Maine Revised Statutes Title 5 Sec. 18301 – Member contribution
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Each member shall contribute to the Participating Local District Retirement Program or have pick-up contributions made by the employer at a rate of 6.5% of earnable compensation, except as otherwise provided in this Part. [PL 2007, c. 491, §210 (AMD).]
1. Employer pick-up. The contributions required to be made on behalf of a member under this section shall, after the effective date of this section, be picked up by the employer in lieu of contributions by the employee with a reduction of the member’s salary consistent with section 17001, subsection 28?A.
[PL 1987, c. 739, §§33, 48 (NEW).]
Terms Used In Maine Revised Statutes Title 5 Sec. 18301
- Board: means the board of trustees, established under section 12004?F, subsection 9, to administer the Maine Public Employees Retirement System. See Maine Revised Statutes Title 5 Sec. 17001
- Code: means the United States Internal Revenue Code of 1986, as amended. See Maine Revised Statutes Title 5 Sec. 17001
- Earnable compensation: includes : (1) Workers' compensation benefits;(2) Maintenance, if any;(3) Any money paid by an employer to a 3rd party under a tax sheltered annuity contract or a deferred compensation plan for the future benefit of an employee provided that the money is not derived from amounts excluded from earnable compensation by paragraph B; andA. See Maine Revised Statutes Title 5 Sec. 17001
- Local district: means :
A. See Maine Revised Statutes Title 5 Sec. 17001- Member: means any person included in the membership of a retirement program of the retirement system, as provided in chapter 423, subchapter 2, or chapter 425, subchapter 2. See Maine Revised Statutes Title 5 Sec. 17001
- Participating local district: means a local district that has approved the participation of its employees in the Participating Local District Retirement Program of the retirement system under section 18201. See Maine Revised Statutes Title 5 Sec. 17001
- Pick-up contributions: means member contributions to the retirement system which are assumed and paid by the employer through a reduction of members' salaries for services rendered, in accordance with the United States Internal Revenue Code, Section 414(h), in lieu of employee contributions. See Maine Revised Statutes Title 5 Sec. 17001
- Retirement: means termination of membership with a retirement allowance granted under this chapter. See Maine Revised Statutes Title 5 Sec. 17001
- Service: means service as an employee for which compensation was paid. See Maine Revised Statutes Title 5 Sec. 17001
- Service credit: means credit received for creditable service as defined under subsection 10. See Maine Revised Statutes Title 5 Sec. 17001
- United States: includes territories and the District of Columbia. See Maine Revised Statutes Title 1 Sec. 72
2. No employee option. The employee may not choose to receive pick-up contribution amounts directly instead of having them paid by the employer to the Participating Local District Retirement Program.[PL 2007, c. 491, §211 (AMD).]
3. Treatment of pick-up contributions. Pick-up contributions shall be treated as follows.A. Pick-up contributions shall be treated as the employer’s contribution in determining tax treatment under the United States Internal Revenue Code for federal tax purposes, pursuant to the United States Code, title 26, § 414(h)(2). [PL 1987, c. 739, §§33, 48 (NEW).]B. For all other purposes, pick-up contributions shall be treated in the same manner and to the same extent as member contributions were treated before the effective date of this section. [PL 1987, c. 739, §§33, 48 (NEW).][PL 1987, c. 739, §§33, 48 (NEW).]
4. Payment of contributions for back time; repayment of refunds; purchase of service credit. Wherever under this chapter provision is made for payment of contributions for back time, repayment of refunds or purchase of service credit through annual direct payments, those payments may be made either by a single annual payment or by an increased rate of contribution through payroll deduction. For payments or repayments made by single annual payments, the board shall designate, by rule, a period of not less than 30 days during which annual direct payments or repayments may be made. Regardless of whether payment or repayment is made by a single annual payment or by payroll deduction, the payment or deduction must be sufficient to cover interest costs and effect some reduction in principal.[PL 1999, c. 537, §2 (RPR); PL 1999, c. 537, §3 (AFF).]
5. Member contributions to Participating Local District Consolidated Retirement Plan. The board may establish by rule the rate at which members who participate in the consolidated plan described in chapter 427 contribute to that plan. Rules established pursuant to this subsection are routine technical rules pursuant to chapter 375, subchapter 2?A.[PL 2013, c. 391, §1 (NEW).]
SECTION HISTORYPL 1985, c. 801, §§5,7 (NEW). PL 1987, c. 739, §§33,48 (AMD). PL 1989, c. 710, §14 (AMD). PL 1999, c. 537, §2 (AMD). PL 1999, c. 537, §3 (AFF). PL 2007, c. 491, §§210, 211 (AMD). PL 2013, c. 391, §1 (AMD).