As of September 13, 2012

TEACHER RETIREMENT – responsibility for remitting employer contributions

Please refer to the Maine State Retirement System Laws:

Title 5 – Administrative Procedures and Services; Part 20:  State Retirement System; Chapter 421. General Provisions; Subchapter I, Definitions

§17154. Administration of funds

Paragraph 6, Subparagraphs B and E:

     6. Payment of employer charges for teachers. For teachers, percentage rates to be predetermined by the actuary and approved by the board shall be applied to the total earnable compensation of members covering the most recent school year preceding the preparation of the biennial budget.

B. Notwithstanding this section, the employer retirement costs and administrative operating expenses related to the retirement programs applicable to those teachers whose funding is provided from federal grants or through federal reimbursement must be paid by local school systems from those federal funds. [2007, c. 491, §85 (AMD).]

E. Notwithstanding this section, the employer retirement costs and administrative operating expenses related to the retirement program applicable to those teachers whose funding is provided directly or through reimbursement from private or public grants must be paid by local school systems from those funds. "Public grants" does not include state or local funds provided to school administrative units under Title 20-A, chapters 315 and 606-B. [2007, c. 491, §85 (AMD).]

The only State funds exempt from paying the employers’ share of retirement are funds that fall under 20-A M.R.S.A. Chapter 315 (Adult Education) and  Chapter 606-B Essential Programs & Services Funding Act:

Chapter 606-B – Essential Programs & Services Funding Act – includes :

General Purpose Aid State subsidy – including State contribution and adjustments & miscellaneous costs*

*Currently funded adjustments & miscellaneous costs under 20-A MRSA Sections 15689 and 15689-A include the following:

• Minimum state allocation
• Audit adjustments
• Long-term drug treatment adjustment
• State agency client and state ward special education cost reimbursement
• Maine Learning Results Implementation, assessment
• Regionalization, consolidation and efficiency assistance
• National Board for Professional Teacher Standards Salary Supplement

(Prepared by Suzan C. Beaudoin, School Finance Supervisor, Department of Education – suzan.beaudoin@maine.gov )