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Teachers' Retirement System official warns employers face large contribution increase to meet 2033 payoff
Summary
Shawn Graham, executive director of the Montana Teachers' Retirement System, told the House Education Committee that meeting the statutory 07/01/2033 payoff date for an unfunded university-system liability would require a supplemental employer contribution that could rise to about 14.21% and add roughly $30 million a year to TRS receipts in early years; the governor’s budget does not include that funding.
Shawn Graham, executive director of the Montana Teachers' Retirement System, told the House Education Committee on the bill’s informational hearing that the law requires periodic review of the supplemental employer contribution and that, to retire the university-system portion of TRS’s unfunded liability by July 1, 2033, the supplemental rate would need to rise substantially. “In 2025, in order to actually pay that off in the short time remaining before 07/01/2033, that contribution rate would need to go up to 14.21% of the university system retirement plan participants’ salaries,” Graham said.
The bill presented to the committee (sponsored in committee by Representative Matthews) is statutory in nature and comes from the TRS board. Graham summarized decades of changes to…
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