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.

Statutes affected:
Bill Text LD 900, SP 389: 5.17806