Code of Maine Rules
94 - INDEPENDENT AGENCIES
411 - MAINE PUBLIC EMPLOYEES RETIREMENT SYSTEM (MAINEPERS)
Chapter 302 - RETIREMENT INCENTIVES
Section 411-302-5 - Projection of Employer's Liability

A. Request for Projection. An employer may request that the System project the employer's liability for additional actuarial costs associated with the potential offering of one or more early retirement incentives to a potential member or group of members. The employer must provide in writing to the System all known facts about the potential early retirement incentive(s) including identification by name and social security number of all possible persons could take advantage of such an incentive. The System will first provide to the employer an estimate of the System's costs for preparing the projection of liability. After receiving the estimate, the employer shall indicate in writing that the employer desires the projection of liability to be done.

B. Processing Fee. Subject to review and approval by the Board, the Executive Director will establish and may revise from time to time an administrative processing fee that will be paid at the time a request for a projection of the employer's liability is made. The fee will be based on the time required for preparing an estimate of the costs for projecting the employer's liability, will be reasonable, and will not be set at a level which requires the System's members and employers as whole to subsidize the cost of preparing the estimate. The fee must be paid at the time a request for a projection is made and before the System prepares an estimate of the System's costs for preparing the projection of liability.

C. Estimate of System's Administrative Costs. The System will base the estimate of its administrative costs for preparing a projection of liability on an hourly administrative cost rate for the System, as established by the Executive Director subject to review and approval by the Board, and will include an estimate of the System's actual costs for actuarial and legal services. Costs associated with development of information on an expedited basis or advanced schedule will also be included in the estimate of the System's costs, if the employer has requested that the work be done on an expedited basis. The employer must pay in advance the estimated administrative costs for preparing the projection of liability.

D. Preparation of Projection. Once the processing fee has been paid and the employer has paid in advance to the System the System's estimated administrative costs, the System shall prepare the projection of the employer's liability. This projection of liability may be made on the information available at the System at the time of the request or on updated information, at the discretion of the System. The estimate may be based on reasonably imputed earnable compensation on a member-specific basis as determined by the System. The projection represents an estimate of employer liability; different actuarial costs on a member-specific basis may be computed in accordance with Section 4 at the actual retirement of individual members.

E. Payment of Final Costs. Upon completion of the work by the System, the System will present a final bill reflecting the System's actual costs for the projection of liability and the employer must pay this bill within thirty (30) days of receipt of the bill. Interest will be charged by the System on overdue amounts. In addition, an employer who fails to pay is liable for penalties as recommended on a case by case basis by the Executive Director and approved by the Board of Trustees and shall pay all of the System's costs associated with collection of amounts overdue and/or enforcement of this rule. If the actual costs are less than the estimated costs already paid, the difference will be refunded to the employer by the System.