19-2-409. Plans to be funded on actuarially sound basis -- definition. As required by Article VIII, section 15, of the Montana constitution, each system must be funded on an actuarially sound basis. For purposes of this section, "actuarially sound basis" means that contributions to each retirement plan must be sufficient to pay the full actuarial cost of the plan. For a defined benefit plan, the full actuarial cost includes both the normal cost of providing benefits as they accrue in the future and the cost of amortizing unfunded liabilities over a scheduled period of no more than 30 years. For the defined contribution plan, the full actuarial cost is the contribution defined by law that is payable to an account on behalf of the member.
History: En. Sec. 5, Ch. 287, L. 1997; amd. Sec. 12, Ch. 471, L. 1999.
Structure Montana Code Annotated
Title 19. Public Retirement Systems
Chapter 2. Public Employees' Retirement General Provisions
19-2-402. Compensation of board members
19-2-403. Powers and duties of board
19-2-404. Appointment and compensation of administrative staff
19-2-405. Employment of actuary -- annual investigation and valuation
19-2-406. Disability retirement -- application -- determination -- benefit conversion -- rules
19-2-408. Administrative expenses
19-2-409. Plans to be funded on actuarially sound basis -- definition