Scope statements
Employee Trust Funds
The Department of Employee Trust Funds (DETF) gives notice pursuant to s.
227.135, Stats., that it proposes to
modify an existing administrative rule, specifically s.
ETF 10.12, and create or amend other provisions of the administrative code as necessary to accomplish the goals of this proposed administrative rule change.
Subject
The proposed rule revision would change the method used to value accounts of separate retirement systems in the retirement trust fund.
Objectives of the rule. The main purpose of the proposed rule revision in s.
ETF 10.12 is to change the formulas used to value investments of separate accounts to be consistent with recommended financial industry practice. The revision would also fine tune transaction definitions to facilitate the most effective implementation of the new formulas. For example, the revision might redefine deposits to allow deposits on the last day of the month rather than the first day.
Policy analysis
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.
Policy alternatives to the proposed rule
Take no action.
DETF could allow the present administrative rule to remain in effect, but considers this undesirable. Existing rule allows neither full compliance with recommended practices of the financial industry, nor efficient, effective quality assurance of the valuations.
Its anticipated effect is mainly upon the Department of Employee Trust Funds, the State of Wisconsin Investment Board, the Retirement Trust Fund, and separate retirement systems participating in the Retirement Trust Fund.
Statutory authority
Staff time required
The Department estimates that state employees will spend 20 hours developing this rule.
Description of all entities affected by the rule.
Its anticipated effect is mainly upon the Department of Employee Trust Funds, the State of Wisconsin Investment Board, the Retirement Trust Fund, and separate retirement systems participating in the Retirement Trust Fund.
Comparison to federal regulations
There appear to be no existing or proposed federal regulations directly affecting the valuation of investments made by separate retirement systems into the Retirement Trust Fund.
Employee Trust Funds
The Department of Employee Trust Funds (DETF) hereby gives notice pursuant to s.
227.135, Stats., that it proposes to
modify an existing administrative rule, specifically ss.
ETF 10.30 (5) (b) and
(8),
10.75 (2) (a), and
10.82 (2), and create or amend other provisions of the administrative code as necessary concerning the receipt of documents by facsimile (fax).
Subject
This proposed rule change is concerned with the Department's acceptance of documents, including benefit application forms and similar documents, by fax without requiring the filing of the original document.
Objectives of the rule. The proposed rule change is to codify a general policy that receipt of a document via fax is functionally identical to receipt of that document by other available means, such as mail delivery or delivery by hand, for purposes of administering benefits under ch.
40 of the Wisconsin Statutes.
Policy analysis
In 1995 the DETF promulgated s.
ETF 10.82 for the purpose of clarifying when documents were received by, and filed with, the Department. Eligibility for benefit and other determinations related to benefits administered by the Department are often affected by the date the document is received. The rule also allowed for documents to be filed via fax transmission, in order to preserve the earliest possible date of receipt, and it included several additional requirements, including that the original of the document be provided to DETF within 14 days so that it could be added to the participant's file for future reference. The rule expressly applied only to forms listed in the rule.
The purpose of the 1995 rule was to allow a person to “lock in" an earlier date of receipt by DETF than might be possible if the applicant relied only on mail or other delivery methods that are less immediate than electronic transmission.
Since then, an occasional question has arisen about whether the rule prohibited receiving documents by fax if the document was not specifically listed in the rule or whether DETF had technically “received" a document at all if it arrived by fax but some criteria of the rule had not been fully satisfied.
Some administrative rules written since 1995 have included specific authorization to receive a particular document by fax. See ss.
ETF 10.30 (5) (b) and
(8) and
10.75 (2) (a) for examples. The Secretary has determined that a general policy, rather than a piecemeal approach, can and should now be codified.
Beginning in 1997, DETF has optically imaged participant files to computer instead of retaining paper copies of documents. Since then, for DETF record keeping purposes, a fax is functionally identical to the original document.
The Secretary of DETF has decided to propose a rule expressly acknowledging that DETF may receive almost any document by fax. If, during the course of the rule-making process, any document is identified for which this general policy is inadvisable, the rule will identify that document as an exception to the general rule. For example, one exception to this policy will be a document, such as some powers-of-attorney, which expressly state that a copy may not be relied upon to the same extent as the original. Court orders may be another exception, unless received directly from the signing judge.
Policy alternatives to the proposed rule
(1) Take no action.
DETF could allow the present administrative rule to remain in effect as is, but considers this undesirable. The existing rule has the potential for creating confusion about whether DETF has ever technically “received" a document listed in the rule if, for example, it is faxed to a different DETF fax machine than listed in the rule, or if the original of the document is not supplied within 14 days, or if some other criteria in the rule is not fully satisfied. The documents listed in the rule do not include every possible document DETF might be offered, so questions have arisen about the rule's impact, if any, on non-listed documents.
(2) Impose greater restrictions on use of fax documents.
DETF considers it undesirable to unnecessarily or unreasonably limit use of technology or available means of transmitting documents and information between DETF and persons having an interest in benefits administered by this Department. While legitimate concerns about privacy, security and accuracy must be addressed, these concerns do not outweigh the purpose of improving DETF responsiveness to its clients by allowing for more rapid forms of communication.
Statutory authority
Staff time required
The Department estimates that state employees will spend 20 hours developing this rule.
Description of all entities affected by the rule.
The rule is not regulatory. Its anticipated effect is mainly upon the Department, but any person or entity who might voluntarily choose to communicate with DETF by using a fax machine may take advantage of the proposed rule. It is anticipated that these persons will mainly be participants in the Wisconsin Retirement System or their authorized representatives or beneficiaries.
Comparison to federal regulations
There appear to be no existing or proposed federal regulations directly affecting the submission of documents to DETF by fax, or DETF's ability to accept fax documents.
Financial Institutions - Banking
Subject
Section DFI—Bkg 74.09 (5) relating to authorizations to consolidate accounts.
Policy analysis
The objective of the rule is to create s. DFI—Bkg 74.09 (5). The purpose of the rule is to set forth requirements for an authorization received by a licensee from a creditor for consolidating accounts. The rule establishes criteria regarding the form and content of the authorization.
Statutory authority
Staff time required
80 hours.
Comparison to federal regulations
None.
