House Bill No. 324
Introduced By _______________________________________________________________________________
A Bill for an Act entitled: "An Act providing a permanent 2.5 percent ad hoc cost-of-living benefit increase to all current and future retirees of the public employees', judges', highway patrol officers', sheriffs', game wardens', municipal police officers', firefighters' unified, and teachers' retirement systems; providing for general fund contributions to each retirement system to pay for the benefit increase; amending sections 19-3-904, 19-3-905, 19-3-1008, 19-5-404, 19-5-502, 19-5-601, 19-6-404, 19-6-502, 19-6-601, 19-6-901, 19-7-503, 19-7-601, 19-7-901, 19-8-501, 19-8-504, 19-8-603, 19-8-701, 19-8-1001, 19-9-702, 19-9-804, 19-9-903, 19-9-1101, 19-13-604, 19-13-704, 19-13-803, 19-13-902, 19-20-804, and 19-20-902, MCA; and providing an effective date."
Be it enacted by the Legislature of the State of Montana:
NEW SECTION. Section 1. Ad hoc cost-of-living increase for members retired before July 1, 1997. A member of the retirement system, or the member's contingent annuitant or statutory beneficiary, who received at least one monthly benefit payment before July 1, 1997, is entitled to a 2.5% permanent increase in the monthly benefit paid after July 1, 1997.
NEW SECTION. Section 2. State contributions. The state of Montana shall contribute monthly from the general fund to the pension trust fund a sum equal to 0.53% of the total compensation of members employed on and after July 1, 1997.
NEW SECTION. Section 3. State contributions. The state of Montana shall contribute monthly from the general fund to the pension trust fund a sum equal to 0.33% of the total compensation of members employed on and after July 1, 1997.
NEW SECTION. Section 4. State contributions. The state of Montana shall contribute monthly from the general fund to the pension trust fund a sum equal to 0.6% of the total compensation of members employed on and after July 1, 1997.
Section 5. Section 19-3-904, MCA, is amended to read:
"19-3-904. Amount of service retirement benefit. (1) The monthly amount of retirement benefit payable to a member following service retirement is the greater of subsection (1)(a) or (1)(b) as follows:
(a) one fifty-sixth 1.8303% of the member's final average salary multiplied by the number of years of the member's total
service credit; or
(b) a monthly annuity that is the actuarial equivalent of double the member's accumulated regular contributions.
(2) If a member dies after retirement and has not elected an optional retirement allowance provided for in 19-3-1501, the member's beneficiary will be paid the excess, if any, of the member's accumulated contributions on the day on which the member's retirement allowance commenced over the total of the retirement allowance payments made to the retired member."
Section 6. Section 19-3-905, MCA, is amended to read:
"19-3-905. Adjustment of benefit for certain members. The minimum retirement benefit payable to a vested member
who has attained age 70 in service is an annuity of $40 $41 per a month."
Section 7. Section 19-3-1008, MCA, is amended to read:
"19-3-1008. Benefit for disability. (1) The monthly amount of the retirement benefit payable to a member eligible for disability retirement under the provisions of 19-3-1002(1) is the greater of subsection (1)(a) or (1)(b) as follows:
(a) 90% of one fifty-sixth 1.8303% of the member's final average salary multiplied by the member's years of service credit,
including any additional service purchased under 19-3-513; or
(b) a retirement benefit equal to 25% 25.63% of the member's final average salary.
(2) The monthly amount of retirement benefit payable to a member eligible for disability retirement under the provisions
of 19-3-1002(3) is a retirement benefit equal to one fifty-sixth 1.8303% of the member's final average salary multiplied by
the member's years of service credit, including any additional service purchased under 19-3-513.
(3) Subject to the provisions of part 11 of this chapter, a retired member receiving a disability retirement benefit on February 24, 1991, who has previously been granted a disability retirement benefit under the provisions of this section will continue to receive the monthly disability retirement benefit as calculated prior to February 24, 1991, subject to any postretirement or cost-of-living increases granted by the legislature."
