This bill mandates the establishment of a defined contribution plan within the Highway Patrol Officers' Retirement System, with a deadline for implementation set for July 1, 2027. The plan will require all new members hired after this date to participate, while existing members will have the option to switch to the new plan. Key features of the defined contribution plan include immediate vesting for members, a choice between a 401(k) and a Roth 401(k), and a reallocation of employer contributions to support both the new plan and officer salaries. The public employees' retirement board is tasked with developing a detailed plan by May 1, 2026, which will include necessary provisions, projected costs, and suggested legislation for implementation.

Additionally, the bill amends Section 61-3-406 of the Montana Code Annotated, changing the fee structure for personalized license plates. The original fee for a personalized plate will increase from $25 to $30, and the revenue from these fees will now be directed to the Montana Highway Patrol Officers' Retirement System pension fund until the defined benefit plan is fully paid off. Once that obligation is met, the revenue will revert to the state general fund. The bill is set to take effect immediately upon passage and approval.

Statutes affected:
LC Text: 61-3-406