Maine GOP Praises Court Decision on Pension Reform

One of Gov. LePage, Republicans' signature achievements

AUGUSTA -- The Maine Republican Party on Tuesday praised a recent decision by the federal First Circuit Court of Appeals in Boston, which upheld the monumental pension reforms implemented by Governor Paul LePage, then-State Treasurer Bruce Poliquin, and Republican majority lawmakers in 2011. 

"Our state faced a looming cloud of fiscal disaster that had been ignored for years until Governor LePage reduced the state's long-term pension shortfall by $1.7 billion, protecting Maine taxpayers and keeping our promises to retired state employees," said Maine Republican Party Vice-Chairwoman Susan Morissette, who served in the 125th Legislature of 2011-12 and voted to pass the pension reform package.  "It takes bold leadership to fix big problems, and Governor LePage and Republicans showed that they have it in abundance." 

The case, Maine Association of Retirees v. Board of Trustees of the Maine Public Employees Retirement System, was decided unanimously in the favor of pension reformers against a challenge by various state employee labor unions in a brief opinion by a three-member panel of the First Circuit, which included former U.S. Supreme Court Justice David Souter.

The Republican pension reform initiative was enacted as a part of the 2011 biennial state budget and reduced the state's long-term pension shortfall from $4.1 billion to $2.4 billion -- a reduction of 41 percent -- by raising the retirement age from 62 to 65 for non-vested employees and freezing cost of living adjustments temporarily. 

"If Michael Michaud were to return to Augusta, he would surely bring back the old ways of tax, spend, promise, and pass the buck to the next legislature and the next generation," added Maine Republican Party Executive Director Jason Savage.  "He is too indebted to the union bosses and too entrenched in the old, machine politics of the past to fix Maine's finances and economy.  The very problems that this reform fixed were created by Michael Michaud and other liberal politicians in the '80s and '90s who refused to change the status quo.  They lied to Maine state workers by telling them that their pension system is sustainable." 

Michaud has received $1.65 million in Big Labor campaign contributions throughout his 12-year career in Congress.  One major union alone contributed $300,000 this year to the Maine Democratic Party to support Michaud's gubernatorial bid.  Powerful Democratic Party elder and lobbyist Severin Beliveau recently said that Gov. LePage is "the first governor in ages that is not indebted to the MSEA, NRCM and MEA."