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MontanaHB 6269th Legislature, Regular Session (2025)HouseWALLET

Generally revise laws related to the administration of MPERA

Sponsored By: Julie Darling (Republican)

Signed by Governor

Retirement

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Bill Overview

Analyzed Economic Effects

14 provisions identified: 1 benefits, 4 costs, 9 mixed.

Cap on pension pay spikes

If you were hired on or after July 1, 2013 and have at least 48 or 72 months of service, pay used in your pension math is capped. For each year in your final-average period, only up to 110% of the prior year’s included pay counts. Any extra pay above the cap is totaled, spread evenly over your months of service, and then added back for the calculation. This limits big last‑minute jumps from boosting your pension amount.

Firefighters: pay, averages, survivor benefits

Starting July 1, 2025, full‑paid firefighters use regular pay before pretax deductions. Part‑paid firefighters in second‑class cities use 15% of a defined full‑paid firefighter’s regular pay, excluding overtime and similar premiums; if none is employed, the average for second‑class cities is used. Highest average pay uses the best 36 months (or total pay divided by months if fewer than 36). A lump‑sum annual‑leave payout can replace months one‑for‑one but cannot be added to a single month. If an active member dies with under 20 years, survivors get half of highest average pay; inactive with under 20 years get a contribution refund; with 20+ years, survivors get the benefit the member was due.

Municipal police: pay and survivor rules

Starting July 1, 2025, overtime, holiday pay, shift pay, comp time, cashouts of sick or annual leave, per diems, allowances, some expenses, and certain post‑2013 one‑time bonuses do not count toward pension pay. If an active member dies, a spouse or dependent child gets half of final average pay each month; with over 20 years, the benefit is 2.5% per year of service. If the member was inactive at death, survivors get a lump‑sum refund of contributions. The earliest retirement date is the first day of the month when you are age 50 and have 5 years of service.

Required distributions and automatic starts

Benefits must start by April 1 of the year after the later of two events: you reach the age set by your birth year or you stop working. Ages are 70½ for births before July 1, 1949; 72 for births after June 30, 1949; 73 for some born after 1950 who turn 73 before 2033; and 75 if you turn 74 after 2032. The board can start payments without your written application to meet IRS required‑beginning‑date rules. Death benefits must follow federal distribution rules.

PERS: per diems and stipends excluded

Per diems, maintenance, allowances, expenses, and volunteer stipends do not count as compensation for your pension under the public employees’ retirement system. These items are excluded from highest or final average pay calculations.

Sheriff and detention: some pay excluded

Per diems, maintenance, allowances, and some expenses do not count toward pension pay for sheriff/public safety and detention/peace officer plans. One‑time or temporary bonuses paid after July 1, 2013 that are not part of base pay are also excluded. This can lower the pay used to figure future pension checks.

Buy service credit: costs and fixes

If you buy past service, you must pay the employee contributions plus interest at the board’s actuarial rate. Your employer must have one policy on paying retroactive employer contributions; if it will not pay, you must pay the employer share to get the credit. If an employer failed to tell you about optional membership, you can elect in later and buy the missed time; the employer must pay the employer share and accrued interest on both employer and employee contributions. If you stop installment payments by personal check, you get only prorated service credit.

Disability retirement: timing and earnings checks

You must apply for disability retirement within 12 months after leaving your job. In some plans, your disability benefit becomes a service retirement at normal retirement age with no change in the monthly amount; in others, it stays a disability benefit and no medical exam is required at that age. Your disability pay is reduced if your pension plus work earnings exceed your highest average pay at retirement. After 36 months on disability, that comparison pay is raised for inflation using the CPI‑U.

Game wardens: pay and retirement updates

Starting July 1, 2025, per diems, allowances, some expenses, and one‑time or temporary bonuses after July 1, 2013 do not count as pension pay. Your highest average pay uses your best 36 months if hired before July 1, 2011, or your best 60 months if hired on/after that date. You can replace months with a lump‑sum leave payout month‑for‑month, but you cannot add a lump sum to boost one month. You can retire after you leave work with 20 years of service and age 50 (or at age 55 if vested with under 20 years). If you die before normal retirement age, a vested beneficiary may take a lump‑sum refund or a monthly benefit; a nonvested beneficiary gets a lump‑sum refund.

