PROPOSED RULES
RETIREMENT SYSTEMS
Original Notice.
Preproposal statement of inquiry was filed as WSR 05-20-059.
Title of Rule and Other Identifying Information: WAC 415-111-230 Self-directed investment program allocation.
Hearing Location(s): Department of Retirement Systems, 6835 Capitol Boulevard, Conference Room 115, Tumwater, WA, on January 10, 2006, at 1:30 p.m.
Date of Intended Adoption: January 11, 2006.
Submit Written Comments to: Leslie L. Saeger, Rules Coordinator, Department of Retirement Systems, P.O. Box 48380, Olympia, WA 98504-8380, e-mail leslies@drs.wa.gov, fax (360) 753-3166, by 5:00 p.m., on January 10, 2006.
Assistance for Persons with Disabilities: Contact Leslie Saeger, Rules Coordinator, by December 30, 2005, TDD (360) 664-7291, TTY (360) 586-5450, phone (360) 664-7291.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This amendment clarifies that the department has the right to limit the number of times a Plan 3 member changes investment options, and to impose other restrictions if necessary to protect the performance results of the funds.
Statutory Authority for Adoption: RCW 41.50.050(5).
Statute Being Implemented: Chapter 41.34 RCW.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of Retirement Systems, governmental.
Name of Agency Personnel Responsible for Drafting: Leslie Saeger, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7291; Implementation and Enforcement: Dave Nelsen, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7291.
No small business economic impact statement has been prepared under chapter 19.85 RCW. These rules have no effect on businesses.
A cost-benefit analysis is not required under RCW 34.05.328. The Department of Retirement Systems is not one of the named departments in RCW 34.05.328.
November 29, 2005
Leslie Saeger
Rules Coordinator
OTS-8463.2
AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00,
effective 1/12/01)
WAC 415-111-230
Self-directed investment program
allocation.
This section applies only to members who elect
the self-directed investment program pursuant to WAC 415-111-210.
(1) What is an allocation? An allocation is a set of
instructions ((defining which self-directed)) identifying your
choice of investment program funds ((you wish your money to be
invested in)) and the percentage of your money you want to
invest in each fund. The amount you allocate to each fund
must be designated as a whole percentage((. The sum of the
percentages that you allocate)), and the total must equal
one-hundred percent.
| Example: | Martha has elected the self-directed program as
her investment manager and is contributing $150
per month. Martha decides to invest (( |
| Allocation to fund #1 | 20% |
| Allocation to fund #2 | 30% |
| Allocation to fund #3 | 50% |
| Total Allocation | 100% |
(3) What happens if I do not ((designate)) establish an
allocation? If you do not provide an allocation ((prior to
any of your investment money being received by)) before the
department's designated recordkeeper begins receiving your
investment money, or if you provide an allocation ((where))
but the sum of the allocated portions does not equal
one-hundred percent, your investment money will be ((directed
into the default fund such that)) invested as follows:
(a) If ((your)) the total ((allocations do not equal)) of
the percentages you have allocated is less than one-hundred
percent, (((i))) the department will determine the percentage
that is unallocated, and (((ii) direct)) invest the
unallocated percentage ((into)) in the default fund.
| Example: | Ralph designates the following allocation: 33%
fund #1, 33% fund #2, and 33% fund #3. Since
the total allocation equals 99%, the unallocated
1% will be (( |
| Example: | Chris designates the following allocations: 38%
into fund #1, 40% into fund #2, (( |
(i) If you previously participated in the self-directed
investment program, ((the member's)) your most recent
allocation will be used. However, if ((that)) your allocation
includes a fund or funds that are no longer available, the
portion of your investment money allocated to the unavailable
fund(s) will be ((directed into)) invested in the default
fund.
(ii) If you do not meet the conditions in (c)(i) of this subsection, all of your investment money will be invested in the default fund.
| Example: | Lew is a new member and elects the self-directed
investment program, but does not establish an
allocation. All of Lew's investment money will
be (( |
| Example: | Linda becomes reemployed in an eligible position and elects to participate in the self-directed investment program again, but does not provide an allocation. |
| Linda previously participated in the self-directed investment program and had the following allocation: |
| 10% in Fund #1 |
| 10% in Fund #2 |
| 30% in Fund #3 |
| 25% in Fund #4 |
| 25% in Fund #5 |
| (( |
| 10% in Fund #1 |
| 10% in Default Fund |
| 30% in Fund #3 |
| 25% in Fund #4 |
| 25% in Fund #5 |
(5) ((Can)) May I change my allocation? Once you have
established an allocation or been directed into the default
fund, you may change your allocation ((at any time)) by
contacting the department's designated recordkeeper. However,
changes must be consistent with any restrictions on trading
imposed by the funds involved, and, if necessary to protect
the performance results of the investment program funds, the
department may:
(a) Limit the number of times you change allocations;
(b) Limit the frequency of the changes;
(c) Limit the manner of making changes; or
(d) Impose other restrictions.
[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, § 415-111-230, filed 12/12/00, effective 1/12/01.]