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Sponsor urges $65 million one-time payment to make Highway Patrol pension whole; retirement agency and troopers back plan
Summary
Representative Greg Kametz proposed a one-time $65 million appropriation to eliminate unfunded liabilities in the Highway Patrol Officers pension; the retirement director said the plan is about 78% funded with roughly $226 million in assets and $65.3 million in unfunded liabilities as of 06/30/2024, and stakeholders said the fund’s small size makes it vulnerable to market swings.
Representative Greg Kametz told the committee that Montana’s budget surplus presents an opportunity to pay down pension debt and proposed House Bill 370 to provide a one-time statutory appropriation of $65 million to the Highway Patrol Officers’ Pension Trust Fund.
William Hollahan, executive director of the Public Employees Retirement Administration, testified the Highway Patrol system’s most recent valuation (06/30/2024) showed the plan roughly 78% funded with assets of about $226 million and unfunded liabilities of approximately $65.3 million. Hollahan said that because the system has comparatively few active members (roughly 225) and more retirees (around 300+), investment volatility affects the fund more prominently than larger plans; a one-time payment would move the fund toward being fully funded and reduce volatility risk.
Representatives of the Highway Patrol and the Association of Montana Troopers testified in support, saying full funding would aid recruitment and retention. Committee members asked whether the bill would change employer or employee contribution rates; Hollahan said the bill simply pays down the unfunded liability and does not alter contribution rate structure. He also noted prior one-time appropriations had affected contribution rates in other contexts if a statutory floor was not placed on rates.
The sponsor closed by urging lawmakers to pay at least one bill off with the current surplus.
What happens next: The bill was heard and proponents urged a due pass; no final committee vote on HB370 is recorded in this transcript.
