BEFORE THE PUBLIC EMPLOYEES' RETIREMENT BOARD       

OF THE STATE OF MONTANA                    

 

In the matter of the proposed adoption of New Rules I through III and amendment of ARM 2.43.5002, 2.43.5006, 2.43.5007, and 2.43.5008, all pertaining to the operation of Volunteer Firefighters' Compensation Act administered by the Montana Public Employees' Retirement Board

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NOTICE OF PUBLIC HEARING ON PROPOSED ADOPTION AND AMENDMENT

 

TO:  All Concerned Persons

 

            1.  On September 14, 2011, at 9:00 a.m., the Montana Public Employees' Retirement Board (PER Board) will hold a public hearing in the board room at 100 North Park Avenue, Suite 200, Helena, Montana, to consider the proposed adoption and amendment of the above-stated rules.

           

2.  The PER Board will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice.  If you require an accommodation, contact the Public Employees' Retirement Board no later than 5:00 p.m. on September 12, 2011, to advise us of the nature of the accommodation that you need.  Please contact Dena Helman, Montana Public Employee Retirement Administration, 100 North Park Avenue, Suite 200, P.O. Box 200131, Helena, Montana, 59620; telephone (406) 444-2578; fax (406) 444-5428; TDD (406) 444-1421; or e-mail [email protected].

 

3.  The rules as proposed to be adopted provide as follows:

 

NEW RULE I  MEMBERSHIP CARDS  (1)  Each member must complete a VFCA membership card upon commencing service as a volunteer firefighter, name change, change of statutory beneficiary, or change of fire company/district.

 

AUTH: 19-17-203, MCA

IMP: 19-17-112, MCA

 

REASON: Section 11 of Chapter 64 Montana Session Laws of 2011 introduced a requirement for Volunteer Firefighters' Compensation Act (VFCA) members to file membership cards.  This rule is necessary to notify members of the events requiring them to complete new membership cards.

 

            NEW RULE II  EFFECTIVE DATE FOR PENSION BENEFIT ADJUSTMENTS      (1)  By October 31 of each year the board shall determine whether the VFCA pension trust fund is actuarially sound and the amortization period for any unfunded liability remains at 20 years or less.  As required by 19-17-404, MCA, the board shall then make pension adjustments for the next 12 months commencing with November benefits.

 

AUTH: 19-17-203, MCA

IMP: 19-17-404, MCA

 

REASON: Chapter 195 Montana Session Laws of 2011 amended section 19-17-404, MCA, providing a benefit increase for certain individuals who retire after July 1, 2011.  The benefit increase is based on the number of years the individual continued to be a member after completing 30 years of credited service and receipt is contingent each year upon the pension trust fund being actuarially sound and the amortization period for unfunded liabilities remaining at 20 years or less.  When the amortization period exceeds 20 years, the increase is not paid.  This rule is necessary to clarify the date by which the actuarial determination and benefit adjustment will be made each year and is based upon the earliest administratively feasible date for making the determination and respective adjustments following the close of the fiscal year.

 

            NEW RULE III  APPLICATION PROCESS FOR VFCA DISABILITY BENEFITS  (1)  All forms necessary to apply for disability benefits may be obtained from MPERA.

            (2)  The following forms must be completed and submitted to MPERA before the board will act on the application for disability benefits:

(a)  application for disability benefit and summary of disability;

(b)  VFCA duty questionnaire for disability retirement completed by the fire chief;

(c)  attending physician's statement, including all medical records required to substantiate a disability claim;

(d)  authorization to release information; and

(e)  a Health Insurance Portability and Accountability Act (HIPAA) authorization.

      (3)  The requesting party may provide additional medical information for consideration until 21 days prior to the next scheduled board meeting or, if different, the board meeting at which the request will be considered.

 

AUTH: 19-17-203, MCA

IMP: 19-17-603, 19-17-604, 19-17-605, MCA

 

REASON: Chapter 64 Montana Session Laws of 2011 distinguished the benefit amount and eligibility requirements for regular pension benefits from disability benefits.  The law amended the section governing eligibility (19-17-401, MCA) and the section governing the amount (19-17-404, MCA) of a regular pension by removing reference to disability in both sections and adopting new sections 25, 26, and 27, respectively providing for the eligibility requirements, amount and time for the commencement of disability benefits.  Similarly, the process for applying for disability benefits must be distinguished from the process for applying for regular pension benefits.  The existing rule governing the application process for disability retirement (ARM 2.43.2602) is specific to employees and does not apply to volunteers or the VFCA; thus a new rule is necessary to clarify the process.

 

4.  The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:

 

2.43.5002  FAILURE TO FILE REQUIRED REPORTS  (1)  In order to receive credit for service under the VFCA, volunteer fire companies must file an "annual certificate" with MPERA. The certification is a report by the fire chief that the members listed on the certificate were active for the full fiscal year and also had the required 30 hours of training. This report is on a fiscal year basis (July through June) and is due by September 1 of each year. The annual certificate is signed by the fire chief and notarized. Annual certificate forms are provided by MPERA.

(2)  Annual certificates filed after the September 1 due date must be appealed to and considered by the board for approval. Information provided to the board by the fire chief or designated official must include:

(a)  the original, notarized annual certificate;

(b)  certified training documents showing the required 30 hours of training per listed member, including the date, title, description, and hours of all applicable training classes, and the names of all members who attended the specific training classes;

(c)  a letter from the fire chief explaining why the annual certificate was not filed timely; and

(d)  if requested by the fire chief, a request for oral argument before the board if oral argument is desired.

