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AN ACT GENERALLY REVISING ADMINISTRATIVE AND TAX QUALIFICATION PROVISIONS OF THE
TEACHERS' RETIREMENT SYSTEM; CLARIFYING THE REPORTING DUTIES OF EMPLOYERS;
CLARIFYING ELECTIVE MEMBERSHIP DEFERRAL FOR CERTAIN POSITIONS; CLARIFYING ACTIVE
MEMBERSHIP AND DORMANT MEMBER STATUS; CLARIFYING THE PURCHASE OF DEFERRED
ELECTIVE SERVICE; REVISING MANDATORY DISTRIBUTION PROVISIONS TO CONFORM WITH
FEDERAL LAW; CLARIFYING DISABILITY RETIREMENT ALLOWANCE CALCULATIONS; PROVIDING
DEFINITIONS; AMENDING SECTIONS 19-20-101, 19-20-208, 19-20-302, 19-20-303, 19-20-417, 19-20-703,
AND 19-20-905, MCA; AND PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 19-20-101, MCA, is amended to read:
"19-20-101. Definitions. As used in this chapter, unless the context clearly indicates otherwise, the
following definitions apply:
(1) "Accumulated contributions" or "account balance" means the sum of all the amounts deducted
from the compensation of a member or paid by a member and credited to the member's individual account in
the annuity savings account, together with interest, minus any amount deducted for correction of errors and the
aggregate amount of all retirement benefit payments and refunds of accumulated contributions paid to or on
behalf of the member.
(2) "Actuarial equivalent" means a benefit of equal value when computed upon the basis of the
mortality table and interest rate assumption set by the retirement board.
(3) "Alternate beneficiary" means an estate or an individual not designated as a beneficiary but
that becomes a beneficiary pursuant to 19-20-1005.
(4) "Average final compensation" means a member's highest average earned compensation,
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determined pursuant to 19-20-805, on which all required contributions have been made.
(5) "Beneficiary designation" means the process that the retirement system prescribes pursuant to
this chapter by which a person authorized by law designates one or more beneficiaries.
(6) "Beneficiary designation record" means either the hard copy form or electronic record
prescribed by the retirement system and used by a person authorized by law to designate one or more
beneficiaries.
(7) "Benefit recipient" means a retired member, a joint annuitant, or a beneficiary who is receiving
a retirement allowance.
(8) "Contingent beneficiary" means a designated beneficiary with the right to receive any benefit or
refund of accumulated contributions payable if there is no eligible primary beneficiary.
(9) "Creditable service" is that service defined by 19-20-401.
(10) "Date of termination" or "termination date" means the last date on which a member performed
service in a position reportable to the retirement system.
(11) "Designated beneficiary" means one or more primary beneficiaries or contingent beneficiaries
designated pursuant to 19-20-1006.
(12) (a) "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.
(b) Earned compensation does not include:
(i) direct employer premium payments on behalf of members for medical, pharmaceutical,
disability, life, vision, dental, or any other insurance;
(ii) any direct employer payment or reimbursement for:
(A) professional membership dues;
(B) maintenance;
(C) housing;
(D) day care;
(E) automobile, travel, lodging, or entertaining expenses; or
(F) any similar form of maintenance, allowance, or expenses;
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(iii) the imputed value of health, life, or disability insurance or any other fringe benefits;
(iv) any noncash benefit provided by an employer to or on behalf of a member;
(v) termination pay unless included pursuant to 19-20-716;
(vi) compensation paid to a member from a plan for the deferral of compensation under section
457(f) of the Internal Revenue Code, 26 U.S.C. 457(f);
(vii) payment for sick, annual, or other types of leave paid to a member prior to termination from
employment or accrued in excess of that normally allowed;
(viii) incentive or bonus payments paid to a member that are not part of a series of annual
payments;
(ix) a professional stipend paid pursuant to 20-4-134; or
(x) any similar payment or reimbursement made to or on behalf of a member by an employer;.
