Montana Administrative Register Notice 2-43-483 No. 13   07/11/2013    
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In the matter of the amendment of ARM 2.43.2114 and 2.43.2608 establishing a process for the payment on employer contributions on behalf of working retirees, including independent contractors and other workers in PERS-covered positions












TO: All Concerned Persons


1. On August 23, 2013, 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 Public Employees' Retirement Administration no later than 5:00 p.m. on August 1, 2013, to advise us of the nature of the accommodation that you need. Please contact Kris Vladic, Public Employees' 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:


2.43.2114 REQUIRED EMPLOYER REPORTS (1) All reporting agencies shall file required the following 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) a contributing employee report;

(b) a non-contributing employee report; and

(c) a working retiree report, which includes:

(i) a PERS retiree performing work in a PERS-covered position as an employee, an independent contractor, or through a professional employer arrangement, an employee leasing arrangement, or a temporary service contractor. A working retiree returning to a PERS-covered position in other than employee status is defined as a "worker" for purposes of this rule;

(ii) a SRS retiree performing work in a SRS-covered position as an employee;

(iii) a FURS retiree performing work in a FURS-covered position as an employee.

(a) (2)  Each report must be accompanied by statutorily required employer and employee contributions to the appropriate retirement system as follows.:

(a) the contributing employee report requires employer and employee contributions;

(b) the non-contributing employee report requires no contributions; and

(c) the working retiree report requires employer contributions only.

(3) The required contribution rate is the rate in effect at the time the employees or workers are paid, and not the contribution rate in effect when the compensation was earned.

(b) Beginning July 1, 2003, reporting

(4)  Reporting agencies shall use MPERA's online web-based employer web reporting system and shall remit payment via automated clearing house (ACH).

            (c) (5)  If the reporting agency does not have access to the internet, the employer reports may be either hard-copy or electronic, but must be in the format provided by MPERA, and must be accompanied by the payment of all applicable contributions.

            (2) (6)  The report must be in alphabetical order by last name and contain for each employee or worker, regardless whether the employee or worker is a member of a MPERA-administered retirement system or not:

            (a) through (e) remain the same.

            (f) the actual hours for which the employee or worker received compensation; and

            (g)  each employee or worker who terminated during the pay period being reported.

            (3) (7)  In addition to the information contained in (2) (6), employers must also provide the home addresses of employees and workers who are members of an MPERA-administered retirement system.  Home addresses of nonmembers are not required.

            (4) remains the same but is renumbered (8).

            (5) (9)  Reporting agencies of the Montana university system (MUS) shall report employees in PERS-covered positions who elect the MUS optional retirement program (ORP). The MUS ORP report must include all information required in (2) (6).  At the same time, reporting agencies of the MUS shall transmit amounts equal to the statutorily required plan choice rate and the education fund rate for those employees.

            (6) remains the same but is renumbered (10).


AUTH:  19-2-403, MCA

IMP:     Section 12, Chapter 178, Laws of 2013, Section 1, Chapter 239, Laws of 2013, 19-2-506, 19-3-315, 19-3-316, 19-3-412, 19-3-1106, 19-3-2117, 19-7-1101, MCA


2.43.2608 RETURN TO COVERED EMPLOYMENT BY PERS, SRS, OR FURS RETIREE – REPORT (1) An employer who employs pays for work performed by a retired PERS member in a position covered by PERS or in "employment covered by the retirement system" as specified in 19-3-1106, MCA, must submit a certification report to MPERA for each payroll period during which a retired PERS member is employed the work is performed.

(a) remains the same.

            (b) The PERS certification report must contain information for every position held by the PERS retiree, whether the position is covered by PERS or not.

(2) An employer who employs a retired SRS member in a position covered by SRS must submit a certification report to MPERA for each payroll period during which a retired SRS member is employed.

(3)  An employer who employs a retired FURS member in a position covered by FURS must submit a certification report to MPERA for each payroll period during which a retired FURS member is employed.

(4) The certification report must include the following information for each individual referred to in (1) through (3):

(a) remains the same.

(b) pay period being reported certified;

(c) name and address of employer;

(d) through (f) remain the same.

(5) The employer must submit the certification report by filing it with MPERA no later than ten working days after each regularly occurring payday for which working retirees are reported pursuant to ARM 2.43.2114.  The certification report must be submitted electronically using MPERA's online employer web-based reporting system.

(6) A separate certification report must be filed with MPERA for each position held by the working retiree.

(7) remains the same.


AUTH: 19-2-403, MCA

IMP:     Section 1, Chapter 239, Law of 2013, 19-3-1104, 19-3-1106, 19-7-1101, 19-13-301, MCA


STATEMENT OF REASONABLE NECESSITY: The Montana Public Employees' Retirement Board is amending ARM 2.43.2114 because Chapter 239, Laws of 2013 requires payment of employer contributions on working retirees in the Public Employees' Retirement System, the Sheriffs' Retirement System, and the Firefighters' Unified Retirement System. Additionally, Chapter 178, Section 12, Laws of 2013 expands working retiree to include PERS retirees who return to PERS-covered employment as an independent contractor, in addition to those who return as an employee leasing arrangement, or temporary service contractor. Both of these statutory changes impact employer reporting effective July 1, 2013.


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, 59620-0131; 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., August 8, 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., August 8, 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 59 persons based on 594 current working retirees in PERS, FURS, and SRS.


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




/s/ Melanie Symons                                   /s/ Scott Moore                                

Melanie Symons, Legal Counsel             Scott Moore

and Rule Reviewer                                    Board President

                                                                     Public Employees' Retirement Board


Certified to the Secretary of State July 1, 2013.



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