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LD 89

Resolve, Regarding Legislative Review Of Chapter 201: Employer Reporting And Payments, A Major Substantive Rule Of The Maine Public Employees Retirement System

132nd Legislature (2025-2026) Introduced by Amy Roeder

LD 89 lets MainePERS charge late fees on overdue employer payroll reports and interest on late contributions, affecting public employers' budgets and payment timing.

Signed by Governor
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Bill Summary · LD 89

Summary — LD 89 (132nd Legislature)

Resolve, Regarding Legislative Review of Chapter 201: Employer Reporting and Payments, a Major Substantive Rule of the Maine Public Employees Retirement System

Purpose / Intent

LD 89 is a legislative review resolve concerning Chapter 201 (Employer Reporting and Payments), a major substantive rule adopted by the Maine Public Employees Retirement System (MainePERS). The rulemaking amends Chapter 201 to give MainePERS explicit authority to assess late fees for delinquent payroll reports and to charge interest on late payments submitted by participating employers.

Key provisions

  • Confirms/approves MainePERS’ amendment to Chapter 201 to:
    • Allow the System to charge a late fee for employer payroll reports submitted after established deadlines.
    • Allow the System to assess interest on late employer payments (contributions) owed to MainePERS.
  • The Resolve is the statutory legislative review action under Maine law (Title 5, section 8072) for a major substantive rule.

(Note: The bill text itself is the legislative review of the rule; it does not create new statutory benefit changes but authorizes implementation of the amended Chapter 201 rule.)

Who is affected

  • Primary: Employers participating in MainePERS’ defined benefit retirement plans and the group life insurance program — e.g., state agencies, municipalities, school districts, other local units of government, and other public employers.
  • Secondary: Potential indirect impact on public employers’ budgets and possibly on employees to the extent employer fiscal pressures affect services, staffing, or contribution practices.

Fiscal impact

  • Multiple fiscal notes were prepared:
    • Several versions (preliminary and revised) state there may be a potential cost increase to the General Fund and to local units of government because employers could incur late fees and interest charges; the magnitude of increased costs to employers could not be estimated.
    • MainePERS indicated any additional administrative costs associated with the rulemaking process can be absorbed within existing budgeted resources.
    • One revised fiscal note (LR 288(03)) concluded “No fiscal impact” for the version it assessed.
  • Bottom line: The rule may increase costs for some employers via late fees/interest, but MainePERS’ implementation costs are expected to be absorbed; the overall fiscal effect is not precisely quantified.

Legislative history and status

  • Introduced: January 6, 2025 (reported to the Labor Committee pursuant to statutory review).
  • Committee action: Work sessions, divided reports, and adoption of Committee Amendment “A” (H-71).
  • Floor action: Passed both chambers with concurrence (reads, amendment adoption, engrossment).
  • Final status: FINALLY PASSED (concurrence), and SIGNED BY THE GOVERNOR on July 1, 2025.

Notes

  • This Resolve performs the Legislature’s review function for a major substantive rule rather than changing statute language directly. The principal policy change enacted through the rule is the System’s ability to levy late fees and interest on late employer submissions/payments.

Compiled from official sources — confirm details with the bill’s official record.

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