APPROVED CHAPTER
JUNE 9, 2025 221
BY GOVERNOR PUBLIC LAW
STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-FIVE
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H.P. 1306 - L.D. 1947
An Act to Amend the Laws Pertaining to the Maine Public Employees
Retirement System
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 3 MRSA §805-A, sub-§1, ¶B, as enacted by PL 2007, c. 137, §3, is
amended to read:
B. Payment must be made after termination of service and not less than 22 days nor
more than 60 days after receipt of the application and receipt of the last payroll upon
which the name of the member appears;
Sec. 2. 4 MRSA §1201, sub-§8-A is enacted to read:
8-A. Duly acknowledged. "Duly acknowledged" means acknowledged pursuant to
chapter 39 or through an electronic identification process designated in a rule established
by the board of trustees.
Sec. 3. 4 MRSA §1201, sub-§19-A is enacted to read:
19-A. Survive or surviving. "Survive" or "surviving" means to live, by clear and
convincing evidence, for at least 120 hours after the death of the qualifying member or
family member, as applicable.
Sec. 4. 4 MRSA §1201, sub-§20, as enacted by PL 1989, c. 133, §20, is amended
to read:
20. Surviving spouse. "Surviving spouse" means the spouse alive at the time of who
survives the death of the member or former member.
Sec. 5. 4 MRSA §1305-A, sub-§1, ¶B, as enacted by PL 2007, c. 137, §7, is
amended to read:
B. Payment must be made after termination of service and not less than 22 days nor
more than 60 days after receipt of the application and receipt of the last payroll upon
which the name of the member appears;
Sec. 6. 4 MRSA §1353, sub-§1-A, ¶A, as amended by PL 2007, c. 491, §49, is
further amended to read:
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 A. A member with less than 5 years of continuous creditable service immediately
preceding an application for a disability allowance that member's last date of service is
not eligible for that a disability retirement allowance if that disability is the result of a
physical or mental condition which that existed prior to the person's latest membership
in a retirement program of the Maine Public Employees Retirement System, unless the
disability is a result of, or has been substantially aggravated by, an injury or accident
received in the line of duty.
Sec. 7. 4 MRSA §1353, sub-§5, as amended by PL 2007, c. 491, §51, is further
amended to read:
5. Earnings. The chief executive director officer may require each disability
beneficiary to submit an annual statement of earnings received from any gainful occupation
during that year. For any year during which the total of those earnings and the disability
allowance exceeds the current salary of the position that the disabled beneficiary last held,
the excess must be deducted from any disability retirement allowance payments made to
the beneficiary during the next calendar year. These deductions are prorated on a monthly
basis, in an equitable manner prescribed by the board of trustees, over the year or part of
the year for which benefits are received in accordance with Title 5, section 17054,
subsection 3. The beneficiary is responsible for reimbursing the Maine Public Employees
Retirement System for any excess earnings not so deducted.
If a beneficiary does not submit an earnings statement within 30 days of receiving a request
from the chief executive director officer, the disability retirement allowance is discontinued
until the statement is submitted. If the statement is not submitted within one year of
receiving a request, all the beneficiary's rights to any further benefits cease.
Sec. 8. 4 MRSA §1357, sub-§2, as corrected by RR 2021, c. 2, Pt. A, §2, is amended
to read:
2. Optional methods of payment. In lieu of payment under subsection 1, a qualifying
member may elect to receive a regular retirement allowance under one of the options set
out in this subsection. The optional allowance is a reduced allowance computed actuarially
on the basis of the option selected.
The qualifying member may elect one of the options by written request to and approval of
the executive director prior to the commencement of payment of a regular retirement
allowance. The election may be revoked by written notice to the executive director at any
time before the regular retirement allowance commences.
For the purposes of this subsection, "qualifying member" means a member or a former
member who has been receiving a disability retirement benefit and changes to service
retirement under section 1353, subsection 7.
A. Under Option 1, the qualifying member may elect to have a reduced retirement
benefit paid to the qualifying member while alive and at the qualifying member's death
to have the excess, if any, of the qualifying member's accumulated contributions at the
time of retirement over the portion of the total retirement benefit payments actually
made to the qualifying member while alive, which is the actuarial equivalent of the
accumulated contributions, paid in a lump sum to the beneficiary that the qualifying
member has nominated by written designation duly notarized acknowledged and filed
with the chief executive director officer on a form provided or specified by the Maine
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Public Employees Retirement System or, if no one has been nominated as beneficiary,
to the qualifying member's estate.
B. Under Option 2, the qualifying member may elect to have a reduced retirement
benefit payable to the qualifying member while alive and at the qualifying member's
death to have the benefit continued in the same amount for the life of the beneficiary
that the qualifying member has nominated by written designation duly notarized
acknowledged and filed with the chief executive director officer at the time of
retirement on a form provided or specified by the Maine Public Employees Retirement
System, if the beneficiary survives the qualifying member.
