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Montana Administrative Register Notice 2-43-497 No. 19   10/17/2013    
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BEFORE THE PUBLIC EMPLOYEES' RETIREMENT BOARD

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 2.43.2318 pertaining to "one-for -five" additional service and ARM 2.43.2324 pertaining to guaranteed annual benefit adjustment coverage - PERS, SRS, and GWPORS

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NOTICE OF PROPOSED AMENDMENT

 

NO PUBLIC HEARING CONTEMPLATED

 

TO: All Concerned Persons

 

1. On November 27, 2013, 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 kvladic@mt.gov.

 

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

 

            2.43.2318 "ONE-FOR-FIVE" ADDITIONAL SERVICE (1) Subject to the requirements of each retirement system, a vested member with five or more years of membership service may purchase additional service credit. Members may purchase one full year of additional service for each five full years of membership service in the retirement system. A member eligible to purchase additional service may purchase months of service totaling 11 months or less.

            (2) through (3) remain the same.

 

AUTH: 19-2-403, MCA

IMP:     19-3-513, 19-3-902, 19-3-904, 19-3-906, 19-5-409, 19-6-804, 19-7-804, 19-8-904, 19-9-411, 19-13-405, MCA

 

STATEMENT OF REASONABLE NECESSITY: Chapter 272 of the Session Laws of 2013 replaced the five-year period required for members of the Highway Patrol Officers' Retirement System to become vested with a ten-year period for members who were hired on or after July 1, 2013. It is necessary to use the word "vested" in this rule to clarify that in any retirement system it is a member's vested status rather than his or her years of service that qualifies the member to purchase one-for-five service.

 

              2.43.2324  GUARANTEED ANNUAL BENEFIT ADJUSTMENT COVERAGE – PERS, SRS, AND GWPORS  (1) Members of PERS, SRS, and GWPORS who terminate covered employment, accept a refund of their accumulated contributions, and return to covered employment in the same system on or after July 1, 2007, will be eligible for a 1.5% the GABA in effect at the time the member returns to covered employment

            (2) Purchase of the refunded time does not affect the member's new hire date. The member will remain eligible for the 1.5% GABA then in effect, not the 3.0% GABA associated with the refunded time.

 

AUTH:  19-2-403, MCA

IMP:     19-2-603, 19-3-1605, 19-7-711, 19-8-1105, MCA

 

STATEMENT OF REASONABLE NECESSITY: Chapter 272 of the Session Laws of 2013 decreased the guaranteed annual benefit for new members of the Highway Patrol Officers' Retirement System (HPORS). HPORS members who terminate covered employment, withdraw their account balance and then return to covered employment will be subject to the new GABA. This rule was amended to uniformly reflect that a member in this circumstance is subject to the GABA in effect upon returning to covered employment in all defined benefit retirement systems rather than adding another system to the list of retirement system names which do not have a single GABA rate.

 

The proposed amendment is also necessary to reflect the change in the GABA rate for PERS members from a single rate to a rate that changes based on system funding as implemented in Chapter 390 of the Session Laws of 2013.

 

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 kvladic@mt.gov, 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 6695 persons based on approximately 66,956 defined benefit retirement plan members.

 

           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 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 and have been fulfilled. The primary bill sponsor was contacted by mail on June 21, 2013.

 

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

 

 

 

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

Melanie Symons                                        Scott Moore

Chief Legal Counsel                                  President

and Rule Reviewer                                    Public Employees' Retirement Board

 

 

Certified to the Secretary of State October 7, 2013.

 

 

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