WSR 23-09-057

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF

RETIREMENT SYSTEMS

[Filed April 18, 2023, 9:03 a.m.]

Subject of Possible Rule Making: Adding a Roth option to the department of retirement system's (department) deferred compensation plan (DCP) and implementing Section 603 of the SECURE Act 2.0.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 41.50.770(5), as enacted by the 2022 legislation and Section 603 of the SECURE Act 2.0.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: In accordance with EHB 1752 from the 2022 legislative session, the department is required to offer a Roth option within DCP no later than December 2023. Chapters 415-02 and 415-501 WAC require changes to clarify how the department will administer DCP once Roth is included. The department must also make additional changes to implement the requirements of Section 603 of the federal SECURE Act 2.0.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The department will consult with tax counsel to ensure compliance with Internal Revenue Service requirements and federal law.

Process for Developing New Rule: Agency study.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Bianca Stoner, Department of Retirement Systems, P.O. Box 48380, Olympia, WA 98504, phone 360-664-7291, TTY 711, email drs.rules@drs.wa.gov, website www.drs.wa.gov/sitemap/rules.

April 18, 2023

Bianca Stoner

Rules Coordinator