• Registered: 08-10-2009
  • Posts: 71

Topic: Are the proposed rule changes legal?

In my prior post I opined on whether or not the Task Force was allowed to propose the new rules. In this post I'll consider if the rules themselves are enforceable.

With regard to rule amendments, my PACT contract says this -

Promulgation and Amendment of Rules, Regulations, and Procedures
The State Treasurer, on behalf of the Board, shall promulgate such other Rules, Regulations, and Procedures as deemed necessary to implement the PACT program and shall amend such Rules, Regulations, and Procedures as is necessary for operation of the PACT program.

No other provision for amendment is allowed. The key words here are "implement" and "operation". Amendments are only allowed to provide for things that constitute administrative ease, such as perhaps payment methods or how beneficiaries can be changed. This is NOT intended to allow for an amendment to contractual benefits. Benefits are simply not an implementation or operational matter, and hence are not subject to ever be changed by the PACT Board.

  • Registered: 06-26-2009
  • Posts: 28

Re: Are the proposed rule changes legal?

Agreed.  The proposed rule amendments are unacceptable.  They fail every test.  They will not solve the fiscal problem long term (what happens when the actuarial data further decline, and more "cuts" are needed?); they don't comply with the law which enacted PACT; they don't pass the "moral" test of honoring all contracts equally.