Code of Maine Rules
94 - INDEPENDENT AGENCIES
411 - MAINE PUBLIC EMPLOYEES RETIREMENT SYSTEM (MAINEPERS)
Chapter 803 - PARTICIPATING LOCAL DISTRICT CONSOLIDATED RETIREMENT PLAN
Section 411-803-5 - CONTRIBUTIONS
Universal Citation: 94 ME Code Rules ยง 411-803-5
Current through 2024-38, September 18, 2024
1. Member contributions
A.
Active Member. Each member
under The Plan shall contribute to the Retirement System or have pick-up
contributions made by the employer at a rate provided by Sections
7,
8, and
9. The contribution rate for a member
is the rate assigned to the retirement benefit plan under which the member is
accruing service credits.
B.
Former Members; Service under The Plan. Any former member who,
after having terminated service while a member under The Plan and having
withdrawn accumulated contributions, again becomes a member under The Plan may
repay the withdrawn contributions to the Members' Contribution Fund under the
following conditions:
(1)
Time.
The repayment must be made before the date any retirement benefit becomes
effective for the member.
(2)
Manner of Repayment. The repayment must be made to the Retirement
System consistent with Chapter 406 (94-411 CMR 406) of the rules of the
Board.
(3)
Amount of
Repayment. The amount of repayment must be equal to the withdrawn
accumulated contributions plus interest on the amount of those accumulated
contributions, beginning on the date of withdrawal to the date the repayment or
repayments are made, at a rate to be set by the Board not to exceed regular
interest by 5 or more percentage points.
(4)
Credit under The Plan.
Except as provided in paragraph C, only withdrawn contributions relating to
creditable service under The Plan may be repaid for service credit under The
Plan.
C.
Service
Not under The Plan
(1)
Withdrawn
Contributions
(a) Any member who had
service while not a member under The Plan and having withdrawn contributions
relating to that service may repay the withdrawn contributions to the Members
Contribution Fund under the conditions specified in paragraph B, subparagraphs
1 to 3. Creditable service related to these repaid contributions is used in
determining eligibility to retire under the applicable regular service
retirement benefit plan under Section
7. Benefits for that service are
calculated based on that service and on earnable compensation related to that
service in accordance with applicable provisions of 5 M.R.S., Part
2 0 in effect with respect to the
previous employer's regular service retirement plan immediately before that
employer's employees became members under The Plan. The additional liability
relating to the service credits granted under this division becomes part of the
previous employer's unpooled unfunded actuarial liability as provided in
subsection 2, paragraph A, subparagraph 2.
(b) Any member who had service while not a
member under The Plan and having withdrawn contributions relating to that
service may repay the withdrawn contributions to the Members Contribution Fund
under the conditions specified in paragraph B, subparagraphs 1 to 3. Creditable
service related to these repaid contributions is used in determining that a
member is qualified to retire and in the computation of retirement benefit
under the applicable service retirement benefit plan under Section
7 or Section
8. Unless the service was with the
same employer that is the member's employer at the time the contributions are
repaid, the contributions provided for under this subparagraph may be repaid
only after the participating local district that is the member's employer at
the time the contributions are repaid agrees to assume the additional liability
incurred as part of the district's unpooled unfunded actuarial liability as
provided in subsection
2, paragraph A, subparagraph
2.
(2)
Non-member
Service
(a) Subject to the personnel
rules or policies of the member's employer at the time of the service; provided
the member has continued to be employed by that employer; and subject to 5
M.R.S. §18305- B, a member who had
service as an employee of a participating local district for which
contributions were not made may receive service credit for that service upon
paying the appropriate contributions to the Members Contribution Fund under the
conditions specified in paragraph B, subparagraphs 2 and 3. Creditable service
related to these contributions is used in determining that a member is
qualified to retire and in the computation of retirement benefit under the
applicable service retirement benefit plan under Section
7 or Section
8. The additional liability relating
to the service credits granted under this division becomes part of the
district's unpooled unfunded actuarial liability as provided in subsection
2, paragraph A, subparagraph
2.
