BEFORE THE PUBLIC EMPLOYEES' RETIREMENT BOARD

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 2.43.3502 pertaining to the investment policy statement for the Defined Contribution Retirement Plan and ARM 2.43.5102 pertaining to the investment policy statement for the 457 Deferred Compensation Plan

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NOTICE OF AMENDMENT

 

TO: All Concerned Persons

 

1. On August 27, 2015, the Public Employees' Retirement Board published MAR Notice No. 2-43-529 pertaining to the proposed amendment of the above-stated rules at page 1220 of the 2015 Montana Administrative Register, Issue Number 16.

 

2. The Public Employees' Retirement Board has amended the following rules as proposed, but with the following changes from the original proposal, new matter underlined, deleted matter interlined:

 

2.43.3502 ADOPTION OF INVESTMENT POLICY STATEMENT AND STABLE VALUE FUND INVESTMENT GUIDELINES (1) The board adopts and incorporates by reference the State of Montana 401(a) Defined Contribution Plan Investment Policy Statement approved by the board on June 11, 2015.  The Investment Policy Statement provides investment guidelines for the defined contribution plan, a long-term retirement-savings vehicle that permits participants to invest employer and participant contributions on a tax-deferred basis. The investment guidelines help the board to meet its fiduciary responsibilities to evaluate and positively influence the direction of the plan and its investments for the benefit of the plan participants and beneficiaries.

(2)  The board adopts and incorporates by reference the State of Montana Stable Value Investment Guidelines Schedule approved by the board on December 29, 2009.  These guidelines apply to the investment of 401(a) defined contribution plan participant assets and 457(b) deferred compensation plan participant assets that are pooled together in the plans' stable value group trust. The guidelines were developed through mutual agreement amongst the board, the investment manager, and the insurance wrap provider and provide guidance to the investment manager when investing participants' funds contained within the stable value group trust.

(3) remains as proposed.

 

AUTH:  19-3-2104, MCA

IMP:    19-3-2104, 19-3-2122, MCA

 

2.43.5102 ADOPTION OF INVESTMENT POLICY STATEMENT AND STABLE VALUE FUND INVESTMENT GUIDELINES (1) The board adopts and incorporates by reference the State of Montana 457 Plan (deferred compensation) Investment Policy Statement approved by the board on June 11, 2015. The Investment Policy Statement provides investment guidelines for the 457(b) deferred compensation plan, a supplemental retirement-savings vehicle that permits participants to invest on either a pre-tax or a tax-deferred basis. The investment guidelines help the board to meet its fiduciary responsibilities to evaluate and positively influence the direction of the plan and its investments for the benefit of the plan participants and beneficiaries.

(2)  The board adopts and incorporates by reference the State of Montana Stable Value Investment Guidelines Schedule approved by the board on December 29, 2009.  These guidelines apply to the investment of 401(a) defined contribution plan participant assets and 457(b) deferred compensation plan participant assets that are pooled together in the plans' stable value group trust. The guidelines were developed through mutual agreement amongst the board, the investment manager, and the insurance wrap provider and provide guidance to the investment manager advisor when investing participants' funds contained within the stable value group trust.

(3) remains as proposed.

 

AUTH: 19-50-102, MCA

IMP:    19-50-102, MCA

 

3. The Public Employees' Retirement Board has thoroughly considered the comments received. A summary of the comments received and the board's responses are as follows:

 

COMMENT 1: An employee of the Legislative Services Division noted that the rules proposed for amendment did not contain either a "statement of the general subject matter of the omitted rule" as required by 2-4-307, MCA, or a "description of the policy implemented" as required by 2-4-305, MCA. The commenter further asked if the board would amend the adoption notice to include those statements.

 

RESPONSE 1: The board agrees and has amended both rules to include statements that simultaneously provide a statement of the general subject matter and a description of the policy implemented. The board took the same action with respect to the Stable Value Investment Guidelines Schedule previously adopted by reference.

 

 

/s/ Melanie A. Symons                          /s/ Sheena Wilson                     

Melanie A. Symons                               Sheena Wilson

Chief Legal Counsel                              President

and Rule Reviewer                                Public Employees' Retirement Board

 

Certified to the Secretary of State October 19, 2015