cap to $40,000, meaning that retired state employees and teachers who retired before July 1, 2011, or their beneficiaries will receive a percentage increase on up to $40,000 of their annual retirement benefit, with this amount to be indexed for future years based on the same percentage adjustments granted in subsequent years. This change aims to provide additional financial support to long-retired state employees and teachers by allowing a COLA on a larger portion of their retirement benefits.
Committee Categories
Labor and Employment
Sponsors (10)
Janice Dodge (D)*,
Michelle Boyer (D),
Stephan Bunker (D),
Annie Graham (D),
Rafael Macias (D),
Julia McCabe (D),
Amy Roeder (D),
Eleanor Sato (D),
Dan Shagoury (D),
Mike Tipping (D),
Last Action
On motion by Senator ROTUNDO of Androscoggin PLACED ON THE SPECIAL APPROPRIATIONS TABLE pending ENACTMENT in concurrence. (on 05/21/2025)
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1040&snum=132 |
| House: C-A (H-100) | https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP0669&item=2&snum=132 |
| Fiscal Note: C-A (H-100) | https://legislature.maine.gov/legis/bills/bills_132nd/fiscalpdfs/FN104002.pdf |
| Fiscal Note: Text | https://legislature.maine.gov/legis/bills/bills_132nd/fiscalpdfs/FN104001.pdf |
| BillText | https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP0669&item=1&snum=132 |
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