(b) Subject to 5 M.R.S. §18305- B, a member who had
service as an employee of any participating local district for which
contributions were not made may receive service credit for that service upon
paying the appropriate contributions to the Members Contribution Fund under the
conditions specified in paragraph B, subparagraphs 2 and 3. Creditable service
related to these contributions is used in determining that a member is
qualified to retire and in the computation of retirement benefit under the
applicable service retirement benefit plan under Section
7 or Section
8. The contributions provided for
under this subparagraph may be made only after the participating local district
that is the member's employer at the time the contributions are made and the
service credits are granted agrees to assume the additional liability incurred
as part of the district's unpooled unfunded actuarial liability as provided in
subsection
2, paragraph A, subparagraph
2.
D.
Optional Members with non-member service. The purchase of service
credit for a member for whom membership is optional under Section
3, subsection
2 who had service as an employee of a
participating local district for which contributions were not made is governed
by 5 M.R.S. §18305- B, provided that the
member has continued to be employed by the same employer as that during which
no contributions were paid.
E.
Former Member; Withdrawal by Employees Not Covered by Social
Security. In addition to paragraphs B and C, the repayment of contributions
that were withdrawn by a member who is an employee of a participating local
district that is not covered under a Social Security Section
218 agreement but that has a plan
that meets the requirements of 5 M.R.S. §18252-B is subject to the
provisions of 5 M.R.S. §18252-A as amended by
PL
2021, c. 90.
F.
Service in the Armed Forces before
Becoming a Member. A member who qualifies under Section
6, subsection
4, paragraph B, sub-paragraphs 1
through 4, shall contribute to the Retirement System for the period of service
in the Armed Forces under the following terms and conditions:
(1) Contributions are calculated at the
percentage rate required of active members during the period of time covered by
the service in the Armed Forces applied to the member's earnable compensation
during the first year as an employee subsequent to service in the Armed Forces
under the following terms and conditions:
(a)
The payment may not be made until the member has accumulated at least 15 years
of creditable service and must be made before the date any retirement benefit
becomes effective for the member;
(b) If 2 or more percentage rates were in
effect during the period of service in the Armed Forces, the highest percentage
rate is used;
(c) The minimum rate
is 5%; and
(d) Interest at a rate
set by the board not to exceed regular interest by 2 or more percentage points
is paid on the unpaid balance beginning January 1, 1976, or the date of
attaining 15 years of creditable service, if later, to the date payment is
made.
(2)
Manner
of Repayment. The repayment must be made to the Retirement System
consistent with Chapter 406 (94-411 CMR 406) of the rules of the
Board.
G.
Service
in the Armed Forces after Becoming a Member. For members who qualify to
have their membership in the Retirement System continued under Section
3, subsection
5 because of service in the Armed
Forces of the United States, the participating local district shall contribute
to the Members' Contribution Fund the same amount that the member would have
been required to contribute if the member had been serving the district during
the period of service in the Armed Forces in the same capacity in which the
member was serving at the time the member joined the Armed Forces. Any member
whose contributions to the Members' Contribution Fund are paid by the district
under this subsection, who withdraws or ceases to be a member of the Retirement
System, may not withdraw any of the contributions made by the district under
this subsection. Upon receiving written certification and substantiation from
the member's employer that a member has met the requirements of Section
3, subsection
5 and Section
6, subsection
4, paragraph A, the System shall
calculate the member contributions applicable to the period of service in the
Armed Forces. The participating local district by which the member is employed
is responsible for those contributions and will be billed by the
System.
H.
Out-of-state
Service. A member who qualifies under Section
6, subsection
5, must make contributions into the
Members' Contribution Fund for the years of out-of-state service under the
following terms and conditions:
(1)
Contributions are calculated on the same basis as the member would have made
contributions had the service been in the State;
(a) The payment may not be made until the
member has accumulated at least 20 years of creditable service in the
Retirement System and must be made before the date any retirement benefit
becomes effective for the member; and
(b) Interest at a rate, to be set by the
Board, not to exceed regular interest by 5 or more percentage points is paid on
the unpaid balance. Interest shall be computed from the end of the year when
those contributions would have been made, if the service had been in the State,
to the date of payment.
