This bill mandates the establishment of a defined contribution plan within the Highway Patrol Officers' Retirement System, aimed at new members starting from July 1, 2027. The plan will require all employees hired on or after this date to participate, while those hired before will have the option to switch. Key features of the plan include immediate vesting for members, a choice between a 401(k) or Roth 401(k), and a reallocation of the current employer contribution rate, with 10% directed to the new plan. Additionally, the public employees' retirement board is tasked with developing a comprehensive plan by May 1, 2026, which will include necessary provisions, projected costs, and suggested legislation for implementation.

The bill also amends Section 61-3-406 of the Montana Code Annotated, increasing the fee for personalized license plates from $25 to $30 and changing the allocation of these fees. The revenue will now be directed to the Montana Highway Patrol Officers' Retirement System Pension Fund until the existing defined benefit plan is fully paid off, after which it will revert to the state general fund. The act is set to take effect immediately upon passage and approval.

Statutes affected:
LC Text: 61-3-406