1997 Chapter 641

CHAPTER 641

EMPLOYE WELFARE FUNDS AND PLANS

641.02 Scope.

641.06 Declaration of policy.

641.07 Definitions.

641.08 Registration.

641.09 Examinations; authorization.

641.10 Examinations; conduct.

641.11 Examinations; publication.

641.12 Expenses of examination; filing fees.

641.13 Annual statement to commissioner.

641.14 Special statements to commissioner.

641.15 Reports to employers and employes.

641.16 Annual statements by insurance companies, service plans and corporate trustees and agents.

641.17 Employer payments to employe welfare funds.

641.18 Regulation under other laws.

641.19 Compliance, enforcement and penalties.

641.20 Injunctions.

641.25 Construction.

Ch. 641 Cross-reference Cross-reference: See definitions in ss. 600.03 and 628.02.

641.02 641.02  Scope. This chapter applies to every employe welfare fund covering any person employed in this state, except:

641.02(1) (1) To the extent that applicable federal law excludes the operation of state law.

641.02(2) (2) Funds and plans with no benefits involving risks like those in insurance, as determined by the commissioner by rule.

641.02 History History: 1977 c. 339.

641.02 Note NOTE: Chapter 339, laws of 1977, which created this section, contained an extensive note explaining this section.

641.06 641.06  Declaration of policy. It is declared to be the policy of this state that employe welfare funds are of great benefit to employes and their families and that their growth should be encouraged; that the establishment and management of such funds vitally affect the well-being of millions of people and are in the public interest; and that such funds should be supervised by the state to the extent necessary to protect the rights of employes and their families, without imposing burdens upon such funds which might discourage their orderly growth and without duplicating the supervisory responsibilities presently vested in any state agencies.

641.06 History History: 1977 c. 339 s. 24; Stats. 1977 s. 641.06.

641.07 641.07  Definitions. As used in this chapter, unless the context requires otherwise:

641.07(1) (1) "Employe benefits" means one or more benefits or services for employes or their families or dependents, or for both, including, but not limited to, medical, surgical or hospital care or benefits, benefits in the event of sickness, accident, disability or death, benefits in the event of unemployment, or retirement benefits.

641.07(2) (2) "Employe welfare fund" means any trust fund or other fund established or maintained jointly by one or more employers together with one or more labor organizations, solely by any employer or labor organization or jointly by employers or jointly by labor organizations, whether directly or through trustees, to provide employe benefits, by the purchase of insurance or annuity contracts or otherwise, and to which is paid or contracted to be paid anything, other than income from investments of such fund, by or on behalf of any employer doing business in this state or for the benefit of any persons employed in this state.

641.07(3) (3) "Trustee" means any person, firm, association, organization, joint stock company or corporation, whether acting individually or jointly and whether designated by that name or any other, who or which is charged with or has the overall management of any employe welfare fund.

641.07 History History: 1977 c. 339 s. 24; Stats. 1977 s. 641.07; 1983 a. 189.

641.07 Annotation Discussion of definition of "trust fund or other fund" under (2) as provided by Wis. Adm. Code sec. Ins. 8.02. Racine Education Ass'n. v. Com'r of Ins., 158 W (2d) 175, 462 NW (2d) 239 (Ct. App. 1990).

641.08 641.08  Registration. The trustee of every employe welfare fund which covers any person employed in this state shall register such fund with the commissioner within 3 months after it becomes subject to this chapter. The registration shall be in such form and shall contain such information relating to the organization, operations and affairs of such fund as is prescribed by the commissioner.

641.08 History History: 1977 c. 339 s. 24; Stats. 1977 s. 641.08.

641.09 641.09  Examinations; authorization.

641.09(1) (1) The commissioner may examine into the affairs and actuarial status of any employe welfare fund as often as he or she deems it necessary. To that end the commissioner may establish regular programs of examinations of funds at the intervals he or she determines.

641.09(2) (2) The trustees of every employe welfare fund shall be responsible for the maintenance of accurate records of its books and accounts in conformance with generally accepted accounting principles.

641.09 History History: 1977 c. 339 s. 24; Stats. 1977 s. 641.09; 1979 c. 102.

641.10 641.10  Examinations; conduct.

641.10(1) (1) Whenever, pursuant to this chapter, the commissioner determines to examine the affairs of any employe welfare fund the commissioner shall make an order indicating the scope of the examination and may, without regard to the classified service, appoint as examiners one or more competent persons not employed by the trustees of the fund or interested in the fund. A copy of the order shall, upon demand and before the examination begins, be exhibited to at least one of the trustees of the fund whose affairs are to be examined. Any examiner authorized by the commissioners shall have convenient access at all reasonable hours to the books, records, files, assets, securities, and other documents of the employe welfare fund including those of any affiliated or subsidiary fund thereof, which are relevant to the examination. The commissioner and anyone designated by the commissioner may administer oaths and examine under oath the trustees of the fund and their officers, agents and employes and any other persons regarding any matter relevant to the examination.

641.10(2) (2) In conducting an examination of any employe welfare fund, in lieu of the procedures otherwise required by this chapter, the commissioner may utilize any appropriate procedures which will safeguard the best interests of participating employes and will fulfill the policy of this chapter. To this end, the commissioner may require the trustees or sponsoring employer to furnish him or her with a report of examination of the fund by a certified public accountant and reports by fund consultants in the form the commissioner requires.

