Purpose: To clarify that the department has the right to limit the number of times a deferred compensation plan (DCP) participant changes investment options and to impose other restrictions if necessary to protect the performance results of the DCP program. The department separated WAC 415-501-475 into two sections for clarity.

     Citation of Existing Rules Affected by this Order: Amending WAC 415-501-475.

     Statutory Authority for Adoption: RCW 41.50.050(5), 41.50.780(10).

      Adopted under notice filed as WSR 05-19-074 on September 19, 2005.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 1, Amended 1, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 1, Amended 1, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 1, Amended 1, Repealed 0.

     Date Adopted: October 28, 2005.

Sandra J. Matheson

Director

OTS-8274.1

NEW SECTION
WAC 415-501-472   Who determines DCP's investment options?   (1) The state investment board, in consultation with the employee retirement benefits board, makes certain investment options available to plan participants. The investment board may:

     (a) Open, change, or close investment options according to its investment policy; or

     (b) Change investment managers for any investment option.

     (2) If the state investment board closes or substantially changes an investment option, the state investment board may transfer the funds invested in that option to another option that, in the board's judgment, most closely represents the investment characteristics of the option being closed or changed.

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     (2))) You must designate on your participation agreement the investment option(s) in which you wish to have your deferrals invested.

     (((3) Changes in investment options.

     (a))) (2) In general, you may change the investment ((options at any time)) of your accumulated deferrals, the investment of your future deferrals, or both, through the methods established by the department. ((You may change the investment of your accumulated deferrals; the investment of your future deferrals; or both.

     (b))) However, if necessary to protect the performance results of the DCP program, the department has the right to:

     (a) Limit the number of times you change investment options;

     (b) Limit the frequency of the changes;

     (c) Limit the manner of making changes; or

     (d) Impose other restrictions.

     In addition, changes must be consistent with any restrictions on trading imposed by the investment options involved.

     (3) Beneficiaries receiving a distribution may change investment options ((through the methods established by the department.

     (c) If the state investment board closes or substantially changes an investment option, the state investment board may transfer the funds invested in that option to another option that, in the board's judgment, most closely represents the investment characteristics of the option being closed or changed)) according to the provisions of subsection (2) of this section.

[Statutory Authority: RCW 41.50.050(5), 41.50.780(10), and 41.50.770. 04-22-053, § 415-501-475, filed 10/29/04, effective 11/29/04. Statutory Authority: RCW 41.50.770, [41.50.]780 and 41.50.050. 00-11-104, amended and recodified as § 415-501-475, filed 5/18/00, effective 6/18/00. Statutory Authority: RCW 41.50.050. 98-20-047, § 415-512-075, filed 9/30/98, effective 10/31/98. Statutory Authority: RCW 41.50.050 and 41.50.780(11). 96-16-020, § 415-512-075, filed 7/29/96, effective 7/29/96.]