Judges: survivor benefits and bonus rule

If a vested judicial member dies before normal retirement age, the named beneficiary gets a monthly survivorship benefit equal to the actuarial value of the member’s retirement benefit. If not vested, the beneficiary gets a lump‑sum refund of contributions. Also, one‑time or temporary bonuses paid after July 1, 2013 that are not part of base pay do not count toward pensionable compensation.

Retiree return‑to‑work limits and exceptions

Starting July 1, 2025, if you return to covered work for 480 hours or more in a year, your pension stops until you retire again. If you work under 480 hours, your benefit is cut $1 for every $3 you earn over $5,000. In another plan, ages 65 to under 70½, your limit is the higher of 960 hours or a dollar cap so your earnings plus pension do not top your inflation‑adjusted highest average pay; going over cuts your pension $1 for $1. Some retirees are excepted, like elected officials who declined optional membership and necessary witnesses paid for a limited time. If you work through a staffing firm or as a contractor, only your direct pay for the work counts, not overhead.

Employers: fix errors and name a contact

Employers must pay any missing contributions plus interest when they correct past retirement reporting errors. Each participating employer must also name a point of contact to receive board materials and share them with employees.

Legislators: retirement choices and funding

If you become a legislator and are already an active member, you may keep your membership by filing an irrevocable election within 90 days. You must keep paying employee contributions at the current system rate; the state funds the employer share by appropriation. You may instead retire when your nonlegislative job ends, but then you must decline further participation while serving. Inactive or retired members who become legislators may return to their old system if allowed or join the public employees’ system. You cannot be both an inactive/retired member and an active member at the same time.

Retirement law terms updated

The law updates many defined terms used across the public retirement systems. Clearer definitions guide how benefits, retirement age, and member status are applied.

Sponsors & Cosponsors

Sponsor

  • Julie Darling

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 536 • No: 57

House vote • 4/16/2025

Do Concur

Yes: 96 • No: 2

House vote • 4/15/2025

Do Concur

Yes: 98 • No: 2

Senate vote • 4/9/2025

Do Concur

Yes: 32 • No: 16

Senate vote • 4/8/2025

Do Concur

Yes: 34 • No: 15

House vote • 1/15/2025

Do Pass

Yes: 100 • No: 0

House vote • 1/13/2025

Do Pass As Amended

Yes: 99 • No: 0

House vote • 1/13/2025

AMD-HB0062.001.001 Schubert DO PASS

Yes: 77 • No: 22

Actions Timeline

  1. Chapter Number Assigned

    5/13/2025House

  2. Signed by Governor

    5/8/2025House

  3. Transmitted to Governor

    5/2/2025House

  4. Signed by President

    5/2/2025Senate

  5. Signed by Speaker

    4/29/2025House

  6. Returned from Enrolling

    4/18/2025House

  7. Sent to Enrolling

    4/16/2025House

  8. 3rd Reading Senate Amendments

    4/16/2025House

  9. 2nd Reading Senate Amendments

    4/15/2025House

  10. 2nd Reading Pass Consideration

    4/11/2025House

  11. Returned to House with Amendments

    4/9/2025Senate

  12. 3rd Reading

    4/9/2025Senate

  13. 2nd Reading

    4/8/2025Senate

  14. Committee Report

    4/5/2025Senate

  15. Committee Executive Action

    4/4/2025Senate

  16. Hearing

    1/31/2025Senate

  17. Referred to Committee

    1/17/2025Senate

  18. 1st Reading

    1/16/2025Senate

  19. Transmitted to Senate

    1/16/2025House

  20. 3rd Reading

    1/15/2025House

  21. 2nd Reading

    1/13/2025House

  22. 2nd Reading Motion to Amend

    1/13/2025House

  23. Committee Report

    1/10/2025House

  24. Committee Executive Action

    1/10/2025House

  25. Fiscal Note Printed

    1/7/2025House

Bill Text

  • Enrolled

    4/17/2025

    PDF

  • As Amended (Version 3)

    4/5/2025

    PDF

  • As Amended (Version 2)

    1/13/2025

    PDF

  • Introduced

    12/11/2024

    PDF

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