HELENA, Mont. (AP) — The Montana House on Thursday backed proposed pension fixes from both sides of the aisle — and delayed a final decision on which way to go.
The GOP-led chamber endorsed a plan favored by many Republicans that ends the pension system for new employees, replacing it with something like a 401(k) savings plan, and reduces benefits for current employees who would retain a pension. House Bill 338 advanced Thursday with a 63-37 initial vote.
Supporters of that measure said it will eventually bring certainty to the cost of retirement systems. But opponents argued it comes with a larger near-term cost because the state will have to more quickly backfill pension plans for existing employees if new employees aren't also contributing to the plan.
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