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Committee passes narrow tax-fix for line-of-duty disability benefits for police and firefighters
Summary
Senate Bill 316 would create a statutory line-of-duty disability benefit for municipal police and firefighters to preserve federally tax-free treatment for a limited period; the committee passed the bill in executive action after proponents described no fiscal impact to retirement trusts.
The Senate Business and Labor Committee voted to pass Senate Bill 316, a narrowly drawn change to Montana pension statutes that creates a line-of-duty disability benefit for members of the municipal police and firefighters' retirement systems so those payments can be reported as tax-free under an existing federal private letter ruling.
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