Maine Revised Statutes Title 5 Sec. 18530 – Reduction in amount of benefit
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1. Definition. As used in this section, unless the context otherwise indicates, “adjusted final compensation” means the rate of pay of the person immediately before termination and becoming the recipient of a disability retirement benefit adjusted by the same percentage adjustment as has been received under section 18407.
[PL 1989, c. 409, §§11, 12 (NEW).]
Terms Used In Maine Revised Statutes Title 5 Sec. 18530
- accumulated contributions: includes as much of the employer's contribution in the Retirement Allowance Fund as is needed to reach 7. See Maine Revised Statutes Title 5 Sec. 17001
- Actuarial equivalent: means an amount of equal value when computed at the discount rate contained in actuarial assumptions adopted by the board. See Maine Revised Statutes Title 5 Sec. 17001
- Average final compensation: means :
A. See Maine Revised Statutes Title 5 Sec. 17001Benefit: means any payment made, or required to be made, to a beneficiary under chapter 423, subchapter V or chapter 425, subchapter V. See Maine Revised Statutes Title 5 Sec. 17001 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 Chief executive officer: means the Chief Executive Officer of the Maine Public Employees Retirement System. See Maine Revised Statutes Title 5 Sec. 17001 Creditable service: means a person's membership service, the person's prior service and service for which credit is allowable under sections 17755 and 17756; section 17760, subsection 3; section 18258; sections 18355 and 18356; and section 18360, subsection 2. See Maine Revised Statutes Title 5 Sec. 17001 Disabled: means that the member is mentally or physically incapacitated under the following conditions:
A. See Maine Revised Statutes Title 5 Sec. 18521Earnable 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; and
(4) Pick-up contributions. See Maine Revised Statutes Title 5 Sec. 17001Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts Local district: means :
A. See Maine Revised Statutes Title 5 Sec. 17001Member: 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 Month: means a calendar month. See Maine Revised Statutes Title 1 Sec. 72 Retirement: means termination of membership with a retirement allowance granted under this chapter. See Maine Revised Statutes Title 5 Sec. 17001 Retirement benefit: means the same as retirement allowance. See Maine Revised Statutes Title 5 Sec. 17001 Retirement system: means the Maine Public Employees Retirement System. 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 Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims. United States: includes territories and the District of Columbia. See Maine Revised Statutes Title 1 Sec. 72 Year: means a calendar year, unless otherwise expressed. See Maine Revised Statutes Title 1 Sec. 72
2. Compensation from employment not covered by this article. If any person who is the recipient of a disability retirement benefit receives compensation in any year from engaging in any gainful activity or from employment with an employer whose employees are not covered by this article or chapter 423, subchapter 5, article 3?A, which exceeds $20,000, increased by the same percentage adjustments as are granted under section 18407, or the difference between the person’s disability retirement benefit for that year and the person’s average final compensation at the time that the person became a recipient of a disability retirement benefit, increased by the same percentage adjustments as have been granted by section 18407, whichever is greater:
A. The excess must be deducted from the disability or service retirement benefits during the next calendar year; the deductions to be prorated on a monthly basis in an equitable manner prescribed by the board over the year or part of the year for which the benefits are received; [PL 2001, c. 443, §4 (AMD); PL 2001, c. 443, §7 (AFF).]
B. The person shall reimburse the retirement system for any excess payments not deducted under paragraph A. If the retirement benefit payments are eliminated by this subsection, the disability is deemed to no longer exist, the payment of the disability retirement benefit must be discontinued and, except as provided in paragraph C, all of the person’s rights to benefits under this article cease; [PL 2001, c. 443, §4 (AMD); PL 2001, c. 443, §7 (AFF).]
C. If, during the first 5 years of reemployment, the person again becomes disabled, terminates employment and is not covered by any other disability program, the retirement system shall resume paying the disability retirement benefit payable prior to the reemployment with all applicable cost-of-living adjustments and shall provide rehabilitation services in accordance with section 18527. If the benefit payable under the other disability program is not equal to or greater than the benefit under this article, the retirement system shall pay the difference between the amount of the benefit payable under the other disability program and the amount of the benefit payable under this article. The chief executive officer shall require examinations or tests to determine whether the person is disabled as described in section 18521; and [PL 2021, c. 277, §39 (AMD); PL 2021, c. 548, §45 (REV).]
D. At any time before the elimination of disability retirement benefit payments by this subsection, the person may request that benefit payments be terminated and the chief executive officer shall terminate benefit payments at the end of the month in which the request is received. [PL 1989, c. 409, §§11, 12 (NEW); PL 2021, c. 548, §45 (REV).]
[PL 2021, c. 277, §39 (AMD); PL 2021, c. 548, §45 (REV).]
3. Compensation from employment covered by this article. If any person who is the recipient of a disability retirement benefit is reemployed by that person’s prior employer or any other employer whose employees are covered by this article or chapter 423, subchapter V, article 3?A, and if the total of the person’s disability benefit for any year and the person’s total earnable compensation for that year exceeds the adjusted final compensation:
A. The disability or service retirement benefits will be reduced during the next calendar year by the amount that the total compensation exceeds the adjusted final compensation; [PL 1989, c. 409, §§11, 12 (NEW).]
