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SENATE BILL NO. 405
INTRODUCED BY V. COCCHIARELLA
A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING THAT PARTICIPATION IN THE UNIVERSITY SYSTEM HEALTH INSURANCE PLAN AND IN THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM IS SUBJECT TO COLLECTIVE BARGAINING IF THE BARGAINING UNIT'S EMPLOYEES ARE COVERED BY AN ALTERNATIVE PLAN; AND AMENDING SECTION 19-3-403, MCA."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. Participation in university group health insurance plan subject to collective bargaining. Participation in the board of regents' group health insurance plan for university system employees in a collective bargaining unit covered by an alternative health insurance plan is subject to collective bargaining.
NEW SECTION. Section 2. Membership subject to collective bargaining -- payment of unfunded liabilities. (1) Retirement system membership for university system employees in a collective bargaining unit covered by an alternative retirement plan is subject to collective bargaining.
(2) A collective bargaining agreement covering retirement system membership pursuant to subsection (1) and providing that bargaining unit members are not retirement system members must include provisions for the payment of employer obligations for unfunded liabilities, and the unfunded liability payment provisions must have been approved by the board.
Section 3. Section 19-3-403, MCA, is amended to read:
"19-3-403. Exclusions from membership. The following persons may not become members of the retirement system:
(1) inmates of state institutions;
(2) persons in state institutions principally for the purpose of training but who receive compensation;
(3) independent contractors;
(4) persons who are members of any other retirement or pension system supported wholly or in part by funds of the United States government, any state government, or a political subdivision of the state and who are receiving credit in the other system for service. It is the purpose of this subsection to prevent a person from receiving credit for the same service in two retirement systems supported wholly or in part by public funds, except when the service qualifies, is applied for, and is purchased pursuant to 19-3-503. A member of the retirement system who, because of employment by the state, is required to become a member of any other system described in this subsection is considered, solely for the purposes of making regular contributions, as permanently separated from service. Exclusion under this subsection is subject to the following exceptions:
(a) When an employer has entered into a collective bargaining agreement that includes provisions for payments or contributions by the employer in lieu of wages to a retirement or pension plan qualified by the internal revenue service for its employees, the employees remain eligible, if otherwise qualified, for membership in the retirement system.
(b) For the purpose of this subsection (4), persons receiving pensions, retirement allowances, or other payments from any source on account of employment other than as an employee are not considered, because of receipt, members of any other retirement or pension system.
(5) court commissioners, elected officials, or appointive members of any board or commission who serve the state or any contracting employer intermittently and who are paid on a per diem basis;
(6) full-time students employed at and attending the same public elementary school, high school, community college, or
unit of the state university system, except that a person excluded from membership as a student of a public community
college or a unit of the state university system who later becomes a member by otherwise becoming an employee may
affirmatively exercise the option of qualifying the service excluded by this subsection by applying to the board in writing
after becoming a member and become eligible to receive credited service for the excluded service under the provisions of
(7) employees in a collective bargaining unit that has, pursuant to [section 2], negotiated an agreement excluding unit members from membership in the system."
NEW SECTION. Section 4. Codification instruction. (1) [Section 1] is intended to be codified as an integral part of Title 2, chapter 18, part 7, and the provisions of Title 2, chapter 18, part 7, apply to [section 1].
(2) [Section 2] is intended to be codified as an integral part of Title 19, chapter 3, part 4, and the provisions of Title 19, chapter 3, part 4, apply to [section 2].
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Latest Version of SB 405 (SB0405.01)
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