2001 Montana Legislature

About Bill -- Links

SENATE BILL NO. 284

INTRODUCED BY T. BECK



A BILL FOR AN ACT ENTITLED: "AN ACT INCREASING THE GUARANTEED ANNUAL BENEFIT ADJUSTMENT IN THE PUBLIC EMPLOYEES', JUDGES', HIGHWAY PATROL OFFICERS', SHERIFFS', GAME WARDENS' AND PEACE OFFICERS', MUNICIPAL POLICE OFFICERS', AND FIREFIGHTERS' UNIFIED RETIREMENT SYSTEMS; PROVIDING A NEW ELECTION IN THE JUDGES', HIGHWAY PATROL OFFICERS', MUNICIPAL POLICE OFFICERS', AND FIREFIGHTERS' UNIFIED RETIREMENT SYSTEMS; ELIMINATING A DUPLICATE SECTION; AMENDING SECTIONS 19-3-1605, 19-5-901, 19-6-710, 19-7-711, 19-8-1105, 19-9-1009, 19-9-1010, AND 19-13-1010, MCA; REPEALING SECTION 19-2-1101, MCA; AND PROVIDING AN EFFECTIVE DATE."



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:



     Section 1.  Section 19-3-1605, MCA, is amended to read:

     "19-3-1605.  Guaranteed annual benefit adjustment. (1) Subject to subsection (2), on January 1 of each year, the permanent monthly benefit payable during the preceding January to each recipient who is eligible under subsection (3) must be increased by 1.5% 3%.

     (2)  (a) If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the adjustments amount to less than a 1.5% 3% annualized increase, then the recipient's benefit must be adjusted by an amount that will provide a total annualized increase of 1.5% 3% in the benefit paid since the preceding January.

     (b)  If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the increases amount to more than a 1.5% 3% annualized increase, then the benefit increase provided under this section must be 0%.

     (c)  If a benefit recipient is a contingent annuitant receiving an optional benefit upon the death of the original payee that occurred since the preceding January, the new recipient's monthly benefit must be increased to 1.5% 3% more than the amount that the contingent annuitant would have received had the contingent annuitant received a benefit during the preceding January.

     (3)  Except as provided in subsection (2)(b), a benefit recipient is eligible for and must receive the minimum annual benefit adjustment provided for in this section if:

     (a)  the benefit's commencement date is at least 36 months prior to January 1 of the year in which the adjustment is to be made; and

     (b)  the benefit recipient is not an active member of a public retirement system covered by this title.

     (4)  The board shall adopt rules to administer the provisions of this section."



     Section 2.  Section 19-5-901, MCA, is amended to read:

     "19-5-901.  Guaranteed annual benefit adjustment. (1) Subject to subsection (2), on January 1 of each year, the permanent monthly benefit payable during the preceding January to each recipient who is eligible under subsection (3) must be increased by 1.5% 3%.

     (2)  (a) If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the adjustments amount to less than a 1.5% 3% annualized increase, then the recipient's benefit must be adjusted by an amount that will provide a total annualized increase of 1.5% 3% in the benefit paid since the preceding January.

     (b)  If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the increases amount to more than a 1.5% 3% annualized increase, then the benefit increase provided under this section must be 0%.

     (c)  If a benefit recipient is a contingent annuitant receiving an optional benefit upon the death of the original payee that occurred since the preceding January, the new recipient's monthly benefit must be increased to 1.5% 3% more than the amount that the contingent annuitant would have received had the contingent annuitant received a benefit during the preceding January.

     (3)  Except as provided in subsection (2)(b), a benefit recipient is eligible for and must receive the minimum annual benefit adjustment provided for in this section if:

     (a)  the benefit's commencement date is at least 36 months prior to January 1 of the year in which the adjustment is to be made;

     (b)  the benefit recipient is not an active member of a public retirement system covered by this title; and

     (c)  the member or benefit recipient either:

     (i)  first became an active member on or after July 1, 1997; or

     (ii) filed a voluntary, irrevocable election to be covered under this section. The election must be filed with the board prior to January 1, 1998.

