As of January 7, 2008

TEACHER RETIREMENT – responsibility for remitting employer contributions

  Please refer to the Maine State Retirement System Laws:

 

Title 5 – Administrative Procedures and Services; Part 20:  State Retirement System; Chapter 421. General Provisions; Subchapter I, Definitions

 

§17154. Administration of funds

 

Paragraph 6, Subparagraphs B and E:

 

6. Payment of employer charges for teachers. For teachers, percentage rates to be predetermined by the actuary and approved by the board shall be applied to the total earnable compensation of members covering the most recent school year preceding the preparation of the biennial budget.  

B. Notwithstanding this section, the employer retirement costs related to the retirement system applicable to those teachers whose funding is provided from federal grants or through federal reimbursement shall be paid by local school systems from those federal funds.  [1985, c. 801, §§5, 7 (new).]  

E. Notwithstanding this section, the employer retirement costs related to the retirement system applicable to those teachers whose funding is provided directly or through reimbursement from private or public grants must be paid by local school systems from those funds. "Public grants" does not include state or local funds provided to school administrative units under Title 20-A, chapters 315 and 606-B.  [2003, c. 504, Pt. B, §1 (amd).2005, c. 2, Pt. D, §1 (amd.)]

 

The only State funds exempt from paying the employers’ share of retirement are funds that fall under 20-A M.R.S.A. Chapter 315 (Adult Education) and  Chapter 606-B Essential Programs & Services Funding Act:

 

Chapter 606-B – Essential Programs & Services Funding Act – includes :

 

General Purpose Aid State subsidy – including State contribution and adjustments & miscellaneous costs*

 

*Currently funded adjustments & miscellaneous costs under 20-A MRSA Sections 15689 and 15689-A include the following:

 

Minimum state allocation

Audit adjustments

Long-term drug treatment adjustment

State agency client and state ward special education cost reimbursement

Maine Learning Results Implementation, assessment

Regionalization, consolidation and efficiency assistance

Minimum Teacher Salary Supplement

National Board for Professional Teacher Standards Salary Supplement

 

(Prepared by Suzan C. Beaudoin, School Finance Supervisor, Department of Education – suzan.beaudoin@maine.gov )