HELENA, Mont. -

The board that runs the state's public employee pension says the Legislature's fix should balance the system in about 16 years.

A report given to the Montana Public Employees Retirement Board on Thursday projects all future payments into and out of the system.

It analyzed the effect of changes that asks both employers and employees to pay more, while reducing retiree benefits. Before, the system never balanced and eventually ran out of money.

But retirees are planning to file a lawsuit that argues their benefit reduction is an unconstitutional change in contract. If successful, the report says it will take more than 40 years to balance the system.

A recent report on the separate Teachers' Retirement System says the legislative fix balances that program in about 20 years.