A public hearing on a proposed revision to ch.
ETF 10, relating to separate retirement system investments in the fixed and variable retirement investment trusts will be held on Tuesday,
January 24, 2006, at 3:00 PM in Conference Room GA at the offices of the Department of Employee Trust Funds, 801 West Badger Road, Madison, Wisconsin.
Analysis Prepared by the Department of Employee Trust Funds
Explanation of agency authority: The Secretary of the Department of Employee Trust Funds is required to promulgate rules governing the times when separate retirement systems, such as the Milwaukee Public Schools Retirement System, may send or deliver funds to be invested as if part of the fixed or variable retirement investment trust, the withdrawal of those funds, the amounts of money that may be sent, delivered or withdrawn, the valuation of money that has been sent, delivered or withdrawn, and the distribution of investment income among the retirement systems. The Secretary's rules may also modify the basis for accounting or valuation and the investment earnings distribution procedures of the Wisconsin retirement system to the extent necessary to achieve equity among the various retirement systems.
Plain language analysis: The proposed rule revision would better mirror the investment performance of the fixed and variable retirement investment trusts for purposes of valuing the investment accounts of separate retirement systems. The proposed rule will also better assure full compliance with the requirement of Wis. Stats. s.
40.03 (2) (n) that each separate retirement system will pay for the costs of investing and administering funds sent to the Department of Employee Trust Funds.
The main purpose of the proposed rule revision in s.
ETF 10.12 is to change the formulas used to value investments of separate retirement system accounts to be consistent with recommended financial industry practice. The revisions will also fine tune transaction definitions to facilitate the most effective implementation of the new formulas. For example, the rules concerning deposits are revised to allow deposits only on the last day of the month rather than the first day.
Section
ETF 10.12 currently prescribes an investment valuation formula that is not totally consistent with recommended practice or conducive to establishing levels of process quality assurance. For example, the current rule does not enable a rate of earnings comparison between the separate accounts with the rate of earnings of the trust fund as a whole. Since the existing rule was first implemented, departmental experience and guidance from financial experts of the State of Wisconsin Investment Board have identified ways to improve the valuation method and to add procedures that will help ensure complete and accurate valuations.
In order to avoid violation of the exclusive benefit rule of 26 U.S. Code s. 401 (a) and Wis. Stats. s.
40.015 (1) the proposed rule will also limit the separate retirement systems who may invest in the Public Employee Trust Fund to those retirement systems, as defined by Wis. Stats. s 40.02 (51), providing additional pension benefits for employees covered by the Wisconsin Retirement System.
Summary of, and comparison with, existing or proposed federal regulations: In order to be qualified under 26 U.S. Code §401(a)(2), A trust forming part of an employer pension plan must be for the exclusive benefit of the employees or their beneficiaries. It is prohibited to use or divert any part of the trust corpus or income for any other purposes.
Comparison with rules in adjacent states: Permitting discretionary investment of a separate trust fund in the public employee's retirement trust appears to be unique to Wisconsin, at least among neighboring states.
Summary of factual data and analytical methodologies: The investment valuation calculation was developed in consultation with the State of Wisconsin Investment Board staff to more accurately mirror the investment performance of the Public Employee Trust Fund as a whole, to adopt industry best practices and to enable the investment and administrative costs for each separate retirement system's funds to be assessed.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact report: Wis. Stat. s.
40.02 (51) defines “retirement system" in a manner that necessarily excludes all private businesses. So the proposed rule has no effect whatsoever on small businesses.
Anticipated costs incurred by private sector: None.
Effect on small business: No effect.
Agency contact person: Please direct any questions about the proposed rule to Robert Weber, Chief Legal Counsel, telephone (608) 266-5804, e-mail address:
rob.weber@etf.state.wi.us., or Bob Willett, Director, Office of Trust Finance and Data Analysis, telephone (608) 266-0904, e-mail
bob.willett@etf.state.wi.us. The mailing address for both Mr. Weber and Mr. Willett is Department of Employee Trust Funds, P.O. Box 7931, Madison WI 53707.
