BEFORE THE PUBLIC EMPLOYEES' RETIREMENT BOARD
OF THE STATE OF MONTANA
In the matter of the adoption of New Rule I pertaining to the adoption by reference of the State of Montana Public Employees Pooled Trust, and the amendment of ARM 2.43.3501 and 2.43.5101 pertaining to the adoption by reference of the State of Montana Public Employee Defined Contribution Plan Document and the State of Montana Public Employee Deferred Compensation (457) Plan Document, respectively
NOTICE OF PROPOSED ADOPTION AND AMENDMENT
NO PUBLIC HEARING CONTEMPLATED
TO: All Concerned Persons
1. On June 25, 2010, the Montana Public Employees' Retirement Board (PER Board) proposes to adopt and amend the above-stated rules.
2. The PER 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 the PER Board no later than 5:00 p.m. on May 14, 2010, to advise us of the nature of the accommodation that you need. Please contact Dena Helman, Montana Public Employee Retirement Administration, 100 North Park Avenue, Suite 200, P.O. Box 200131, Helena, Montana, 59620-0131; telephone (406) 444-2578; fax (406) 444-5428; TDD (406) 444-1421; or e-mail firstname.lastname@example.org.
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 Declaration of Trust – State of Montana Public Employees Pooled Trust that was approved by the board on September 10, 2009, and became effective on January 1, 2010.
(2) Copies of the State of Montana Public Employees Pooled Trust 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 e-mail email@example.com, and are available on MPERA's web site at www.mpera.mt.gov.
AUTH: 19-3-2104, 19-50-102, MCA
IMP: 19-3-2102, 19-50-102, MCA
REASON: Before January 1, 2010, the State of Montana's Deferred Compensation (457) 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 Aegon. The PER 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 PER 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. Aegon, PIMCO, and State Street Bank, the funds' custodian, supported the board's endeavor and entered into revised contracts and agreements to implement the pooled trust. The pooled trust was approved by the PER Board at its September 2009 meeting for implementation effective January 1, 2010.
4. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:
2.43.3501 ADOPTION OF DEFINED CONTRIBUTION PLAN DOCUMENT AND TRUST AGREEMENT (1) The board adopts and incorporates by reference the following:
(a) State of Montana Public Employee Defined Contribution Plan Document (January 1, 2008 edition) that was approved by the board on November 14, 2008, and amended February 11, 2010; and
(b) and (2) remain the same.
AUTH: 19-3-2104, MCA
IMP: 19-3-2102, MCA
2.43.5101 ADOPTION OF DEFERRED COMPENSATION PLAN DOCUMENT AND TRUST AGREEMENT (1) The board adopts and incorporates by reference the following:
(a) State of Montana Public Employee Deferred Compensation Plan Document (January 1, 2008 edition), that was approved by the board on August 14, 2008, and September 11, 2008, and amended February 11, 2010; and
(b) State of Montana Public Employee Deferred Compensation Plan Trust Agreement (January 1, 2002 edition), that was approved by the board on February 22, 2001, and September 28, 2001.
(2) remains the same.
AUTH: 19-50-102, MCA
IMP: 19-50-102, MCA
REASON: On February 11, 2010, the PER Board amended the DCRP plan document and the Deferred Compensation plan document to reflect the adoption of the Pooled Trust (referenced above) as part of each plan.
The PER Board determined to adopt the original plan documents by reference. Because 2-4-307(3), MCA, requires that changes to the documents also be adopted by reference, it is necessary to amend the rules that adopt the statements by reference.
5. Concerned persons may submit their data, views, or arguments concerning the proposed action in writing to Roxanne M. Minnehan, Montana Public Employee Retirement Administration, 100 North Park Avenue, Suite 200, P.O. Box 200131, Helena, Montana, 59620-0131; telephone (406) 444-5459; fax (406) 444-5428; or e-mail firstname.lastname@example.org, and must be received no later than 5:00 p.m., May 28, 2010.
6. 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 Dena Helman at the above address no later than 5:00 p.m., May 28, 2010.
7. 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 adoption or amendments; 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 1043 persons based on approximately 2367 participants in the Defined Contribution Retirement Plan and 8070 participants in the Deferred Compensation Plan as of December 2009, for a total 10,437 participants.
8. The PER 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 6 above or may be made by completing a request form at any rules hearing held by the PER Board.
9. 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 if a discrepancy exists 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.
10. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.
/s/ Melanie A. Symons /s/ John Nielsen
Melanie A. Symons John Nielsen
Chief Legal Counsel and President
Rule Reviewer Public Employees' Retirement Board
/s/ Michael P. Manion
Michael P. Manion
Chief Legal Counsel and
Certified to the Secretary of State April 19, 2010.