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HOUSE BILL NO. 136
INTRODUCED BY G. CUSTER
BY REQUEST OF THE PUBLIC EMPLOYEES' RETIREMENT BOARD
A BILL FOR AN ACT ENTITLED: "AN ACT REVISING FUNDING AND BENEFIT PROVISIONS FOR THE GAME WARDENS' AND PEACE OFFICERS' RETIREMENT SYSTEM; PROVIDING AN APPROPRIATION; AMENDING SECTION SECTIONS 19-8-502 AND, 19-8-504, 19-8-601, AND 19-8-701, MCA; AND PROVIDING AN A DELAYED EFFECTIVE DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
SECTION 1. SECTION 19-8-502, MCA, IS AMENDED TO READ:
"19-8-502. Member's contribution. (1) (a) Each Subject to subsection (1)(b), each member's contribution is 10.56% 11.00% of the member's compensation.
(b) The member's contribution must be reduced to 10.56% on July 1 following the board's receipt of an actuarial valuation if:
(i) the actuarial valuation determines that the period required to amortize the system's unfunded liabilities, including any benefit adjustments that will become effective after the valuation, is less than 25 years; and
(ii) reducing the member's contribution and terminating the employer's additional contribution pursuant to 19-8-504(3) would not cause the amortization period to exceed 25 years.
(2) Each employer, pursuant to section 414(h)(2) of the federal Internal Revenue Code of 1954, as amended and applicable on July 1, 1985, shall pick up and pay the contributions that would be payable by the member under subsection (1) for service rendered after June 30, 1985.
(3) The member's contributions picked up by the employer must be designated for all purposes of the retirement system as the member's contributions, except for the determination of a tax upon a distribution from the retirement system. These contributions must become part of the member's accumulated contributions but must be accounted for separately from those previously accumulated.
(4) The member's contributions picked up by the employer must be payable from the same source as is used to pay compensation to the member and must be included in the member's wages, as defined in 19-1-102, and the member's compensation as used to define the member's highest average compensation in 19-8-101. The employer shall deduct from the member's compensation an amount equal to the amount of the member's contributions picked up by the employer and remit the total of the contributions to the board."
Section 2. Section 19-8-504, MCA, is amended to read:
"19-8-504. Employer's contribution. (1) The employer shall pay as employer contributions 9% of the compensation paid to all of the employer's employees, except those properly excluded from membership.
(2) Subject to subsection (3), the employer shall contribute to the system an additional employer contribution equal to 2% of the compensation paid to all of the employer's employees, except for those employees properly excluded from membership.
(3) (a) The board shall periodically review the additional employer contribution provided for in subsection (2) and recommend adjustments to the legislature as needed to maintain the amortization schedule set by the board for payment of the system's unfunded liabilities.
(b) The employer contribution required under subsection (2) terminates on July 1 following the board's receipt of the system's actuarial valuation if:
(i) the actuarial valuation determines that the period required to amortize the system's unfunded liabilities, including adjustments made for any benefit enhancements enacted by the legislature THAT BECOME EFFECTIVE after the valuation, is less than 25 years; and
(ii) terminating the additional employer contribution required under subsection (2) AND REDUCING THE EMPLOYEE'S ADDITIONAL CONTRIBUTION REQUIRED UNDER 19-8-502(1)(B) would not cause the amortization period as of the most recent actuarial valuation to exceed 25 years.
(4) The department of fish, wildlife, and parks shall include in its budget and shall request for legislative appropriation an amount necessary to defray the state's portion of the costs of this section."
SECTION 3. SECTION 19-8-601, MCA, IS AMENDED TO READ:
"19-8-601. Time of retirement. (1) Subject to a member's right to a refund of the member's accumulated contributions under Title 19, chapter 2, part 6, the following members are:
(a) a vested member hired before July 1, 2017 2018, is eligible to receive a nonforfeitable service retirement benefit under 19-8-603 if:
(a)(i) a the member who has completed at least 20 years of membership service, reached 50 years of age, and files a written application with the board; or
(b)(ii) a vested the member who terminated service before completing 20 years of membership service and applies to begin receiving a service retirement benefit upon reaching 55 years of age.;
(b) a vested member hired on or after July 1, 2017 2018, is eligible to receive a nonforfeitable service retirement benefit under 19-8-603 if:
(i) the member has completed at least 25 years of membership service, reached 50 years of age, and files a written application with the board; or
(ii) the member terminated service before completing 25 years of membership service and applies to begin receiving a service retirement benefit upon reaching 55 years of age.
(2) For purposes of compliance with section 411 of the Internal Revenue Code, 26 U.S.C. 411, a member described in subsection (1)(a)(i) or (1)(b)(i) is treated as having attained normal retirement age and has a nonforfeitable right to the member's service retirement."
SECTION 4. SECTION 19-8-701, MCA, IS AMENDED TO READ:
"19-8-701. Disability retirement benefit. (1) Except as provided in subsection (2), a vested member who becomes disabled must be granted a disability retirement benefit that is the actuarial equivalent of the service retirement benefit under 19-8-603 standing to the member's credit at the time of the member's disability retirement.
(2) (a) A vested member hired before July 1, 2017 2018, who becomes disabled as a direct result of the member's service in the line of duty:
(a)(i) before completing 20 years of membership service must receive a disability retirement benefit equal to one-half the member's highest average compensation; or
(b)(ii) after completing 20 years or more of membership service must receive a disability retirement benefit equal to 2.5% of the member's highest average compensation for each year of service credit.
(b) A vested member hired on or after July 1, 2017 2018, who becomes disabled as a direct result of the member's service in the line of duty:
(i) before completing 25 years of membership service must receive a disability retirement benefit equal to one-half the member's highest average compensation; or
(ii) after completing 25 years or more of membership service must receive a disability retirement benefit equal to 2.5% of the member's highest average compensation for each year of service credit."
NEW SECTION. SECTION 5. APPROPRIATION. THERE IS APPROPRIATED $7 FROM THE GENERAL FUND TO THE MONTANA PUBLIC EMPLOYEES' RETIREMENT BOARD FOR THE FISCAL YEAR BEGINNING JULY 1, 2018, FOR ACTUARIAL SERVICE PURSUANT TO [THIS ACT].
NEW SECTION. Section 6. Effective date. [This act] is effective July 1, 2017 2018.
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Latest Version of HB
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