Proposed budget amendment regarding teacher retirement funds

Budget bill amendment to Sec. 1. 20-A MRSA 15689-A; Part KKK-3; and Part A, as proposed by Representative Millet and drafted on May 13, 2009.

This amendment does the following...

1) It transfers funding for the portion of the normal cost and unfunded actuarial liability for teacher retirement related to active teachers from the Teacher Retirement program within the Department of Education to the General Purpose Aid for Local Schools program.

2) It establishes the Teacher Retirement -- Normal Cost Component and the Teacher Retirement -- Unfunded Actuarial Liability as miscellaneous costs within the General Purpose Aid for Local Schools program in fiscal year 2010-11 and requires that the funds must be allocated to the Maine Public Employees Retirement System. It also provides that, not withstanding any other provision of law, the Department shall not include those subsections in the calculation of the total state and local cost of essential programs and services.

3) It requires the Commission to Recommend Streamlining of State Government Programs and Service Delivery to determine, as part of its duties, which portion, if any, of the employer's share of teacher retirement costs, including the normal cost component and the unfunded actuarial liability, should be included as part of the total state and local cost of essential programs and services and which portion, if any, should be funded through the Teacher Retirement program account within the Department of Education.