BEFORE THE PUBLIC EMPLOYEES' RETIREMENT BOARD

OF THE STATE OF MONTANA

 

In the matter of the adoption of New Rule I pertaining to commencement of guaranteed annual benefit adjustment

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NOTICE OF ADOPTION

 

TO: All Concerned Persons

 

1. On July 6, 2018, the Public Employees' Retirement Board published MAR Notice No. 2-43-576 pertaining to the proposed adoption of the above-stated rule at page 1209 of the 2018 Montana Administrative Register, Issue Number 13.

 

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

 

NEW RULE I (2.43.2606) COMMENCEMENT OF GUARANTEED ANNUAL BENEFIT ADJUSTMENT (1) If otherwise eligible, a retired member of any retirement system will receive their first guaranteed annual benefit adjustment (GABA) in their January benefit if they have been receiving a monthly benefit in every month for at least 12 months. Except as provided in (2) (3), commencement of the 12-month period starts the month in which the first benefit payment is made, not the month for which any part of the payment is due.

(2) HPORS retirees hired on or after July 1, 2013 will receive their first GABA in their January benefit if they have been receiving a monthly benefit in every month for at least 36 months. Except as provided in (3), commencement of the 36-month period starts the month in which the first benefit payment is made, not the month for which any part of the payment is due.

(2) (3)  In the event a member timely applies to begin retirement in January of any year, but through no fault of the member the January payment is not paid until a later month, the member will be eligible for GABA the January immediately following commencement of payment of the benefit. HPORS retirees hired on or after July 1, 2013, will be eligible the third January following commencement of payment of the benefit.

(a) and (b) remain as proposed.

 

AUTH: 19-2-403, 19-3-1605, 19-5-901, 19-5-902, 19-6-710, 19-6-711, 19-6-712, 19-8-1105, 19-9-1009, 19-9-1010, 19-9-1013, 19-13-1010, 19-13-1011, MCA

 

IMP:      19-2-908, 19-3-1605, 19-5-901, 19-5-902, 19-6-710, 19-6-711, 19-6-712, 19-7-711, 19-8-1105, 19-9-1009, 19-9-1010, 19-9-1013, 19-9-1207, 19-13-1010, 19-13-1011, MCA

 

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

 

COMMENT 1: A comment was received regarding whether the clause “If otherwise eligible” in subsection (1) was intended to address HPORS retirees who were hired on or after July 1, 2013 and thus unable to receive a GABA until they receive their retirement benefit for 36 months. 

 

RESPONSE 1: The Public Employees’ Retirement Board appreciates the comment and believes it best to specifically address the commencement of the GABA for HPORS retirees who were hired on or after July 1, 2013, as those individuals must wait 36 rather than 12 months prior to being eligible to receive the GABA. The final rule has been amended accordingly.

 

 

/s/ Melanie A. Symons                               /s/ Marty Tuttle                                

Melanie A. Symons                                    Marty Tuttle

Chief Legal Counsel                                   President

and Rule Reviewer                                     Public Employees’ Retirement Board

 

Certified to the Secretary of State August 14, 2018.