House Education Committee hears bill to raise university-system supplemental TRS contribution to address past-service liability

The House Education Committee on Wednesday heard lawmakers and the Teachers' Retirement System describe a proposal to increase the supplemental employer contribution paid on behalf of university-system employees who participate in a defined-contribution retirement plan, to help pay an unfunded past-service liability by the statutory deadline of July 1, 2033.

Sean Graham, executive director of the Montana Teachers' Retirement System, told the committee the contribution rate would need to rise substantially from the current 4.72 percent to roughly 14.21 percent to meet the 2033 payoff date, and that doing so generates a large fiscal impact on the university system and the state general fund. “If you look at the fiscal note … the total revenue into the TRS pension fund would be about $30,000,000 in fiscal…