BEFORE THE MONTANA PUBLIC EMPLOYEES' RETIREMENT BOARD
OF THE STATE OF MONTANA
In the matter of the amendment of ARM 2.43.1302, 2.43.2114, 2.43.2607, 2.43.2608, and 2.43.2902 pertaining to definitions, required employer reports, payment of estimated benefits, return to covered employment by PERS, SRS, or FURS retiree report, and death payments, survivor benefits and optional retirement benefits
NOTICE OF PROPOSED AMENDMENT
NO PUBLIC HEARING CONTEMPLATED
TO: All Concerned Persons
1. On May 13, 2013, the Montana 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 Public Employees' Retirement Board no later than 5:00 p.m. on April 18, 2013, to advise us of the nature of the accommodation that you need. Please contact Kris Vladic, Montana Public Employees' Retirement Board, P.O. Box 200131, Helena, Montana, 59620-0131; telephone (406) 444-2578; fax (406) 444-5428; TDD/Montana Relay Service (406) 444-1421; or e-mail firstname.lastname@example.org.
3. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:
2.43.1302 DEFINITIONS Undefined terms used in this chapter are consistent with statutory meanings. Defined terms will be applied to the statutes unless a contrary meaning clearly appears. For the purposes of this chapter, the following definitions apply:
(1) through (9) remain the same.
(10) "Filed" or "filed with the board" generally means the mailing of a form or payment in a stamped envelope which is properly addressed to MPERA or the board.
(a) The postmark date will be used to determine the date on which filing occurs.
(b) If the form or payment is hand-delivered, it is considered filed on the day it is personally delivered to the MPERA office.
(c) If the form is faxed or e-mailed to MPERA
or the board, it is considered filed on the day it is received in the MPERA office, provided a hard copy is received in the MPERA office within five working days of the filing date . , A form cannot be filed by e-mail as because an original signature is required.
(11) through (27) remain the same.
AUTH: 19-2-403, MCA
IMP: 19-2-403, MCA
STATEMENT OF REASONABLE NECESSITY: The Montana Public Employees' Retirement Board (PERB) is currently in the process of converting to an imaging system for all documents received. It is necessary to provide clarification as to when a document is received to determine what the correct filing date for PERB will be. Because there is a concern about the image quality of scanned documents, similar to faxed documents, we propose to require the original be mailed to MPERA within five working days.
2.43.2114 REQUIRED EMPLOYER REPORTS (1) All reporting agencies shall file required employer reports, for member and nonmember employees, other than working retiree reports required by ARM 2.43.2608 and optional member election applications required by ARM 2.43.2102, no later than five working days after each regularly occurring payday.
(a) through (5) remain the same.
(6) Delinquent reports are subject to a $10 per day penalty fee, unless the board waives all or part of the penalty for good cause. Penalty fees shall be submitted separate from normal payroll reports.
AUTH: 19-2-403, MCA
IMP: 19-2-506, 19-3-315, 19-3-316, 19-3-412, 19-3-1106, 19-3-2117, 19-7-1101, MCA
STATEMENT OF REASONABLE NECESSITY: This rule change is necessary to clarify that both member and nonmember reports are required to be submitted within the five-day time period defined in this rule. The fee is needed as an enforcement mechanism to encourage timely submissions and penalize late submissions. Section 19-2-506(3)(a), MCA authorizes the board to establish by rule the penalty for late reporting.
2.43.2607 PAYMENT OF ESTIMATED BENEFITS (1) and (2) remain the same.
(3) The first benefit will be payable the last working day of the month in which the benefit began. Future benefits will be payable the last working day of each succeeding month.
(3) through (5) remain the same but are renumbered (4) through (6).
AUTH: 19-2-403, MCA
IMP: 19-2-403, 19-2-502, 19-2-901, MCA
STATEMENT OF REASONABLE NECESSITY: This rule change is necessary to
clarify to members and benefit recipients when payments will be issued. There have been numerous inquiries as to when the payments occur. The philosophy is that similar to being paid after working, individuals will be paid their retirement benefits after they have been retired for the month.
2.43.2608 RETURN TO COVERED EMPLOYMENT BY PERS, SRS, OR FURS RETIREE – REPORT (1) through (6) remain the same.
(7) Delinquent reports are subject to a $10 per day penalty fee unless the board waives all or part of the penalty for good cause. Penalty fees shall be submitted separate from normal payroll reports.
AUTH: 19-2-403, MCA
IMP: 19-2-506, 19-3-1104, 19-3-1106, 19-7-1101, 19-13-301, MCA
STATEMENT OF REASONABLE NECESSITY: This rule change is necessary to define the penalty fees which could be assessed for delinquent filing of certification reports. Certification reports are required employer filed reports and have not been correctly filed. Section 19-2-506(3)(a), MCA provides the board with authority to assess penalty fees on required employer reports. The fee is needed as an enforcement mechanism to encourage timely submissions and penalize late submissions.
This rule change is necessary to identify the working retiree certification as a required report and to apply the same penalties for reporting noncompliance as for member and nonmember payroll reporting.
2.43.2902 DEATH PAYMENTS, SURVIVOR BENEFITS, AND OPTIONAL RETIREMENT BENEFITS (1) and (2) remain the same.
(3) Upon the death of a retired member receiving an option 2, 3, or 4 benefit, a contingent annuitant must submit a certified copy of the member's death certificate to MPERA. Once the death certificate is filed with MPERA, the missed payments, if any, will be paid.
(4) through (7) remain the same.
AUTH: 19-2-403, MCA
IMP: 19-2-801, 19-3-1201, 19-5-801, 19-5-802, 19-6-901, 19-6-902, 19-6-903, 19-7-901, 19-8-1001, 19-8-1002, 19-8-1003, 19-9-1101, 19-9-1102, 19-13-902, 19-13-903, MCA
STATEMENT OF REASONABLE NECESSITY: This rule change is necessary to encourage timely submission of certified death certificates by contingent annuitants. Payments are suspended effective upon notification of death of member. There is a possibility of missed payments to the contingent annuitants. If any missed payments occur, they will be paid in addition to the monthly benefit in which the death certificate is filed in the office.
4. Concerned persons may submit their data, views, or arguments concerning the proposed action in writing to Public Employees' Retirement Board, P.O. Box 200131, Helena, Montana, 59620; telephone (406) 444-3154; fax (406) 444-5428; TDD/Montana Relay Service (406) 444-1421; or e-mail email@example.com., and must be received no later than 5:00 p.m., April 25, 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., April 25, 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 6,695 persons based on approximately 66,956 defined benefit retirement plan members as of June 30, 2012.
7. The department 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 department.
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 this 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, do not apply.
/s/ Melanie Symons /s/ Scott Moore
Melanie Symons, Legal Counsel Scott Moore
and Rule Reviewer President
Public Employees' Retirement Board
Certified to the Secretary of State March 18, 2013.