Effective Date of Rule: Thirty-one days after filing.

     Purpose: Section 845 of the Pension Protection Act (2006) allows eligible retired public safety officers to elect to exclude up to $3,000 of their retirement benefit from taxable income each year for qualified health insurance premiums. The department proposed an amendment to existing rules that reflects these changes.

     Citation of Existing Rules Affected by this Order: Amending WAC 415-02-100.

     Statutory Authority for Adoption: RCW 41.50.050(5).

      Adopted under notice filed as WSR 07-18-025 on August 27, 2007.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 1, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.

     Date Adopted: October 26, 2007.

Sandra J. Matheson

Director

OTS-9745.2

AMENDATORY SECTION(Amending WSR 06-21-001, filed 10/4/06, effective 11/4/06)

WAC 415-02-100   ((Retiree insurance premium deductions -- Enrollment requirements.)) Can I have my insurance premiums deducted from my retirement allowance?   (1) The department will ((not)) only accept requests by retirees ((of any of the systems that the department administers)) to deduct insurance premiums ((for any kind of insurance)) from retirement allowances ((unless)) if one of the following conditions is met:

     (a) The retiree's insurance provider has at least twenty-five such retirees enrolled in a ((withholding)) deduction program and has an established agreement with the department; or

     (b) The retiree was an eligible public safety officer, as defined by Internal Revenue Code (IRC) 402(l), who has elected to participate in the federal tax savings program on health benefits for public safety officers under IRC 402(l). The retiree's insurance provider must have an established agreement with the department. ((Any qualified provider who drops below twenty-five participants will be suspended if they))

     (2) For insurance providers under subsection (1)(a) of this section, the department may suspend deductions if the provider has fewer than twenty-five participants and remains under twenty-five participants for ninety days.

     (3) This rule applies to all retirement systems administered by the department.

[Statutory Authority: RCW 41.50.050(5). 06-21-001, § 415-02-100, filed 10/4/06, effective 11/4/06. Statutory Authority: RCW 41.50.050. 00-10-016, § 415-02-100, filed 4/21/00, effective 5/22/00. Statutory Authority: RCW 41.50.050(5) and 41.50.090. 84-24-017 (Order V), § 415-02-100, filed 11/28/84.]

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