Bill targets pension problems
An Oxford lawmaker has introduced a bill that he hopes will spark attention toward resolving the state's $4 billion unfunded liability problem.
Rep. James Hamper, R-Oxford, told the Bangor Daily News his bill proposes switching from a defined benefit program for state employees -- which pays retirees a set amount regardless of the retirement fund's financial health -- to a defined contribution plan where the benefits are based on how much an employee pays into the fund and earns on investments. The overhaul is necessary to correct a problem in the state retirement system that has been building for decades, Hamper told the paper. According to projections from the Maine Public Employees Retirement System, the cost to pay down the debt in the 2012-13 state budget will be $916 million, nearly $300 million more than in the current biennial budget. Payments are expected to exceed $800 million per year by 2020. Maine's constitution requires the debt be paid off by 2028.
Hamper also proposes pulling new state employees out of the retirement system and having them make contributions to Social Security or a 401(k) plan.
Go to the article from the Bangor Daily News >>
Mainebiz web partners
Most Recent
Most Recent
Comments