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Resolution 2016-17, Sheriffs’ Retirement System Funding


It is the intent of the Montana Association of Counties to support the policy of additional county employer contributions to the Sheriff’s Retirement System, contingent upon certain conditions.

WHEREAS, Article VII, Section 15 of the Montana Constitution requires public retirement systems to be funded on an actuarial sound basis; and

WHEREAS, the Sheriff’s Retirement System was underfunded by 3.8% as of the June 30, 2015 actuarial valuation; and

WHEREAS, it is anticipated the shortfall will increase with the June 30, 2016 actuarial valuation; and

WHEREAS, the Sheriff’s Retirement System is funded solely by county employer and employee contributions and investment income; and

WHEREAS, an increase in employer and employee contributions are necessary to bring the Sheriff’s Retirement System into actuarial soundness to meet the constitutional obligation; and

WHEREAS, counties do not have the fiscal resources to fund additional county employer contributions without an offsetting revenue stream.

NOW, THEREFORE BE IT RESOLVED that the Montana Association of Counties will support the policy of additional county employer contributions to the Sheriff’s Retirement System, contingent upon:

  1. The approval by the Montana Legislature to implement a permissive mill levy; and
  2. A “trigger” be approved that county employer contributions will decrease when actuarial soundness is achieved as per MCA §19-3-316(4)(b) for the Public Employees Retirement System; and
  3. None of the additional county employer contributions from the authorized levy shall be diverted to the Montana Public Employees Retirement Administrative costs; and
  4. No county employer contributions of terminating non-vested employees will be diverted to the Montana Public Employees Retirement Administrative costs;  and
  5. No benefit enhancements are made to the Sheriff’s Retirement System; and
  6. The Sheriff’s Retirement System is not in any way all or in part converted to a Defined Contribution Plan.

2016 ACTION

SPONSOR:  MACo Staff
REFERRED TO: MACo Justice & Public Safety Committee; and MACo Tax, Budget & Finance Committee
ADOPTED:  Annual Conference, Billings, MT, September 21, 2016