An Act To Help Retired Teachers And State Employees Keep Pace With Inflation By Matching The Cost-Of-Living Adjustment For Social Security Benefits

This bill provides a one-time 5% increase in retirement benefits for Maine state employees and teachers to help them keep up with inflation. The legislation includes a specific 2% adjustment for the 2022-23 fiscal year and establishes a permanent mechanism that automatically matches Social Security cost-of-living adjustments up to a 3% annual cap, though this permanent increase only applies to the portion of benefits up to a set dollar limit. To fund these changes, the state will allocate $182 million from the General Fund to cover the additional costs associated with the one-time adjustment. The bill is designated as an emergency measure, meaning it takes effect immediately upon approval rather than waiting for the standard 90-day period.