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Montana Administrative Register Notice 2-43-495 No. 19   10/17/2013    
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BEFORE THE PUBLIC EMPLOYEES' RETIREMENT BOARD

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 2.43.2115, 2.43.2602, and 2.43.2609 pertaining to the operation of the retirement systems and plans administered by the Montana Public Employees' Retirement Board

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NOTICE OF PROPOSED AMENDMENT

 

NO PUBLIC HEARING CONTEMPLATED

 

TO: All Concerned Persons

 

1. On November 27, 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 Montana Public Employee Retirement Administration no later than 5:00 p.m. on November 7, 2013, 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:

 

     2.43.2115 CORRECTION OF DEFINED BENEFIT RETIREMENT SYSTEM REPORTING ERRORS (1) and (2) remain the same.

           (3) MPERA may waive interest if delinquent contributions are made within 60 days of the original due date.

           (3) through (6) remain the same but are renumbered (4) through (7).

 

AUTH:  19-2-403, MCA

IMP:     19-2-403,19-2-506, 19-2-903, MCA

 

STATEMENT OF REASONABLE NECESSITY: Administrative efficiency requires waiving minimal amounts of interest on delinquent contributions that are paid within 60 days because the cost to calculate and enforce payments of these minimal amounts of interest is often greater than the amount of interest collected. This rule needs to be amended to include the circumstances which merit MPERA waiving interest due on delinquent contributions.

                       

           2.43.2602  APPLICATION PROCESS FOR DISABILITY BENEFITS

           (1) through (5) remain the same.

 

AUTH: 19-2-403, 19-3-2104, 19-3-2141, MCA

IMP:     19-2-406, 19-3-1002, 19-3-1005, 19-3-2141, 19-5-601, 19-6-601, 19-7-601, 19-8-701, 19-9-902, 19-13-802, MCA

 

STATEMENT OF REASONABLE NECESSITY:  Chapter 178 of the Session Laws of 2013 repealed 19-3-1005, MCA. The repealed language was moved to 19-2-406, MCA, so 19-3-1005, MCA, needs to be removed from the list of implementing authorities. Since 19-2-406, MCA, is already included, no additional citations are needed.

 

           2.43.2609 RETURN TO EMPLOYMENT WITHIN SAME JURISDICTION 

           (1) through (2) remain the same.

(3) When a member who has returned to work under (1) exceeds 960 hours in a calendar year, the member forfeits the additional service attributable to the contributions paid by the employer. Pursuant to 19-2-706, MCA, the board will credit the member's employer with the employer's contribution for the additional service that exceeds the total proportional amount of retirement benefits related to the additional service purchased under 19-2-706, MCA, and paid to the member from retirement to forfeiture.

(a) through (c) remain the same.

     (4) Additional service purchased by the member pursuant to 19-2-706(4), MCA, is not forfeited.

 

AUTH: 19-2-403, MCA

IMP:     19-2-706, MCA

 

STATEMENT OF REASONABLE NECESSITY: The proposed amendment is necessary because 19-2-706, MCA, was amended in Chapter 178 of the Session Laws of 2013 to increase the amount of contributions returned to the employer when a "reduction in force" employee returns to covered employment.

 

            4. Concerned persons may submit their data, views, or arguments concerning the proposed action in writing to: Kris Vladic,  Montana Public Employee Retirement Administration, P.O. Box 200131, Helena, Montana, 59620-0131; telephone (406) 444-2578; fax (406) 444-5428; or e-mail kvladic@mt.gov, and must be received no later than 5:00 p.m., November 14, 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., November 14, 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 6695 persons based on approximately 66,956 defined benefit retirement plan members.

 

 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 4 above or may be made by completing a request form at any rules hearing held by the Public Employees' Retirement Board.

 

 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 June 21, 2013.

 

           10. 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/ Scott E. Moore                                       

Melanie A. Symons                                    Scott E. Moore

Chief Legal Counsel                                  President

and Rule Reviewer                                    Public Employees' Retirement Board

                                                                       

 

 

Certified to the Secretary of State October 7, 2013

 

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