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Bill would roll back last session's amortization change for three law‑enforcement pensions, backers say
Summary
Representative Marta Bertoglio offered House Bill 85 to repeal the "modified layered amortization" in last session's bill and restore employer contribution rates and a $4 million biennial appropriation for highway patrol contributions. Proponents said the change created funding shortfalls despite one‑time infusions last session.
Representative Marta Bertoglio told the committee House Bill 85 would repeal the modified layered amortization (the "ADEC" change) enacted last session and restore employer contribution rates for the Highway Patrol, Sheriffs, and Game Warden and Peace Officers retirement systems. The bill also reinstates a roughly $4 million biennial statutory appropriation to the Department of Justice to fund highway patrol employer contributions.
William Hollahan, executive director of the Montana Public Employee Retirement Administration, said the problem stems from last session's changes: a one‑time infusion of roughly $94 million and a new layered amortization policy that places a 0.5 percent cap on annual increases to employer contribution rates but no floor on decreases. Hollahan said the combination can produce multi‑year shortfalls that increase unfunded liabilities. He presented a table (handout) showing a projected $763,000 actuarial increase in unfunded liabilities for the highway patrol system under current law.
Dan Villa of the Board of Investments said the $94 million infusion earlier in the session lost much of its value as a result of the rate changes. Kurt Sager, colonel of the Montana Highway Patrol, said the funding shortfall harms recruitment and retention, training and equipment purchasing, and noted the patrol had "the largest vacancy rate" in recent memory with 53 fewer troopers.
Will Self, chief of staff to the attorney general, and law‑enforcement associations — including the Association of Montana Troopers and the Montana Sheriffs and Peace Officers Association — testified in support. They called HB 85 necessary to restore actuarial soundness and to ensure the agencies can recruit and equip officers.
Proponents urged a due‑pass recommendation. Representative Bertoglio closed by stressing the need to maintain financially sound retirement systems to recruit and retain public safety personnel.
The hearing record shows no opponents in the room and that the bill will proceed to committee consideration.
