WSR 02-08-063




[ Filed April 2, 2002, 9:05 a.m. ]

Subject of Possible Rule Making: The Department of Retirement Systems (DRS) plans to amend chapter 415-02 WAC, General provisions, to add several rules required by the Internal Revenue Service (IRS). DRS also plans to amend WAC 415-111-220 and/or add a new section to chapter 415-111 WAC to provide an annual window during which time Plan 3 members could change their contribution rate and retain the 5% minimum contribution rate, provided that the legislature passes legislation in the 2003 session that would allow this change.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 41.34.040, 41.50.050(5).

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The technical changes are required by the IRS. The change in chapter 415-111 WAC would provide an annual window during which time Plan 3 members could change their contribution rate and retain the 5% minimum contribution rate. Any such change would be contingent on the legislature's amendment of the applicable statute(s).

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The IRS regulates the type of defined contribution plans that DRS' Plan 3 provide. Any changes in this WAC would be contingent on a favorable IRS determination letter. The IRS has approved such a change for the Teachers' Retirement System Plan 3. DRS is seeking similar approval for the Public Employees' Retirement System Plan 3 and the School Employees' Retirement System Plan 3.

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 in the paragraph 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.

April 1, 2002

Merry A. Kogut

Rules Coordinator

Washington State Code Reviser's Office