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132nd MAINE LEGISLATURE
FIRST REGULAR SESSION-2025
Legislative Document No. 1040
H.P. 669 House of Representatives, March 14, 2025
An Act to Raise the Cap on Retirement Benefits for Certain State
Employees and Teachers to Which a Cost-of-living Adjustment Is
Made
Received by the Clerk of the House on March 12, 2025. Referred to the Committee on
Labor pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative DODGE of Belfast.
Cosponsored by Senator TIPPING of Penobscot and
Representatives: BOYER of Cape Elizabeth, BUNKER of Farmington, GRAHAM of North
Yarmouth, MACIAS of Topsham, MCCABE of Lewiston, ROEDER of Bangor, SATO of
Gorham, SHAGOURY of Hallowell.
Page 1 - 132LR0036(01)
1Be it enacted by the People of the State of Maine as follows:
2Sec. 1. 5 MRSA §17806, sub-§1, ¶A, as amended by PL 2021, c. 635, Pt. NN, §1,
3 is further amended to read:
4 A. Except as provided in paragraphs A‑1, A‑2 and A‑3, whenever there is a percentage
5 increase in the Consumer Price Index from July 1st to June 30th, the board shall
6 automatically make an equal percentage increase in retirement benefits, beginning in
7 September, up to a maximum annual increase of 3%. Effective July 1, 2011, the
8 increase applies to that portion of the retirement benefit up to $20,000, which amount
9 must be indexed in subsequent years by the same percentage adjustments granted under
10 this section. Effective July 1, 2022, the increase applies to that portion of the retirement
11 benefit up to $24,186.25, which amount must be indexed in subsequent years by the
12 same percentage adjustments granted under this section. Effective July 1, 2026, for
13 retired state employees and teachers who retired on or before June 30, 2011 or their
14 beneficiaries, the increase applies to that portion of the retirement benefit up to
15 $40,000, which amount must be indexed in subsequent years by the same percentage
16 adjustments granted under this section.
17SUMMARY
18 This bill provides that, effective July 1, 2026, the cost-of-living adjustment applies to
19 $40,000 of the retirement benefit being paid to retired state employees and retired teachers
20 who retired on or before June 30, 2011 or their beneficiaries.
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