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Committee hears PERA technical changes to conform to federal law and clarify retirement rules

January 08, 2025 | 2025 Legislature MT, Montana


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Committee hears PERA technical changes to conform to federal law and clarify retirement rules
Representative Julie Darling presented House Bill 62 on behalf of the Public Employees' Retirement Board. The bill packages a set of statutory clarifications and updates the retirement board staff identified as necessary to maintain plan qualification and operational clarity.

William Holohan, executive director of the Public Employees' Retirement Administration (PERA), summarized key sections: the bill clarifies that a legislator who is a system member may retire while serving and continue to receive retirement benefits; it extends the period a terminated employee may apply for disability from four to six months; it aligns required minimum distribution (RMD) ages with federal SECURE Act 2.0 changes; and it clarifies that per diems, allowances and expense reimbursements are not pensionable compensation for highest‑average compensation calculations.

PERA also proposed an exception to the 90‑day break‑in‑service rule for working retirees to allow a retired member to return to work briefly as a necessary witness in an ongoing civil or criminal proceeding. Holohan said the bill collects routine, largely technical changes that the board and staff review each biennium and that the measure reflects needed updates to maintain tax qualification and administrative clarity.

There were no opponents or informational witnesses recorded online; no committee vote was recorded in the hearing transcript. Representative Darling urged a do‑pass recommendation.

Next steps: HB 62 will proceed to executive action if the committee votes to advance the retirement board's technical package.

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