Montana Code 19-20-609. Employer’s supplemental contribution — actuarially determined adjustments
19-20-609. Employer’s supplemental contribution — actuarially determined adjustments. (1) (a) Subject to subsections (1)(b) through (1)(d), each employer shall contribute to the retirement system a supplemental amount equal to the percentage specified in subsection (1)(b) of total earned compensation of each member employed during the whole or part of the preceding payroll period.
Terms Used In Montana Code 19-20-609
- board: means the retirement system's governing board provided for in 2-15-1010. See Montana Code 19-20-101
- Earned compensation: means , except as limited by subsections (12)(b) and (12)(c) or by 19-20-715, remuneration paid for the service of a member out of funds controlled by an employer before any pretax deductions allowed under the Internal Revenue Code are deducted. See Montana Code 19-20-101
- Employer: means :
(a)the state of Montana;
(b)a public school district, as provided in 20-6-101 and 20-6-701;
(c)the office of public instruction;
(d)the board of public education;
(e)an education cooperative;
(f)the Montana school for the deaf and blind, as described in 20-8-101;
(g)the Montana youth challenge program, as defined in 10-1-101;
(h)a correctional facility, as defined in 41-5-103;
(i)the Montana university system;
(j)a community college; or
(k)any other agency, political subdivision, or instrumentality of the state that employs a person who is designated a member of the retirement system pursuant to 19-20-302. See Montana Code 19-20-101
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Member: means a person who has an individual account in the annuity savings account. See Montana Code 19-20-101
(b)The percentage of compensation to be contributed under subsection (1)(a) is 1% for fiscal year 2014 and increases by 0.1% each fiscal year through fiscal year 2024. For fiscal years beginning after June 30, 2024, the percentage of compensation to be contributed under subsection (1)(a) is 2%.
(c)The board may decrease the employer’s supplemental contribution if:
(i)the average funded ratio of the system based on the last three actuarial valuations is equal to or greater than 90%;
(ii)the period necessary to amortize all liabilities of the system based on the most recent annual actuarial valuation is less than 15 years; and
(iii)the guaranteed annual benefit adjustment has been increased to the maximum allowed under 19-20-719.
(d)Following one or more decreases in the supplemental contribution rate pursuant to subsection (1)(c), the board may increase the supplemental contribution to a rate not to exceed 1% if:
(i)the average funded ratio of the system based on the last three annual actuarial valuations is equal to or less than 80%; and
(ii)the period necessary to amortize all liabilities of the system based on the most recent annual actuarial valuation is greater than 20 years.
(2)After the board has actuarially determined the need to impose, increase, or decrease a supplemental contribution rate under this section, the imposition, increase, or decrease is effective on the first day of July following the board’s determination.