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Bureau of Human Resources
March 21, 2002



TO: All Employees, Agency Department Heads, Human Resource Representatives
SUBJECT: Amendment to HR Memorandum 7-01: Implementation of Public Law 2001, Chapter 442 - An Act
to Expand Retirement Benefits for State Employees and Teachers Returning to Service


The purpose of this memorandum is to expand upon HR Memorandum 7-01 with respect to the reemployment of retired employees who return to certain unclassified positions that would otherwise be eligible for the "5% Retirement Option." (See page 2) There are no other changes to the original memorandum.

PL 2001, Ch. 442 provides a significant change with respect to retired employees who are rehired to State employment. The practical effect of this legislation is that a retired State employee may return to State service without a deduction (or proration, often referred to as the "earnings limitation") to his or her service retirement benefit. The effective date of these changes is September 21, 2001.

It is important to emphasize that this legislation primarily affects the relationship of future earnings from State employment to a retired employee's service retirement benefit by doing three things:

This legislation does not provide re-employment rights to a previous position or other benefits beyond the removal of the retirement "earnings limitation." It is not a retirement incentive program and has no impact on the Civil Service Law, the provisions of State of Maine Civil Service Rules, or the bargaining agreements with respect to re-employment, the filling of vacancies, seniority, or other applicable employment situations.

Termination for purposes of retirement is a break in service. Consequently, if a retired employee is re-employed he or she (representative examples only):

Continuation of the "5% Retirement Option" for certain unclassified positions is not authorized in this employment situation.

A retired employee cannot be re-employed prior to his or her retirement date. For example, if an employee terminated to retire effective September 7 with an October 1 retirement date, he or she could not be re-employed before the October 1 retirement date.

Questions pertaining strictly to retirement should be directed to the Maine State Retirement System.

S/ Donald A. Wills
Donald A. Wills, Director
Bureau of Human Resources