SB 56: Supplemental employer contribution for PERS, HPORS, SRS, GWPORS - Montana

SB0056_2(14).pdf → SB0056_X.pdf · 5 edits

MODERATE

This bill revises the supplemental employer contribution rates for several Montana retirement systems, including the Public Employees' Retirement System, Highway Patrol, Sheriffs, and Game Wardens. It extends the duration of these contributions and increases the rates over time to ensure systems remain fully funded. The changes also modify how legacy unfunded liabilities are amortized and establish new termination conditions based on actuarial valuations.

Scope change

The bill expands the scope of supplemental contributions to include the Highway Patrol Officers', Sheriffs', and Game Wardens' and Peace Officers' Retirement Systems, in addition to the existing Public Employees' Retirement System.

FISCAL

Increased the supplemental employer contribution rate for the Public Employees' Retirement System from 1.27% to 2.27% effective July 1, 2025, with a scheduled increase to 3.27% by fiscal year 2035.

Extended the term of the supplemental contribution for the Public Employees' Retirement System from terminating on January 1, 2025, to terminating on January 1, 2035, contingent on actuarial valuations.

Modified the amortization schedule for legacy unfunded liabilities in the Public Employees' Retirement System to use a closed 25-year period starting July 1, 2023, rather than the previous open-ended schedule.

SCOPE

Added supplemental employer contribution provisions for the Highway Patrol Officers' Retirement System, the Sheriffs' Retirement System, and the Game Wardens' and Peace Officers' Retirement System.

TIMELINE

Adjusted the effective dates and fiscal year references for contribution rates to align with the new extended timeline through fiscal year 2035.

SB0056_1(6).pdf → SB0056_2(9).pdf · 2 edits

MINOR

The bill updates the fiscal year reference for employer pension contributions from 2035 to 2035 (likely a formatting correction or extension) and adjusts the required contribution percentage from 2.27% to 3.27%. These changes increase the financial obligation for employers contributing to the pension system, directly impacting state budget allocations and public employee retirement funding.

Scope change

The scope of the bill's financial requirements has expanded by increasing the mandatory contribution rate for employers.

FISCAL

The required employer contribution percentage under subsection (3)(a) was increased from 2.27% to 3.27%.

TIMELINE

The fiscal year reference in the contribution schedule was updated, extending the timeline to include June 30, 2035, alongside existing dates.

SB0056_2(8).pdf → SB0056_1(6).pdf · 3 edits

MINOR

The bill updates the fiscal year reference from 2025 to 2035 and adjusts the employer contribution percentage from 2.27% to 3.27% for contributions beginning after June 30, 2024. These changes significantly increase the financial obligation for employers participating in the program and extend the timeline for the projected funding increase.

Scope change

The bill's scope regarding the duration of the funding increase was extended, and the financial scope was increased by raising the contribution rate.

TIMELINE

The projected fiscal year for the contribution increase was changed from 2025 to 2035, altering the long-term financial planning horizon.

FISCAL

The required employer contribution percentage was increased from 2.27% to 3.27%, resulting in higher costs for employers.

TECHNICAL

Minor formatting adjustments were made to the header and page numbering, though these do not affect the substantive policy.

SB0056_1(5).pdf → SB0056_2(8).pdf · 3 edits

MINOR

The bill updates the fiscal year reference for employer pension contributions from 2035 to 2035 (likely a formatting correction or extension), adjusts the contribution percentage from 2.27% to 3.27%, and changes the review frequency from annual to biennial. These changes increase the financial burden on employers and alter the schedule for reviewing contribution rates.

Scope change

The bill's scope regarding the duration of the contribution rate increase and the frequency of board reviews has been modified.

TIMELINE

The fiscal year reference for the contribution rate increase was changed from 2035 to 2035, extending the timeline for the rate increase.

FISCAL

The required employer contribution percentage was increased from 2.27% to 3.27%.

REQUIREMENT

The frequency of the board's annual review of additional employer contributions was changed to a biennial review.

SB0056_2(7).pdf → SB0056_1(5).pdf · 2 edits

MINOR

The bill updates the fiscal year reference for employer contributions from 2035 to 2025 and adjusts the contribution percentage from 2.27% to 3.27%. These changes likely reflect a legislative decision to increase funding levels and align the timeline with the current fiscal planning cycle.

Scope change

The scope of the bill's applicability to future fiscal years has shifted from 2035 to 2025, altering the long-term financial planning horizon for the program.

TIMELINE

The fiscal year reference for contribution calculations was changed from 2035 to 2025.

FISCAL

The required employer contribution percentage was increased from 2.27% to 3.27%.

SB0056_1(4).pdf → SB0056_2.pdf · 2 edits

MINOR

The bill updates the timeline for increasing employer pension contributions, extending the annual 0.1% increase schedule through fiscal year 2035 instead of stopping in 2024. It also adjusts the specific contribution percentage required from employers, raising it from 2.27% to 3.27% to ensure adequate funding for the retirement plan.

Scope change

The bill's scope regarding the duration of the contribution increase schedule was expanded to cover an additional decade.

TIMELINE

Extended the annual contribution increase schedule to apply through fiscal year 2035, rather than ending in fiscal year 2024.

FISCAL

Increased the required employer contribution percentage from 2.27% to 3.27%.

LC0225.pdf → SB0056_1.pdf · 2 edits

MINOR

The bill text was renumbered from LC 0225 to Senate Bill 56, indicating a formal change in the bill's identity or a re-introduction under a new number. The substantive content regarding compensation percentages and fiscal year schedules remains unchanged, with only minor formatting adjustments to the header and page footers.

TECHNICAL

The bill number was changed from LC 0225 to SB 56, and the header was updated to reflect 'Senate Bill No. 56' instead of the previous committee designation.

Page footer text was updated from 'Authorized Print Version - ****' to 'Authorized Print Version - SB 56' to match the new bill number.

Supplemental employer contribution for PERS, HPORS, SRS, GWPORS

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