Republican proposes to end pension system
HELENA, Mont. (AP) — The Republican chairman of a special committee charged with fixing the beleaguered state pension systems wants to take new employees out of the system.
Sen. Dave Lewis of Helena told his colleagues Tuesday that the pension system is fatally flawed and needs to be shut down by not allowing more employees to join.
Gov. Steve Bullock’s office opposed the proposal. It argued that the state would have to start putting about $100 million into the pensions system each year if it no longer received new employee contributions. The new “defined contribution” retirement system would cost extra additional money.
Bullock wants both employees and employers to pay more into the current system, which would cost the state about $60 million for each of the next two years.