AUGUSTA, Maine - The Legislature's budget-writing committee has reached a tentative compromise on reforms to Maine's pension system, one of three major unresolved issues facing negotiators drafting a two-year, $6.1 billion spending plan for state government.

The pensions compromise, which is subject to additional review, would eliminate higher contribution levels for state employees but would freeze and then cap cost-of-living adjustments for public sector workers and retirees.

The changes negotiated by Republican and Democratic lawmakers would create a new financial shortfall that will have to be plugged before the committee completes work on the budget that begins July 1. But the revised pension plan seeks to address concerns raised by state employees, retirees and union officials during the public hearing process.

"All of the committee members worked hard to respond to those concerns," said Sen. Richard Rosen, co-chairman of the Appropriations and Financial Affairs Committee.

Members of the Appropriations Committee expressed optimism Friday evening that they could complete work on the budget this weekend - something that seemed unlikely just a few days ago. Aside from pension reform, Democrats and Republicans on the committee are trying to reach agreement on two other contentious issues: a package of tax cuts and proposals to reduce or eliminate Medicaid benefits for thousands of people.

Filed Under : Pensions