Terms Used In Montana Code > Title 19 > Chapter 3 > Part 1 - General Provisions

• Compensation: means remuneration paid out of funds controlled by an employer in payment for the member's services or for time during which the member is excused from work because of a holiday or because the member has taken compensatory leave, sick leave, annual leave, banked holiday time, or a leave of absence before any pretax deductions allowed by state or federal law are made. See Montana Code 19-3-108
• Contract: A legal written agreement that becomes binding when signed.
• Contracting employer: means any political subdivision or governmental entity that has contracted to come into the system under this chapter. See Montana Code 19-3-108
• Defined benefit plan: means the plan within the public employees' retirement system established in 19-3-103 that is not the defined contribution plan. See Montana Code 19-3-108
• Employer: means the state of Montana, its university system or any of the colleges, schools, components, or units of the university system for the purposes of this chapter, or any contracting employer. See Montana Code 19-3-108
• Employer contributions: means payments to a pension trust fund pursuant to 19-3-316 from appropriations of the state of Montana and from contracting employers. See Montana Code 19-3-108
• Highest average compensation: means :

  (i)for a member hired prior to July 1, 2011, the highest average monthly compensation during any 36 consecutive months of membership service;

  (ii)for a member hired on or after July 1, 2011, the highest average monthly compensation during any 60 consecutive months of membership service; or

  (iii)in the event a member has not served the minimum specified period of service, the total compensation earned divided by the months of membership service. See Montana Code 19-3-108

• retirement system: means the public employees' retirement system established in 19-3-103. See Montana Code 19-3-108
• State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201