WSR 01-04-027




[ Filed January 30, 2001, 4:47 p.m. ]

Subject of Possible Rule Making: The Department of Retirement Systems will be amending and adding rules to implement ESSB 6530 (2000), "An Act Relating to Plans 2 and 3 of the State Retirement System."

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 41.40.020, 41.50.050(5); statutes amended or added by ESSB 6530 (2000), "An Act Relating to Plans 2 and 3 of the State Retirement System."

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The 2000 legislature enacted ESSB 6530, adding Plan 3 to the Washington Public Employees' Retirement System (PERS). PERS Plan 3 is a split plan with a defined benefit portion and a defined contribution portion. PERS Plan 3 will be implemented in two phases. Phase 1 affects PERS Plan 2 members working for state agency and higher education employers, and begins March 1, 2002. Phase 2 affects PERS 2 members working for local government employers, excluding school districts and Educational Service Districts (ESD) and begins September 1, 2002. These members will have the opportunity to either remain in PERS Plan 2 or transfer into PERS Plan 3 and receive a transfer payment equal to 110% of their accumulated contributions. New employees must make an irrevocable decision to join either PERS Plan 2 or PERS Plan 3. New employees who do not choose will be transferred to Plan 3.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: Department staff will work on the project, with the assistance of the Office of the Attorney General. The public is invited and encouraged to participate, as described below.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. The Department of Retirement Systems encourages your active participation in the rule-making process. Anyone interested in participating should contact the rules coordinator below. After the rule(s) is drafted, DRS will file a copy with the Office of the Code Reviser with a notice of proposed rule making, and send a copy to everyone currently on the mailing list and anyone else who requests a copy. For more information on how to participate, please contact Merry A. Kogut, Rules Coordinator, Department of Retirement Systems, Mailstop 48380, P.O. Box 48380, Olympia, WA 98504-8380, voice (360) 664-7291, TTY (360) 586-5450, e-mail, fax (360) 753-3166.

January 26, 2001

Merry A. Kogut

Rules Coordinator

Washington State Code Reviser's Office