Section 8. Section 19-5-404, MCA, is amended to read:
"19-5-404. Contributions by state. (1) The state of Montana shall contribute monthly to the pension trust fund a sum
equal to 6% 8.1% of the compensation of each member. In addition, the clerk of each district court shall transmit 68% of
certain filing fees, as required under 25-1-201(2), and that portion of the fee for filing a petition for dissolution of marriage
and a motion for substitution of a judge specified in 25-1-201(4) and (6) to the state, which shall first deposit in the pension
trust fund an amount equal to 34.71% of the total compensation paid to district judges and supreme court justices who are
covered by the judges' retirement system and then deposit the balance in the state general fund. The clerk of the supreme
court shall pay one-fourth of the fees collected under 3-2-403 to the division to be credited to the pension trust fund.
(2) The state of Montana shall contribute monthly from the renewable resource grant and loan program account in the state special revenue fund to the judges' pension trust fund an amount equal to 34.71% of the compensation paid to the chief water court judge."
Section 9. Section 19-5-502, MCA, is amended to read:
"19-5-502. Service retirement benefit. Upon retirement from service, a member must receive a service retirement benefit
equal to 3 1/3% 3.4163% per a year of the member's current salary for the first 15 years of credited service and 1.785%
1.8296% per a year for each year of credited service after 15 years."
Section 10. Section 19-5-601, MCA, is amended to read:
"19-5-601. Disability retirement benefit. In case of the disability of a member, a disability retirement benefit must be
granted the member in an amount actuarially equivalent to the service retirement benefit standing to the member's credit at
the time of the member's disability retirement. If the disability is a direct result of any service to the Montana judiciary in
the line of duty, the member must receive a benefit equal to one-half member's disability benefit must be no less than
51.25% of the member's final current salary or the benefit provided in 19-5-502, whichever is greater."
Section 11. Section 19-6-404, MCA, is amended to read:
"19-6-404. State's contribution. The state of Montana shall annually contribute to the pension trust fund an amount
equal to 36.28% 38.17% of the total compensation paid to the members from the following sources:
(1) an amount equal to 26.10% of the total compensation of the members is payable from the same source that is used to
pay compensation to the members; and
(2) an amount equal to 10.18% of the total compensation of the members is payable from a portion of the fees from driver's licenses and duplicate driver's licenses as provided in 61-5-121; and
(3) an amount equal to 1.89% of the total compensation of the members is payable from the general fund."
Section 12. Section 19-6-502, MCA, is amended to read:
"19-6-502. Service retirement benefit. Upon retirement from service, a member must receive a service retirement benefit
equal to 2.5% 2.5625% of the member's final average salary for each year of service credit."
Section 13. Section 19-6-601, MCA, is amended to read:
"19-6-601. Disability retirement benefit. (1) In case of the disability of a member, a disability retirement benefit must be
granted the member that is the actuarial equivalent of the service retirement benefit under 19-6-502 standing to the
member's credit at the time of the member's disability retirement. If the disability is a direct result of any service to the
Montana highway patrol in the line of duty, then the member who is disabled must be retired on a disability retirement
benefit of one-half 51.25% of the member's final average salary regardless of the member's length of service.
(2) Upon the death of a retired member receiving a disability retirement benefit as provided in subsection (1), the benefit must be paid to the member's surviving spouse or dependent child, if there is a spouse or child, in the same manner as provided for in 19-6-505(2) and (3)."
Section 14. Section 19-6-901, MCA, is amended to read:
"19-6-901. Survivorship benefits -- employment-related death. (1) If the board finds that a member died as a direct and proximate result of injury received in the course of the member's service, a survivorship benefit must be paid to the member's surviving spouse or dependent child in the same manner as provided for in 19-6-505(2) through (4).
(2) The retirement benefit must equal 50% 51.25% of the final average salary of the member."
Section 15. Section 19-7-503, MCA, is amended to read:
"19-7-503. Service retirement benefit. (1) The amount of any service retirement benefit granted to a member is 2.0834%
2.1355% of the member's final average salary for each year of service credit.
(2) If a member dies after retirement and had not elected an optional retirement benefit provided for in 19-7-1001, the member's designated beneficiary must be paid the excess, if any, of the member's accumulated contributions at the time of retirement less payments made to the retired member."