641.10(3) (3) In connection with any examination, the commissioner may, without regard to the classified service, appoint one or more competent persons as appraisers with authority to appraise any real property or any interest therein which, as security or otherwise, may constitute a part of the assets of any employe welfare fund. The report of such appraiser shall be a supplement to the report of the examiner or examiners in charge.

641.10 History History: 1977 c. 339 s. 24; Stats. 1977 s. 641.10; 1979 c. 102.

641.11 641.11  Examinations; publication.

641.11(1) (1) Pending or after an examination the commissioner shall neither make public nor permit to become public any financial statement, report or finding affecting the status, standing or rights of any such employe welfare fund, until a copy thereof has been served upon the employe welfare fund, nor until the employe welfare fund has been afforded a reasonable opportunity to answer any such financial statement, report or finding and to make such showing in connection therewith as it may desire.

641.11(2) (2) In any action or proceeding against the trustees of any employe welfare fund, required to register under this chapter, or against their officers, agents or employes, such report, or any part thereof, if published by the commissioner, shall be admissible in evidence.

641.11(3) (3) The commissioner may assemble and file for public inspection the information covering forms of trust indentures in use, commission and fee schedules adopted by insurers and compensation paid to trustees of employe welfare funds and other matters affecting the establishment and administration of such funds as, in the commissioner's opinion, are in the public interest.

641.11 History History: 1977 c. 339 s. 24; Stats. 1977 s. 641.11; 1979 c. 102.

641.12 641.12  Expenses of examination; filing fees.

641.12(1) (1) The expenses of every examination of the affairs of any employe welfare fund required to register under this chapter, including any appraisal of real property, shall be borne and paid by the employe welfare fund so examined but the commissioner may in his or her discretion remit in whole or in part such charges upon showing of extreme financial hardship. For any such examination by the commissioner or a deputy commissioner personally, the charge made shall be only for necessary traveling expenses and other actual expenses. In all other cases the expenses of examination shall also include reimbursement for the compensation paid for the services of persons employed by the commissioner or by the commissioner's authority to make the examination or appraisal. All charges incurred by or on behalf of the commissioner, including necessary traveling and other actual expenses, as duly audited and paid to the person or persons making the examination or appraisal, shall be presented to the trustees of the employe welfare fund so examined in the form of a copy of the itemized bill therefor as certified and approved by the commissioner or a deputy commissioner. Upon receiving the certified copy the trustees shall pay the amount thereof to the commissioner to be paid by the commissioner into the state treasury.

641.12(2) (2) The commissioner shall annually determine filing fees to be paid by every employe welfare fund registered under this chapter, except as provided in s. 641.13. Such fee shall provide for the expenses, not otherwise provided for, of the welfare funds division of the office of the commissioner of insurance, including the general costs of the office of the commissioner of insurance which may appropriately be allocated to such division. The fee so assessed shall be paid with the filing and shall not exceed $40 per employe welfare fund. In determining the amount of such fee the commissioner shall make allowance for any surplus collected in prior years.

641.12 History History: 1977 c. 339 s. 24; Stats. 1977 s. 641.12; 1979 c. 102; 1989 a. 31.

641.13 641.13  Annual statement to commissioner. The trustees of every employe welfare fund which covers more than 25 persons employed in this state shall file in the office of the commissioner, annually within 5 months after the close of the fiscal year used in maintaining the records of the fund, a statement, to be known as the annual statement of the fund, verified by the oath of its trustee or, if there is more than one trustee, then by the oaths of at least 2 of the trustees, showing its condition and affairs during the fiscal year. The statement shall be in the form and contain substantiation by vouchers and otherwise and any other information the commissioner from time to time prescribes. The commissioner shall cause to be prepared and furnished to the trustees of every employe welfare fund, required by law to report under this section, printed forms of the required statements and schedules. For good cause, the commissioner may grant reasonable extensions of time for filing under this subsection, not to exceed 90 days. The commissioner may not collect a fee for filing an annual statement of an employe welfare fund if any employer maintaining the employe welfare fund is a county.

641.13 History History: 1977 c. 339 s. 24; Stats. 1977 s. 641.13; 1979 c. 102; 1989 a. 31.

641.14 641.14  Special statements to commissioner. In addition to any other statements or reports required by this chapter, the commissioner may also address to the trustees of any employe welfare fund or to their officers, agents or employes any inquiry in relation to the transactions or condition of the fund or any matter connected therewith. Every person so addressed shall reply in writing to the inquiry promptly and truthfully, and the reply shall be verified, if required by the commissioner, by the individual or individuals the commissioner designates.

641.14 History History: 1977 c. 339 s. 24; Stats. 1977 s. 641.14; 1979 c. 102.

641.15 641.15  Reports to employers and employes. The annual statement and any other statements the commissioner requires shall be kept on file with the commissioner and at the principal office of the trustees. The statements or the portion thereof the commissioner deems appropriate and relevant shall be made available by the commissioner or by the trustees, or both, for inspection by any employer contributing to the fund, by any labor organization which is a party to an agreement establishing the fund, or by any employe covered by the fund. In addition to the extent that he or she deems it to be in the public interest, the commissioner may require the trustees to mail the statements, or the portions thereof the commissioner deems appropriate and relevant, to employes covered by the fund, to contributing employers or to any labor organization which is a party to an agreement establishing the fund.