ME LD1003

Creates the Retirement Benefit Improvement Fund as an interest-bearing, nonlapsing fund to increase the portion of retirement benefits subject to cost-of-living adjustments for retired state employees and teachers

Redirects remaining General Fund surplus to this new fund starting June 30, 2026, prioritizing it ahead of the current 80%/20% split between the stabilization fund and Highway and Bridge Capital program

Requires the State Controller to notify the retirement system of the fund balance by August 1st each year; if sufficient to increase the COLA-eligible benefit portion by at least $500, funds are transferred and benefit increases take effect in September

If the fund balance is insufficient to support a minimum $500 increase to the COLA-eligible benefit portion, money remains in the fund and accumulates

Mandates annual reporting by the retirement system CEO to the Legislature's appropriations and labor committees on or before the second Friday in January