MontanaHB 6769th Legislature, Regular Session (2025)HouseWALLET

Generally revise laws related to the administration of TRS

Sponsored By: Marta Bertoglio (Republican)

Signed by Governor

Retirement

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Bill Overview

Analyzed Economic Effects

12 provisions identified: 3 benefits, 3 costs, 6 mixed.

No double coverage between TRS and MUS

You cannot be active in both TRS and the Montana University System retirement plan at the same time. If you are an active TRS member in certain university positions, you cannot join the university plan. If you are in the university plan and take a TRS-eligible job, you cannot be active in TRS.

Set RMD dates for TRS payouts

Beginning July 1, 2025, TRS must start an inactive member’s benefit or refund by the required minimum distribution (RMD) date. The RMD date is the later of April 1 after the year you end all TRS jobs, or April 1 after the year you reach: age 70½ if born before July 1, 1949; age 72 if born July 1, 1949–Dec 31, 1950; age 73 if born 1951–1959; or age 75 if born on/after Jan 1, 1960. If you do not apply by that date, TRS starts monthly payments under a default option.

Buy back short TRS service

Beginning July 1, 2025, if you deferred TRS for your first 210 hours and later became active that year, you can buy credit for those hours. You must pay both the employee and employer contributions that would have been paid from your first day of service, plus interest at TRS’s actuarial assumed rate. If you worked less than 30 days in an otherwise eligible job and later become active in the same fiscal year, you can also buy those first 30 days on the same terms. Paying both shares and interest costs money now but increases future service credit.

Dormant TRS accounts; interest restored

Beginning July 1, 2025, TRS moves a vested inactive member to dormant status by the member’s RMD start date if the member cannot be located for involuntary retirement or has not withdrawn, applied for benefits, or returned to work. When a dormant member later takes a qualifying action, TRS restores the account and credits the interest that would have been earned.

Earnings can end disability pensions

Beginning July 1, 2025, if a disabled retiree works in a TRS-reportable job and earns over the legal limit in a calendar year, the disability allowance stops and the person becomes an active member again. When the person later stops all TRS jobs, TRS pays the smaller of two calculations: (1) a service retirement using all credited service and pay, or (2) the prior disability benefit plus a second benefit based only on service and pay earned after returning. You cannot use permissive service purchases not used in the original disability calculation to raise the later benefit.

Full-time is 1,080 hours yearly

In school districts with an alternative calendar reported to the Office of Public Instruction, full-time service means at least 1,080 hours in a fiscal year. The district must apply this standard the same way to all employees it reports to TRS.

More extra-duty work counts for TRS

The law expands what counts as extra duty service. Educational tasks regularly assigned outside your normal duties, and certain student supervision outside regular programs, now qualify. “Educational services capacity” covers instruction, education-related services, evaluation, curriculum work, supervision, and primary administration.

TRS changes start July 1, 2025

This law takes effect July 1, 2025.

Some stipends no longer boost pensions

A professional stipend under 20-4-134, and similar payments or reimbursements, are not counted as earned pay for TRS. They are not subject to retirement contributions and do not increase pension calculations.

Subs and aides choose TRS timing

Eligible substitute teachers, part-time teacher’s aides, and paraprofessionals must, on day one, sign an irrevocable choice to join TRS now or defer until they reach 210 hours in a fiscal year. Hours can be combined across employers. When reported hours reach 210, active membership starts the first day of the month after the month the threshold is met. Employers must give the election form on the first day, collect it, and keep it permanently.

Clear rules for true volunteers

A position counts as a bona fide volunteer only if all rules are met: no pay or benefits (except required insurance premiums), not paid in the past 12 months or for 12 months after designation, no one else is paid in the same role, and strict hour limits apply (up to 4/day, 12/week, and 312/year when serving on regular business days, or 312/year if serving mostly outside business days). TRS can require employers to provide records to prove a volunteer position meets these rules.

Stronger TRS employer reporting rules

Employers must keep records on anyone hired, working for, or paid by the employer and give TRS the documents it requests to verify reporting and contributions. Employers must send a wage and contribution report every month, even in months with no reportable pay. They must also report each month the name, Social Security number, time worked, and gross earnings for substitutes, aides, and paraprofessionals who deferred TRS until 210 hours. On request, employers must certify who is eligible for or in TRS.

Sponsors & Cosponsors

Sponsor

Marta Bertoglio
Republican • House

Cosponsors

Janet Ellis
Democrat • Senate

Roll Call Votes

All Roll Calls

Yes: 260 • No: 37

Senate vote • 4/1/2025

Do Concur

Yes: 32 • No: 18

Senate vote • 3/31/2025

Do Concur

Yes: 33 • No: 17

House vote • 1/21/2025

Do Pass

Yes: 97 • No: 1

House vote • 1/20/2025