     (4)  The board shall adopt rules to administer the provisions of this section."



     NEW SECTION.  Section 3.  Election -- guaranteed annual benefit adjustment. (1) Subject to subsection (2), on January 1 of each year, the permanent monthly benefit payable during the preceding January to each recipient who is eligible under subsection (3) must be increased by 3%.

     (2)  (a) If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the adjustments amount to less than a 3% annualized increase, then the recipient's benefit must be adjusted by an amount that will provide a total annualized increase of 3% in the benefit paid since the preceding January.

     (b)  If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the increases amount to more than a 3% annualized increase, then the benefit increase provided under this section must be 0%.

     (3)  A benefit recipient is eligible for and must receive the minimum annual benefit adjustment provided for in this section if:

     (a)  the benefit's commencement date is at least 36 months prior to January 1 of the year in which the adjustment is to be made; and

     (b)  the member either:

     (i)  first became an active member on or after July 1, 1997; or

     (ii) filed a voluntary, irrevocable election to be covered under this section. The election:

     (A)  must be filed with the board prior to December 1, 2001; and

     (B)  requires an active member to pay an increased or revised contribution rate from January 1, 2002, forward.

     (4)  The board shall adopt rules to administer the provisions of this section.

     (5)  The decision of a member who elected to participate under 19-5-901 remains valid. The decision of a member who elected not to participate under 19-5-901 may be reversed under this section.



     Section 4.  Section 19-6-710, MCA, is amended to read:

     "19-6-710.  Guaranteed annual benefit adjustment. (1) Subject to subsection (2), on January 1 of each year, the permanent monthly benefit payable during the preceding January to each recipient who is eligible under subsection (3) must be increased by 1.5% 3%.

     (2)  (a) If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the adjustments amount to less than a 1.5% 3% annualized increase, then the recipient's benefit must be adjusted by an amount that will provide a total annualized increase of 1.5% 3% in the benefit paid since the preceding January.

     (b)  If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the increases amount to more than a 1.5% 3% annualized increase, then the benefit increase provided under this section must be 0%.

     (3)  Except as provided in subsection (2)(b), a benefit recipient is eligible for and must receive the minimum annual benefit adjustment provided for in this section if:

     (a)  the benefit's commencement date is at least 36 months prior to January 1 of the year in which the adjustment is to be made;

     (b)  the benefit recipient is not an active member of a public retirement system covered by this title; and

     (c)  the member either:

     (i)  first became an active member on or after July 1, 1997; or

     (ii) filed a voluntary, irrevocable election to be covered under this section. The election must be filed with the board prior to January 1, 1998, and requires an active member to pay an increased contribution rate from July 1, 1997, forward. A retired member or the member's survivor who is receiving a monthly benefit before July 1, 1997, shall also file the voluntary, irrevocable election no later than January 1, 1998, to be covered under this section.

     (4)  The board shall adopt rules to administer the provisions of this section."



     NEW SECTION.  Section 5.  Election -- guaranteed annual benefit adjustment. (1) Subject to subsection (2), on January 1 of each year, the permanent monthly benefit payable during the preceding January to each recipient who is eligible under subsection (3) must be increased by 3%.

     (2)  (a) If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the adjustments amount to less than a 3% annualized increase, then the recipient's benefit must be adjusted by an amount that will provide a total annualized increase of 3% in the benefit paid since the preceding January.

     (b)  If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the increases amount to more than a 3% annualized increase, then the benefit increase provided under this section must be 0%.

     (3)  A benefit recipient is eligible for and must receive the minimum annual benefit adjustment provided for in this section if:

     (a)  the benefit's commencement date is at least 36 months prior to January 1 of the year in which the adjustment is to be made; and

     (b)  the member either:

     (i)  first became an active member on or after July 1, 1997; or

     (ii) filed a voluntary, irrevocable election to be covered under this section. The election:

     (A)  must be filed with the board prior to December 1, 2001; and

     (B)  requires an active member to pay an increased or revised contribution rate from January 1, 2002, forward.

