Maine panel hears debate over disability‑retirement offsets; MainePERS lists estimated funding cost
Get AI-powered insights, summaries, and transcripts
Sign Up Free
Summary
LD 21 45 would raise the cap before a workers' compensation offset applies to MainePERS disability retirement benefits from 80% to 100% of average final compensation; MainePERS estimated an immediate unfunded actuarial liability of about $1.73 million (state plans) and $1.36 million (PLD) and cautioned the Constitution requires immediate funding for new benefits.
Sen. Mike Tipping introduced LD 21 45, saying the bill would "increase the amount that recipients of Maine PERS disability retirement benefits who also get workers' compensation benefits may receive before the offset applies" from 80% to 100% of average final compensation (AFC) and would replace the use of average annual earnings with AFC when calculating offsets.
Bill Brown of MainePERS told the committee the change would permit recipients of disability retirement who also receive workers' compensation to receive fuller income replacement and align the calculation method to the teacher plan. He also warned the changes create "new benefits" that must be immediately and fully funded under the Maine Constitution and provided system estimates: UAL costs for state‑sponsored plans at $1,734,012 and UAL for the PLD consolidated plan at $1,357,841 (figures referenced in testimony).
Advocates for disabled retirees testified that an 80% threshold is insufficient and urged stronger changes, including eliminating the workers' compensation offset entirely or increasing replacement percentages to 128% of prior income to preserve living standards. Sue Haas, who testified on behalf of affected retirees, urged the committee to consider amendments so that any favorable change applies to current disabled retirees as well as future applicants.
Witnesses and members asked technical questions about how the offsets interact with Social Security and other benefits; MainePERS explained the choices were designed to align with prior statute and to avoid including unrelated employment income when calculating worker‑compensation offsets.
The committee closed the public hearing; testimony and written comments will inform any work‑session amendments. No committee vote on LD 21 45 was recorded during the hearing.