B. The deductions shall be prorated on a monthly basis in an equitable manner prescribed by the board over the year or part of the year during which the benefits are received; [PL 1989, c. 409, §§11, 12 (NEW).]
C. The person shall reimburse the retirement system for any excess payments not deducted under paragraph A; [PL 1989, c. 409, §§11, 12 (NEW).]
D. If the retirement benefit payments are eliminated by this subsection:
(1) The person again becomes a member of the Participating Local District Retirement Program and begins contributing at the current rate; and
(2) When the person again retires, the person must receive benefits computed on the basis of that person’s entire creditable service and in accordance with the law in effect at that time; [PL 2007, c. 491, §247 (AMD).]
E. If, during the first 5 years of reemployment, the person again becomes disabled and terminates employment, the retirement system shall resume paying the disability retirement benefit payable prior to the reemployment with all applicable cost-of-living adjustments, or if greater, a disability retirement benefit based upon the person’s current average final compensation and shall provide rehabilitation services in accordance with section 18527. The chief executive officer shall require examinations or tests to determine whether the person is disabled as defined in section 18521; and [PL 2021, c. 277, §40 (AMD); PL 2021, c. 548, §45 (REV).]
F. At any time before the elimination of disability retirement benefit payments by this subsection, the person may request that benefit payments be terminated and the chief executive officer shall terminate benefit payments at the end of the month in which the request is received. [PL 1989, c. 409, §§11, 12 (NEW); PL 2021, c. 548, §45 (REV).]
[PL 2021, c. 277, §40 (AMD); PL 2021, c. 548, §45 (REV).]
4. Disability payments under other laws. The reduction of disability retirement benefits because of disability benefits received under other laws is governed as follows.
A. The amount of any disability retirement benefit payable under this article must be reduced by any amount received by the person for the same disability under either or both of the following:
(1) The workers’ compensation or similar laws, except amounts that may be paid or payable under former Title 39, section 56?B or Title 39?A, section 212, subsection 3; or
(2) The United States Social Security Act, if the employment for which creditable service with the employer is allowed was also covered under that Act at the date of disability retirement. [PL 1991, c. 885, Pt. E, §15 (AMD); PL 1991, c. 885, Pt. E, §47 (AFF).]
B. The reduction in the disability retirement benefit is governed as follows:
(1) The initial disability retirement benefit must be reduced if necessary so that the benefit plus any benefits under paragraph A do not exceed 80% of the person’s average annual earnings. For the purposes of this subparagraph, “average annual earnings” means the total of the person’s average final compensation plus other wages and earnings from employment for the calendar year in which the person has the highest total of other wages and earnings from employment during the 5 years immediately preceding the year in which the person became disabled;
(2) The amount determined by the calculation under subparagraph (1) shall not be adjusted when cost-of-living adjustments are applied to the benefits listed under paragraph A; and
(3) Adjustments under section 18407 shall be applied to the reduced disability retirement benefit calculated under subparagraph (1) or paragraph C. [PL 2003, c. 328, §1 (AMD).]
C. The disability retirement benefit may not be reduced below the amount of the retirement benefit which is the actuarial equivalent of the member’s accumulated contributions at the time of retirement. [PL 1989, c. 409, §§11, 12 (NEW).]
D. Lump-sum settlements of benefits that reduce the disability retirement benefit under this subsection must be prorated on a monthly basis in an equitable manner prescribed by the board.
(1) These prorated lump-sum settlements may not include any part of the lump-sum settlement attributable to rehabilitation, attorneys’, physicians’, nurses’, hospital, medical, surgical or related fees or charges or any amount paid or payable under former Title 39, section 56?B or Title 39?A, section 212, subsection 3.
(2) These prorated lump-sum settlements must reduce the disability retirement benefit in the same manner and amount as monthly benefits under this subsection. [PL 1991, c. 885, Pt. E, §15 (AMD); PL 1991, c. 885, Pt. E, §47 (AFF).]
E. Any dispute about amounts paid or payable under workers’ compensation or the amount of the lump-sum settlement and its attributions must be determined on petition by a single member of the Workers’ Compensation Board in accordance with Title 39?A. These determinations may be appealed under Title 39?A, section 322. [PL 1991, c. 885, Pt. E, §15 (AMD); PL 1991, c. 885, Pt. E, §47 (AFF).]
[PL 2003, c. 328, §1 (AMD).]
SECTION HISTORY
PL 1989, c. 409, §§11,12 (NEW). PL 1991, c. 885, §E15 (AMD). PL 1991, c. 885, §E47 (AFF). PL 2001, c. 443, §4 (AMD). PL 2001, c. 443, §7 (AFF). PL 2003, c. 328, §1 (AMD). PL 2007, c. 491, §247 (AMD). PL 2013, c. 391, §16 (AMD). PL 2021, c. 277, §§39, 40 (AMD). PL 2021, c. 548, §45 (REV).