MontanaSB 5669th Legislature, Regular Session (2025)SenateWALLET

Supplemental employer contribution for PERS, HPORS, SRS, GWPORS

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 4 costs, 0 mixed.

Higher employer payments to public employee pensions

Employers in PERS must pay an extra contribution on top of regular rates. The extra is 1.27% in fiscal year 2014 and rises by 0.1 percentage point each year through fiscal year 2035, reaching 3.27% after June 30, 2035. The extra ends on July 1 after the board receives an actuarial report showing that ending it and lowering employee rates will not push amortization over 25 years.

Higher state costs for highway patrol pensions

From July 1, 2023 to June 30, 2024, the state pays 38.33% of pay for HPORS. Beginning July 1, 2024, the employer rate is set each year by the actuary and may not go up by more than 0.5 percentage point in a year. The calculation covers legacy and current unfunded liabilities and normal cost, minus employee contributions. An extra add‑on starts at 0.1% in fiscal year 2026 and rises by 0.1% each year until it is 1% after June 30, 2035; it ends on July 1 after an actuarial report shows ending it will not push amortization over 25 years. Each year by August 15, the state treasurer transfers $500,000 to the HPORS pension fund until the system is 100% funded.

More employer payments for game warden pensions

From July 1, 2023 to June 30, 2024, GWPORS employers pay 10.56% of pay. Beginning July 1, 2024, employers pay an actuary‑set rate, with any single‑year increase capped at 0.5 percentage point. An extra add‑on starts at 0.1% in fiscal year 2026 and rises by 0.1% each year until it is 1% after June 30, 2035. The board reviews the extra each year, and it ends on July 1 after an actuarial report shows ending it will not push amortization over 25 years.

Sheriff pensions: higher costs and levy option

Beginning July 1, 2024, Sheriffs’ Retirement System employers pay an actuary‑set rate, with any single‑year increase capped at 0.5 percentage point. For July 1, 2023 to June 30, 2024, the employer rate is 13.115% of pay. An extra add‑on starts at 0.1% in fiscal year 2026 and rises by 0.1% each year until it is 1% after June 30, 2035. The board reviews the extra each year, and it ends on July 1 after an actuarial report shows ending it will not push amortization over 25 years. If required SRS payments are more than a county’s general revenue, the county can levy a property tax outside the usual cap, without a voter election, after a noticed public hearing.

Sponsors & Cosponsors

Sponsor

Mike Cuffe
Republican • Senate

Cosponsors

Gary Parry
Republican • House

Roll Call Votes

All Roll Calls

Yes: 224 • No: 67

Senate vote • 4/10/2025

Do Concur

Yes: 82 • No: 15

Senate vote • 3/29/2025

Do Concur

Yes: 79 • No: 18

Senate vote • 2/24/2025

Do Pass

Yes: 33 • No: 16

Senate vote • 2/15/2025