C. Under Option 3, the qualifying member may elect to have a reduced retirement
benefit payable to the qualifying member while alive and at the qualifying member's
death to have the benefit continued at 1/2 the amount for the life of the beneficiary that
the qualifying member has nominated by written designation duly acknowledged and
filed with the chief executive director officer at the time of retirement on a form
provided or specified by the Maine Public Employees Retirement System, if the
beneficiary survives the qualifying member.
D. Under Option 4, the qualifying member may elect to have a reduced retirement
benefit payable to the qualifying member while alive and at the qualifying member's
death to have some benefit other than that available under paragraph B or C payable to
the beneficiary that the qualifying member has designated, if the beneficiary survives
the qualifying member. The total value of the benefit paid to the qualifying member
during the qualifying member's life plus the benefit paid after the qualifying member's
death is the actuarial equivalent of the benefit that the qualifying member would have
received without optional modification. The method used to determine the benefit
must be approved by the board of trustees, and the beneficiary must be designated by
written designation, duly notarized acknowledged and filed with the chief executive
director officer on a form provided or specified by the Maine Public Employees
Retirement System.
E. Under Option 5, the qualifying member may elect to have a reduced retirement
benefit payable in part to the qualifying member and in part to the beneficiary, who
must be the sole beneficiary, while both are alive and, at the death of either, to have the
higher benefit paid to the survivor for the survivor's life. The total value of the benefit
paid to the qualifying member and beneficiary, during the qualifying member's life,
plus the benefit to be paid after the death of either is the actuarial equivalent of the
benefit that the qualifying member would have received without optional modification.
The method used to determine the benefit must be approved by the board of trustees,
and the beneficiary must be designated by written designation, duly notarized
acknowledged and filed with the chief executive director officer on a form provided or
specified by the Maine Public Employees Retirement System.
F. Under Option 6, the qualifying member may elect to have a reduced retirement
benefit payable to the qualifying member while alive and, at the qualifying member's
death, to have the benefit continued in the same amount for the life of the beneficiary,
who must be the sole beneficiary, that the qualifying member has designated by written
designation, duly notarized acknowledged and filed with the chief executive director
officer on a form provided or specified by the Maine Public Employees Retirement
System, if the beneficiary survives the qualifying member. If the qualifying member's
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 beneficiary predeceases the qualifying member, the qualifying member's benefit must
be changed, effective the first day of the month following the date of the beneficiary's
death, to be the actuarial equivalent of the benefit that the qualifying member would
have received without optional modification. The reduced retirement benefit must be
actuarially calculated to reflect the fact that the benefit may be changed to the larger
amount should the beneficiary predecease the member.
G. Under Option 7, the qualifying member may elect to have a reduced retirement
benefit payable to the qualifying member while alive and, at the qualifying member's
death, to have the benefit continued at 1/2 that amount for the life of the beneficiary,
who must be the sole beneficiary, that the qualifying member has designated by written
designation, duly notarized acknowledged and filed with the chief executive director
officer on a form provided or specified by the Maine Public Employees Retirement
System, if the beneficiary survives the qualifying member. If the qualifying member's
beneficiary predeceases the qualifying member, the qualifying member's benefit must
be changed, effective the first day of the month following the date of the beneficiary's
death, to the actuarial equivalent of the benefit that the qualifying member would have
received without optional modification. The reduced retirement benefit must be
actuarially calculated to reflect the fact that the benefit may be changed to the larger
amount should the beneficiary predecease the member.
H. Under Option 8, the qualifying member may elect to have a reduced retirement
benefit payable to the qualifying member while alive and, at the qualifying member's
death, to have some benefit other than that available under paragraph B or C payable
to the beneficiary, who must be the sole beneficiary, that the member has designated
by written designation, duly acknowledged and filed with the chief executive officer
on a form provided or specified by the Maine Public Employees Retirement System, if
the beneficiary survives the qualifying member. The total value of the benefit paid to
the qualifying member plus the benefit paid after the qualifying member's death is the
actuarial equivalent of the benefit that the qualifying member would have received
without optional modification. If the qualifying member's beneficiary predeceases the
qualifying member, the qualifying member's benefit must be changed, effective the
first day of the month following the date of the beneficiary's death, to be the actuarial
equivalent of the benefit that the qualifying member would have received without
optional modification. The reduced retirement benefit must be actuarially calculated
to reflect the fact that the benefit may be changed to the larger amount should the
beneficiary predecease the member.