(2)
Manner of Payment. The
payment must be made to the Retirement System consistent with Chapter 406
(94-411 CMR 406) of the rules of the Board.
I.
Refund of Contributions.
Refunds of contributions to members under The Plan are subject to 5 M.R.S.
§§18306-A and
18307- A.
J.
Teachers in Private, Parochial and
Other Schools. A member who qualifies under Section
6, subsection
8, must make contributions into the
Members' Contribution Fund for the years of private, parochial or other school
service under the following terms and conditions:
(1) Contributions are calculated on the same
basis as the member would have made contributions had the service been as a
state employee or teacher in the State. The member's earnings for the years of
private or parochial teaching must be assumed to have been the same as the
average salary for teachers in the State as determined by the Department of
Education for each of the years when the private or parochial school teaching
took place.
(a) The payment may not be made
until the member has accumulated at least 20 years of creditable service in the
Retirement system as a member of the participating local district and must be
made before the date any retirement benefit becomes effective for the
member;
(b) Interest at a rate, to
be set by the Board, not to exceed regular interest by 5 or more percentage
points is paid on the unpaid balance. Interest shall be computed from the end
of the year when those contributions would have been made, if the service had
been as a state employee or teacher in the State, to the date of
payment.
(2)
Manner of Payment. The payment must be made to the Retirement
System consistent with Chapter 406 (94-411 CMR 406) of the rules of the
Board.
K.
Portability of Service. A member who elects under 5 M.R.S. §18253, sub-§1, paragraph E to include all or part
of the creditable service and earnable compensation from a prior plan with
service earned under The Plan may do so under the following terms and
conditions:
(1) Before any retirement benefit
becomes effective for that member, the member must pay into the Members'
Contribution Fund an amount that, together with regular interest on that
amount, is the actuarial equivalent, at the effective date of the retirement
benefit, of the portion of the retirement benefit based on the inclusion of the
prior plan creditable service and earnable compensation with service earned
under The Plan.
(2)
Manner of
Payment. The payment must be made to the Retirement System consistent
with Chapter 406 (94-411 CMR 406) of the rules of the Board.
L.
Back contributions for
certain days off without pay. A member who elects under 5 M.R.S. §18305-C to include compensation
that would have been paid for days off without pay in order to include those
earnings in the calculation of the member's average final compensation as
provided in 5 M.R.S. §17001, sub-§4, paragraph A, may do so under the
following terms and conditions:
(1)
Election. If the retirement system determines at the time a member
retires that the member's benefit would be increased as a result of the
inclusion of compensation that would have been paid for days off without pay,
the retirement system shall advise the member of that result and shall allow
the member to elect to have that compensation included in the calculation of
the member's benefit and to make payments as set forth in subsection
2.
(2)
Payment. The amount that a
member who makes the election permitted in subsection
1 must pay is the amount equal to the
employee contribution that member would have made on compensation that would
have been paid to that member on the days off without pay, plus interest at the
same rate as that required for repayment of withdrawn contributions pursuant to
section 18304. If the
member elects to make the payment, the retirement system shall withhold the
required amount from the member's first retirement benefit check.
(3)
Benefit calculation. If a
member fails to make the election within 31 days of the notification provided
under subsection 1, the retirement system shall calculate the member's
retirement benefit without inclusion of the compensation that would have been
paid for the days off without pay.
M.
Law enforcement service before
becoming a member. A member who qualifies under Section
6, subsection
10 must make contributions into the
Members' Contribution Fund for the period of law enforcement service under the
following terms and conditions:
(1) Before
any retirement benefit becomes effective for that member, the member must pay
into the Members' Contribution Fund an amount that, together with regular
interest on that amount, is the actuarial equivalent, at the effective date of
the retirement benefit, of the portion of the retirement benefit based on the
inclusion of the prior law enforcement service credit with service earned under
The Plan.