(c) (i) Adding a direct employer-paid or noncash benefit to an employee's contract or subtracting
the same or a similar amount as a pretax deduction is considered a fringe benefit and not earned
compensation.
(ii) Cash paid in lieu of any direct employer-paid or noncash benefit that has previously been or
would be paid or provided to or on behalf of the employee at the employee's request or direction is considered
a fringe benefit and not earned compensation.
(13) "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
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(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.
(14) "Extra duty service" means:
(a) service in an educational services capacity that is not compensated as part of the normally
assigned duties and functions of a school district teacher, administrator, or other employee but is regularly
assigned to one or more school district teachers, administrators, or other employees as part of the regular
operation of the school district's curricular, cocurricular, and or extracurricular programs; or
(b) service not in an educational services capacity that is regularly assigned to a school district
teacher, teacher's aide, paraprofessional, or administrator for the purposes of student supervision during school
functions that are not part of the school district's regular curricular, cocurricular, or extracurricular programs.
(c) For the purposes of this subsection (14), “educational services capacity” has the same
meaning as provided in 19-20-302(10).
(15) "Full-time service" means service that is:
(a) at least 180 days in a fiscal year;
(b) at least 140 hours a month during at least 9 months in a fiscal year; or
(c) at least 1,080 hours in a fiscal year under an alternative school calendar adopted by a school
board and reported to the office of public instruction as required by 20-1-302. The standard for full-time service
for a school district operating under an alternative school calendar must be applied uniformly to all employees
of the school district required to be reported to the retirement system.
(16) "Individual" means a human being.
(17) "Internal Revenue Code" has the meaning provided in 15-30-2101.
(18) "Joint annuitant" means the one person that a retired member who has elected an optional
allowance under 19-20-702(2), (4), or (5) has designated to receive a retirement allowance upon the death of
the retired member.
(19) "Member" means a person who has an individual account in the annuity savings account.
Unless otherwise specified, "member" refers to a tier one member or a tier two member.
(20) "Normal form" or "normal form benefit" means a monthly retirement benefit payable only for the
lifetime of the retired member.
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(21) "Normal retirement age" means an age no earlier than 60 years of age.
(22) "Part-time service" means service that is not full-time service. Part-time service must be
credited in the proportion that the actual time worked compares to full-time service.
(23) "Position reportable to the retirement system" means a position in which an individual performs
duties that would entitle the person to active membership in the retirement system under the provisions of 19-
20-302.
(24) "Primary beneficiary" means a designated beneficiary with a first right to receive any benefit or
refund of accumulated contributions payable upon the death of the individual authorized by law to make the
designation.
(25) "Regular interest" means interest at a rate set by the retirement board in accordance with 19-
20-501(2).
(26) "Retired", "retired member", or "retiree" means a person who is considered in retired member
status under the provisions of 19-20-810.
(27) "Retirement allowance" or "retirement benefit" means a monthly payment due to a retired
member who has qualified for service or disability retirement or due to a joint annuitant or beneficiary.
(28) "Retirement board" or "board" means the retirement system's governing board provided for in
2-15-1010.
(29) "Retirement system", "system", or "plan" means the teachers' retirement system of the state of
Montana provided for in 19-20-102.
(30) "Service" means the performance of duties that would entitle the person to active membership
in the retirement system under the provisions of 19-20-302.
(31) "Termination" or "terminate" means that the employment relationship between the member and
the member's employer has been terminated as required in 19-20-810.
(32) (a) "Termination pay" means any form of bona fide vacation leave, sick leave, severance pay,
amounts provided under a window or early retirement incentive plan, or other payments contingent on the
employee terminating employment.
(b) Termination pay does not include:
(i) amounts that are not wages under section 3121 of the Internal Revenue Code, determined
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without regard to the wage base limitation; and
(ii) amounts that are payable to a member from a plan for the deferral of compensation under
section 457(f) of the Internal Revenue Code, 26 U.S.C. 457(f).
