No specific laws identified for this ruling.
The Maine Supreme Court affirmed the administrative decision requiring the school district to pay back retirement contributions for six employees, rejecting the district's arguments that the assessments were barred by statute of limitations, laches, or lack of authority.
School District Ordered to Pay Missing Retirement Contributions
Maine School Administrative District No. 27 failed to properly pay retirement contributions for six of its employees into the state pension system. When the Maine Public Employees Retirement System discovered this error, they told the school district it had to pay back the missing contributions totaling $81,313.09.
The school district fought back, arguing they shouldn't have to pay because too much time had passed since the original mistake, and that the retirement system didn't have the authority to make them pay retroactively. The district took the case to court, hoping to avoid the payment.
The Maine Supreme Court sided with the retirement system and the employees. The court ruled that the school district must pay the full amount of missing retirement contributions, rejecting all of the district's arguments about timing and authority.
What This Means for Workers: This ruling reinforces that employers cannot escape their obligation to make required retirement contributions, even if years have passed since the original error. Workers can feel more confident that if their employer fails to properly fund their pension, the retirement system has the power to force the employer to make things right, protecting workers' retirement security.
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