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| Montana Administrative Register Notice 2-43-578 | No. 1 01/11/2019 | |
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BEFORE THE PUBLIC EMPLOYEES' RETIREMENT BOARD OF THE STATE OF MONTANA
TO: All Concerned Persons
1. On March 15, 2019, the Public Employees' Retirement Board proposes to adopt and 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 February 1, 2019, 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 rule as proposed to be adopted provides as follows:
NEW RULE I ADOPTION OF STATE OF MONTANA PUBLIC EMPLOYEES POOLED TRUST (1) The board adopts and incorporates by reference the amended Declaration of Trust - State of Montana Public Employees Pooled Trust that was approved by the board on December 13, 2018, and became effective on January 31, 2019. (2) Copies of the State of Montana Public Employees Pooled Trust as amended and related materials may be obtained from MPERA, 100 North Park Avenue, Suite 200, P.O. Box 200131, Helena, MT 59620-0131, telephone 1 (877) 275-7372, or email [email protected], and are available on MPERA's website at www.mpera.mt.gov.
AUTH: 19-3-2104, MCA IMP: 19-3-2102, MCA
REASON: Prior to January 1, 2010, the State of Montana's Deferred Compensation (457(b)) Plan and the State of Montana's Defined Contribution Retirement Plan (DCRP) each contained an investment option known as a stable value fund. Both funds were managed by PIMCO and wrapped or insured by a single insurer. The board determined that the assets of the two plans allocated to the stable value fund options would be more efficiently managed if pooled and commingled in a group trust for investment purposes. The pooling and commingling of these funds required the board to enter into a Declaration of Trust creating a pooled trust under which the assets in the two stable value funds would be jointly invested but separately maintained and accounted for. The Declaration of Trust was adopted by reference in 2010 when ARM 2.43.5104 was enacted.
The Declaration of Trust included a Stable Value Investment Guideline Schedule which was agreed to by the investment manager, the board, and the insurer in September 2009. Since that time, the economic turn down necessitated the addition of two more insurers, and an accompanying request to amend the Group Trust's investment guidelines to meet the needs of the plan participants, the board, the investment manager, and the wrap insurers. The Montana Fixed Fund Investment Policy Statement was adopted by the board on December 13, 2018, and replaces the previous Stable Value Investment Guideline Schedule within the Declaration of Trust.
The board has determined to adopt by reference the Declaration of Trust as amended in rules pertaining to both the DCRP and the 457(b) Plan, rather than relying solely on ARM 2.43.5104. Therefore, New Rule I is proposed to adopt by reference the amended Declaration of Trust in the DCRP plan.
4. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:
2.43.3502 ADOPTION OF INVESTMENT POLICY STATEMENT AND (2) The board adopts and incorporates by reference the (3) Copies of the Defined Contribution Plan Investment Policy Statement and
AUTH: 19-3-2104, MCA IMP: 19-3-2104, 19-3-2122, MCA
2.43.5102 ADOPTION OF INVESTMENT POLICY STATEMENT AND (2) The board adopts and incorporates by reference the (3) Copies of the 457 Plan Investment Policy Statement and
AUTH: 19-50-102, MCA IMP: 19-50-102, MCA
2.43.5104 ADOPTION OF STATE OF MONTANA PUBLIC EMPLOYEES POOLED TRUST (1) The board adopts and incorporates by reference the amended Declaration of Trust – State of Montana Public Employees Pooled Trust that was approved by the board (2) remains the same.
AUTH: 19-3-2104, 19-50-102, MCA IMP: 19-3-2102, 19-50-102, MCA
REASON: On December 13, 2018, the board adopted the Montana Fixed Fund Investment Policy Statement to replace the Stable Value Investment Guidelines Schedule previously incorporated into the Declaration of Trust – State of Montana Public Employees Pooled Trust. As the Stable Value Investment Guidelines and the original Declaration of Trust were adopted by reference, the Montana Fixed Fund Investment Policy Statement and the amended Declaration of Trust incorporating that investment policy statement must also be adopted by reference.
ARM 2.43.3502 as proposed to be amended replaces the Stable Value Investment Guidelines Schedule with the Montana Fixed Fund Investment Policy Statement within the Public Employees' Retirement System's Defined Contribution Retirement Plan.
ARM 2.43.5102 as proposed to be amended replaces the Stable Value Investment Guidelines Schedule with the Montana Fixed Fund Investment Policy Statement within the state of Montana's IRC 457(b) Deferred Compensation Plan.
ARM 2.43.5104 as proposed to be amended adopts by reference the Declaration of Trust as amended to incorporate the Montana Fixed Fund Investment Policy Statement in lieu of the Stable Value Investment Guidelines Schedule.
5. Concerned persons may submit their data, views, or arguments concerning the proposed action in writing to: Montana Public Employee Retirement Administration, P.O. Box 200131, Helena, Montana, 59620-0131; telephone (406) 444-3154; fax (406) 444-5428; or e-mail [email protected], and must be received no later than 5:00 p.m., February 8, 2019.
6. If persons who are directly affected by the proposed amendments 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 they have to Kris Vladic at the above address no later than 5:00 p.m., February 8, 2019.
7. If the Public Employees' Retirement Board receives requests for a public hearing on the proposed amendments from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed amendment; 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 1,178 persons based on approximately 2,541 participants in the Defined Contribution Retirement Plan and 9,239 participants in the 457(b) Deferred Compensation Plan as of June 30, 2017, for a total of 11,780 participants.
8. The Public Employee Retirement Administration 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 Montana Public Employee Retirement Administration.
9. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.
10. With regard to the requirements of 2-4-111, MCA, the Public Employees' Retirement Board has determined that the adoption and amendment of the above-referenced rules will not significantly and directly impact small businesses.
/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 January 2, 2019.
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A directory of state agencies is available online at http://www.mt.gov/govt/agencylisting.asp.
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