(33) "Tier one member" means a person who became a member before July 1, 2013, and who has
not withdrawn the member's account balance.
(34) "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.
(35) "Vested" means that a member has been credited with at least 5 full years of membership
service upon which contributions have been made and has a right to a future retirement benefit.
(36) "Written application" or "written election" means a written instrument, required by statute or the
rules of the board, properly signed and filed with the board, that contains all the required information, including
documentation that the board considers necessary."
Section 2. Section 19-20-208, MCA, is amended to read:
"19-20-208. Duties and liability of employer. (1) Each employer shall:
(a) (i) each month, report the name, social security number, time worked, and gross earnings of
each employed member; and
(ii) pick up the contributions of each employed member at the rate prescribed pursuant to 19-20-
602 and 19-20-608 and transmit the contributions to the executive director of the retirement board;
(b) transmit to the retirement system the employer's contributions prescribed by 19-20-605 and 19-
20-609 at the time that the employee contributions are transmitted;
(c) keep records and, as required by the retirement system, furnish information that is required in
the discharge of the retirement system's duties, including financial, personal services, or other information or
documentation requested by the retirement system to verify proper retirement system reporting and contribution
remittance related to any individual hired by, working for, or paid by the employer, whether as a common law
employee, an independent contractor, an employee or contractor of a third party, a volunteer, or in any other
capacity;
(d) on the employment of a person who is required to become a member of the retirement system,
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inform the person of the rights and obligations relating to the retirement system;
(e) each month, report the name, social security number, time worked, and gross earnings of each
retired member of the system who has been employed in a position that is reportable to the retirement system
pursuant to 19-20-731;
(f) whenever applicable, inform an employee of the right to elect to participate in the university
system retirement program under Title 19, chapter 21; and
(g) at the request of the retirement system, certify the names of all persons who are eligible for
membership or who are members of the retirement system; and
(h) each month, report the name, social security number, time worked, and gross earnings of each
substitute teacher, teacher's aide, and paraprofessional who, pursuant to 19-20-302(4), has elected not to
participate in the retirement system prior to completing 210 hours of employment in any fiscal year.
(2) An employer shall submit a wage and contribution report to the retirement system every month,
including for any month in which the employer does not pay compensation reportable to the retirement system."
Section 3. Section 19-20-302, MCA, is amended to read:
"19-20-302. Active membership. (1) Unless otherwise provided by this chapter, the following
persons employed by an employer must be active members of the retirement system:
(a) a person who is a teacher, principal, or district superintendent as defined in 20-1-101;
(b) a person who is an administrative officer or a member of the instructional or scientific staff of a
unit of the Montana university system and who has not elected or is not required to participate in the university
system retirement program under Title 19, chapter 21;
(c) a person employed as a speech-language pathologist, school nurse, professionally qualified
person as defined in 20-7-901, paraprofessional who provides instructional support, dean of students, or school
psychologist;
(d) a person employed in a teaching or an educational services capacity by the office of a county
superintendent, an education cooperative, a public institution of the state of Montana, the Montana state school
for the deaf and blind, or a school district;
(e) a person who is an administrative officer or a member of the instructional staff of the board of
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public education;
(f) the superintendent of public instruction or a person employed as a teacher or in an educational
services capacity by the office of public instruction;
(g) except as provided in subsection (2), a person elected to the office of county superintendent of
schools;
(h) a person who is an administrative officer or a member of the instructional or scientific staff of a
community college; and
(i) a person employed in a nonclerical position and who is reported on an employer's annual data
collection report submitted to the office of public instruction.
(2) A retired member elected to the office of county superintendent of schools or appointed to
complete the term of an elected county superintendent of schools after July 1, 1995, is not eligible for optional
membership in the public employees' retirement system under the provisions of 19-3-412 or 19-3-413 and shall,
within 30 days of taking office, file an irrevocable written election to become or to not become an active member
of the teachers' retirement system. The retirement system membership of an elected county superintendent of
schools as of June 30, 1995, must remain unchanged for as long as the person continues to serve in the
capacity of county superintendent of schools.