     (4)  The board shall adopt rules to administer the provisions of this section.

     (5)  The decision of a member who elected to participate under 19-6-710 remains valid. The decision of a member who elected not to participate under 19-6-710 may be reversed under this section.



     Section 6.  Section 19-7-711, MCA, is amended to read:

     "19-7-711.  Guaranteed annual benefit adjustment. (1) Subject to subsection (2), on January 1 of each year, the permanent monthly benefit payable during the preceding January to each recipient who is eligible under subsection (3) must be increased by 1.5% 3%.

     (2)  (a) If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the adjustments amount to less than a 1.5% 3% annualized increase, then the recipient's benefit must be adjusted by an amount that will provide a total annualized increase of 1.5% 3% in the benefit paid since the preceding January.

     (b)  If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the increases amount to more than a 1.5% 3% annualized increase, then the benefit increase provided under this section must be 0%.

     (c)  If a benefit recipient is a contingent annuitant receiving an optional benefit upon the death of the original payee that occurred since the preceding January, the new recipient's monthly benefit must be increased to 1.5% 3% more than the amount that the contingent annuitant would have received had the contingent annuitant received a benefit during the preceding January.

     (3)  Except as provided in subsection (2)(b), a benefit recipient is eligible for and must receive the minimum annual benefit adjustment provided for in this section if:

     (a)  the benefit's commencement date is at least 36 months prior to January 1 of the year in which the adjustment is to be made; and

     (b)  the benefit recipient is not an active member of a public retirement system covered by this title.

     (4)  The board shall adopt rules to administer the provisions of this section."



     Section 7.  Section 19-8-1105, MCA, is amended to read:

     "19-8-1105.  Guaranteed annual benefit adjustment. (1) Subject to subsection (2), on January 1 of each year, the permanent monthly benefit payable during the preceding January to each recipient who is eligible under subsection (3) must be increased by 1.5% 3%.

     (2)  (a) If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the adjustments amount to less than a 1.5% 3% annualized increase, then the recipient's benefit must be adjusted by an amount that will provide a total annualized increase of 1.5% 3% in the benefit paid since the preceding January.

     (b)  If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the increases amount to more than a 1.5% 3% annualized increase, then the benefit increase provided under this section must be 0%.

     (c)  If a benefit recipient is a contingent annuitant receiving an optional benefit upon the death of the original payee that occurred since the preceding January, the new recipient's monthly benefit must be increased to 1.5% 3% more than the amount that the contingent annuitant would have received had the contingent annuitant received a benefit during the preceding January.

     (3)  Except as provided in subsection (2)(b), a benefit recipient is eligible for and must receive the minimum annual benefit adjustment provided for in this section if:

     (a)  the benefit's commencement date is at least 36 months prior to January 1 of the year in which the adjustment is to be made; and

     (b)  the benefit recipient is not an active member of a public retirement system covered by this title.

     (4)  The board shall adopt rules to administer the provisions of this section."



     Section 8.  Section 19-9-1009, MCA, is amended to read:

     "19-9-1009.  Guaranteed annual benefit adjustment. (1) Subject to subsection (2), on January 1 of each year, the permanent monthly benefit payable during the preceding January to each recipient who is eligible under subsection (3) must be increased by 1.5% 3%.

     (2)  (a) If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the adjustments amount to less than a 1.5% 3% annualized increase, then the recipient's benefit must be adjusted by an amount that will provide a total annualized increase of 1.5% 3% in the benefit paid since the preceding January.

     (b)  If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the increases amount to more than a 1.5% 3% annualized increase, then the benefit increase provided under this section must be 0%.

