BEFORE THE PUBLIC EMPLOYEES' RETIREMENT BOARD

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 2.43.2114, 2.43.2116, 2.43.3510, 2.43.3515, 2.43.3517, 2.43.3524, 2.43.3525, and 2.43.3531 pertaining to the name change of the Montana university system optional retirement program

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NOTICE OF PROPOSED AMENDMENT   NO PUBLIC HEARING CONTEMPLATED

 

TO: All Concerned Persons

 

1. On November 27, 2013, the Public Employees' Retirement Board proposes to amend the above-stated rules.

 

2. The Public Employees' Retirement 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 Montana Public Employee Retirement Administration no later than 5:00 p.m. on November 7, 2013, to advise us of the nature of the accommodation that you need. Please contact Kris Vladic, Montana Public Employee Retirement Administration, P.O. Box 200131, Helena, Montana, 59620-0131; telephone (406) 444-2578; fax (406) 444-5428; TDD (406) 444-1421 or e-mail [email protected].

 

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

 

2.43.2114 REQUIRED EMPLOYER REPORTS (1) through (8) remain the same.

            (9)  Reporting agencies of the Montana university system (MUS) shall report employees in PERS-covered positions who elect the MUS optional retirement program (ORP) (MUS-RP). The MUS ORP MUS-RP report must include all information required in (6).  At the same time, reporting agencies of the MUS shall transmit amounts equal to the statutorily required plan choice rate and the education fund rate for those employees.

            (10) remains the same.

 

AUTH:  19-2-403, MCA

IMP:     19-2-506, 19-3-315, 19-3-316, 19-3-412, 19-3-1106, 19-3-1113, 19-3-2117, 19-7-1101, MCA

 

            2.43.2116 CORRECTION OF DEFINED CONTRIBUTION RETIREMENT PLAN REPORTING ERRORS (1) through (2) remain the same.

            (3)  Reporting errors that result in an Optional Retirement Program (ORP) a Montana University System Retirement Program (MUS-RP) member improperly electing to participate in the DCRP will be corrected by allocating contributions pursuant to 19-21-214, MCA.

            (4) and (5) remain the same.

 

AUTH:  19-2-403, 19-3-2104, MCA

IMP:     19-2-403, 19-2-903, MCA

 

           2.43.3510  ELECTION PERIOD (1) through (3) remain the same.

            (a) An election to transfer to the PERS DCRP or the Montana University System Optional Retirement Program will be effective upon confirmation by MPERA pursuant to ARM 2.43.3512 and will not be retroactive.

            (4) remains the same.

 

AUTH: 19-2-403, 19-3-2104, MCA

IMP:     19-3-2104, 19-3-2111, MCA

 

           2.43.3515  PURCHASE OF SERVICE NOT PERMITTED BY PARTICIPANT IN DEFINED CONTRIBUTION RETIREMENT PLAN (1) A member of PERS with an existing non-PERS service purchase contract entered into pursuant to any MPERA statute or rule who wishes to elect the DCRP or the Montana University System's Optional System Retirement Plan Program (ORP) (MUS-RP) must terminate or complete the service purchase contract before the election will be confirmed by MPERA.

            (2) If a member of PERS with an existing service purchase contract files an election form electing either the DCRP or the ORP MUS-RP, MPERA will send written notice to the member that the election cannot be confirmed until the service purchase contract is either terminated or completed.

            (3) through (7) remain the same.

            (8) A member with an existing service purchase contract who elects the DCRP or the ORP MUS-RP in the last month of the member's 12-month election period may pay to MPERA in a lump sum the entire amount remaining due under the service purchase contract.

            (a) and (b) remain the same.

            (9)  Any member of an MPERA-administered retirement system with an existing service purchase contract who does not elect the DCRP or the ORP MUS-RP may not terminate the service purchase contract pursuant to this rule.

 

AUTH: 19-2-403, 19-2-1010, 19-3-2104, MCA

IMP:     19-2-710, 19-3-2111, 19-3-2112, 19-3-2115, MCA

 

            2.43.3517  FAMILY LAW ORDERS, EXECUTIONS, AND INCOME-WITHHOLDING ORDERS AND ELECTIONS (1)  A member of PERS who is subject to a PERS Family Law Order pursuant to 19-2-907, MCA, and wishes to elect the DCRP or the Montana University System's System Optional Retirement Program (ORP) (MUS-RP), must have the Family Law Order amended to comply with the DCRP or ORP MUS-RP and approved by the board no later than the end of the member's 12-month election period.

