Code of Maine Rules
94 - INDEPENDENT AGENCIES
411 - MAINE PUBLIC EMPLOYEES RETIREMENT SYSTEM (MAINEPERS)
Chapter 506 - ELIGIBILITY FOR DISABILITY RETIREMENT BENEFITS
SUMMARY: This chapter sets forth the standards and processes for determining eligibility for disability retirement benefits.
BASIS STATEMENT FOR ADOPTION JULY 11, 2024/STATEMENT OF COMMENTS:
This proposal for rule-making was noticed on May 22, 2024. A public hearing was held on June 13, 2024. One member of the public provided oral comments at the public hearing, and that same member of the public submitted written comments prior to the June 24, 2024 comment deadline. One additional member of the public submitted written comments prior the June 24, 2024 comment deadline. The comments are summarized below, and MainePERS' responses are in italics.
This rule sets forth the standards and processes for determining eligibility for disability retirement benefits. The amendment to the rule changes the definition of "earnings" to align with the definition of that term in the new Rule Chapter 513.
One member of the public1 made two recommendations regarding the proposed amended rule. First, the commenter opined that the new definition of "earnings' lacked clarity for those less knowledgeable about federal tax laws. The commenter suggested that the definition be more specific in its reference to federal tax forms and information found on those forms.
The language has been made more specific, but MainePERS declines to refer to particular line numbers because federal tax forms are revised annually, and it would be unwieldly to require rulemaking every time a line number changed on a federal form. MainePERS also declines to extend the definition of "earnings" to other contexts as suggested because "earnable compensation" is defined by statute and the ability to earn may not be reflected on tax filings.
Second, the commenter opined that how individuals report rental income on federal tax filings could result in that income being arbitrarily counted as "earnings" under the proposed definition. The commenter suggests that the rule provide guidance on the tax reporting of rental income as part of the definition of earnings.
MainePERS declines to depart from the clear guidance provided by the rule in favor of a more ambiguous standard.
One member of the public2 offered written comments regarding the disability retirement program that were outside the scope of the current rulemaking.
Based on consideration of the comments received, staff recommends a change to the proposed amended rule to provide increased specificity on the tax information that will be used to determine earnings. The Board concurs with this recommendation.
At the Board's regular meeting held on July 11, 2024, Henry Beck made the motion, seconded by Shirrin Blaisdell to adopt the amended rule. Five Trustees (Beck-Beliveau-Blaisdell-Duplessis-Metivier) voted in favor of the motion, and one (Kimball) voted in opposition. Motion to adopt the amended rule carried.
1Susan Hawes, Portland
2Wendy Fenderson, Limerick
STATUTORY AUTHORITY: 5 M.R.S. §§ 17103(4)
