The bill, sponsored by Democratic Rep. Jon Sesso of Butte, increases employer contributions into the state's pension funds and reduces retirement benefits for state employees hired after July 1.
The House endorsed the measure, 76-24, with a final vote scheduled Friday.
"We didn't feel it was right to put the entire burden on the employer, so future employees will take a little less to make sure the systems are sound in the long term," Sesso said.
Opponents, which included Democrats and Republicans, argued it was unfair to give new hires fewer benefits than current employees. Such discrepancies will create friction in the workplace, make it harder to recruit new employees and make it more likely for them to leave state government, they said.
"We have to work really hard to get quality applicants, and one of the biggest draws is the retirement system that we as law enforcement get," said Rep. Ed Hilbert, R-Glendive, who is a Montana Highway Patrol sergeant.
Rep. Alan Olson, R-Roundup, tried unsuccessfully to place more of the burden to fix the systems on the state, proposing an amendment giving new state employees the same benefits as existing ones.
That amendment failed, as did another by Democratic Rep. Bob Bergren of Havre, who wanted to exclude several pension funds without financial problems from the bill.
The bill is House Bill 131.
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