Major pension bills face votes this week

HELENA — With deadlines fast approaching, the Joint Select Committee on Pensions intends to vote on the major pension bills on March 12, its chairman said Tuesday.

What the 12-member committee — eight Republicans and four Democrats — will do is anybody’s guess as it tries to figure out ways to deal with the funds’ combined potential shortfalls of $4.3 billion.

“Right now, I don’t feel a consensus,” committee chairman Sen. Dave Lewis, R-Helena, said after the meeting.

Lewis said he realizes there are serious disagreements among committee members over what to do.

“We can’t just ignore this,” he said. “It’s a huge liability for taxpayers.”

Lewis said the major bills that the committee will act on next week include:

v House Bill 338, by Rep. Keith Regier, R-Kalispell, which would close to future employees the current defined benefit pension plans, which guarantee fixed pensions to retired employees based on their years of employment and the average of their highest years of salaries, and put them instead in a defined contribution plan, which is similar to a 401(k) plan.

Contribution rates would be increased in certain plans until the plans are funded. The plans would get appropriations from coal severance tax revenues and the general funds to pay their unfunded liabilities.

v HB 454, by Rep. Bill McChesney, D-Miles City, on behalf of Gov. Steve Bullock, which would amortize the unfunded liabilities of the Public Employees Retirement System and maintain the current defined benefits plan. It would do it through increased contributions by employees and employers and revenue until a trigger is hit, and interest earnings from natural resource industries.

The retirement system and public employee unions support this plan.

v HB 377, by Rep. Tom Woods, D-Bozeman, on behalf of Bullock, which would amortize the unfunded liabilities of the Teachers’ Retirement System by putting in additional funding from state natural resources revenues and a one-time deposit of school reserve funds. Active members would contribute more.

This bill is supported by education groups and unions.