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SB 141

Providing that the default retirement plan for legislators is the defined contribution plan through PERS

2025 Regular Session Introduced by Forrest Mandeville

Montana SB 141 would shift legislators' default retirement from guaranteed defined benefits to market-dependent defined contribution plans, reducing state liability while increasing individual retirement risk.

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Bill Summary · SB 141

Legislative bill overview

SB 141 would change the default retirement plan for Montana legislators from a defined benefit plan to a defined contribution plan through PERS (Public Employees' Retirement System). This shift moves retirement risk from the state to individual legislators, who would bear responsibility for investment performance and longevity planning.

Why is this important

Retirement plan design significantly affects both long-term state budget obligations and individual legislators' financial security. Defined benefit plans guarantee specific payouts but create fixed state liabilities, while defined contribution plans shift investment risk to participants but reduce government's financial exposure and unfunded liabilities.

Potential points of contention

  • Cost shifting: Moves retirement security responsibility from the collective state obligation to individual legislators' investment choices and market performance
  • Recruitment and retention: Legislators in other states often receive defined benefit plans; changing this may affect recruitment of qualified candidates or be perceived as reducing legislative compensation
  • Fairness and precedent: Questions about whether legislators should be treated differently than other state employees, and whether this applies retroactively to current legislators or only prospectively

Compiled from official sources — confirm details with the bill’s official record.

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