PREPROPOSAL STATEMENT OF INQUIRY
RETIREMENT SYSTEMS
Subject of Possible Rule Making: TRS 1 Option 1 Annuity Factors.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 41.50.050(5), 41.32.530.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: TRS Plan 1 retirees can select an Option 1 when they retire. This option provides a reduced single life benefit (from the maximum that can be received). If the retiree dies, any remaining balance from the retiree's contributions are paid in a lump sum to the retiree's estate. (The maximum does not allow a distribution of the retiree's remaining balance.) To pay for this, the benefit is reduced from the maximum benefit. The proposed WAC will provide the annuity factors that the Department of Retirement Systems (DRS) uses for the calculation of this benefit option.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: DRS will work with the Office of the State Actuary in regards to the annuity factors.
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 merryk@drs.wa.gov, fax (360) 753-3166.
July 10, 2003
Merry A. Kogut
Rules Coordinator