Committee concurs in bill to reverse pension rule change for law‑enforcement systems

The Senate Finance and Claims Committee concurred with House Bill 85, a measure aimed at reversing a modified ADEC (variable contribution) policy enacted last session for several public‑safety retirement systems. Sponsors and agency officials told the committee the modified policy lacked a floor on contribution rates and capped year‑to‑year increases, which they say created longer amortization periods and increased unfunded liabilities.

William Hollahan, executive director of the Montana Public Employee Retirement Administration, testified the modified approach forecasted an added $1.6 million of unfunded liabilities across the highway patrol, sheriffs and game warden systems over three fiscal years; repealing the change would shorten amortization periods across the impacted systems and restore statutory contribution levels. Hollahan also said the bill would reinstate a roughly $4 million statutory appropriation each biennium to the Department of Justice that supports employer contributions.

Proponent groups from law enforcement — including the Association of Montana Troopers, Montana Highway Patrol leadership, sheriffs and chiefs — urged concurrence, saying the bill protects the $26 million contribution enacted last session and restores actuarial soundness.

Senators asked technical questions about statutory mechanics and distribution of certain natural resource funds; witnesses said technical fixes were addressed in drafting and that actuarial outcomes would improve under the bill.

A roll call recorded 13 yes and 9 no on concurrence. The committee action moves the bill to the Senate floor for further consideration.

Outcome: Concurred in Senate Finance and Claims (roll‑call reported 13 yes, 9 no).