Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Public Pensions topic
No spam. Unsubscribe anytime.
Committee approves decade-long employer contribution increase for four public retirement systems
Summary
Senate Bill 56, supported by the Public Employee Retirement Administration and unions, raises employer contribution rates for four retirement systems over a ten-year period to shorten amortization and improve actuarial soundness. The committee passed SB 56 after roll-call (14–8).
Senator Cuff presented Senate Bill 56, a measure from the interim State Administration and Veterans' Affairs Committee to incrementally raise employer contribution rates for four retirement systems (public employees, game wardens & peace officers, highway patrol, and sheriffs’ retirement systems). William Hollahan, executive director of the Montana Public Employee Retirement Administration, testified the change—described in the hearing as a point increase over 10 years—would reduce amortization periods and improve the actuarial position for each plan.
Representatives from law-enforcement associations, the Montana League of Cities and Towns and public-employee unions supported the bill’s objective. Witnesses noted the change produces a more predictable employer share and could shorten the time required to amortize existing liabilities (examples included reductions in projected amortization years across affected systems).
Committee members asked technical questions about actuarial assumptions (for example, a 7.3% investment return assumption and 3.25% payroll growth) and the fiscal-note sensitivity to those assumptions. Critics warned taxpayers ultimately absorb pension costs and pressed for clarity on assumptions. After discussion the committee moved to executive action and, following roll-call, SB 56 passed out of Senate Finance and Claims (roll-call recorded as 14 ayes, 8 nays).