(2)
Manner of
Payment. The payment must be made to the Retirement System consistent
with Chapter 406 (94-411 CMR 406) of the rules of the Board.
2. Employer Contributions. Contributions by participating local districts whose employees are members under The Plan are subject to 5 M.R.S. §18303, except that contributions and pickup contributions are to be calculated according to Sections 7, 8, and 9, and the following:
A.
Unpooled Unfunded Actuarial
Liability Contribution. Each participating local district with employees
who are members under The Plan shall make a contribution known as the "Unpooled
Unfunded Actuarial Liability Contribution" based upon:
(1) its Initial Unpooled Unfunded Actuarial
Liability, which is the excess of projected liabilities allocated to future
benefit payments to current recipients of benefits and to current members as of
the date its employees begin participation under The Plan over the sum of the
participating local district's assets on hand as of that date and its future
employer and member normal contributions. The rate for this portion of Unpooled
Unfunded Actuarial Liability Contribution shall be determined by a valuation
made by the System's actuary for each participating local district with
employees who are members under The Plan; and
(2) any adjustments to the Initial Unpooled
Unfunded Actuarial Liability attributable to that district separately. The rate
for this portion of the Unpooled Unfunded Actuarial Liability Contribution
shall be added to or subtracted from the rate determined under a.
(3) if the calculation required by (1) or (2)
above results in a credit balance, the balance may, at the discretion of the
participating local district, be applied as an offset against the monthly
contribution required in an amount no greater than the total amount of the
monthly contribution against which the offset is applied.
B.
Normal Contribution. Each
participating local district with employees who are members under The Plan,
along with those members pursuant to Sections
7,
8, and
9, shall make a contribution known as
a "Normal Contribution" based upon the portion of projected liabilities
attributable to service of all members under the several benefit plans under
The Plan for the year following the valuation. The rate of this contribution
shall be determined annually by a valuation made by the System's actuary based
upon the membership data relating to all members under each benefit plan under
The Plan and in accordance with Sections
7,
8, and
9.
C.
Pooled Unfunded Actuarial Liability
Contribution. Each participating local district with employees who are
members under The Plan, along with those members pursuant to Sections
7,
8, and
9, shall make a contribution known as
the "Pooled Unfunded Actuarial Liability Contribution" based upon the Pooled
Unfunded Actuarial Liability. This liability is equal to the present value of
all projected benefits for current and future members, including employer
contributions related to military service credit under The Plan, less the
present value of future member and employer normal contributions, the assets of
The Plan and the present value of all Unpooled Unfunded Actuarial Liability
contributions. This rate of this contribution shall be determined annually in
accordance with Sections
7,
8, and
9.
D.
Disability Benefit
Contribution. Each participating local district with employees who are
members under The Plan shall make a contribution known as a "disability benefit
contribution" based upon the expected value of future disability benefits to be
paid to those employees, and to employees who are participants in the defined
contribution 401(a) plan under this chapter but who are not members under The
Plan, as a result of disablements occurring during the year following the
valuation date. The rate of this contribution shall be determined annually by a
valuation made by the System's actuary based upon the membership data relating
to all members under each benefit plan under The Plan and participants in the
defined contribution 401(a) plan under this chapter who are not members under
The Plan.
E.
Death Benefit
Contribution. Each participating local district with employees who are
members under The Plan shall make a contribution known as a "death benefit
contribution" based upon the expected value of future death benefits to be paid
to beneficiaries of those employees and to beneficiaries of employees who are
participants in the defined contribution plan under this chapter as a result of
deaths occurring during the year following the valuation date. The rate of this
contribution shall be determined annually by a valuation made by the System's
actuary based upon the membership data relating to all members under each
benefit plan under The Plan and participants in the defined contribution plan
under this chapter.
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