BEFORE THE TEACHERS' RETIREMENT SYSTEM

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 2.44.304 and 2.44.524 pertaining to the qualifications of the actuary engaged by the teachers' retirement system and the annual report of employment earnings by disabled retirees of the teachers' retirement system

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NOTICE OF AMENDMENT

 

TO:  All Concerned Persons

 

            1.  On August 12, 2010, the Teachers' Retirement System of the State of Montana published MAR Notice No. 2-44-442 pertaining to the proposed amendment of the above-stated rules at page 1763 of the 2010 Administrative Register, Issue Number 15.

 

2.  The board has amended 2.44.304 exactly as proposed.  The board has amended the following rule as proposed, but with the following changes from the original proposal, new matter underlined, deleted matter interlined:

 

            2.44.524  ADJUSTMENT OF DISABILITY ALLOWANCE FOR OUTSIDE EARNINGS  (1) through (3) remain as proposed.

            (4)  A disabled member who is not required to submit an annual earnings statement by application of (3) will be required to must resume submitting annual earnings statements if the disabled member again becomes gainfully employed, and must continue to submit annual earnings statements until the disabled member again has not been gainfully employed and has reported no employment income for at least the three consecutive preceding years.

 

3.  The board has thoroughly considered the comments received.  A summary of the comments received and the board's responses are as follows:

 

COMMENT #1:  The State Administration and Veterans' Affairs interim committee, pursuant to its statutory duties as provided in 5-5-228 and 5-5-215, MCA, through its legal counsel, David Niss, commented that the proposed amending language in Rule 2.44.524(4) indicating that a disabled member "will be required to resume submitting annual earnings statements" if the member again becomes gainfully employed implies that the retirement system board would take further action to effectuate that requirement.  Mr. Niss suggested that if the requirement to resume submitting annual earnings statements is intended to be self-effectuating, the language should be changed to indicate that the member "must" resume submitting annual earnings statements if again gainfully employed. 

 

RESPONSE #1:  The retirement system agrees that the proposed language might be construed to indicate additional action will be taken by the retirement system to effectuate the requirement.  As the retirement system's board intends that the requirement be self-effectuating, it agrees that the proposed language change is necessary.

 

By    /s/ Denise Pizinni                                  By     /s/ David L. Senn                              

         Denise Pizzini                                               David L. Senn

         Rule Reviewer                                               Executive Director

Teachers' Retirement System of the State of Montana

 

Certified to the Secretary of State October 4, 2010.