LD 1693 passed this week, but amended as discussed previously. In short, if you were hired before 1993, your penalty for early retirement is 3% per annum. If you were hired after 1993, your penalty is 6% per annum. The reasoning is that the post-93s were hired under the current deal so nobody changed the rules on them. It's not what we were hoping for, but it was hard fought just to get that much.
I'd like to note that South Portland's deleagtion was unanimous in favor of LD 1693. If you see Senator Bromley, Representatives Kaenrath, Eberle, and Bliss, take a moment to thank them for their support.
I'd like to note that the Democratic caucuses to the House and Senate were much stronger in support than the Republican caucuses. [No, I'm not noting that just so I have another opportunity to make caucus jokes.] That said, I am especially grateful to the three Republican senators (Kevin Raye, Earle McCormick, & Walter Gooley) who supported it. Without them, the opposition from Democratic senators (Joe Brannigan of Portland and John Martin of Eagle Lake) would have sunk the bill.
Rumor has it that a proposal will come forward next session to put all new employees under Social Security rather than the state retirement plan. It would solve the offset problem, but I am open to persuasion that it wouldn't eventually underfund the system we have all paid into. Anyone with any info, please post.