Place where comments are to be submitted and deadline for submission: Written comments on the proposed rule may be submitted to Robert Weber, Department of Employee Trust Funds, 801 W. Badger Road, P.O. Box 7931, Madison, WI 53707-7931. Written comments must be received at the Department of Employee Trust Funds no later than 4:30 PM on Wednesday, January 25, 2006.
Initial Regulatory Flexibility Analysis
The proposed rule has no effect on small businesses.
Fiscal Estimate
The proposed rule has no fiscal impact on the liabilities or revenues of any county, city, village, town, technical college district or sewerage district and the only school district affected is the Milwaukee Public Schools. That is because, at present, Milwaukee Public Schools is the only separate retirement system investing its assets as permitted under Wis. Stat. §
40.03 (1) (n).
The effect of the proposed rule on the revenues and liabilities of the funds invested by the Milwaukee Public School retirement system, compared to the prior method of valuation is unpredictable and varies under different circumstances. However, the proposed rule more accurately reflects the actual investment experience of the fixed and variable retirement investment trusts of the Public Employee Trust Fund in which the funds are invested.
Free Copies of Proposed Rule
Copies of the proposed rule are available without cost from the Office of the Secretary, Department of Employee Trust Funds, P.O. Box 7931, Madison WI 53707-7931, telephone (608) 266-1071.
Notice of Hearing
Natural Resources
(Fish, Game, etc.)
NOTICE IS HEREBY GIVEN that pursuant to ss.
29.014 (1),
29.041,
29.519 (1) (b) and
227.11 (2) (a), Stats., interpreting ss.
29.014 (1),
29.041,
29.516 (2) and
29.519 (1) (b), Stats., the Department of Natural Resources will hold a public hearing on the amendment of s.
NR 25.06 (1) (a), Wis. Adm. Code, relating to commercial fishing for lake trout in Lake Superior. The harvest of lake trout from Wisconsin waters of Lake Superior is guided by the State-Tribal Lake Superior Agreement among the Department and the Red Cliff and Bad River Bands of Lake Superior Chippewa. The Department allocates the State's share of the total harvest of 68,000 lake trout between sport and commercial fishers. The proposed increase in the annual total allowable harvest of lake trout by state-licensed commercial fishers is proportional to the 21.3% increase in the overall State share of the harvest. The proposed rule reserves 2,150 lake trout for state-licensed commercial harvest in Zone W-1 and reserves 8,600 lake trout from Zone W-2. These changes will result in an increase from 886 to 1,075 lake trout in the harvest quota assigned to each state commercial license.
The proposed rule also removes a provision in the calculation of allowable gill net fishing effort by which allowable effort is reduced substantially when lake trout catch rates are unusually high during one fishing period; clarifies the original intent of setting a minimum mesh size in trap nets; alters the boundaries of an area where commercial fishing is prohibited; and changes the boundaries of the Gull Island and Devils Island refuges.
NOTICE IS HEREBY FURTHER GIVEN that pursuant to s.
227.114, Stats., the proposed rules may have an impact on small businesses. The initial regulatory flexibility analysis is as follows:
a. Types of small businesses affected: Lake Superior commercial lake trout fishers
b. Description of reporting and bookkeeping procedures required: No new procedures
c. Description of professional skills required: No new skills
NOTICE IS HEREBY FURTHER GIVEN that the Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch.
NR 150, Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.
NOTICE IS HEREBY FURTHER GIVEN that pursuant to ss.
29.014 (1),
29.041,
29.519 (1) (b),
227.11 (2) (a) and
227.24, Stats., interpreting ss.
29.014 (1),
29.041,
29.516 (2) and
29.519 (1) (b), Stats., the Department of Natural Resources will hold a public hearing on Natural Resources Board Emergency Order No. FH-46-05(E) relating to commercial fishing for lake trout in Lake Superior. This emergency order took effect on December 15, 2005. This emergency order implements the revised allocation of lake trout to commercial fishers agreed to in the recent amendment of the State-Tribal Lake Superior Agreement.
NOTICE IS HEREBY FURTHER GIVEN that the public hearing will be held on:
Friday, January 13, 2006 at 1:00 p.m.