Sec. 9. 5 MRSA §17001, sub-§12-B is enacted to read:
12-B. Duly acknowledged. "Duly acknowledged" means acknowledged pursuant to
Title 4, chapter 39 or through an electronic identification process designated in a rule
established by the board.
Sec. 10. 5 MRSA §17001, sub-§13, ¶B, as amended by PL 2017, c. 392, §1, is
further amended to read:
B. For members other than members of the Participating Local District Retirement
Program under chapters 425 and 427, "earnable compensation" does not include:
(1) For any member who has 10 years of creditable service by July 1, 1993 or who
has reached 60 years of age and has been in service for a minimum of one year
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 immediately before that date, payment for more than 30 days of unused
accumulated or accrued sick leave, payment for more than 30 days of unused
vacation leave or payment for more than 30 days of a combination of both and,
effective October 1, 1999, whether or not the member is in service on October 1,
1999, the 30-day limitation may not be decreased and the exclusion set out in
subparagraph (2) may not be made applicable to such a member; or
(2) For any member who is not covered by subparagraph (1), payment for any
unused accumulated or accrued sick leave or payment for any unused vacation
leave; or.
(3) Any other payment that is not compensation for actual services rendered or
that is not paid at the time the actual services are rendered.
A payment for unused sick leave or unused vacation leave may not be included as part
of earnable compensation unless it is paid upon the member's last termination before
the member applies for retirement benefits.
Sec. 11. 5 MRSA §17001, sub-§13, ¶B-1, as enacted by PL 2017, c. 392, §2, is
repealed and the following enacted in its place:
B-1. "Earnable compensation" also does not include:
(1) Any exclusion in the plan provisions adopted by rule pursuant to section 18801;
or
(2) Any other payment that is not compensation for actual services rendered or that
is not paid at the time the actual services are rendered.
Sec. 12. 5 MRSA §17001, sub-§13, ¶E, as enacted by PL 1991, c. 619, §2 and
affected by §18, is amended to read:
E. "Earnable compensation" of a part-time, seasonal or temporary employee is the sum
of amounts computed under paragraphs A, B, C and D adjusted to reflect the wages or
salary that the member would have been paid if the member had been employed, at the
member's rate of pay, for the number of days or hours that a permanent full-time
employee of the same employer would have been employed unless the board has
established by rule a benefit computation method that otherwise prevents overlapping
reduction of benefits for part-time, seasonal or temporary employees due to working
less than full-time and earning less than full-time equivalent compensation.
Sec. 13. 5 MRSA §17001, sub-§40-A is enacted to read:
40-A. Survive or surviving. "Survive" or "surviving" means to live, by clear and
convincing evidence, for at least 120 hours after the death of the qualifying member or
family member, as applicable.
Sec. 14. 5 MRSA §17001, sub-§41, as enacted by PL 1985, c. 801, §§5 and 7, is
amended to read:
41. Surviving spouse. "Surviving spouse" means the spouse alive at the time of who
survives the death of the member or former member.
Sec. 15. 5 MRSA §17001, sub-§42, ¶B, as amended by PL 2021, c. 548, §7, is
further amended to read:
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 B. Any employee of a public school or an education service center established pursuant
to Title 20‑A, chapter 123 who fills any position not included in paragraph A, the
principal function of which is to introduce new learning to students, except that a coach
who is employed by a public school and who is not otherwise covered by the definition
of teacher in this subsection a member of the State Employee and Teacher Retirement
Program of the retirement system or an employee who is employed in adult education
as defined in Title 20‑A, section 8601‑A, subsection 1 and who is not otherwise
covered by the definition of teacher in this subsection a member of the State Employee
and Teacher Retirement Program of the retirement system may not be considered a
teacher for purposes of this Part;
Sec. 16. 5 MRSA §17054, sub-§3, as amended by PL 2011, c. 606, §9 and PL
2021, c. 548, §45, is further amended to read:
3. Recovery of overpayments by the retirement system. Any amounts due the
retirement system as the result of overpayment or erroneous payment of benefits, an excess
refund of contributions or overpayment or erroneous payment of life insurance benefits
may be recovered from an individual's contributions, any benefits or life insurance benefits
payable under this Part to the individual or the beneficiary of the individual or any
combination of contributions and benefits. If the overpayment or excess refund of
contributions resulted from a mistake of or incorrect information provided by an employee
of the retirement system, or a mistake of the retiree or the recipient of the benefit or life
insurance benefit, a penalty or interest may not be assessed by the retirement system. In
all cases of recovery of overpayments through the reduction of a retirement benefit, whether
with or without the assessment of interest by the retirement system, the recovery practices
must be reasonable and consider the personal economic stability of the retiree in the
establishment of the recovery schedule. The chief executive officer may also take action
to recover those amounts due from any amounts payable to the individual by any other state
agency or by an acti