§ 5 §17154 — Administration of funds

Maine § 5 §17154

• Jurisdiction: Maine
• Title 5: ADMINISTRATIVE PROCEDURES AND SERVICES
• Part 20: STATE RETIREMENT SYSTEM
• Ch. 421: GENERAL PROVISIONS

Text

1.
Custodian.
2.
Budget estimates.
The board shall submit budget estimates of contributions required to fund benefits for state employees and teachers to the State Budget Officer in accordance with section 1665, except that after July 1, 1995, the board may not submit estimates of contributions required to pay premiums for health insurance for retired state employees and retired teachers.
3.
Combination or elimination of funds.
On the advice of the actuary of the retirement system, the board may combine or eliminate all or any parts of the funds set forth in this subchapter, except that any combination or elimination may not impair the actuarial valuations.
4.
Payment upon vouchers.
5.
Payment of employer charges for state employees.
For state employees, on every payroll from which retirement contributions are deducted or picked up, the State Controller shall cause a charge to be made to each department of the State in order to pay employer costs.
6.
Payment of employer charges for teachers.
For teachers, percentage rates to be predetermined by the actuary and approved by the board must be applied to the total earnable compensation of members covering the most recent school year preceding the preparation of the biennial budget.
7.
Payment of employer charges for participating local district employees.
Employer charges for participating local district employees are governed by sections 18301 to 18303.
8.
Transfers among funds.
When considered necessary by the chief executive officer for the efficient administration of the retirement system, the chief executive officer may make transfers among the various funds of the system set forth in this subchapter in accordance with accepted accounting and actuarial principles.
9.
Improper application of statutes.
Notwithstanding the other provisions of this section, additional actuarial and administrative costs resulting from omissions or misrepresentations by an employer as to a member's earnings, service or service credits or from improper application of retirement system statutes or rules regarding earnings, service or service credits must be charged to and paid by the employer that omitted information, provided misinformation or improperly applied the statutes or rules, unless the omission, misrepresentation or improper application results from erroneous information provided by the retirement system. The employer is liable for amounts not recovered from the retiree and for costs incurred by the retirement system in resolving problems caused by the employer's actions and in addition may be subject to administrative fees, penalties and interest under section 17105, subsection 5. For purposes of this subsection, "employer" means any department of State Government, school administrative unit or participating local district.
10.
Payment of additional actuarial costs incurred by the retirement system due to early retirement incentives.
Notwithstanding the other provisions of this section, additional actuarial and reasonable administrative costs that result from the early retirement of a member offered a retirement incentive by an employer must be paid by the employer that offered and provided the incentive pursuant to section 17159. For purposes of this subsection, "early retirement" has the same meaning as in section 17159, subsection 1.
11.
Payment of actuarial cost of excess increase in earnable compensation.
Notwithstanding the other provisions of this section, the employer may pay to the retirement system the cost of the actuarial liability resulting from any increase in earnable compensation for any year within the 3-year period used in determining average final compensation that exceeds the prior year's earnable compensation by more than 5% or, if it would result in a lesser additional actuarial liability, any increase in earnable compensation over a total increase of 10% during the 3-year period. The retirement system shall calculate the cost of the additional actuarial liability for each member when calculating the retirement benefit for that member at retirement. The cost must be paid in accordance with this subsection.

Legislative History

PL 1985, c. 801, §§5,7 (NEW). PL 1987, c. 256, §5 (AMD). PL 1987, c. 739, §§5,48 (AMD). PL 1989, c. 491, §2 (AMD). PL 1991, c. 360, §3 (AMD). PL 1991, c. 857, §1 (AMD). P&SL 1993, c. 67, §1 (AMD). PL 1993, c. 387, §A7 (AMD). PL 1993, c. 410, §§L26,27 (AMD). PL 1993, c. 482, §3 (AMD). PL 1993, c. 580, §2 (AMD). PL 1993, c. 580, §3 (AFF). PL 1993, c. 595, §5 (AMD). PL 1995, c. 368, §G7 (AMD). PL 1995, c. 462, §A14 (AMD). PL 1995, c. 471, §§2,3 (AMD). PL 1995, c. 541, §2 (AMD). PL 2003, c. 504, §B1 (AMD). PL 2005, c. 2, §D1 (AMD). PL 2005, c. 2, §§D72,74 (AFF). PL 2005, c. 12, §WW18 (AFF). PL 2007, c. 240, Pt. U, §6 (AMD). PL 2007, c. 249, §§16, 17 (AMD). PL 2007, c. 491, §85 (AMD). PL 2013, c. 368, Pt. C, §1 (AMD). PL 2019, c. 460, §2 (AMD). PL 2021, c. 548, §18 (AMD). PL 2021, c. 548, §45 (REV). RR 2023, c. 2, Pt. B, §98 (COR).