SAVA Committee discusses public employee pension plan issues
The State Administration and Veterans' Affairs Interim Committee, met today to discuss public employee pension plan issues.
At the meeting executive directors from both the Montana Public Employee Retirement Association and the Teacher's Retirement System presented overview data for the 2012 fiscal year.
TRS Executive Director David Senn suggested additional funding of $36,000,000 each year for the teacher's retirement plan. He says the extra funding may not be a necessity right now, but he projects a serious need for it in about 8 to 10 years.
Senn says, "We have about 2.9 billion dollars in assets in the teachers retirement system so its not something we have to do all at once or overnight but incrementally we have to start making some changes or the system will eventually run out of money. The liabilities will still be there. They don't go away. Benefits will have to be paid much like social security, pay as you go system."
Senn says at the current rate of depletion, the Teacher's Retirement System would be completely gone by 2054.
Story by Jill Jagelski, Beartooth NBC.
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