Rule-Making Notices
Notice of Hearing
Employee Trust Funds
NOTICE IS GIVEN That pursuant to s.
227.14, Stats., the Wisconsin Department of Employee Trust Funds (ETF) which includes the Employee Trust Fund Board, Wisconsin Retirement Board, Teachers Retirement Board, Group Insurance Board, and Deferred Compensation Board, will hold a public hearing to consider the emergency rules and proposed permanent rules to revise Chapters
ETF 10,
20,
40 and
41, relating to the implementation of benefit changes mandated in
2009 Wisconsin Act 28; specifically, domestic partner benefits and the expansion of health insurance coverage to adult dependents up to the age of 27 years.
Hearing Information
A public hearing on the proposed rule will be held on:
Date and Time Location
February 12, 2010 Dept. of Employee Trust Funds
at 1:30 p.m. Conference Room GB
801 West Badger Road
Madison, Wisconsin
Persons wishing to attend should come to the reception desk up the stairs (or by elevator) from the main entrance to the building.
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. The telephone number is: (608) 266-1071.
Submission of Written Comments
Comments may be submitted to the contact person no later than 4:30 p.m., Central Standard Time, on February 19, 2010.
Analysis Prepared by the Department of Employee Trust Funds
Statutes interpreted
Various statute sections in ch.
40, Stats., regarding the Public Employee Trust Fund.
Statutory authority
Explanation of agency authority
By statute, the ETF Secretary is expressly authorized, with appropriate board approval, to promulgate rules required for the efficient administration of any benefit plan established in ch.
40 of the Wisconsin statutes. Also, each state agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency if the agency considers it necessary to effectuate the purpose of the statute.
Related statute or rule
There are no other statutes or rules that provide for benefits administered by ETF to be extended to the domestic partners of state and local government employees.
2009 Wisconsin Act 28 contains changes to many statutes relating to domestic partnership. A new Chapter
770, provides for a domestic partnership registry, but these provisions relate only to the creation of a registered domestic partnership and the benefits flowing from a Chapter
770 domestic partnership. These provisions are not linked with the provisions regarding Chapter
40 domestic partnerships. The expansion of health insurance to adult dependents up to the age of 27 years relates to an insurance mandate in s.
632.885, Stats.
Plain language analysis
2009 Wisconsin Act 28 provides in essence that domestic partners that meet the statutory requirements for domestic partnership in Chapter
40 are to be considered as equivalent to spouses for the purpose of the benefits administered by ETF. Domestic partnerships have not previously been recognized for Chapter
40 benefit purposes. In addition,
2009 Wisconsin Act 28 mandates the extension of health insurance coverage to eligible adult children up to the age of 27 years. ETF previously covered eligible adult children up to the age of 25 years if the child was a full time student. New rules and amendments are necessary to effectuate these provisions of
2009 Wisconsin Act 28, including but not limited to:
•
A rule that the statutory definition of “decree date" applies to a termination of a domestic partnership for qualified domestic relations order purposes.
•
A rule that for the purpose of determining a beneficiary under the statutory standard sequence (in the absence of a beneficiary designation or where the named beneficiary(ies) are deceased), a divorce, legal separation, or annulment terminates the marital relationship, and a domestic partnership terminates as defined by this rule.
•
A rule that a completed and notarized
Affidavit of Domestic Partnership must be received by the department before the domestic partnership becomes effective for Chapter
40 benefit purposes.
•
A rule permitting the department to reject any Affidavit that is illegible or missing necessary information, and requiring rejection of Affidavits that are not notarized and/or signed by both partners.
•
A rule clarifying that the registration of domestic partnership under Chapter
770, Wis. Stats., does not create a domestic partnership for Chapter
40 benefit purposes. ETF needs a separate affidavit because there are differences between the definitions of domestic partnership in Chapter
40 and in Chapter
770. For example, ETF's definition of domestic partnership permits same-sex and opposite-sex domestic partners, while Chapter
770 permits only same-sex domestic partners.
•
A rule establishing the effective date of Chapter
40 domestic partnerships based on ETF's Affidavit receipt date. The rule determines exactly when and how domestic partnerships are created and terminated for Chapter
40 benefit purposes. For example, upon the Department's receipt of a properly executed
Affidavit of Termination of Domestic Partnership, ETF will consider the domestic partnership to be irrevocably dissolved.
•
A rule that permits ETF to consider a domestic partnership to be terminated, based on evidence that the partnership no longer meets the statutory definition of a domestic partnership, such as failing to share a common residence or marrying, or that the Chapter
40 domestic partnership terminates at such time as neither partner has any benefit rights under Chapter
40.