     (3)  Except as provided in subsection (2)(b), a benefit recipient is eligible for and must receive the minimum annual benefit adjustment provided for in this section if:

     (a)  the benefit's commencement date is at least 36 months prior to January 1 of the year in which the adjustment is to be made;

     (b)  the benefit recipient is not an active member of a public retirement system covered by this title; and

     (c)  the member either:

     (i)  first became an active member on or after July 1, 1997; or

     (ii) filed a voluntary, irrevocable election to be covered under this section. The election must be filed with the board prior to January 1, 1998, and requires an active member to pay an increased contribution rate from July 1, 1997, forward. A retired member or the member's survivor who is receiving a monthly benefit before July 1, 1997, shall also file the voluntary, irrevocable election no later than January 1, 1998, to be covered under this section.

     (4)  The board shall adopt rules to administer the provisions of this section."



     Section 9.  Section 19-9-1010, MCA, is amended to read:

     "19-9-1010.  Election -- guaranteed annual benefit adjustment. (1) Subject to subsection (2), on January 1 of each year, the permanent monthly benefit payable during the preceding January to each recipient who is eligible under subsection (3) must be increased by 1.5% 3%.

     (2)  (a) If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the adjustments amount to less than a 1.5% 3% annualized increase, then the recipient's benefit must be adjusted by an amount that will provide a total annualized increase of 1.5% 3% in the benefit paid since the preceding January.

     (b)  If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the increases amount to more than a 1.5% 3% annualized increase, then the benefit increase provided under this section must be 0%.

     (3)  A benefit recipient is eligible for and must receive the minimum annual benefit adjustment provided for in this section if:

     (a)  the benefit's commencement date is at least 36 months prior to January 1 of the year in which the adjustment is to be made; and

     (b)  the member either:

     (i)  first became an active member on or after July 1, 1997; or

     (ii) filed a voluntary, irrevocable election to be covered under this section. The election:

     (A)  must be filed with the board prior to December 1, 1999; and

     (B)  requires an active member to pay an increased or revised contribution rate from January 1, 2000, forward.

     (4)  The board shall adopt rules to administer the provisions of this section.

     (5)  The decision of a member who elected to participate under 19-9-1009 remains valid. The decision of a member who elected not to participate under 19-9-1009 may be reversed under this section."



     NEW SECTION.  Section 10.  Election -- guaranteed annual benefit adjustment. (1) Subject to subsection (2), on January 1 of each year, the permanent monthly benefit payable during the preceding January to each recipient who is eligible under subsection (3) must be increased by 3%.

     (2)  (a) If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the adjustments amount to less than a 3% annualized increase, then the recipient's benefit must be adjusted by an amount that will provide a total annualized increase of 3% in the benefit paid since the preceding January.

     (b)  If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the increases amount to more than a 3% annualized increase, then the benefit increase provided under this section must be 0%.

     (3)  A benefit recipient is eligible for and must receive the minimum annual benefit adjustment provided for in this section if:

     (a)  the benefit's commencement date is at least 36 months prior to January 1 of the year in which the adjustment is to be made; and

     (b)  the member either:

     (i)  first became an active member on or after July 1, 1997; or

     (ii) filed a voluntary, irrevocable election to be covered under this section. The election:

     (A)  must be filed with the board prior to December 1, 2001; and

     (B)  requires an active member to pay an increased or revised contribution rate from January 1, 2002, forward.

     (4)  The board shall adopt rules to administer the provisions of this section.

     (5)  The decision of a member who elected to participate under 19-9-1009 or 19-9-1010 remains valid. The decision of a member who elected not to participate under 19-9-1009 and 19-9-1010 may be reversed under this section.



     Section 11.  Section 19-13-1010, MCA, is amended to read:

     "19-13-1010.  Guaranteed annual benefit adjustment. (1) Subject to subsection (2), on January 1 of each year, the permanent monthly benefit payable during the preceding January to each recipient who is eligible under subsection (3) must be increased by 1.5% 3%.

     (2)  (a) If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the adjustments amount to less than a 1.5% 3% annualized increase, then the recipient's benefit must be adjusted by an amount that will provide a total annualized increase of 1.5% 3% in the benefit paid since the preceding January.

