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Montana Administrative Register Notice 2-43-583 No. 8   04/26/2019    
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BEFORE THE PUBLIC EMPLOYEES' RETIREMENT BOARD

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 2.43.3502 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(b) Deferred Compensation Plan

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NOTICE OF PROPOSED AMENDMENT

 

NO PUBLIC HEARING CONTEMPLATED

 

TO: All Concerned Persons

 

1. On June 7, 2019, 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 May 17, 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 kvladic@mt.gov.

 

3. 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 FIXED FUND INVESTMENT POLICY STATEMENT (1) remains the same.

(2) The board adopts and incorporates by reference the Montana Fixed Fund Investment Policy Statement approved by the board on December 13, 2018 April 11, 2019. 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 investment policy statement was developed through mutual agreement amongst the board, the investment manager, and the insurance wrap providers and provides guidance to the investment manager when investing participants' funds contained within the stable value group trust.

           (3) remains the same.

 

AUTH:  19-3-2104, MCA

IMP:      19-3-2104, 19-3-2122, MCA

 

2.43.5102 ADOPTION OF INVESTMENT POLICY STATEMENT AND FIXED FUND INVESTMENT POLICY STATEMENT (1) remains the same.

            (2)  The board adopts and incorporates by reference the Montana Fixed Fund Investment Policy Statement approved by the board on December 13, 2018 April 11, 2019.  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 investment policy statement was developed through mutual agreement amongst the board, the investment manager, and the insurance wrap providers and provides guidance to the investment manager advisor when investing participants' funds contained within the stable value group trust.

            (3) remains the same.

 

AUTH:  19-50-102, MCA

IMP:    19-50-102, MCA

 

REASON: At the request of its Investment Manager, PIMCO, the Public Employees' Retirement Board amended the Montana Fixed Fund Investment Policy Statement (IPS) effective April 30, 2019. The amendments address FNMA's and FHLMC's initiative to offer a single security and replaces the maximum allocation of 30% to each with a maximum allocation to the single security of 55%; and adopts maximum allocation limits to match those already contained within the benefit responsive contract guidelines of the Montana Fixed Fund's three wrap providers: Voya, Prudential, and Transamerica.

 

Because the board determined to adopt the original Montana Fixed Fund IPS by reference, 2-4-307(4), MCA, requires that changes to the document also be adopted by reference. Therefore, it is necessary to amend the rules that adopt the Montana Fixed Fund IPS to indicate the version being adopted by reference.

 

4. 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 mpera@mt.gov, and must be received no later than 5:00 p.m., May 24, 2019.

 

5. 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., May 24, 2019.

 

6.  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 1,341 persons based on approximately 4,080 participants in the Defined Contribution Retirement Plan and 9,339 participants in the 457(b) Deferred Compensation Plan as of June 30, 2018, for a total of 13,419 participants.

 

7. 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.

 

8. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

 

9. With regard to the requirements of 2-4-111, MCA, the Public Employees' Retirement Board has determined that the 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 April 16, 2019.

 

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