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69th Legislature 2025 HB 700.1
- 1 - Authorized Print Version – HB 700
1 HOUSE BILL NO. 700
2 INTRODUCED BY B. MERCER
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT CHANGING THE AMORTIZATION PERIOD FOR THE
5 STATEWIDE DEFINED BENEFIT PUBLIC EMPLOYEE RETIREMENT SYSTEMS FROM 30 YEARS TO 25
6 YEARS; AMENDING SECTIONS 19-2-409, 19-3-109, 19-5-106, 19-6-107, 19-7-106, 19-8-106, 19-9-109, 19-
7 13-111, 19-17-117, AND 19-20-111, MCA; AND PROVIDING AN EFFECTIVE DATE.”
8
9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
10
11 Section 19-2-409, MCA, is amended to read:
12 "19-2-409. (1) As required by Article
13 VIII, section 15, of the Montana constitution, each system must be funded on an actuarially sound basis. For
14 the purposes of this section, "actuarially sound basis" means that contributions to each retirement plan must be
15 sufficient to pay the full actuarial cost of the plan.
16 (2) (a) For a defined benefit plan, the full actuarial cost includes both the normal cost of providing
17 benefits as they accrue in the future and the cost of amortizing unfunded liabilities over a scheduled period of
18 no more than 30 years 25 years, except that with respect to the judges' retirement system, the highway patrol
19 officers' retirement system, the sheriffs' retirement system, and the game wardens' and peace officers'
20 retirement system, the unfunded liabilities must be paid over the periods provided for in 19-5-404, 19-6-404, 19-
21 7-404, and 19-8-504, respectively.
22 (b) For the defined contribution plan, the full actuarial cost is the contribution defined by law that is
23 payable to an account on behalf of the member."
24
25 Section 19-3-109, MCA, is amended to read:
26 "19-3-109. It is the policy of the
27 state that additional benefits may not be added to the public employees' retirement system unless the system
28 amortizes in 30 years 25 years or less and the additional benefit is projected to be fully funded in perpetuity." ****
69th Legislature 2025 HB 700.1
- 2 - Authorized Print Version – HB 700
1
2 Section 19-5-106, MCA, is amended to read:
3 "19-5-106. It is the policy of the state that
4 additional benefits may not be added to the judges' retirement system unless the system amortizes in 30 years
5 25 years or less and the additional benefit is projected to be fully funded in perpetuity."
6
7 Section 19-6-107, MCA, is amended to read:
8 "19-6-107. It is the policy of
9 the state that additional benefits may not be added to the highway patrol officers' retirement system unless the
10 system amortizes in 30 years 25 years or less and the additional benefit is projected to be fully funded in
11 perpetuity."
12
13 Section 19-7-106, MCA, is amended to read:
14 "19-7-106. It is the policy of the state that
15 additional benefits may not be added to the sheriffs' retirement system unless the system amortizes in 30 years
16 25 years or less and the additional benefit is projected to be fully funded in perpetuity."
17
18 Section 19-8-106, MCA, is amended to read:
19 "19-8-106. It is
20 the policy of the state that additional benefits may not be added to the game wardens' and peace officers'
21 retirement system unless the system amortizes in 30 years 25 years or less and the additional benefit is
22 projected to be fully funded in perpetuity."
23
24 Section 19-9-109, MCA, is amended to read:
25 "19-9-109. It is the policy
26 of the state that additional benefits may not be added to the municipal police officers' retirement system unless
27 the system amortizes in 30 years 25 years or less and the additional benefit is projected to be fully funded in
28 perpetuity." ****
69th Legislature 2025 HB 700.1
- 3 - Authorized Print Version – HB 700
1
2 Section 19-13-111, MCA, is amended to read:
3 "19-13-111. It is the policy of the
4 state that additional benefits may not be added to the firefighters' unified retirement system unless the system
5 amortizes in 30 years 25 years or less and the additional benefit is projected to be fully funded in perpetuity."
6
7 Section 19-17-117, MCA, is amended to read:
8 "19-17-117. It is the policy of
9 the state that additional benefits may not be added to the Volunteer Firefighters' Compensation Act unless the
10 system amortizes in 30 years 25 years or less and the additional benefit is projected to be fully funded in
11 perpetuity."
12
13 Section 19-20-111, MCA, is amended to read:
14 "19-20-111. It is the policy of the state that
15 additional benefits may not be added to the teachers' retirement system unless the system amortizes in 30
16 years 25 years or less and the additional benefit is projected to be fully funded in perpetuity."
17
18 NEW SECTION. Section 11. [This act] is effective July 1, 2025.
19 - END -