Current through 2024-38, September 18, 2024
1.
Participating Local District Election. Before July 1, 1996, the
executive body or legislative body of each local district that is a
participating local district under 5 M.R.S., Chapter 425 (§18201et seq.)
must, by resolution or order, elect one of the following options. Failure to
make an election will have the same effect as electing paragraph B.
A.
To Join The Plan. A
participating local district may elect to participate in The Plan in accordance
with the requirements of 5 M.R.S. §18804. Upon receipt of the
certified copy of the resolution or order and record of the vote, the Executive
Director shall prepare an agreement, to be signed by the authorized
representative of the district and the Executive Director, specifying the parts
of The Plan applicable to the district and the duties and rights of the
district and the Retirement System. The resolution or order shall include:
(1) Approval of the participation in The
Plan;
(2) The regular service
retirement benefit plan and, if applicable, the special service retirement
benefit plan elected from those provided by this chapter for the district's
employees; and
(3) The name or
title of the person authorized to sign the agreement on behalf of the local
district.
B.
To Be
Transferred to The Plan. A participating local district may elect to
have its participation in the Retirement System transferred to The Plan without
electing the retirement benefit plan or plans for the district's employees.
(1) The Retirement System will transfer the
district's employees to the plan or plans with the benefit level or levels
closest to the district's current plan or plans.
(2) The resolution or order shall include the
same information as that required under paragraph A, except that it shall state
that the Retirement System is to determine the retirement benefit plan or plan
that apply to the district's employees.
(3) The agreement as prepared by the
Executive Director shall be as provided in paragraph A.
C.
To Withdraw from the Maine Public
Employees Retirement System. Subject to 5 M.R.S. §18203, a participating local
district may withdraw from participation in the Retirement System. The effect
of withdrawal on the district's employees is governed by 5 M.R.S. §18254.
2.
Local District May Enter into
Agreement for The Plan. Any local district that is not a participating
local district before July 1, 1993, may enter into an agreement for
participation of its employees in the Retirement System only under The Plan and
in the manner provided by 5 M.R.S. §18804, sub-§1 or
2. Upon receipt of the certified copy
of the resolution or order and record of the vote, the Executive Director shall
prepare an agreement specifying the parts of The Plan applicable to the
district and the duties and rights of the district and the Retirement System.
The resolution or order shall include:
A.
Approval of the participation in The Plan;
B. The regular service retirement benefit
plan and, if applicable, the special service retirement benefit plan elected
from those provided by this chapter for the district's employees;
C. A list of classes, and a list by name and
social security number, of any employees who are excluded from membership based
upon their being provided for by local pension provisions;
D. Any limitations on the granting of service
credits to employees for service before the beginning date of the participation
of its employees in The Plan; and E. The name or title of the person authorized
to sign the agreement on behalf of the local district.
3.
Effective Date; Date of Operation;
Date of Participation
A.
Effective Date. July 1, 1993, is the effective date of The Plan.
Participating local districts and other local districts may enter into an
agreement to participate in The Plan on and after that date.
B.
Date the Plan Goes into
Operation. The Plan will be put into operation as of July 1 immediately
following the date when:
(1) The number of
local districts that have entered into agreements for participation in The Plan
with an election of regular service retirement benefits for their employees
exceeds 3% of the districts which as of that date are participating in the
Retirement System in regular service retirement benefit plans;
(2) The number of local districts that have
entered into agreements for participation in The Plan with an election of
special service retirement benefits for their employees exceeds 3% of the
districts which as of that date are participating in the Retirement System
special service retirement benefit plans; and
(3) In each instance the total number of
members employed by districts that have entered agreements exceeds 5% of the
total of all participating local district members in each category as of that
date.
C.
Date of
Participation. The date of participation in The Plan for a participating
local district is the first day of the month that most immediately follows the
date on which the agreement for participation is signed by the Executive
Director and the authorized representative of the participating local district
or such later date stated in the agreement or amendment, unless The Plan is not
then in operation, in which case, the date of participation is the date on
which The Plan goes into operation.
4.
Full Withdrawal from The
Plan. A participating local district may fully withdraw from
participation in The Plan by filing with the Board of Trustees a duly certified
copy of the withdrawal vote of the body entitled to approve participation under
5 M.R.S. §18804, sub-§1 or
2. The withdrawal date is the later of
the last day of the month following the month in which the certified notice is
received by the Board or the last day of a later month specified in the notice.
The effect of withdrawal on the district's employees is governed by 5 M.R.S.
§18254,
sub-§1 through
4.
1. A participating local district that
withdraws from participation in The Plan must continue to make payments as
required under Section
5, subsection
2.
2. Additionally, the withdrawing
participating local district must make a withdrawal liability payment
determined as follows:
(1) The System's
actuary will calculate the pooled unfunded actuarial liability of The Plan as
of the most recent valuation date that precedes the withdrawal date. The
actuary will allocate a portion of the pooled unfunded actuarial liability to
the withdrawing participating local district on the basis of the proportion of
the withdrawing participating local district's total covered payroll to the
total covered payroll of The Plan as of the valuation date.
(2) Unless otherwise agreed under
subparagraph 3, the actuary will subtract from the withdrawing participating
local district's portion calculated under subparagraph 1 the present value, as
of the withdrawal date, of pooled unfunded actuarial liability payments the
participating local district has made since the valuation and pooled unfunded
actuarial liability payments the participating local district is expected to
pay through the payment of employer contributions after withdrawal on those
employees who remain active members. The difference is the withdrawal liability
payment amount.
