Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 41.50.050.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: RCW 41.50.770 and 41.50.780 which govern the state's deferred compensation plan were amended in 1998 to comply with changes in the Internal Revenue Code. The amendments to the state statute require that assets be held in trust for the beneficiaries.

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

Process for Developing New Rule: Because the department already has existing rules on this subject in place and the amendments are being made only for the purpose of bringing the existing rule into compliance with RCW 41.50.770, [41.50.]780 and the Internal Revenue Code, the department did not seek input on the preliminary draft prior to filing the CR-101. Copies of the draft rule will be circulated to interested parties for comment. Interested parties include those persons known to the department, such as state employees, and any other person who requests a copy and/or opportunity to comment.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Elyette M. Weinstein, Rules Coordinator, Legal/Legislative Affairs, Department of Retirement Systems, Mailstop 48380, P.O. Box 48380, Olympia, WA 98504-8380, phone (360) 709-4747, FAX (360) 753-3166.

May 22, 1998

Elyette M. Weinstein

Rules Coordinator