Money would come from Montana's budget surplus

HELENA (AP) — Gov. Brian Schweitzer supports asking lawmakers to put $100 million into the Montana Teachers Retirement System if lawmakers meet in a special session late this year, his budget director said Thursday.

The money is intended to reduce the gap between the system's assets and what it must pay in pensions. Besides the teachers retirement system, other state pension plans also face millions of dollars in unfunded obligations.

‘‘To get a jump on closing some of that gap, for any dollar we put in today ... we get the benefit of the investment earnings in the future,'' Ewer said. ‘‘There's nothing better than a dollar put in today.''

Ewer recommended the $100 million outlay to Schweitzer, who talked about state pension problems this week at a gathering for state government's Employee Appreciation Day.

The money would come from Montana's budget surplus.

Its projected size has been rising, with a new report showing a $205 million cushion at mid-2007. Should a surplus of that size actually exist, it would be $128 million greater than the 2005 Legislature projected by the time it adjourned in April, the state's Legislative Fiscal Division has reported.

A special legislative session this December is a possibility because the Legislature is under a court mandate to overhaul how Montana funds public schools. Calling such a session is up to Schweitzer.

The $100 million would be a first step in shoring up the teachers' retirement plan.

Its unfunded liability was $700 million in 2004 and it is likely the gap now exceeds $800 million, said David Senn, executive director for the Teachers Retirement System. Senn said he expects updated numbers on the financial gap next week.

The system serves 18,200 active teachers and 10,000 who have retired.