An Act Establishing the Retirement Improvement Fund

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STATE OF MAINE
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IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-SIX
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H.P. 650 - L.D. 1003
An Act Establishing the Retirement Improvement Fund
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 5 MRSA c. 421, sub-c. 4, art. 10 is enacted to read:
ARTICLE 10
RETIREMENT IMPROVEMENT FUND
§17446. Retirement Improvement Fund
1. Establishment of fund. The Retirement Improvement Fund, referred to in this
section as "the fund," is established within and administered by the retirement system as an
interest-bearing, nonlapsing fund for the payment of retirement benefit improvements.
2. Content of fund. The fund consists of all money transferred to the fund under this
section and other money made available to the fund, which may include but is not limited
to legislative appropriations from the General Fund or any other fund, the unappropriated
surplus of the General Fund or any other source or fund identified or established through
law.
3. Use of fund. Money in the fund must be used to pay for retirement benefit
improvements. Whenever the fund has sufficient capital to pay for an increase in the
amount of at least $1,000 on the benefit base on which the annual cost-of-living adjustment
is applied pursuant to section 17806, subsection 1, paragraph A, for all beneficiaries in the
retirement system, that increase must be applied but only until the benefit base reaches
$40,000.
4. Reporting. By March 1, 2029 and annually thereafter, the retirement system shall
submit a report regarding implementation of this section to the joint standing committee of
the Legislature having jurisdiction over retirement matters that includes the following
information for that fiscal year and the prior 3 fiscal years:
A. The amount of money transferred to the fund pursuant to subsection 2;
APPROVED
APRIL 16, 2026
BY GOVERNOR
CHAPTER
756
PUBLIC LAW
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B. The total increases made to the benefit base on which the annual cost-of-living
adjustment must be applied in accordance with subsection 3;
C. The amount of any payment made or required to be made toward any remaining
obligation for the unfunded actuarial liability; and
D. The balance in the fund.
Sec. 2. Legislative intent. It is the intention of the Legislature through this Act to
provide for a sufficient retirement by increasing the cost-of-living adjustment for retired
state employees, teachers and their beneficiaries, to the greatest extent possible within
existing state resources, including the future use of current state appropriations dedicated
to the payment of the unfunded actuarial liability when those funds are no longer needed
for payment of the existing liability.
Sec. 3. Appropriations and allocations. The following appropriations and
allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Retirement Improvement Fund N521
Initiative: Provides base allocations to authorize the expenditure of funds to pay for
retirement benefit improvements for retired state employees and teachers and their
beneficiaries.
OTHER SPECIAL REVENUE FUNDS 2025-26 2026-27
All Other $0 $500
__________ __________
OTHER SPECIAL REVENUE FUNDS TOTAL $0 $500