(3) In order to be eligible for active membership, a person described in subsection (1) or (2) must:
(a) be employed in the capacity prescribed for the person's eligibility for at least 30 days in any
fiscal year; and
(b) have the compensation for the person's creditable service totally paid by an employer.
(4) (a) A substitute teacher, or a part-time teacher's aide:, or paraprofessional who is not already
an active, inactive, or retired member of the retirement system shall make an irrevocable written election to
become an active member of the retirement system on the first day of employment or to defer membership in
the retirement system until the individual has completed 210 hours of service in any fiscal year.
(i) shall file an irrevocable written election determining whether to become an active member of
the retirement system on the first day of employment; or
(ii) is required to become an active member of the retirement system after completing 210 hours of
employment in any fiscal year if the substitute teacher or part-time teacher's aide has not elected membership
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under subsection (4)(a)(i).
(b) Once a part-time teacher's aide becomes a member, the aide is required to remain an active
member as long as the aide is employed in that capacity. Once a substitute teacher becomes a member, the
substitute teacher is required to remain a member as long as the teacher is available for employment in that
capacityUpon completing 210 hours of service in a fiscal year for one employer or in aggregate for two or more
employers, the individual shall become an active member of the retirement system. Active membership is
effective the first day of the month following the month in which aggregate service reported by all employers
equals or exceeds 210 hours. After a substitute teacher, part-time teacher's aide, or paraprofessional becomes
a member, the individual shall remain an active or inactive member until the individual meets the requirements
to withdraw from the retirement system or become a retired member.
(c) The employer shall give written notification to a substitute teacher or part-time teacher's aide
on the first day of employment of the option to elect membership under subsection (4)(a)(i)An employer shall
provide an election form to an eligible substitute teacher, part-time teacher's aide, or paraprofessional on the
first day of employment. The employer shall require submission of the election form back to the employer and
shall maintain the election form permanently.
(d) If a substitute teacher or part-time teacher's aide declines to elect membership during the
election period, the teacher or part-time teacher's aide shall file a written statement with the employer waiving
membership and the employer shall retain the statement.
(5) A school district clerk or business official may not become a member of the teachers'
retirement system. A school district clerk or business official who is a member of the system on July 1, 2001, is
required to remain an active member of the system while employed in that capacity, and any postretirement
earnings from employment as a school district clerk or school business official are subject to the limit on
earnings provided in 19-20-731.
(6) At any time that a person's eligibility to become a member of the retirement system is in doubt,
the retirement board shall determine the person's eligibility for membership. All persons in similar
circumstances must be treated alike.
(7) As used in this section, "part-time teacher's aide" or "paraprofessional" means an individual
who works less than 7 hours a day assisting a certified teacher in a classroom.
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(8) (a) An active member of the system concurrently employed in a position identified in subsection
(1)(b) may not elect to participate in the university system retirement program under Title 19, chapter 21.
(b) An employee of the Montana university system who is a participant in the university system
retirement program under Title 19, chapter 21, and who is concurrently employed in a position identified in
subsections subsection (1)(a) or subsections (1)(c) through (1)(i) is ineligible to be an active member of this the
teachers' retirement system.
(9) (a) A position is not reportable to the retirement system if the position is a bona fide volunteer
position.
(b) A position is a bona fide volunteer position if all of the following criteria are met:
(i) The individual in the position receives no salary, stipend, remuneration of any kind,
reimbursement of expenses, or in-kind benefits or services for service in the position. Employer payments of
premiums for required insurance coverage directly related to the volunteer service, such as workers'
compensation coverage or personal or professional liability coverage, do not constitute remuneration.
(ii) The position was not a paid position with the employer within the 12 months prior to being
designated as a volunteer position by the employer.
(iii) The position does not become a paid position for at least 12 months following the employer's
designation of the position as a volunteer position.
(iv) The employer does not have any other individual working as a paid employee in the same
position while the position is designated as a volunteer position.
