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An Act To Amend the Laws Governing Participating Local Districts in the Maine Public Employees Retirement System
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 5 MRSA §17103, sub-§6, as amended by PL 2009, c. 322, §2, is further amended to read:
 
6. Rights, credits and privileges; decisions.   The board shall in all cases make the final and determining administrative decision in all matters affecting the rights, credits and privileges of all members of all programs of the retirement system whether in participating local districts or in the state service. The board has no jurisdiction to hear a matter or make an administrative decision regarding a claim of an employee of a local plan for which membership is optional pursuant to section 18252, if that claim applies to a time when the employee was not a member of the retirement system.
 
Whenever the board finds that, because of an error or omission on the part of the employer of a member or retired member, a member or retired member is required to make a payment or payments to the retirement system, the board may waive payment of all or part of the amount due from the member or retired member. In these instances of recovery of overpayments from members of the retirement system, the retirement system is governed by section 17054, subsection 3.
Sec. 2. 5 MRSA §18201, sub-§3, as amended by PL 1991, c. 619, §11 and affected by §18, is further amended to read:
 
3. Exempt employees.   The local district shall designate in its approval any class of employees that the district determines to be exempt from this Part. If the local district enters into an agreement with an employee or class of employees previously eligible for participation in the plan and the agreement provides for an alternative retirement plan, the employees subject to the agreement are governed by that agreement with respect to all issues related to plan participation, including but not limited to eligibility, enrollment, terms of participation, plan selection and funding. For the purposes of this subsection, "agreement" includes any personnel policies, governing ordinance or other legislation, labor agreements, individual employment agreements or any other determination made by the district with respect to the terms of the employees' employment.
Sec. 3.  5 MRSA §18201, sub-§§5 and 6  are enacted to read:
 
5.  Limitations on claims for participation.     If an employee claims that employee was not offered participation in the plan at the commencement of or during the course of employment with the local district, that employee may not request eligibility for retirement benefits under the plan for any dates of service earlier than 6 years prior to the date on which the claim for eligibility for retirement benefits was first made to the retirement system in writing.
 
6.  Participation in other retirement plans.     If an employee requests retroactive participation in the plan, and during the time for which these retroactive retirement benefits are sought the local district offered and the employee participated in another retirement plan, upon that election by the employee all contributions made to the alternative plan by the employer and a pro rata share of interest earned on those contributions must be paid to the retirement system, up to the amount that the employer is required by the retirement system to pay to fund retroactive benefits under the plan.
Sec. 4. 5 MRSA §18804, sub-§3, as enacted by PL 1989, c. 811, §3, is amended to read:
 
3. Excluded employees.   The local district shall designate in its approval any class of employees otherwise provided for by local pension provisions who are excluded from membership in the plan established under this chapter. If the local district enters into an agreement with an employee or class of employees previously eligible for participation in the plan and the agreement provides for an alternative retirement plan, the employees subject to the agreement will be governed by that agreement with respect to all issues related to plan participation, including but not limited to eligibility, enrollment, terms of participation, plan selection and funding. For the purposes of this subsection, "agreement" includes any personnel policies, governing ordinance or other legislation, labor agreements, individual employment agreements or any other determination made by the district with respect to the terms of the employees' employment.
Sec. 5.  5 MRSA §18804, sub-§§5 and 6  are enacted to read:
 
5.  Limitations on claims for participation.     If an employee claims that employee was not offered participation in the plan at the commencement of or during the course of employment with the local district, that employee may not request eligibility for retirement benefits under the plan for any dates of service earlier than 6 years prior to the date on which the claim for eligibility for retirement benefits was first made to the retirement system in writing
 
6.  Participation in other retirement plans.     If an employee requests retroactive participation in the plan, and during the time for which these retroactive retirement benefits are sought the local district offered and the employee participated in another retirement plan, upon that election by the employee all contributions made to the alternative plan by the employer and a pro rata share of interest earned on those contributions must be paid to the retirement system, up to the amount that the employer is required by the retirement system to pay to fund retroactive benefits under the plan.
 
SUMMARY
This bill restricts the jurisdiction of the Board of Trustees of the Maine Public Employees Retirement System in making final and determining administrative decisions regarding claims of certain participating local district employees. This bill also makes changes to the laws governing participation and claims for prior service credit for certain participating local district employees.