     (b)  If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the increases amount to more than a 1.5% 3% annualized increase, then the benefit increase provided under this section must be 0%.

     (3)  Except as provided in subsection (2)(b), a benefit recipient is eligible for and must receive the minimum annual benefit adjustment provided for in this section if:

     (a)  the benefit's commencement date is at least 36 months prior to January 1 of the year in which the adjustment is to be made;

     (b)  the benefit recipient is not an active member of a public retirement system covered by this title; and

     (c)  the member either:

     (i)  first became an active member on or after July 1, 1997; or

     (ii) filed a voluntary, irrevocable election to be covered under this section. The election must be filed with the board prior to January 1, 1998, and requires an active member to pay an increased contribution rate from July 1, 1997, forward. A retired member or the member's survivor who is receiving a monthly benefit before July 1, 1997, shall also file the voluntary, irrevocable election no later than January 1, 1998, to be covered under this section.

     (4)  The board shall adopt rules to administer the provisions of this section."



     NEW SECTION.  Section 12.  Election -- guaranteed annual benefit adjustment. (1) Subject to subsection (2), on January 1 of each year, the permanent monthly benefit payable during the preceding January to each recipient who is eligible under subsection (3) must be increased by 3%.

     (2)  (a) If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the adjustments amount to less than a 3% annualized increase, then the recipient's benefit must be adjusted by an amount that will provide a total annualized increase of 3% in the benefit paid since the preceding January.

     (b)  If a recipient's benefit payable during the preceding January has been increased by one or more adjustments not provided for in this section and the increases amount to more than a 3% annualized increase, then the benefit increase provided under this section must be 0%.

     (3)  A benefit recipient is eligible for and must receive the minimum annual benefit adjustment provided for in this section if:

     (a)  the benefit's commencement date is at least 36 months prior to January 1 of the year in which the adjustment is to be made; and

     (b)  the member either:

     (i)  first became an active member on or after July 1, 1997; or

     (ii) filed a voluntary, irrevocable election to be covered under this section. The election:

     (A)  must be filed with the board prior to December 1, 2001; and

     (B)  requires an active member to pay an increased or revised contribution rate from January 1, 2002, forward.

     (4)  The board shall adopt rules to administer the provisions of this section.

     (5)  The decision of a member who elected to participate under 19-13-1010 remains valid. The decision of a member who elected not to participate under 19-13-1010 may be reversed under this section.



     NEW SECTION.  Section 13.  Repealer. Section 19-2-1101, MCA, is repealed.



     NEW SECTION.  Section 14.  Codification instruction. (1) [Section 3] is intended to be codified as an integral part of Title 19, chapter 5, part 9, and the provisions of Title 19, chapter 5, part 9, apply to [section 3].

     (2) [Section 5] is intended to be codified as an integral part of Title 19, chapter 6, part 7, and the provisions of Title 19, chapter 6, part 7, apply to [section 5].

     (3) [Section 10] is intended to be codified as an integral part of Title 19, chapter 9, part 10, and the provisions of Title 19, chapter 9, part 10, apply to [section 10].

     (4) [Section 12] is intended to be codified as an integral part of Title 19, chapter 13, part 10, and the provisions of Title 19, chapter 13, part 10, apply to [section 12].



     NEW SECTION.  Section 15.  Effective date. [This act] is effective July 1, 2001.

- END -




Latest Version of SB 284 (SB0284.01)
Processed for the Web on January 20, 2001 (10:30AM)

New language in a bill appears underlined, deleted material appears stricken.

Sponsor names are handwritten on introduced bills, hence do not appear on the bill until it is reprinted. See the status of this bill for the bill's primary sponsor.

Status of this Bill | 2001 Legislature | Leg. Branch Home
All versions of this bill (PDF Format)
Authorized print version w/line numbers (PDF format)

Prepared by Montana Legislative Services

(406)444-3064