PREPROPOSAL STATEMENT OF INQUIRY
[Filed April 15, 1997, 4:30 p.m.]
Subject of Possible Rule Making: Rules governing the assessment of expenses for teachers' retirement system plan III members who wish to avail themselves of the self-directed investment options authorized by the Employee Retirement Benefits Board.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 41.50.088, 41.34.060.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Teachers' retirement system plan III members have expressed considerable interest at Employee Retirement Benefits Board meetings in being able to self-direct the investment of their TRS III accounts. RCW 41.34.060 requires that individual members pay the expenses associated with self-directed investment. RCW 41.34.060 also requires the board to adopt rules describing how expenses are determined and how those charges will be assessed against members. The rules were adopted as emergency rules in order to allow the board to offer the self-directed options effective April 1, 1997. Adopting the rules as permanent rules will assure that the board can continue to offer self-directed options to TRS III members after the expiration date of the emergency rules.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.
Process for Developing New Rule: The department negotiated with the third-party administrator of the TRS III plan to determine the appropriate basis for assessing charges to self-directed investors and to set that charge as low as possible. This process served as the basis for the emergency rule.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Paul Neal, Rules Coordinator, Legal/Legislative Affairs, Department of Retirement Systems, Mailstop 48380, P.O. Box 48380, Olympia, WA 98504-8380, phone (360) 586-3368, FAX (360) 753-3166.
April 15, 1997