(v) The individual in the position does not perform work in the volunteer position in excess of:
(A) 4 hours in a day, 12 hours in a week, and 312 hours in a fiscal year if the service is performed
during regular business days of the employer; or
(B) 312 hours in a fiscal year if the service is performed primarily at times other than during regular
business days of the employer.
(c) The retirement system may require the employer to provide information and documentation to
verify that a position designated as a volunteer position meets all requirements set forth in this subsection (9).
(10) As used in this section, "educational services capacity" refers to an individual who:
(a) directly instructs students;
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(b) provides professional or education-related services that help students participate in or receive
the full benefit of an educational program;
(c) evaluates the competencies or proper placement of students, determines or implements
student-specific educational programs or plans, or provides direct or indirect support for academic or behavior
intervention;
(d) determines the proper curriculum or educational standards applicable to the program,
determines the appropriate educational and instructional methodologies, selects or creates the instructional
materials; or trains teachers or other staff responsible for implementing the curriculum, standards, and
methodologies of the program;
(e) directs, supervises, or oversees the work of other individuals employed in an educational or
instructional services capacity; or
(f) is the primary administrator of an employer that provides educational services or is the primary
administrator of an educational program of an employer that provides educational services."
Section 4. Section 19-20-303, MCA, is amended to read:
"19-20-303. Inactive membership -- dormant membership status. (1) A nonvested or vested
member's active membership in the retirement system terminates and the member becomes an inactive
member when the member ceases to be employed in a position reportable to the retirement system.
(2) A vested member becomes an inactive member of the teachers' retirement system if the
member becomes an active member of another retirement or pension system supported wholly or in part by the
money of another government agency, except the federal social security retirement system, and the
membership in the other retirement system would allow credit for the same employment service in both
retirement systems. However, the member may not be excluded from active membership in the teachers'
retirement system solely because the person is receiving or is eligible to receive retirement benefits from
another retirement system.
(3) A vested inactive member must be transferred to dormant membership status if, by the
member's required minimum distribution beginning date, the member cannot be located for involuntary
retirement as described in 19-20-703(3) or has not taken one of the following actions the member fails to take
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one of the following actions by April 1 following the calendar year in which the member attains the age of 70 1/2
if the member was born before July 1, 1949, or the age of 72 if the member was born on or after July 1, 1949:
(a) elect to terminate membership by withdrawing from the retirement system and taking a refund
of the member's accumulated contributions under 19-20-603;
(b) apply to receive retirement benefits under part 8 or part 9 of this chapter; or
(c) return to active membership.
(4) A nonvested inactive member must be transferred to dormant membership status if the
member fails to take one of the following actions within 7 years after becoming an inactive member:
(a) elect to terminate membership by withdrawing from the retirement system and taking a refund
of the member's accumulated contributions under 19-20-603; or
(b) return to active membership.
(5) With respect to a member in dormant membership status:
(a) the retirement system shall no longer attempt to locate or contact the member or send
communications or annual statements to the member; and
(b) the retirement system shall transfer the amount in the member's annuity savings account to the
pension accumulation account and the amount may not be credited with additional interest while the member is
in a dormant membership status.
(6) If a vested inactive member in dormant membership status takes an action described in
subsection (3), the member is no longer in dormant membership status and the retirement system shall restore
the member's account balance to the member's annuity savings account and credit the account balance with
the interest that would have been earned if the amount had remained in the annuity savings account member
had not been transferred to dormant status.
(7) If a nonvested inactive member in dormant membership status takes an action described in
subsection (4), the member is no longer in dormant membership status and the retirement system shall restore
the member's account balance to the member's annuity savings account and credit the account balance with
the interest that would have been earned if the amount had remained in the annuity savings account member
had not been transferred to dormant status.
(8) Nothing in this section affects the rights, benefits, obligations, or liabilities provided for under
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this chapter if a member dies in a dormant membership status."
