WSR 97-23-009

PREPROPOSAL STATEMENT OF INQUIRY

STATE BOARD FOR

COMMUNITY AND TECHNICAL COLLEGES

[Filed November 7, 1997, 8:56 a.m.]

Subject of Possible Rule Making: TIAA/CREF qualified plan rules.

Statutes Authorizing the Agency to Adopt Rules on this Subject: Chapter 28B.50 RCW.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Rules are necessary to qualify the faculty retirement plan under Section 403(a) of the Internal Revenue Code. The effect would be to allow greater voluntary tax deferrals for many plan participants.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: A new plan document has been filed with the Internal Revenue Service which is the federal agency responsible for regulation of tax-deferred retirement plans.

Process for Developing New Rule: In addition to normal rule-making process, technical work was done by the consulting firm of Watson-Wyatt Worldwide.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. The Internal Revenue Service "Notice to Interested Parties" has been posted at each college; public notice of rule amendments will be made. Contact person is Larry Lael, SBCTC, 319 Seventh Avenue, P.O. Box 42495, Olympia, WA 98504-2495, phone (360) 753-3661, FAX (360) 586-6440.

November 5, 1997

Claire C. Krueger

Executive Assistant