BEFORE THE PUBLIC EMPLOYEES' RETIREMENT BOARD
OF THE STATE OF MONTANA
In the matter of the amendment of ARM 2.43.1306 pertaining to actuarial rates and assumptions
NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT
TO: All Concerned Persons
1. On July 15, 2010, at 9:00 a.m., the Montana Public Employees' Retirement Board (PER Board) will hold a public hearing in the board room at 100 North Park Avenue, Suite 200, at Helena, Montana, to consider the proposed amendment of the above-stated rule.
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 MPERA no later than 5:00 p.m. on July 12, 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; TDD (406) 444-1421; fax (406) 444-5428; or e-mail email@example.com.
3. The rule as proposed to be amended provides as follows, new matter underlined, deleted matter interlined:
2.43.1306 ACTUARIAL RATES AND ASSUMPTIONS (1) The actuary will present the actuarial data and recommend the board adopt specific rates and assumptions. The board in its discretion will adopt rates and assumptions and publish them in a board policy. The board adopts and incorporates by reference board policies BOARD Admin 09 and BOARD Admin 10, providing actuarial rates, assumptions, and methods for valuation purposes and actuarial equivalence purposes, respectively, that were approved by the board on
February 14, 2008 June 10, 2010.
(2) remains the same.
AUTH: 19-2-403, 19-17-203, MCA
IMP: 19-2-405, 19-17-107, MCA
REASON: The Internal Revenue Service requires public pension systems to adopt actuarial assumptions, rates, and methods in a manner that gives them the force and effect of law. The IRS requirement is an issue that may affect the qualified status of public pension retirement systems. Adopting the applicable actuarial assumptions, rates, and methods into rule by reference gives them the force and effect of law.
The PER Board's actuary performs an experience study every five to seven years. Information obtained through the experience study is used by the actuary to update demographic and financial data relied on when conducting annual valuations of the retirement systems administered by the Board (BOARD Admin 09) and to determine actuarial equivalent option factors for those systems whose members have retirement options (BOARD Admin 10).
The 2009 experience study resulted in the PER Board's actuary recommending, and the PER Board adopting, revisions to the two-board policies mentioned above. Since these policies are adopted by reference, 2-4-307(3), MCA, requires that the amended policies also be adopted by reference. Therefore, it is necessary to amend the rule that adopts the policies by reference.
While preparing this notice of proposed amendment, PER Board staff noted that 19-2-403, MCA, does not apply to the Volunteer Firefighters Compensation Act (VFCA) contained in Title 19, chapter 17 of the Montana Code Annotated. Section 19-17-203, MCA, is the statute that gives the PER Board the authority to adopt rules implementing the VFCA. Therefore, the PER Board proposes to add
19-17-203, MCA, to the list of authorities as ARM 2.43.1306 applies to the VFCA.
4. Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to: Roxanne M. Minnehan, Montana Public Employee Retirement Administration, 100 North Park Avenue, Suite 200, P.O. Box 200131, Helena, Montana, 59620-0131; fax (406) 444-5428; or e-mail firstname.lastname@example.org, and must be received no later than 5:00 p.m., July 23, 2010.
5. Dena Helman, Montana Public Employee Retirement Administration, has been designated to preside over and conduct this hearing.
6. 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 paragraph 4 above or may be made by completing a request form at any rules hearing held by the board.
7. An electronic copy of this 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.
8. 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 June 14, 2010.