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Committee considers technical fix to how MainePERS sets group life insurance coverage
Summary
MainePERS told the Labor Committee that LD 20 22 would replace a W‑2 gross‑compensation reference with the statutory definition of 'earnable compensation' to simplify and standardize reporting for group life insurance; the agency does not expect a fiscal note.
Representative Amy Rader presented LD 20 22, a departmental technical bill to clarify how annual base compensation is reported for purposes of setting group life insurance (GLI) under the Maine Public Employees Retirement System. The bill replaces a W‑2 gross compensation reference with the statutory definition of "earnable compensation," which MainePERS says is already reported to the system for retirement purposes.
Bill Brown (MainePERS) explained that GLI coverage is determined by annual base compensation rounded to the nearest thousand and that the W‑2 reference has created confusion because boxes on the W‑2 do not list "gross compensation." "This will streamline employer reporting and result in more consistency in setting coverage levels," Brown said. MainePERS does not anticipate a fiscal note for the change; any cost effects would be reflected in future rates, the testimony said.
Committee members asked whether the change would raise GLI amounts for members as salaries have grown; MainePERS confirmed the coverage amount updates annually with compensation. The hearing closed with MainePERS offering to answer additional technical questions at the work session.
No committee vote on LD 20 22 was recorded at the hearing.
