HELENA, Mont. (AP) — The Montana Legislature inched closer to finding a fix for its beleaguered pension system when a committee decided to advance both of the major proposed fixes.
But the Joint-Select Committee on Pensions opted Tuesday to leave the big decision to the House, which will have to choose between a plan to fix the current system and one to end it in favor of a defined-contribution plan.
Analysts say Montana's public pension system, which includes both state and local government employees, faces a roughly $4 billion shortfall in 30 years if no action is taken.
Republican legislative leaders prefer the plan that axes the pension for new employees and replaces it with a defined-contribution plan that is similar to a 401(k) savings plan. Supporters argue taxpayers would no longer have to guarantee employees' future benefits, while opponents argue it is unfair and creates huge upfront costs to fix the plan for current employees.
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