This bill makes changes to the provisions of the Maine Revised Statutes governing disability retirement benefits for state employees and teachers and for participating local districts. The bill increases the amount of income that is considered substantially gainful activity and increases the limit on income a person may earn from employment or gainful activity before the person's disability retirement benefit is reduced. It also removes the distinction between the effect on the reduction of benefits of compensation earned from an employer covered under the disability retirement program and from an employer that is not covered, instead establishing one formula and set of requirements applying to earnings from any employer. The bill changes the consequence for exceeding earning limitations to a waivable, prorated reduction of benefits for one year. The new provisions do not include a requirement that a person reimburse the retirement system for any excess payments not deducted by the retirement system, as in current law. The bill provides definitions for "final annual compensation" and "substantially gainful activity." The bill removes language that requires, in some cases, that disability retirement benefit payments be reduced by any amount received under the United States Social Security Act. It also changes the formula under the Participating Local District Retirement Program for calculating reductions for disability payments under other laws by basing the calculation on average final compensation, not average annual earnings.

Statutes affected:
Bill Text LD 2169, SP 879: 5.17857, 5.17901, 5.17903, 5.17906, 5.17907, 5.17929, 5.17930, 5.17932, 5.18462, 5.18501, 5.18503, 5.18506, 5.18507, 5.18529, 5.18530, 5.18532