§705. Internal Revenue Code compliance






The Legislative Retirement Program established in this chapter is subject to the following
requirements. [2009, c. 474, §3 (NEW).]








1. Vesting. 
In compliance with the Code, Section 401(a)(7), a member is 100% vested in the member's
contribution account at all times.


[
2009, c. 474, §3 (NEW)
.]








2. Use of forfeitures of benefits. 
In compliance with the Code, Section 401(a)(8), any forfeitures of benefits by members
or former members may not be used to pay benefit increases, but must be used to reduce
unfunded liabilities.


[
2009, c. 474, §3 (NEW)
.]








3. Benefits. 
In compliance with the Code, Section 401(a)(9), benefits must be paid in accordance
with a good faith interpretation of the requirements of the Code, Section 401(a)(9)
and the regulations in effect under that section as applicable to a governmental plan
within the meaning of the Code, Section 414(d).


[
2009, c. 474, §3 (NEW)
.]








4. Application of annual compensation limits. 
In compliance with the Code, Section 401(a)(17), applicable annual compensation
limits must be applied for purposes of determining benefits or contributions due to
the Maine Public Employees Retirement System.


[
2009, c. 474, §3 (NEW)
.]








5. Rollovers. 
In compliance with the Code, Section 401(a)(31), a member may elect, at the time
and in the manner prescribed by the board of trustees, to have any portion of an eligible
rollover distribution paid directly to an eligible retirement plan specified by the
member in a direct rollover.


[
2009, c. 474, §3 (NEW)
.]








6. Qualified military service. 
Effective December 12, 1994, contributions, benefits and service credit with respect
to qualified military service are governed by the Code, Section 414(u) and the federal
Uniformed Services Employment and Reemployment Rights Act of 1994 and, effective January
1, 2007, the Code, Section 401(a)(37).


[
2009, c. 474, §3 (NEW)
.]








7. Additional requirements. 
In compliance with the Code, Section 415, the member contributions paid to and retirement
benefits paid from the Legislative Retirement Program must be limited to the extent
necessary to conform to the requirements of the Code, Section 415 for a qualified
pension plan.


[
2009, c. 474, §3 (NEW)
.]








8. Compliance with Section 503(b). 
Effective July 1, 1989, the board of trustees may not engage in a transaction prohibited
by the Code, Section 503(b).


[
2009, c. 474, §3 (NEW)
.]








9. Rules. 
The board of trustees shall adopt rules necessary to maintain the qualified pension
plan tax status of the Legislative Retirement Program under the Internal Revenue Code
as required for governmental defined benefit plans defined in the Code, Section 414(d).
Rules adopted under this subsection are routine technical rules as defined in Title
5, chapter 375, subchapter 2-A.


[
2009, c. 474, §3 (NEW)
.]





SECTION HISTORY

2009, c. 474, §3 (NEW).