Montana Code 19-6-1005. Retirement system contributions — benefit payments to individual DROP accounts — investment returns
19-6-1005. Retirement system contributions — benefit payments to individual DROP accounts — investment returns. (1) (a) During a participant‘s DROP period, state contributions under 19-6-410 and employer contributions under 19-6-404 must continue to be made to the retirement system.
Terms Used In Montana Code 19-6-1005
- DROP: means the deferred retirement option plan established pursuant to this part. See Montana Code 19-6-1002
- DROP account: means the member's accumulated monthly DROP accruals, plus interest. See Montana Code 19-6-1002
- DROP period: means the period of time that a member irrevocably elects to participate in the DROP subject to the provisions of 19-6-1004. See Montana Code 19-6-1002
- Participant: means a member of the retirement system who has elected to participate in the DROP pursuant to this part. See Montana Code 19-6-1002
- 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
(b)Member contributions under 19-6-402 must be made to the member’s DROP account.
(2)Each month during the DROP period, in addition to the contributions credited under subsection (1)(b), a participant’s DROP account must be credited with the monthly benefit that would have been payable to the participant had the participant terminated employment and retired at the commencement of the DROP period, excluding any postretirement benefit adjustments that would have been applied to the benefit under part 7 of this chapter.
(3)Each fiscal yearend a participant’s DROP account must be credited with the interest earned that year based on the actuarially assumed rate of return. Proportionate interest must be credited for distributions taking place at other than a fiscal yearend.