Participants in the $3.7 billion Montana Public Employees Retirement System and $2.8 billion Montana Teachers' Retirement System could see their contributions rise one percentage point as part of a proposal announced by Gov. Brian Schweitzer this week to “fix” unfunded liabilities expected to reach more than $3 billion over the next 30 years.
Mr. Schweitzer's proposal, which has not been formally introduced to the Legislature, calls for an increase in PERS' employee contribution rate to 7.9% of annual pay and the TRS rate to 8.15%, according to a news release on the governor's website.
Other components of the plan for PERS include a one-percentage-point increase to the employer contribution to 8.17% and an additional $18.1 million state contribution.
For TRS, Mr. Schweitzer proposes a one-time employer contribution of $14.7 million in addition to a $25 million contribution from the state land guarantee account from natural resource development.
The proposal requires no tax increases and is made possible by record budget surpluses over the last seven years, according to the release. Mr. Schweitzer argues the legislative proposal is necessary to correct the damage created in 2001 when legislation doubled the guaranteed annual benefit adjustment.
The two pension funds are overseen by the $7.9 billion Montana Board of Investments, Helena.
Sarah Elliott, communications director for Mr. Schweitzer, and David Ewer, executive director of the board of investments, did not return telephone calls by press time for additional information and comment.