            (2)  A member of PERS who is subject to an execution or income-withholding order pursuant to 19-2-909, MCA, and wishes to elect the DCRP or the ORP MUS-RP, must have the execution or income-withholding order amended to comply with the DCRP or the ORP MUS-RP no later than the end of the member's 12-month election period.

            (3) remains the same.

 

AUTH:  19-2-403, 19-3-2104, MCA

IMP:     19-2-907, 19-2-909, 19-3-2111, MCA

 

           2.43.3524  RETIREES NOT ENTITLED TO ELECTION (1)  Retired members of the PERS may not elect the PERS Defined Contribution Retirement Plan or the Montana University System Optional Retirement Program, but must remain members of the PERS Defined Benefit Retirement Plan regardless of reemployment in a PERS-covered position.

            (2) remains the same.

 

AUTH: 19-2-403, 19-3-2104, MCA

IMP:     19-3-1106, 19-3-2104, 19-3-2111, MCA

 

     2.43.3525  MONTANA UNIVERSITY SYSTEM EMPLOYEE ELECTIONS

            (1) remains the same.

            (2)  A MUS employee who is a PERS member may be a participant of the MUS Optional Retirement Program (ORP) (MUS-RP) and either the PERS Defined Benefit Retirement Plan (DBRP) or the PERS Defined Contribution Retirement Plan (DCRP) only under one of the following conditions:

            (a)  The PERS member is employed part- or full-time by both the MUS and another PERS-covered employer and does not have previous retirement plan election(s) on file with MPERA. The member may elect the ORP MUS-RP for his or her MUS employment and the DBRP or DCRP for his or her other PERS-covered employment.

            (b)  The PERS member is employed by the MUS, elected the MUS ORP MUS-RP, and accepted employment with another PERS-covered employer, other than MUS.  The member may have terminated employment with the MUS or may have taken a separate (second) job with the other PERS-covered employer.  In either case, the member must elect either the DBRP or DCRP as the member's retirement plan for the member's employment with the other PERS-covered employer.

            (3)  A MUS employee who is in both a PERS-covered position and an ORP MUS-RP-covered position may be a participant of both the MUS ORP MUS-RP and either the DBRP or DCRP.

 

AUTH:  19-2-403, 19-3-2104, MCA

IMP:     19-3-2104, 19-3-2112, MCA

 

     2.43.3531  TIMING OF TRANSFERS TO THE DEFINED CONTRIBUTION RETIREMENT PLAN (1)  Once a member's election to join either the PERS DCRP or the Montana University System Optional Retirement Program (MUS ORP) (MUS-RP) has been confirmed, MPERA will transfer contributions to the participant's individual account in the DCRP or the MUS ORP MUS-RP within 15 working days.

 

AUTH:  19-2-403, 19-3-2104, MCA

IMP:     19-3-2114, 19-3-2117, MCA

 

STATEMENT OF REASONABLE NECESSITY: The amendments are necessary to comply with Chapter 282 of the Session Laws of 2013, which changed the name of the Optional Retirement Program (ORP) to the Montana University System Retirement Program (MUS-RP).

 

4. Concerned persons may submit their data, views, or arguments concerning the proposed action in writing to: Kris Vladic, Montana Public Employee Retirement Administration, P.O. Box 200131, Helena, Montana, 59620-0131; telephone (406) 444-2578; fax (406) 444-5428; or e-mail [email protected], and must be received no later than 5:00 p.m., November 14, 2013.

 

5. If persons who are directly affected by the proposed action wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request along with any written comments to Kris Vladic at the above address no later than 5:00 p.m., November 14, 2013.

 

6. If the agency receives requests for a public hearing on the proposed action from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed action; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date. Notice of the hearing will be published in the Montana Administrative Register. Ten percent of those directly affected has been determined to be 821 persons based on 8,217 participants in the Deferred Compensation Plan as of July 2013.

 

7. The Public Employees' Retirement 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 4 above or may be made by completing a request form at any rules hearing held by the Public Employees' Retirement 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 this 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 and have been fulfilled. The primary bill sponsor was contacted by mail on August 19, 2013.

 

10.  With regard to the requirements of 2-4-111, MCA, the Public Employees' Retirement Board has determined that the amendment of the above-referenced rule will not significantly and directly impact small businesses.

 

 

 

/s/ Melanie A. Symons                               /s/ Scott E. Moore                           

Melanie A. Symons                                    Scott E. Moore

Chief Legal Counsel                                  President

and Rule Reviewer                                    Public Employees' Retirement Board

 

           

Certified to the Secretary of State October 7, 2013.