 

AUTH: 19-17-203, MCA

IMP: 19-17-108, 19-17-201, 19-17-402, MCA.

 

REASON: Subsection 1 of this rule is stricken to remove language added to section 19-17-108, MCA by Chapter 64 Montana Session Laws of 2011.  As that language is now in statute it should not be repeated in rule.   Amendments to subsection 2 are necessary to clarify what information fire companies must submit with late filed certificates.  This clarification is intended to avoid reporting problems and to protect the funded status of the VFCA by preventing the possibility of inaccurate or potentially fraudulent claims.

 

2.43.5006  APPLICATION FOR GROUP INSURANCE PREMIUM PAYMENTS  (1)  Each volunteer fire company, or organization or agency maintaining supplemental insurance for a fire company, is eligible for payments toward supplemental insurance coverage for active members of the fire company provided the company files by December 31 of each year:

(a)  by September 1 a roster for the current fiscal year a completed MPERA-provided application form; and

(b)  by December 31 proof of insurance and a completed MPERA-provided application form copy of the fire company's active membership list certified by the county clerk as required by 7-33-2311, MCA; and

(c) proof of insurance.

 

AUTH: 19-17-203, MCA

IMP: 19-17-108, 19-17-201, 19-17-205, MCA

 

REASON: Chapter 64 Montana Session Laws of 2011 requires eligible fire companies to annually file "rosters" instead of an "active membership list."  Amendment to this rule is necessary to reflect the same and distinguish between the dates that rosters, proof of insurance, and applications are due. 

 

2.43.5007  PAYMENTS TO SERVICE PROVIDERS FOR MEDICAL EXPENSES RESULTING FROM DUTY-RELATED INJURIES AND ILLNESSES

(1)  Payments for medical expense claims made pursuant to Title 19, chapter 17, part 5, MCA, will be paid directly to medical service providers after:

(a)  the claim is properly filed as described in 19-17-502, MCA; and

(b)  all personal and/or group insurance payments for those services first have been deducted from the claim.

(2)  Medical expense claims in excess of $1,000 must be approved by the board prior to payment by MPERA.

(3)  Subsequent insurance settlements in payment of medical expenses which have been previously paid by the board shall be reimbursed to the pension fund within 60 days of receipt by member or service provider.

 

AUTH: 19-17-203, MCA

IMP: 19-17-504, 19-17-506, MCA

 

REASON: Amendment is necessary to reflect revision of section 19-17-506, MCA, by Chapter 64 Montana Session Laws of 2011.  In addition to providing for payment to be made to a service provider, that statute now allows for payment to be made directly to a claimant if he/she provides documentation of the full payment of medical expenses.

 

2.43.5008  PAYMENTS TO SERVICE PROVIDERS FOR FUNERAL EXPENSES RESULTING FROM DUTY-RELATED DEATH

(1)  Payments for funeral expense claims made pursuant to Title 19, chapter 17, part 5, MCA, will be paid directly to funeral service providers after:

(a)  the claim is properly filed as described in 19-17-503, MCA; and

(b)  all personal and/or group insurance payments for those services first have been deducted from the claim.

(2)  Funeral expense claims in excess of $1,000 must be approved by the board prior to payment by MPERA.

(3)  Subsequent insurance settlements in payment of funeral expenses which have been previously paid by the board shall be reimbursed to the pension fund within 60 days of receipt by member or service provider.

 

AUTH: 19-17-203, MCA

IMP: 19-17-505, 19-17-506, MCA

REASON: Amendment is necessary to reflect revision of 19-17-506, MCA, by Chapter 64 Montana Session Laws of 2011.  In addition to providing for payment to be made to a service provider, that statute now allows for payment to be made directly to a claimant if he/she provides documentation of the full payment of funeral expenses.

 

            5.  Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing.  Written data, views, or arguments may also be submitted to: Roxanne M. Minnehan, Executive Director, Montana Public Employee Retirement Administration, 100 North Park Avenue, Suite 200, P.O. Box 200131, Helena, Montana, 59620; telephone (406) 444-5459; fax (406) 444-5428; or e-mail [email protected], and must be received no later than 5:00 p.m., September 23, 2011.

 

6.  Dena Helman, Montana Public Employee Retirement Administration, has been designated to preside over and conduct this hearing.

 

7.  The PER Board maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices.  Notices will be sent by e-mail unless a mailing preference is noted in the request.  Such written request may be mailed or delivered to the contact person in 5 above or may be made by completing a request form at any rules hearing held by the board.

 

8.  An electronic copy of this proposal notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register.  The Secretary of State strives to make the electronic copy of the notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered.  In addition, although the Secretary of State works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.

 

9.  The bill sponsor contact requirements of 2-4-302, MCA, apply have been fulfilled.  The primary bill sponsor was contacted by telephone, e-mail, and U.S. mail on June 28, 2011.

 

/s/  Melanie A. Symons                               /s/  John Nielsen                 

Melanie A. Symons                                                 John Nielsen

Chief Legal Counsel                                   President

and Rule Reviewer                                     Public Employees' Retirement Board     

 

Certified to the Secretary of State August 15, 2011.