Committee approves committee substitute for Senate Bill 76 to raise NRP retirement multiplier; forwards to Finance

The committee voted to report the committee substitute for Senate Bill 76 to the full Senate with a recommendation that it do pass and, under its original double committee reference, first be referred to the Committee on Finance.

Senate Bill 76 would increase the multiplier used to calculate retirement benefits for members of the Natural Resources Police Officers Retirement System from 2.5% (scheduled to begin July 1 of the current year) to 2.75% for members who retire on or after Jan. 1, 2028. Committee commentary said the final average salary used in benefit calculations is the five highest consecutive plan years of the last 10 years of earnings.

To pay the actuarial cost of the increase, the bill directs the Division of Natural Resources (DNR) to contribute roughly 21% from fiscal year 2026 through fiscal year 2030, a cost the committee said is reflected in the fiscal note. Committee discussion included cost estimates provided by retirement‑plan staff indicating, if the additional liability were amortized over five years, the yearly cost could be about $850,000.

Brett McMillian, director of the Division of Natural Resources, told the committee the agency would remain neutral because it did not sponsor the bill and that he could not provide additional financial guarantees. McMillian said the funding for such a change would be drawn from fund 3204, the Law Enforcement Program Fund, which he said currently holds about $15,900,000 and is funded primarily by royalties from gas wells on wildlife management areas plus smaller statutory transfers and license dollars. McMillian said recent annual royalty deposits have been in the ‘‘2 plus million’’ range but cautioned the agency should not rely on long‑term guarantees of royalties.

Senator John Barrett (recorded as Senator Barrett in the transcript) asked whether the multiplier increase would aid recruitment and retention; McMillian said associations and plan members typically support higher multipliers and that other agencies have higher multipliers, but the agency maintained neutrality on the policy decision.

The committee approved the substitute and the vice chair moved that it be reported to the full Senate with a do‑pass recommendation and referral to Finance. The motion carried.