Section 5. Section 19-20-417, MCA, is amended to read:
"19-20-417. Credit for substitute teaching service, part-time teacher's aide aide service,
paraprofessional service, or other service not reported. (1) A substitute teacher or part-time teacher's aide
who has filed an irrevocable election with their employer not to participate in the retirement system for the first
210 hours of service under 19-20-302 and who subsequently becomes a member within the same fiscal year
must be awarded creditable service for the first 210 hours of service if the member contributes the employee
and employer contributions that would have been made if the member had been a member from the first date of
service in that fiscal year, plus interest at the current actuarial assumed rate of investment return. (1) A
substitute teacher, part-time teacher's aide, or paraprofessional who has filed an irrevocable election not to
participate in the retirement system for the first 210 hours of service under 19-20-302 and who later becomes
an active member may be awarded creditable service for the 210 or more hours of service provided in the
single fiscal year in which the 210-hour threshold results in the individual's active membership. To be awarded
the creditable service, the member shall contribute the regular employee and employer contributions that would
have been made if the member had elected membership from the first date of service in that fiscal year, plus
interest at the current actuarial assumed rate of investment return.
(2) A person who was employed in a capacity that would have been eligible for membership
except for the fact that the person was employed for less than 30 days and who subsequently becomes an
active member within the same fiscal year may purchase the first 30 days of service if the member contributes
the employee and employer contributions that would have been made if the person had been a member from
the first date of service in that fiscal year, plus interest at the current actuarial assumed rate of investment
return.
(3) If an employer fails to report a person who was eligible for membership under 19-20-302, the
employee and employer shall make the contributions required by this chapter, plus interest at the current
actuarial assumed rate of investment return.
(4) The contributions and interest may be made in a lump-sum payment or in installments as
agreed to between the person and the board.
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(5) Only one service purchase may be made by any member under subsection (1) or (2)."
Section 6. Section 19-20-703, MCA, is amended to read:
"19-20-703. Payments to be monthly -- required minimum distributions. (1) All retirement
allowances must be paid in equal monthly installments.
(2) Except as provided in subsection (5), the retirement allowance may commence:
(a) no earlier than the first day of the month following the member's termination date or on the first
day of the month following the date when the member first becomes eligible, whichever date is later; or
(b) if requested by the inactive member in writing:
(i) on the first day of a later month; or
(ii) on the first day of the month following the member's 60th birthday.
(3) Distribution of an inactive member's benefit must begin by the later of the April 1 following the
calendar year in which a member attains the age of 70 1/2 if the member was born before July 1, 1949, or the
age of 72 if the member was born on or after July 1, 1949, or April 1 of the year following the calendar year in
which the member terminates. If a member fails to apply for retirement benefits by the later of either of those
dates, the board shall begin distribution of the monthly benefit as provided in 19-20-702(3)(a)(i).
(3) (a) Distribution of an inactive member's benefit must begin, or a refund of the member's
accumulated contributions must be made, by the required minimum distribution beginning date.
(b) The required minimum distribution beginning date is the later of:
(i) April 1 following the calendar year in which the member terminates employment in all teachers'
retirement system reportable positions; or
(ii) April 1 following the calendar year in which the member attains the age of:
(A) 70 1/2 if the member was born before July 1, 1949;
(B) 72 if the member was born between July 1, 1949, and December 31, 1950;
(C) 73 if the member was born between January 1, 1951, and December 31, 1959; or
(D) 75 if the member was born on or after January 1, 1960.
(c) If the member fails to apply to receive retirement benefits by the required minimum distribution
beginning date, the retirement system shall begin distribution of the monthly benefit under the monthly benefit
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option described in 19-20-702(3)(a)(i) without consideration of the member's age.
(4) The life expectancy of a member or the member's joint annuitant may not be recalculated after
benefits commence.
(5) If a member terminates within 30 days of the last day of the school year, the member is
considered to have terminated at the end of the member's contract, and the retirement allowance may not
commence earlier than the first day of the month following the last scheduled pupil-instruction day or pupil-
instruction-related day as described in 20-1-304, whichever is later."
