SENATE BILL NO. 434
INTRODUCED BY M. WATERMAN, C. AHNER, S. BARTLETT, T. BECK, B. CRIPPEN, S. DOHERTY, S. GALLUS, D. HARGROVE, D. HARRINGTON, J. HERTEL, J. LYNCH, K. MESAROS, D. MOOD, J. QUILICI, M. TAYLOR
AN ACT REDUCING THE MEMBER CONTRIBUTION FOR THE POLICE RETIREMENT STATEWIDE PLAN; PROVIDING FOR AN ELECTION ON GUARANTEED ANNUAL BENEFIT ADJUSTMENTS; AMENDING SECTION 19-9-710, MCA; AND PROVIDING EFFECTIVE DATES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 19-9-710, MCA, is amended to read:
"19-9-710. Member's contribution. (1) Except as provided in subsection (2), the regular contribution as a percentage of compensation of each active member first employed by an employer as a police officer:
(a) on or before June 30, 1975, is 7.8% 5.8%;
(b) after June 30, 1975, is 9% 7%;
(c) after June 30, 1979, but before July 1, 1997, is 10.5% 8.5%; and
(d) on and after July 1, 1997, is 11% 9%.
(2) A member covered under 19-9-1009 or [section 2] shall pay a contribution rate equal to 11% 9% of compensation
received on and after July 1, 1997.
(3) 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 subsections (1) and (2) for service rendered after June 30, 1985.
(4) 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.
(5) 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 in the member's compensation as defined in 19-9-104. 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. 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%.
(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% annualized increase, then the recipient's benefit must be adjusted by an amount that will provide a total annualized increase of 1.5% 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% 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.
Section 3. Codification instruction. [Section 2] 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 2].
Section 4. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before January 1, 2000.
Section 5. Effective dates. (1) Except as provided in subsection (2), [this act] is effective January 1, 2000.
(2) [Section 2(3)(b)(ii)(A) and (4)] are effective on passage and approval.
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Latest Version of SB 434 (SB0434.ENR)
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