(3) As an
alternative to subparagraph 2, the Executive Director and the withdrawing
participating local district may agree that the withdrawal liability payment
amount is the withdrawing participating local district's portion as calculated
under subparagraph 1, reduced only by the present value, as of the withdrawal
date, of any pooled unfunded actuarial liability payments the participating
local district has made since the valuation. In that case, the withdrawing
participating local district's obligations under paragraph A do not include
payments under Section
5, subsection
2, paragraph C.
(4) The withdrawing participating local
district may pay this withdrawal liability amount in a lump sum or amortize it
over a period of up to 30 years at the actuarial assumed rate of return used in
the most recent valuation that precedes the withdrawal date.
3. The withdrawing participating
local district remains a participating local district subject to this rule
until it has no remaining active members and all of its liabilities for
inactive vested members, retired members and beneficiaries of retired members
have been satisfied according to the requirements of federal and state law, and
rules and policies governing satisfaction of liabilities.
4-1.
Partial Withdrawal from The
Plan. For purposes of this subsection, a partial withdrawal occurs when
a participating local district elects a change under subsection
7 that excludes a category of
employees from membership who would have been eligible for membership absent
the change. In the case of a partial withdrawal, the participating local
district must make a withdrawal liability payment calculated and paid in the
same manner as set forth in subsection
4, paragraph B, except that the
portion of The Plan's pooled unfunded actuarial liability that will be
allocated to the partially-withdrawing participating local district will be
based on the proportion of the district's covered payroll for that category of
employees to the total covered payroll of The Plan as of the valuation
date.
5.
Resumption of
Participation after Withdrawal. A participating local district that has
withdrawn from The Plan under subsection
1, paragraph C or subsection
4 may resume participation in The
Plan by taking the actions required by subsection
2.
A. A participating local district which has
resumed participation and which thereafter again withdraws may not subsequently
again resume participation before 3 years from the date of its immediately
prior withdrawal.
B. A local
district may resume participation only under the consolidated plan. The
retirement benefit plan adopted by the local district on resumption is
applicable to all current and future employees who are members if the plan
results in a higher level of benefits for the district's employees. The plan
adopted on resumption is applicable only to new employees if the plan results
in a lower level of benefits for the district's employees or results in a
change from a plan with cost of living adjustments to a plan without cost of
living adjustments.
C.
Effect
on employees. Except as set forth below in this paragraph C, employees
of a local district which resumes participation in the Retirement System are
eligible for membership in the System on the same basis as employees of a local
district upon initial participation.
(1)
Employees who did not withdraw from membership when the local district withdrew
from participation in the System may continue membership on the same basis as
before the resumption of participation and are entitled to any additional
benefit provisions selected and any increase in the level of benefits provided
under The Plan.
(2) Employees for
whom membership was compulsory who withdrew from membership when the local
district withdrew from participation in the System must resume membership in
the System if membership with the local district remains compulsory upon the
resumption of participation by the local district.
(a) These employees may receive service
credits for previous membership service upon repayment of withdrawn accumulated
contributions and applicable interest.
(b) These employees may not purchase service
credits for periods of employment between withdrawal from membership and
resumption of participation by the local district.
(3) Employees for whom membership was not
compulsory and who elected not to become or remain a member may not be a member
as an employee of that local district unless the employee is electing to rejoin
The Plan and:
(a) The employee is covered by a
plan provided by the employer under section
5 M.R.S. §18252-B with an employee
contribution rate that is not lower than the employee contribution rate for the
applicable plan under The Plan; and
(b) Employee contributions after rejoining
The Plan qualify for treatment as pick-up contributions for federal tax
purposes and the person's membership otherwise complies with the United States
Internal Revenue Code as applicable to governmental qualified defined benefit
plans.
(4) The
participating local district may allow current employees who began service with
the district after the district withdrew from participation to purchase service
credits for service rendered from the time of hire to the resumption of
participation. The purchase of such service credits is governed by 5 M.R.S.
§18253,
sub-§2, paragraphs A and B.
(5) If the district grants prior service
credits, those service credits shall be based only upon the employee's
employment with the district before the district's initial date of
participation.
6.
Disbanded or Dissolved
Districts. The effect of the disbanding or dissolution of a district
that participates in The Plan on the membership and benefits of its employees
is governed by 5 M.R.S. §18255 and §18408.
7.
Change of Service Retirement Benefit
Plan or Plans. After beginning participation in The Plan, a
participating local district may elect to change the service retirement benefit
plan or plans which apply to the district's employees by following the same
process set forth in Section
2 for participation in The Plan. The
change is applicable to all current and future employees who are members, if
the change results in a higher level of benefits for the district's employees.
The change is applicable to new employees only, if the change results in a
lower level of benefits for the district's employees or results in a change
from a plan with cost of living adjustments to a plan without cost of living
adjustments.
The Executive Director shall prepare either a new agreement
or an amendment to the district's agreement which will be signed by the
authorized representative of the district and the Executive Director. The
effective date of the change is the first day of the month that most
immediately follows the date the new agreement or amendment to the agreement is
signed by the authorized representative of the district and the Executive
Director or such later date stated in the agreement or
amendment.
