PREPROPOSAL STATEMENT OF INQUIRY
RETIREMENT SYSTEMS
Subject of Possible Rule Making: Uniform Transfer to Minors Act (UTMA), power of attorney, guardianship, etc., as relates to deferred compensation and pension distributions. WAC 415-501-494 (expected to become effective January 1, 2002) and new sections.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 41.50.050(5), 41.50.770, 41.50.780, chapters 2.10, 41.26, 41.32, 41.34, 41.35, and 41.40 RCW.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The Department of Retirement Systems (DRS) is exploring whether there is adequate protection for incapacitated persons who are eligible to receive distributions from deferred compensation and pensions. DRS has deferred compensation, WAC 415-501-490 and 415-501-500, dealing with the topics above that it expects to repeal and replace with WAC 415-501-494 effective January 1, 2002. WAC 415-501-494 needs to be expanded to cover powers of attorney and guardianship situations for deferred compensation. DRS is also considering adopting similar rules for distributions from its pension plans.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: State courts enforce UTMA's, powers of attorney, and guardianships. DRS is forming a committee that will include court commissioners and members of the bar who practice in this field to work on the WACs together.
Process for Developing New Rule: Department staff will work on the project, with the assistance of the Office of the Attorney General. DRS will work with an advisory group of members of the bench and bar who specialize in the topics described above. Other members of the public are 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.
November 6, 2001
Merry A. Kogut
Rules Coordinator