Video conference participation will be available at:
Room 1, CESA #12
618 Beaser Avenue
Ashland
NOTICE IS HEREBY FURTHER GIVEN that pursuant to the Americans with Disabilities Act, reasonable accommodations, including the provision of information material in an alternative format, will be provided for qualified individuals with disabilities upon request. Please call Bill Horns at (608) 266-8782 with specific information on your request at least 10 days before the date of the scheduled hearing.
Fiscal Estimate
No fiscal impact anticipated at the state or local level.
The proposed rule, emergency rule and fiscal estimate may be reviewed and comments electronically submitted at the following Internet site: adminrules.wisconsin.gov. Written comments on the proposed rule may be submitted via U.S. mail to Mr. Bill Horns, Bureau of Fisheries Management and Habitat Protection, P.O. Box 7921, Madison, WI 53707. Comments may be submitted until January 25, 2006. Written comments whether submitted electronically or by U.S. mail will have the same weight and effect as oral statements presented at the public hearings. A personal copy of the proposed rule, emergency rule and fiscal estimate may be obtained from Mr. Horns.
Notice of Hearing
Natural Resources
(Environmental Protection - Air Pollution Control)
NOTICE IS HEREBY GIVEN that pursuant to ss.
227.11 (2) (a) and
285.11 (1), Stats., interpreting s.
285.11 (6), Stats., the Department of Natural Resources will hold a public hearing on revisions to chs.
NR 439,
460,
462 and
484, Wis. Adm. Code, relating to incorporation of federal amendments in National Emission Standards for Hazardous Air Pollutants (NESHAP) for industrial, commercial and institutional boilers and process heaters into chs.
NR 460 and
462.
The proposed rule will incorporate federal changes to NESHAP for industrial, commercial and institutional boilers and process heaters promulgated by U.S. EPA on September 13, 2004 into ch.
NR 463 and make the state rule consistent with the federal rule. The proposed rule establishes 9 subcategories of boilers and process heaters based on size (large, limited use and small) and fuel type (solid, liquid and gaseous). Fuel combustion sources not affected by this rule include electric utility steam generating units, municipal waste combustors, hospital/infection waste incinerators, commercial and industrial solid waste incineration units, and recovery boilers.
The proposed rule specifies emission limits, work practice standards and operating limits for the 9 subcategories of boilers and new vs. existing sources. Emission limits are specified for particulate matter or total selected metals, hydrogen chloride, mercury and carbon monoxide.
The proposed rule is identical to the federal NESHAP, except for punctuation, capitalization, numbering and non-substantive wording and organizational changes made to accommodate state rule form and style requirements and, in some cases, to improve clarity.
NOTICE IS HEREBY FURTHER GIVEN that pursuant to s.
227.114, Stats., it is not anticipated that the proposed rule will have an economic impact on small businesses. The Department's Small Business Regulatory Coordinator may be contacted at:
SmallBusinessReg.Coordinator@dnr.state.wi.us or by calling (608) 266-1959.
NOTICE IS HEREBY FURTHER GIVEN that the Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch.
NR 150, Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.
NOTICE IS HEREBY FURTHER GIVEN that the hearing will be held at:
Wednesday, January 18, 2006 at 11:00 a.m.
Room 511, GEF #2
101 South Webster Street
Madison
NOTICE IS HEREBY FURTHER GIVEN that pursuant to the Americans with Disabilities Act, reasonable accommodations, including the provision of information material in an alternative format, will be provided for qualified individuals with disabilities upon request. Please call Robert Park at (608) 266-1054 with specific information on your request at least 10 days before the date of the scheduled hearing.
Fiscal Estimate
There are no anticipated state or local fiscal impact.
The proposed rule and fiscal estimate may be reviewed and comments electronically submitted at the following Internet site: adminrules.wisconsin.gov. Written comments on the proposed rule may be submitted via U.S. mail to Mr. Eric Mosher, Bureau of Air Management, P.O. Box 7921, Madison, WI 53707. Comments may be submitted until February 3, 2006. Written comments whether submitted electronically or by U.S. mail will have the same weight and effect as oral statements presented at the public hearings. A personal copy of the proposed AM-28-05 and fiscal estimate may be obtained from:
Proposed Rules
Bureau of Air Management
P.O. Box 7921
Madison, WI 53707
Phone: (608) 266-7718
FAX: (608) 267-0560
