This bill, requested by the Public Employees' Retirement Board, seeks to revise the funding provisions for the Public Employees' Retirement System in Montana by eliminating the "plan choice rate," which previously influenced the employer contribution percentage to the defined benefit plan. The legislation proposes an increase in employer contributions from 6.9% to 10.83% of employee compensation, aimed at addressing unfunded liabilities and ensuring the sustainability of benefits for both current and future retirees. The bill also establishes a fixed member contribution rate of 7.9%, with a potential reduction to 6.9% based on annual actuarial evaluations.

In addition to these changes, the bill amends several sections of the Montana Code Annotated (MCA) to streamline the funding process by deleting references to the plan choice rate and its calculations. It enhances the allocation of contributions, increasing the percentage directed to member retirement accounts and the defined benefit plan, while also specifying an additional 0.27% contribution for school district employees. The bill emphasizes the need for regular reviews of contribution rates to align with the system's amortization schedule for unfunded liabilities, with all changes set to take effect on July 1, 2023.

Statutes affected:
Introduced: 19-2-303, 19-2-405, 19-3-315, 19-3-316, 19-3-319, 19-3-2117, 19-21-214