Montana Code 19-20-608. Member supplemental contribution — actuarially determined adjustments — effective dates
19-20-608. Member supplemental contribution — actuarially determined adjustments — effective dates. (1) (a) Subject to subsections (1)(b) and (1)(c), a tier one member shall contribute to the retirement system a supplemental amount equal to 1% of the member’s earned compensation.
Terms Used In Montana Code 19-20-608
- 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
- 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
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
- Tier one member: means a person who became a member before July 1, 2013, and who has not withdrawn the member's account balance. See Montana Code 19-20-101
- Tier two member: means a person who became a member on or after July 1, 2013, or who, after withdrawing the member's account balance, became a member again after July 1, 2013. See Montana Code 19-20-101
(b)The board may decrease the tier one member 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%; and
(ii)the period necessary to amortize all liabilities of the system based on the most recent annual actuarial valuation is less than 15 years.
(c)Following one or more decreases in the supplemental contribution rate pursuant to subsection (1)(b), 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)(a) Subject to subsection (2)(b), on or after January 1, 2023, the board may require a tier two member to contribute to the retirement system a supplemental amount if:
(i)the average funded ratio of the system based on the last three annual actuarial valuations is equal to or less than 80%;
(ii)the period necessary to amortize all liabilities of the system based on the latest annual actuarial valuation is greater than 20 years; and
(iii)a state or employer contribution rate increase or a flat dollar contribution to the retirement system trust fund has been enacted that is equivalent to or greater than the supplemental contribution rate imposed by the board pursuant to this subsection (2)(a).
(b)A tier two member supplemental contribution increase under this subsection (2) may not:
(i)exceed 0.5% of earned compensation; and
(ii)result in an aggregate tier two member contribution rate of more than 9.15% when added to the normal contribution rate required under 19-20-602.
(c)Following imposition of a supplemental contribution rate increase under this subsection (2), the board may decrease the supplemental contribution rate if:
(i)the average funded ratio of the system based on the previous three annual actuarial valuations is equal to or greater than 90%; and
(ii)the period necessary to amortize all liabilities of the system based on the latest annual actuarial valuation is less than 15 years.
(3)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.