All Roll Calls
Yes: 532 • No: 56
MontanaHB 6269th Legislature, Regular Session (2025)HouseWALLET
Generally revise laws related to the administration of MPERA
Sponsored By: Julie Darling (Republican)
Became Law
Retirement
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Bill Overview
Analyzed Economic Effects
11 provisions identified: 1 benefits, 1 costs, 9 mixed.
Bigger survivor benefits and who qualifies
Starting July 1, 2025, if an active member with under 20 years dies, a spouse gets half of the highest average pay; if inactive with under 20 years, survivors get a lump‑sum refund. With over 20 years, survivors get the benefit the member was due. For police, survivors of active members get half of final average pay, or 2.5% per year of service if over 20 years. A dependent child is unmarried and under 18, or under 24 and a full‑time college student. Nonspouse beneficiaries who meet federal rules can be distributees for rollovers.
What pay counts toward pensions
The law excludes reimbursements, in‑kind benefits, per diems, allowances, and one‑time or temporary bonuses after July 1, 2013 from pensionable pay. It also sets highest‑average‑pay periods: 36 months for hires before July 1, 2011 and 60 months for hires on or after that date, where applicable. These rules can lower the pay used to calculate your pension.
Buy prior service with payroll payments
You can buy prior service by lump sum or installments. Installments run 3 months to 5 years and can be set up by payroll deduction with a written, signed authorization. If you leave or die before finishing payroll deductions, the board prorates the service you bought; you or your estate can pay the rest in a lump sum, subject to IRS limits. To buy prior work, you must pay missed employee contributions plus actuarial interest; if your employer does not pay its retro share, you must pay it to get the credit.
Disability pensions: work and review rules
If you get a disability pension and work outside the system, you must report yearly earnings. Your check is reduced so your benefit plus pay does not beat your highest average monthly pay at retirement; after 36 months, that cap is inflation‑adjusted. At normal retirement age, some plans convert your disability to a service pension with no change in the monthly amount; others keep it as disability but end medical exams. Employers must provide job duties and ADA accommodations for claims, and the board uses medical advisers.
Firefighter pay and pension rules updated
Beginning July 1, 2025, firefighter compensation for pensions excludes overtime, holiday pay, shift pay, comp time, sick‑leave payouts, per diems, allowances, expenses, and certain one‑time bonuses. Full‑paid firefighter compensation is pay before pretax deductions; part‑paid firefighter compensation equals 15% of the July 1 pay of a newly confirmed full‑paid firefighter (or the average if none exist). Highest average pay uses the best 36 consecutive months, and lump‑sum annual leave at termination can replace months one‑for‑one. The law also defines which cities, districts, and the Department of Military Affairs count as employers, and sets a $300‑a‑year threshold for part‑paid status in second‑class cities.
Limits on retirees who return to work
Retirees hired before July 1, 2011 can work up to 960 hours a year in covered jobs without cutting benefits if they left work at least 90 days earlier. After 960 hours, benefits are cut $1 for each $1 earned that year. Different limits apply for ages 65 to under 70½, tied to an inflation‑adjusted pay cap. Employers must report each pay period’s hours and pay for these retirees. If an employer fails to report or reports wrongly, the employer and retiree must repay overpaid benefits with interest.
Stronger employer reporting and late fees
Employers must pick up and send both employee and employer retirement contributions with a valid payroll report. The board sets how employers must file reports and can charge fees for bad or late reports. Late payments can be charged 9% a year or $10 a day, whichever is higher. These rules protect workers’ accounts but add costs and penalties for employers.
90‑day choice to join at hire
Some employees in covered jobs must choose within 90 days to join the retirement system or irrevocably decline. Not filing on time counts as a decline. Workers who already are active or inactive members cannot make this choice.
Options for legislators’ retirement membership
A legislator who already belongs to a public retirement system can keep participating while serving, but must file an irrevocable election within 90 days. The legislator keeps paying employee contributions based on salary, and the state pays the employer share. A member who retires from a nonlegislative job can permanently decline further participation while serving. Inactive or retired members who become legislators can return to their old system (if allowed) or join the public employees’ system as active, but cannot hold inactive/retired and active statuses at the same time. Electronic signatures count for required written elections.
When retirement checks must start
Required distributions must start by April 1 of the year after the later of reaching your required age or the year after you leave work. The age is 70½ if born before July 1, 1949; 72 if born after June 30, 1949; 73 for many born after December 31, 1950 before 2033; and 75 if you reach 74 after 2032. The board can start required payouts without an application to meet IRS rules. If you delay starting benefits, your yearly increase begins only after you get 12 monthly checks in a calendar year; no retro pay. If an elected official’s term ends before the 15th, they may start benefits the month after their last full month by written request.
Effective dates and conflict rule
Most of the law takes effect July 1, 2025. Section 12 takes effect July 1, 2026. If this law and Senate Bill 316 both amend the same subsection of 19‑2‑406, this law’s overlapping change in that subsection is void.
Sponsors & Cosponsors
Sponsor
Julie Darling
Republican • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 4/16/2025
Do Concur
Yes: 96 • No: 2
House vote • 4/15/2025
Do Concur
Yes: 95 • No: 2
House vote • 4/9/2025
Do Concur
Yes: 32 • No: 16
House vote • 4/8/2025
Do Concur
Yes: 33 • No: 14
House vote • 1/15/2025
Do Pass
Yes: 100 • No: 0
House vote • 1/13/2025
AMD-HB0062.001.001 Schubert DO PASS
Yes: 77 • No: 22
House vote • 1/13/2025
Do Pass As Amended
Yes: 99 • No: 0
Actions Timeline
Chapter Number Assigned
5/13/2025HouseSigned by Governor
5/8/2025HouseTransmitted to Governor
5/2/2025HouseSigned by President
5/2/2025SenateSigned by Speaker
4/29/2025HouseReturned from Enrolling
4/18/2025HouseSent to Enrolling
4/16/2025House3rd Reading Passed as Amended by Senate
4/16/2025House2nd Reading Senate Amendments Concurred
4/15/2025House2nd Reading Pass Consideration
4/11/2025HouseReturned to House with Amendments
4/9/2025Senate3rd Reading Concurred
4/9/2025Senate2nd Reading Concurred
4/8/2025SenateCommittee Report--Bill Concurred as Amended
4/5/2025SenateCommittee Executive Action--Bill Concurred as Amended
4/4/2025SenateHearing
1/31/2025SenateReferred to Committee
1/17/2025SenateFirst Reading
1/16/2025SenateTransmitted to Senate
1/16/2025House3rd Reading Passed
1/15/2025House2nd Reading Passed as Amended
1/13/2025House2nd Reading Motion to Amend Carried
1/13/2025HouseCommittee Report--Bill Passed
1/10/2025HouseCommittee Executive Action--Bill Passed
1/10/2025HouseFiscal Note Printed
1/7/2025House
Bill Text
Enrolled
4/17/2025
As Amended (Version 3)
4/5/2025
As Amended (Version 2)
1/13/2025
Introduced
12/11/2024