Governor Applauds District Court Ruling on Pension Reforms
Governor LePage calls on Legislature to continue with efforts to improve fiscal house
AUGUSTA – Governor Paul R. LePage released a statement today about the decision dismissing a challenge by the Maine Association of Retirees to pension reforms made by the Governor and 125th Maine Legislature. The Maine Association of Retirees is an interest group of retired state government employees.
“I am pleased to see that our efforts to reduce Maine’s debt and overspending are supported by the court’s decision,” said Governor LePage. “It is not always easy to make tough decisions, but it has to be done. I call on the Legislature to continue this momentum and make more structural reforms.”
In the first biennial budget of Governor LePage’s term, the Legislature adopted structural changes to Maine’s pension system to reduce the unfunded actuarial liability (UAL) and address continuing annual shortfalls, providing structural changes to support the system. The structural changes reduced State spending by nearly $325 million in fiscal years 2012 and 2013.
Federal District Court Judge George Singal’s decision found that Maine was within its rights to make structural changes to the pension system. Judge Singal wrote that the pension changes “did not actually reduce the dollar amount of benefits received by any class member. Rather, the only allegation is that the dollar amount paid was not increased.”