Section 16. Section 19-7-601, MCA, is amended to read:
"19-7-601. Disability retirement benefit. In the case of the disability of a member, regardless of the member's length of
service, a disability retirement benefit must be awarded to the member based on the actuarial equivalent of the member's
service retirement benefit under 19-7-503 standing to the member's credit at the time of the member's disability retirement.
If the disability is a direct result of the member's service as a member in the line of duty, then the member must be awarded
a benefit of one-half 51.25% of the member's final average salary."
Section 17. Section 19-7-901, MCA, is amended to read:
"19-7-901. Payments in case of death before retirement. If a member dies before retirement, the member's designated beneficiary may elect one of the following options for which the member qualified and the designated beneficiary qualifies:
(1) a lump-sum payment of the accumulated contributions standing to the member's credit at the member's death;
(2) a survivorship benefit equal to 2.0834% 2.1355% of the member's final average salary for each year of service credit
actuarially reduced from age 65 or the date on which the member would have completed 20 years of membership service,
whichever provides a larger retirement benefit; or
(3) a survivorship benefit that is no less than one-half 51.25% of the member's final average salary if the board finds that
the member died as a direct and proximate result of injuries received in the course of employment."
Section 18. Section 19-8-501, MCA, is amended to read:
"19-8-501. Contributions to pension trust fund. The following must be paid to the division and must be credited to the pension trust fund:
(1) all contributions by the state from department of fish, wildlife, and parks money;
(2) all contributions by the state game wardens; and
(3) all interest on and increase of the investments and money in the pension trust fund; and
(4) all contributions by the state from the general fund."
Section 19. Section 19-8-504, MCA, is amended to read:
"19-8-504. State's contribution. Each month, the state treasurer shall pay to the pension trust fund:
(1) out of the department of fish, wildlife, and parks funds, a sum equal to 8.15% of all members' salaries; and
(2) out of the general fund, a sum equal to 0.35% of all members' salaries."
Section 20. Section 19-8-603, MCA, is amended to read:
"19-8-603. Service retirement benefit. The service retirement benefit is equal to 2% 2.05% of the member's final
average salary for each year of service credit."
Section 21. Section 19-8-701, MCA, is amended to read:
"19-8-701. Disability retirement benefit. (1) A member who is determined by the board to be disabled must be granted a disability retirement benefit in an amount calculated on the actuarial equivalent of the service retirement benefit standing to the member's credit at the time of the member's disability retirement.
(2) If the disability is a direct result of any service to the department of fish, wildlife, and parks in line of duty and the
member has at least 10 years of membership service, the member who is disabled must be retired on a disability retirement
benefit of one-half 51.25% of the member's final average salary."
Section 22. Section 19-8-1001, MCA, is amended to read:
"19-8-1001. Benefits upon employment-related death. If the board finds that a member died as a direct and proximate
result of injury received in the course of the member's service, a monthly survivorship benefit must be paid to the member's
designated beneficiary equal to 50% 51.25% of the final average salary of the member."
Section 23. Section 19-9-702, MCA, is amended to read:
"19-9-702. State contribution. The state of Montana shall make its contributions through the state auditor out of the
premium tax on motor vehicle property and casualty insurance policies. The payments must be made annually after the end
of each fiscal year but no later than November 1 from the gross premium tax after deduction for cancellations and returned
premiums. The division shall notify the auditor by September 1 of each fiscal year of the annual compensation paid to all
active members during the preceding fiscal year. The state's contribution is 15.66% 16.91% of compensation paid to
members on and after July 1, 1997."
Section 24. Section 19-9-804, MCA, is amended to read:
"19-9-804. Amount of service retirement benefit -- continuation of benefit after death of member. (1) A member
who is eligible for service retirement must receive a retirement benefit equal to 2.5% 2.5625% of the member's final
average compensation for each year of service credit.
(2) (a) Upon the death of a member receiving a service retirement benefit, the member's surviving spouse, if there is one, must receive a benefit equal to the amount of the member's benefit at the time of the member's death.
