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An Act To Allow Members of the State Employee and Teacher Retirement Program To Reapply for Disability Retirement Benefits after Denial and To Allow the Board of Trustees of the Maine Public Employees Retirement System To Offer Long-term Disability Insurance Coverage
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 5 MRSA §17925, as amended by PL 1995, c. 643, §§9 and 10, is further amended to read:
§ 17925.Application
In order to receive a benefit under this article:
 
1. Written application.  TheIn order to receive a benefit under this article, a person must apply in writing to the executive director in the format specified by the executive director.
 
A.  The executive director shall obtain medical consultation on each applicant for disability in accordance with related rules established by the board, which must include provisions indicating when a case must be reviewed by a medical board and when alternative means of medical consultation are acceptable. Rules adopted pursuant to this paragraph are routine technical rules as defined in chapter 375, subchapter II-A2-A. Whether provided by the medical board or by an alternative means, medical consultation obtained by the executive director must be objective and be provided by a physician or physicians qualified to review the case by specialty or experience and to whom the applicant is not known.
 
2. Workers' compensation.   If the incapacity upon which the application is based is a result of an injury or accident received in the line of duty, the application must include proof that the member has made application for benefits under the workers' compensation laws;.
 
3. Social security.   If the employment for which creditable service with the employer is allowed was also covered under the United States Social Security Act, the application must include proof that the member has made application for benefits under this Act; and.
 
4. Approval.   The written application shallmust be approved by the executive director upon finding that the member has met the requirements of section 17924.
 
5.  Reapplication.     A member who has had a disability retirement benefit application denied may file a new application based on the same medical conditions or other medical conditions if that member has had a bona fide return to service with an employer whose employees are covered by this article or chapter 425, subchapter 5, article 3-A. If the executive director finds that the member has met the requirements of section 17924, the new application must be approved notwithstanding the earlier denial.
Sec. 2.  5 MRSA c. 423, sub-c. 7  is enacted to read:
SUBCHAPTER 7
LONG-TERM DISABILITY INSURANCE
§ 18101. Authorization
The board may offer long-term disability insurance coverage to members and may contract with one or more insurance companies to provide this coverage.
 
1.  Premiums.     All premiums and any other amounts due to an insurance company or other 3rd party in connection with coverage under this subchapter must be borne by the covered person or the covered person's employer.
 
2.  Rules.     The board may adopt rules to implement this subchapter. Rules adopted pursuant to this subsection are routine technical rules pursuant to chapter 375, subchapter 2-A.
Sec. 3.  5 MRSA §18525, sub-§5  is enacted to read:
 
5.  Reapplication.     A member who has had a disability retirement benefit application denied may file a new application based on the same medical conditions or other medical conditions if that member has had a bona fide return to service with an employer whose employees are covered by this article or chapter 423, subchapter 5, article 3-A. If the executive director finds that the member has met the requirements of section 18524, the new application must be approved notwithstanding the earlier denial.
Sec. 4.  5 MRSA c. 425, sub-c. 7  is enacted to read:
SUBCHAPTER 7
LONG-TERM DISABILITY INSURANCE
§ 18701. Authorization
The board may offer long-term disability insurance coverage to members and employees who choose not to become members but participate in the defined contribution plan pursuant to section 18801, subsection 1 and may contract with one or more insurance companies to provide this coverage.
 
1.  Premiums.     All premiums and any other amounts due to an insurance company or other 3rd party in connection with coverage under this subchapter must be borne by the covered person or the covered person's employer.
 
2.  Rules.     The board may adopt rules to implement this subchapter. Rules adopted pursuant to this subsection are routine technical rules pursuant to chapter 375, subchapter 2-A.
Sec. 5. Study. The Maine Public Employees Retirement System shall conduct a study on the feasibility of procuring and offering long-term disability insurance pursuant to the Maine Revised Statutes, Title 5, chapter 423, subchapter 7 and Title 5, chapter 425, subchapter 7, including the means by which the Maine Public Employees Retirement System would procure and offer the insurance, the anticipated administrative burdens and expenses associated with offering the insurance and any other factors determined relevant by the Maine Public Employees Retirement System. The Maine Public Employees Retirement System shall report the results of its study under this section together with any recommendations and suggested legislation to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs no later than January 4, 2017. The joint standing committee may report out a bill based on the report to the First Regular Session of the 128th Legislature.
Sec. 6. Effective date. Those sections of this Act that enact the Maine Revised Statutes, Title 5, chapter 423, subchapter 7 and Title 5, chapter 425, subchapter 7 take effect January 5, 2017.
 
SUMMARY
This bill provides that a denial of a disability retirement benefit application to the Maine Public Employees Retirement System does not bar the filing and approval of a subsequent application for the same or different medical conditions if the applicant has returned to service with an employer covered under the Maine Public Employees Retirement System.
It authorizes the Board of Trustees of the Maine Public Employees Retirement System, beginning January 5, 2017, to procure and offer long-term disability insurance to the retirement system's members and nonmembers who participate in the retirement system defined contribution plan. Persons who elect this coverage or their employers are responsible for premiums and other 3rd-party costs.
It directs the Maine Public Employees Retirement System to study how it would procure and offer long-term disability insurance and to report the results of its study to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs, which is authorized to report out a bill to the First Regular Session of the 128th Legislature.