AUGUSTA - Following strong bipartisan votes in the Legislature, Gov. Janet Mills signed a supplemental budget into law Wednesday that includes funding to improve public employees' retirement benefits. Efforts to increase public employees' pensions in the 130th Legislature were spearheaded by Sen. Joseph Rafferty, D-York, the sponsor of LD 1413, and Rep. Jan Dodge, D-Belfast, the sponsor of LD 1227.
The supplemental budget increases public employees' retirement benefits by correcting the cost-of-living adjustment (COLA) to better match the current costs of goods and services. The budget rebases the COLA base, the maximum of retirement income that the yearly COLA increase is calculated on, by 5.4% to $24,129 and provides a 4% increase to retirees retroactive to September 2021. This will provide critical financial support to retired educators, first responders and others who are on the Maine Public Employees Retirement System (MEPERS).
"I was very pleased with how the state budget addressed retired public employees and in particular their retirement plans," said Rafferty. "These folks have served our state well and, to be honest, they do not usually get a fair shake when it comes to their retirement plans. As a retired public school teacher, I know firsthand just how difficult it can be to come up with a good deal for everyone involved, but that is what we have here. I am thankful to everyone involved in the budget process for looking after our public employee retirees."
"This is long overdue," said Dodge. "These are retired teachers who have had their cost-of-living adjustments cut to balance state budgets in the past and who had their pensions reduced through increasing insurance costs. These are folks who fix our roads, protect our communities and support our children. I am grateful to my colleagues and the governor for their support in finally restoring some fiscal stability for those who work so hard for our state."
Maine Secretary of State Shenna Bellows supported the legislation sponsored by Rafferty and Dodge. When Bellows was serving in the Maine Senate in the 129th Legislature, she sponsored a bill to improve public employees pensions that was passed by the Legislature but did not receive funding.
"Teachers, first responders and other public sector workers do their jobs for the love of their community, but unfortunately that means they're often at a financial disadvantage compared to their private sector peers," said Bellows. "Advocating for fairness for these hardworking, caring Mainers was a priority of mine as a legislator, and I'm glad to see the cost of living adjustment for public sector retirees included in this years budget. Delivering on the COLA adjustment helps us with recruitment and retention of current workers, so Mainers can be well-served by todays public sector workers."
Rafferty is the Senate chair of the Education and Financial Affairs Committee and is serving his first term in the Maine Senate. He represents Acton, Kennebunk, Lebanon, North Berwick, Wells and part of Berwick.
Dodge, a member of the Education and Cultural Affairs Committee, is serving her second term in the Maine House and represents Belfast, Northport and Waldo.
Contact:
Jackie Merrill [Dodge], c. 812-1111
Lisa Haberzettl [Rafferty], c. 251-3548