(b) If the member leaves one or more dependent children, then upon the member's death, if there is no surviving spouse, or upon the death of the surviving spouse, the member's surviving dependent child or children collectively if there are more than one must receive the same monthly payments that a surviving spouse would receive for as long as the child or one of the children remains a dependent child as defined in 19-9-104. The payments must be made to the child's appointed guardian for the child's use. If there is more than one dependent child, upon each child no longer qualifying as dependent under 19-9-104, the pro rata payments to that child must cease and be made to the remaining children until all the children are no longer dependent."
Section 25. Section 19-9-903, MCA, is amended to read:
"19-9-903. Amount of disability retirement benefit -- continuation of benefit after death of member. (1) A member
who is eligible under 19-9-902 before earning 20 years of service credit must receive a disability retirement benefit equal to
one-half 51.25% of the member's final average compensation.
(2) A member who is retired under 19-9-902 and who, at the time of the member's injury or disability, was eligible at the member's option to be retired under 19-9-801 but had elected to serve years in excess of 20 years of service credit and was then serving additional years must be paid for the additional years at the rate prescribed in 19-9-804.
(3) Upon the death of a member receiving a disability retirement benefit under this section, the member's surviving spouse or dependent child is eligible for benefits as provided in 19-9-804."
Section 26. Section 19-9-1101, MCA, is amended to read:
"19-9-1101. Preretirement death benefits. (1) Upon the death of a member before retirement, the member's surviving
spouse or dependent child is eligible for benefits equal to one-half 51.25% of the member's final average salary as provided
in 19-9-804.
(2) Upon the death of an inactive nonvested member, the member's surviving spouse or dependent child is eligible for a refund of the member's accumulated contributions."
Section 27. Section 19-13-604, MCA, is amended to read:
"19-13-604. State contribution. (1) The state shall make its contributions through the state auditor from the premium taxes on the insurance risks enumerated in 19-18-512. These payments must be made annually to the pension trust fund after the end of each fiscal year but no later than November 1 from the gross premium taxes after deduction for cancellations and returned premiums. The division shall notify the auditor of the annual compensation, excluding overtime, holiday payments, shift differential payments, compensatory time payments, and payments in lieu of sick leave, paid to all active members during the preceding year.
(2) The state's contribution is 24.21% 25.69% of this total compensation on and after July 1, 1997.
(3) As soon as practicable after receipt of the state contribution, the division shall deposit it in the pension trust fund."
Section 28. Section 19-13-704, MCA, is amended to read:
"19-13-704. Amount of service retirement benefit. (1) (a) A member hired before July 1, 1981, who elects to retire after having reached 20 years of membership service must receive a service retirement benefit equal to the sum of:
(i) 50% 51.25% of the member's last monthly compensation for years of service credit up to and including 20 years; and
(ii) 2% 2.05% of the member's last monthly compensation for each year of service credit after 20 years.
(b) A member hired before July 1, 1981, who elects to retire after having reached at least 10 years but less than 20 years of
membership service as an active member must receive a service retirement benefit equal to 2% 2.05% of the member's last
monthly compensation for each year of service credit. Upon the retired member's death, the benefit must be made to the
surviving spouse. If there is no surviving spouse or if the surviving spouse dies and if the member leaves one or more
dependent children, the children are entitled to receive the allowance as long as they remain dependent children as defined
in 19-13-104.
(2) A member hired on or after July 1, 1981, who retires with at least 10 years of membership service must receive a
service retirement benefit equal to 2% 2.05% of the member's final average compensation for each year of service credit."
Section 29. Section 19-13-803, MCA, is amended to read:
"19-13-803. Amount of disability retirement benefit. (1) A member hired before July 1, 1981, who becomes disabled:
(a) before completing 20 years of membership service must receive a disability retirement benefit equal to one-half 51.25%
of the member's last monthly compensation;
(b) after completing 20 years or more of membership service must receive the disability retirement benefit provided in
subsection (1)(a) increased at a rate of 2% 2.05% of the member's last monthly compensation for each year of service credit
in excess of 20 years.
