PREPROPOSAL STATEMENT OF INQUIRY
RETIREMENT SYSTEMS
Subject of Possible Rule Making: WAC 415-111-220 Defined contribution rate election.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 41.50.050(5), 41.34.040.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: In rule adoption WSR 01-01-059, effective January 12, 2001, the department made an inadvertent omission in the adoption of WAC 415-111-220 affecting the current contribution rates for its teachers retirement system (TRS) Plan 3 retirement plans. The proposed rule will correct the omission, and will add similar provisions for the school employees personnel system (SERS) Plan 3 and the public employees retirement systems (PERS) Plan 3 provided that the employee retirement benefits board (ERBB) approves these proposed changes. The department is also making several changes in grammar and to make the WAC easier to understand. In addition, the amendment would provide an annual window during which time TRS Plan 3 members could change their contribution rate and retain the 5% minimum contribution rate, contingent on the legislature's statutory change to RCW 41.34.040, and the Internal Revenue Service's (IRS) approval as described below.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The Internal Revenue Service (IRS) regulates the type of defined contribution plan that TRS Plan 3 provides. Providing an annual window in which to change contribution rate would be contingent on a favorable IRS determination.
Process for Developing New Rule: Department staff will work on the project, with the assistance of the Office of the Attorney General. The public is invited and encouraged to participate, as described below.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. The Department of Retirement Systems encourages your active participation in the rule-making process. Anyone interested in participating should contact the rules coordinator, below. After the rule(s) is drafted, DRS will file a copy with the Office of the Code Reviser with a notice of proposed rule making, and send a copy to everyone currently on the mailing list and anyone else who requests a copy. For more information on how to participate, please contact Merry A. Kogut, Rules Coordinator, Department of Retirement Systems, Mailstop 48380, P.O. Box 48380, Olympia, WA 98504-8380, voice (360) 664-7291, TTY (360) 586-5450, e-mail merryk@drs.wa.gov, fax (360) 753-3166.
March 20, 2001
Merry A. Kogut
Rules Coordinator