Section 7. Section 19-20-905, MCA, is amended to read:
"19-20-905. Cancellation of allowance and restoration of membership. (1) If a disabled retiree is
employed in a position reportable to the retirement system and earns compensation in any calendar year in
excess of the limitation provided in 19-20-904, the retiree's retirement allowance must cease and the retiree
must again become an active member of the retirement system effective on the first day of the month following
the month in which the earnings limitation was exceeded. At this point, the member is deemed to be no longer
disabled.
(2) If the member is restored to active membership on or after the attainment of the age of 55
years, the member's retirement allowance upon subsequent retirement may not exceed the retirement
allowance that the member would have received had the member remained in service during the period of the
member's previous retirement or the sum of the retirement allowance that the member was receiving
immediately prior to the member's last restoration to service and the retirement allowance that the member
would have received on account of the member's service since the member's last restoration had the member
entered service at that time as a new member
(2) (a) Upon subsequent termination of employment in all teachers' retirement system reportable
positions, a member who is then eligible based on age or service for either an early retirement allowance under
19-20-802 or a regular retirement allowance under 19-20-804 may immediately apply for a retirement
allowance. Eligibility for retirement based on service is determined based on the creditable service credited to
the member at the time of disability retirement excluding any creditable service enhancement applied pursuant
to 19-20-902(1)(b). The retirement allowance payable upon subsequent retirement is the lesser of:
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69th Legislature 2025 HB 67
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ENROLLED BILL
(i) the early or regular service retirement allowance the member is eligible to receive based on the
creditable service and earned compensation credited to the member at the time of the member's disability
retirement excluding any creditable service or earned compensation enhancement applied as provided in 19-
20-902(1)(b), plus the additional creditable service and earned compensation credited to the member after the
return to active member status; or
(ii) an amount equal to the disability retirement benefit received prior to the return to active
member status plus a second benefit amount calculated based on the creditable service accrued and average
earned compensation credited for all years of service during the return to active member status.
(b) Upon subsequent termination of employment in all teachers' retirement system reportable
positions, a member who is not then eligible for an early or regular service retirement allowance under
subsection (2)(a) shall wait to apply for a subsequent retirement allowance until eligible under subsection (2)(a)
or may make a new application for a disability retirement allowance.
(c) A member who originally retired on a disability allowance and later returned to active member
status may not make, and the member's subsequent retirement allowance may not be enhanced by, any
permissive service purchase not used in the calculation of the member's original disability retirement
allowance."
Section 8. Effective date. [This act] is effective July 1, 2025.
- END -
I hereby certify that the within bill,
HB 67, originated in the House.
___________________________________________
Chief Clerk of the House
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025.
HOUSE BILL NO. 67
INTRODUCED BY M. BERTOGLIO
BY REQUEST OF THE TEACHERS' RETIREMENT BOARD
AN ACT GENERALLY REVISING ADMINISTRATIVE AND TAX QUALIFICATION PROVISIONS OF THE
TEACHERS' RETIREMENT SYSTEM; CLARIFYING THE REPORTING DUTIES OF EMPLOYERS;
CLARIFYING ELECTIVE MEMBERSHIP DEFERRAL FOR CERTAIN POSITIONS; CLARIFYING ACTIVE
MEMBERSHIP AND DORMANT MEMBER STATUS; CLARIFYING THE PURCHASE OF DEFERRED
ELECTIVE SERVICE; REVISING MANDATORY DISTRIBUTION PROVISIONS TO CONFORM WITH
FEDERAL LAW; CLARIFYING DISABILITY RETIREMENT ALLOWANCE CALCULATIONS; PROVIDING
DEFINITIONS; AMENDING SECTIONS 19-20-101, 19-20-208, 19-20-302, 19-20-303, 19-20-417, 19-20-703,
AND 19-20-905, MCA; AND PROVIDING AN EFFECTIVE DATE.