Comparison with federal regulations
There are no existing federal regulations that specifically address benefits for the domestic partners of state and local government employees/retirees. However, there is pending federal legislation relating to domestic partnerships and to the expansion of health insurance to adult dependents to the age of 27 years:
Affordable Health Care for America Act (H.R. 3962): The bill contains a provision that would allow adults up to 27 years old to be covered by a parent's health insurance policy. The bill also addresses tax inequities for insurance subscribers related to the addition of adult children or domestic partners to the subscriber's employer-sponsored group health insurance plan. The bill was approved by the House of Representatives on November 7, 2009, and was placed on the Senate Calendar for reading.
Domestic Partnership Benefits and Obligations Act (
S. 1102, H.R. 2517): provides to domestic partners of federal employees (excluding military) health insurance and enhanced dental and vision benefits, retirement and disability benefits, family, medical, and emergency leave, group life insurance, long-term care insurance, compensation for work injuries, and benefits for disability, death, or captivity. Last action on the bill was in July 2009, with the bill going to the Oversight and Government Reform Committee.
Tax Equity for Health Plan Beneficiaries Act (
S. 1153, H.R. 2625): The bill would exclude the value of employer-provided health insurance for a domestic partner or other non-spouse beneficiary from an eligible employee's income, as it does for benefits provided for a spouse or dependent. Last action on the bill was in May 2009, with the bill going to the House Ways and Means Committee.
Ending Health Disparities for LGBT Americans Act (H.R. 3001): Introduced in June, 2009. This bill incorporates the Tax Equity for Health Plan Beneficiaries Act and the Domestic Partnership Benefits and Obligations Act. It contains provisions for eliminating inequities relating to domestic partner and same-sex spouse access to benefits, as well as the tax inequities. Last action on the bill was in August 2009, with the bill going to the Subcommittee on Military Personnel.
Comparison with Rules in Adjacent States
Illinois:
•
Domestic Partnership Benefits. There are no comparable state-level administrative rules on domestic partnership benefits for state and local government employees. Some Illinois municipalities have ordinances that provide for domestic partner benefits.
•
Health Insurance Coverage of Adult Dependents. For policies issued after July 1, 2009, Group or individual health insurance policies are permitted to cover unmarried dependents until they reach age 26, regardless of student status and to age 30 for dependents who are veterans and have not been dishonorably discharged. Illinois law Sections 356z.11 and 356z.12.
Iowa:
•
Domestic Partnership Benefits. There are no comparable state-level administrative rules on domestic partnership benefits for state and local government employees. However, Iowa legalized same-sex marriage in April 2009.
•
Health Insurance Coverage of Adult Dependents. Health insurance providers are required to continue to cover unmarried children under their parents' coverage provided that the child 1) is under the age of 25 and a current resident of Iowa, 2) is a full-time student, or 3) has a disability. Iowa Code § 509.3 and Iowa Code § 514E.7.
Michigan:
•
Domestic Partnership Benefits. There are no comparable state-level administrative rules on domestic partnership benefits for state and local government employees. Some municipalities, such as Ann Arbor, have ordinances providing for domestic partner benefits.
•
Health Insurance Coverage of Adult Dependents. There are no comparable administrative rules relating to the expansion of health insurance coverage of adult dependents.
Minnesota:
•
Domestic Partnership Benefits. There are no comparable state-level administrative rules on domestic partnership benefits for state and local government employees. The city of Minneapolis has an ordinance that provides for domestic partner benefits. Minnesota's Governor vetoed a Bill in 2008 for domestic partnership benefits.
•
Health Insurance Coverage of Adult Dependents. Minnesota Chapter 62E.02 defines "dependent" as a spouse or unmarried child under age 25, or a dependent child of any age who is disabled.
Summary of factual data and analytical methodologies
2009 Wisconsin Act 28 created a requirement for ETF to recognize domestic partners who meet the qualifications of a Chapter
40 domestic partnership for the various benefit programs administered by ETF.
2009 Wisconsin Act 28 also mandated the extension of health insurance coverage to adult children to the age of 27 years. These requirements of the Act have been set forth in the newly created rule provision, as directed by the legislature.
Analysis and supporting documents used to determine effect on small business
The rule does not have an effect on small businesses because private employers and their employees do not participate in, and are not covered by, the Wisconsin Retirement System.
Small Business Impact
There is no effect on small business.
