This bill, requested by the Public Employees' Retirement Board, aims to enhance the funding for the Sheriffs' Retirement System to ensure its actuarial soundness by increasing the employer contribution rate. Specifically, it amends Section 19-7-404 of the Montana Code Annotated (MCA) to raise the employer contribution rate from 9.535% to 11.265% of the compensation paid to employees. Additionally, it introduces a requirement for employers to contribute an additional 0.58% and 3% of employee compensation, while also allowing counties to impose a mill levy to fund these contributions without needing voter approval.

The bill also includes provisions for periodic reviews of the additional employer contributions to maintain the amortization schedule for the system's unfunded liabilities. It stipulates that these additional contributions will cease if an actuarial valuation determines that the amortization period for the unfunded liabilities is less than 25 years. The act is set to take effect on July 1, 2023.

Statutes affected:
Introduced: 19-7-404