Program: Teacher Retirement (0170)
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1 Program: Teacher Retirement (0170) Program Purpose: The purpose of this program is to provide funding for the retirement benefits for eligible Maine educators. The State pays the normal cost employer contributions and unfunded actuarial liability contributions on behalf of all teacher members of the State Employee and Teacher Retirement Program. Active Teacher members 26,450 (June 2009) Retired Teacher members 11,258 (June 2009) Financial Data: General Fund appropriations are made to the Teacher Retirement program in the biennial budget based upon the required contributions calculated by the Maine Public Employees Retirement System (MainePERS) and the Bureau of the Budget. Payments are made to the Maine Public Employees Retirement System upon receipt of a monthly MainePERS invoice General Fund $183,702,155 $187,807,699 $196,728,565 Total All Funds $183,702,155 $187,807,699 $196,728,565 Leadership and Staff Support: Sandra J. Matheson, Executive Director of MainePERS, provides overall leadership for all aspects of the System and its operations. MainePERS employs a total of 101 staff to support the administration of the System s programs. Because MainePERS is an independent, public agency, its employees are not included as part of the State s position count. Performance Data: The MainePERS, under the authority granted to it by the Maine Legislature as an independent public agency of the State of Maine, administers retirement programs that cover State employees, the State's public school teachers, judges, legislators, and employees of the 279 municipalities and Participating Local Districts (PLDs) that have chosen to provide retirement plans through MainePERS. The Comprehensive Annual Financial Report of the MainePERS for the fiscal year ended June 30, 2009, contains performance data on the Teacher Retirement Program, including information on investment performance for the State s pension contributions on behalf of teachers and the status of the unfunded actuarial liability of the State Employee and Teacher Retirement Program. The annual report can be found at the MainePERS website: The final report of the Maine Unified Retirement Plan Task Force, presented to the 124th Legislature pursuant to Resolve 2009, Chapter 111, contains useful information and analyses of retirement benefits for retired teachers and state employees in Maine. The report presents an explanation of current pension, disability and health benefits for retired state employees and teachers (please see Chapter 1) and also considers several options for funding a unified retiree benefit plan in the future (please see Chapter 2). MainePERS provided staffing assistance to the task force and the final report can be found at the System s website: Force%20Report% pdf
2 Program: Retired Teachers Health Insurance (0854) Program Purpose: The purpose of this program is to provide funding for the State s contribution to the cost of health insurance benefits for Maine s retired teachers. The State s participation in the cost of retired teachers health insurance began effective October 1, 1987 with the enactment of Public Laws of 1987, chapter 450. The State s share was established at 10% of the employee only premium cost. The State s contribution has increased over time and is currently at 45% of the retired teacher members' share pursuant to Title 20-A, 13451, sub- 3. MEA Benefits Trust Retired Teachers 9,884 MSMA Retired Teachers 45 Total 9,929 Financial Data: General Fund appropriations are made to the Retired Teachers Health Insurance program in the biennial budget based upon estimates developed by the Bureau of the Budget and the Division of Employee Health Benefits within the Department of Administrative and Financial Services. Funds are transferred on a quarterly basis to the Retiree Health Insurance Fund, within the Department of Administrative and Financial Services. General Fund $17,706,058 $18,768,421 $19,800,684 Total All Funds $17,706,058 $18,768,421 $19,800,684 Leadership and Staff Support: Frank Johnson, Executive Director of the Division of Employee Health Benefits provides administrative leadership for the program. No Department of Education personnel provide support for this program. Performance Data: The final report of the Maine Unified Retirement Plan Task Force, presented to the 124th Legislature pursuant to Resolve 2009, Chapter 111, contains useful information and analyses of retirement benefits for retired teachers and state employees in Maine. The report presents an explanation of current pension, disability and health benefits for retired state employees and teachers (please see Chapter 1) and also considers several options for funding a unified retiree benefit plan in the future (please see Chapter 2). MainePERS provided staffing assistance to the task force and the final report can be found at the System s website: Force%20Report% pdf.
3 Program: Retired Teachers Group Life Insurance (Z033) Program Purpose: The purpose of this program is to provide funding for group life insurance for eligible retired teachers. The MainePERS Group Life Insurance program is available to State, teacher and those participating local districts (PLDs) employees whose employers have elected to participate in the program, and whose positions are eligible for coverage. Eligible teachers can have their basic coverage continue into retirement if they had group life insurance coverage just prior to retiring and have participated in the Group Life Program for 10 years. Retired Teachers 5,620 Total 5,620 Financial Data: General Fund appropriations are made to the Retired Teachers Group Life Insurance program in the biennial budget based upon amounts determined by the Maine Public Employees Retirement System. Payments are made to the Maine Public Employees Retirement System (MainePERS) upon receipt of a monthly MainePERS invoice. General Fund $2,518,852 $2,417,137 $2,531,951 Total All Funds $2,518,852 $2,417,137 $2,531,951 Leadership and Staff Support: Sandra J. Matheson, Executive Director of MainePERS, provides overall leadership for all aspects of the System and its operations. MainePERS employs a total of 101 staff to support the administration of the System s programs. Because MainePERS is an independent, public agency, its employees are not included as part of the State s position count. Performance Data: The MainePERS, under the authority granted to it by the Maine Legislature as an independent public agency of the State of Maine, administers retirement programs that cover State employees, the State's public school teachers, judges, legislators, and employees of the 279 municipalities and PLDs that have chosen to provide retirement plans through MainePERS. The Comprehensive Annual Financial Report of the MainePERS for the fiscal year ended June 30, 2009, contains performance data on the Teacher Retirement Program and the Group Life Insurance Program available to retired teachers, including information on investment performance for the State s pension contributions on behalf of teachers and the status of the unfunded actuarial liability of the State Employee and Teacher Retirement Program. The annual report can be found at the MainePERS website:
4 Teacher Retirement Total Department of Education Operating Funds FY 2010 Actual Expenditures 14.4% Total Department of Education General Fund FY 2010 Actual Expenditures 17.9% Expenditures Expenditures Expenditures General Fund Teacher Retirement $183,702,155 $187,807,699 $196,728,565 Retired Teachers' Health Insurance $17,706,058 $18,768,421 $19,800,684 Retired Teachers' Group Life Insurance $2,518,852 $2,417,137 $2,531,951 Total General Fund $203,927,065 $208,993,257 $219,061,200
5 TEACHER RETIREMENT PROGRAMS Fund Appropriation Account Unit > Dept. of Education Programs that map directly to the budget Teacher Retirement ALL Retired Teachers Health Insurance ALL Retired Teachers Group Life Insurance 10 Z ALL > Dept. of Education Programs included in Governmental Evaluation Act Program Evaluation Report that do not map directly to the budget
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