(2) A member hired on or after July 1, 1981, who becomes disabled:
(a) before completing 25 years of membership service must receive a disability retirement benefit equal to one-half 51.25%
of the member's last monthly compensation;
(b) after completing 25 years or more of membership service must receive the disability retirement benefit provided in
subsection (2)(a) increased at a rate of 2% 2.05% of the member's last monthly compensation for each year of service credit
in excess of 25 years.
(3) A member's disability retirement benefit must be paid first to the member during the member's lifetime and, upon the member's death, to the member's surviving spouse. If upon a member's death the member leaves no surviving spouse or upon the death of the surviving spouse, the member's benefit must be paid to the member's dependent children as long as they remain dependent children as defined in 19-13-104."
Section 30. Section 19-13-902, MCA, is amended to read:
"19-13-902. Survivorship benefit. (1) (a) Upon the death before retirement of an active member hired before July 1,
1981, the member's surviving spouse, if there is one, must receive a survivorship benefit equal to one-half 51.25% of the
last monthly compensation received by the member. If the member leaves one or more dependent children, then, upon the
member's death if the member leaves no surviving spouse or upon the death of the surviving spouse, the member's
dependent children must collectively receive the same benefit that a surviving spouse would have received, as long as the
children remain dependent children as defined in 19-13-104.
(b) If the deceased member completed over 20 years of membership service, the survivorship benefit provided in
subsection (1)(a) must be increased at a rate of 2% 2.05% of the last monthly compensation for each year in excess of 20
years.
(2) Upon the death before retirement of a member hired on or after July 1, 1981, the member's surviving spouse, if there is
one, must receive a survivorship benefit equal to one-half 51.25% of the member's final average compensation. If the
member leaves one or more dependent children, then, upon the member's death if the member leaves no surviving spouse or
upon the death of the surviving spouse, the member's dependent children must collectively receive the same benefit that a
surviving spouse would have received, as long as the children remain dependent children as defined in 19-13-104."
Section 31. Section 19-20-804, MCA, is amended to read:
"19-20-804. Allowance for superannuation retirement. (1) Upon superannuation retirement, a member shall must
receive a retirement allowance consisting of a pension which that, together with an annuity, provides a retirement
allowance equal to one-sixtieth 1.708% of his the member's average final compensation multiplied by the sum of the
number of years of creditable service, service transferred under 19-20-409, and additional service purchased under
19-20-412.
(2) Any A retired member may be employed as a part-time or substitute teacher in Montana and may earn, without loss of
retirement benefits, an amount not to exceed the greater of:
(a) one-third of the sum of his the member's average final compensation plus normal annual salary increases for teaching
personnel employed by the school district, state agency, political subdivision, or university unit that employed the member
at the time of retirement; or
(b) one-third of the median of the average final compensation for members retired during the preceding fiscal year as determined by the retirement board."
Section 32. Section 19-20-902, MCA, is amended to read:
"19-20-902. Allowance for disability retirement. Upon retirement for disability, a member must receive a disability retirement allowance equal to:
(1) one-sixtieth 1.708% of the member's average final compensation multiplied by the sum of the number of years of
creditable service, service transferred under 19-20-409, and additional service purchased under 19-20-412, if the retirement
allowance exceeds one-fourth of the member's average final compensation; or
(2) a pension that, together with the member's annuity, provides a total retirement allowance equal to one-fourth of the member's average final compensation."
NEW SECTION. Section 33. Codification instruction. (1) [Section 1] is intended to be codified as an integral part of Title 19, chapters 2 and 20, and the provisions of Title 19, chapters 2 and 20, apply to [section 1].
(2) [Section 2] is intended to be codified as an integral part of Title 19, chapter 3, and the provisions of Title 19, chapter 3, apply to [section 2].
(3) [Section 3] is intended to be codified as an integral part of Title 19, chapter 7, and the provisions of Title 19, chapter 7, apply to [section 3].
(4) [Section 4] is intended to be codified as an integral part of Title 19, chapter 20, and the provisions of Title 19, chapter 20, apply to [section 4].
NEW SECTION. Section 34. Effective date. [This act] is effective July 1, 1997.
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