Analysis Prepared by the Wisconsin Department of Employe Trust Funds
Effective April 28, 1990, for marriages that are terminated on or after that date, up to 50% of a participant's WRS account or annuity could be awarded to an alternate payee (the former spouse. Upon receipt of a Qualified Domestic Relations Order (QDRO), the Department creates a separate account or annuity for the alternate. The account or annuity division is effective on the decree date (the first of the month in which the marriage is legally terminated).
Effective May 2, 1998, the law changed to allow the Department to divide a WRS account or annuity per a QDRO for marriages terminated between January 1, 1982 and April 27, 1990. These QDROs do not apply to payments made before the date the Department receives the QDRO, although the value of the account is still divided as of the decree date. The participant's account status may have changed between the decree date and the date the Department receives the QDRO; for example, the participant may have been actively employed under the WRS on the decree date, but may have been retired for several years by the time ETF receives the QDRO. When the participant status has changed since the decree date, the prospective division of the account or annuity is based on the current account status, but the value of the benefits awarded to the alternate payee is based on a percentage (specified in the QDRO) of the value of the account or annuity as of the decree date.
The purpose of this rule is to clarify how the Department will apply a QDRO to a participant's account or annuity, and how the participant's and alternate payee's benefits will be calculated to assure that to the extent possible, the total actuarial value of their benefits will be equal to the actuarial value of the participant's benefits had the account or annuity not been divided per a QDRO.
General Summary of Rule.
This proposed rule further clarifies how the Department will determine whether a QDRO meets the criteria in s. 40.02 (48m), Stats., and if it is necessary to reject a QDRO that does not meet the statutory requirements, the Department will delay processing any application to close the account with a lump sum benefit for 30 days after the QDRO is rejected to give the parties an opportunity to submit a corrected QDRO. It specifies the procedures that the Department will follow if the participant fails to submit the military service certification timely as required by statute, and that the participant may not receive credit for the portion of any active military service that the alternate payee would have received if the participant had submitted the certification timely. Except for certain specified exceptions, once the Department has divided a participant's account according to a QDRO, any subsequent corrections or adjustments to the participant's service, contributions or earnings will be applied only to the participant's account; the alternate payee's account will not be adjusted.
This rule would also specify how retirement, accelerated payment and disability annuities would be divided to assure that the benefit liabilities of the fund after the division are equal to the benefit liability that would have existed if the annuity were not being divided. For marriages terminated on or after April 28, 1990, all account and annuity divisions are retroactive to the degree date. However, for marriages terminated between January 1, 1982 and April 27, 1990, although the portion of the account or annuity being awarded to the alternate payee is based on the account value as of the degree date, the division applies to future payment only. This may result in a different percentage of a current annuity being awarded to the alternate payee than is specified in the QDRO. For example, the participant may have continued to work under the WRS after the decree date, but the alternate payee cannot receive a benefit from service or contributions accrued after the decree date. Consequently, the percentage of the participant's current benefit actually granted to the alternate payee may be a lower than the percentage of the account (as of the decree date) awarded to the alternate payee in the QDRO.
Authority for Rule: s. 227.10
Statutes Interpreted: ss. 40.02 (48m) and 40.08 (1m)
Fiscal Estimate
The Department estimates that there will be no direct fiscal impact from this rule making upon the state and anticipates no effect upon the fiscal liabilities or revenues of any county, city, village, town, school district, vocational, technical and adult education school district or sewerage district.
Initial Regulatory Flexibility Analysis
The Department anticipates that the provisions of this proposed rule will have no direct adverse effect on small businesses.
Copies of Rule and Contact Person
Copies of this rule are available without cost by making a request to the Department of Employe Trust Funds, Office of the Secretary, P.O. Box 7931, Madison, Wisconsin 53707, telephone (608) 266-1071. For questions about this rule-making, please call Linda Owen, Rules Coordinator, at (608) 261-8164.
Notice of Hearing
Health & Family Services
(Health, Chs. HFS 110-)
Notice is hereby given that, pursuant to s. 149.143(2)(a)2.,3., and 4. and (3), Stats., the Department of Health and Family Services will hold a public hearing to consider the amendment of ss. HFS 119.07(6)(b)(intro.) and Medicare Plan tables and 119.15, Wis. Adm. Code, relating to operation of the Health Insurance Risk-Sharing Plan (HIRSP), and the emergency rules now in effect on the same subject.
Hearing Information
March 11, 1999 Conf. Rm. inside Rm. 218
Thursday State Office Building
Beginning at 1:00 p.m. 1 West Wilson Street
MADISON, WI
The hearing site is fully accessible to people with disabilities. Parking for people with disabilities is available in the parking lot behind the building, in the Monona Terrace Convention Center Parking Ramp, or in the Doty Street Parking Ramp. People with disabilities may enter the building directly from the parking lot at the west end of the building or from Wilson Street through the side entrance at the east end of the building.
Analysis Prepared by the Department of Health and Family Services
The State of Wisconsin in 1981 established a Health Insurance Risk-Sharing Plan (HIRSP) for the purpose of making health insurance coverage available to medically uninsured residents of the state. One type of coverage provided by HIRSP is supplemental coverage for persons eligible for Medicare. This coverage is called Plan 2. Medicare (Plan 2) has a $500 deductible. Approximately 17% of the 7,123 policies in effect on October 31, 1998 were of the Plan 2 type.
The Department through this rulemaking order is amending two sections of the HIRSP program administrative rules:
1. It is updating HIRSP Plan 2 premium rates by just over 10% in accordance with the authority and requirements set out in s. 149.143 (3) (a), Stats. The Department is required to set premium rates by rule and the rates must be calculated in accordance with generally accepted actuarial principles.
2. It is also adjusting the total HIRSP insurer assessments and provider payment rates in accordance with the authority and requirements set out in s. 149.143 (2)(a)3. and 4., Stats.
The emergency rules were published to take effect on January 1, 1999.
Contact Person
To find out more about the hearing or to request a copy of the proposed rules, write or phone:
Randy McElhose
Division of Health Care Financing
P.O. Box 309, Room 238
Madison, WI 53701-0309
(608) 267-7127 or,
if you are hearing impaired,
(608) 266-1511 (TTY)
If you are hearing or visually impaired, do not speak English, or have other personal circumstances which might make communication at the hearing difficult and if you, therefore, require an interpreter, or a non-English, large-print or taped version of the hearing document, contact the person at the address or phone number above. A person requesting a non-English or sign language interpreter should make that request at least 10 days before the hearing. With less than 10 days notice, an interpreter may not be available.
Written comments on the proposed rules received at the above address no later than March 18, 1999 will be given the same consideration as testimony presented at the hearing.
Fiscal Estimate
This order updates the Health Insurance Risk-Sharing Plan (HIRSP) premium rates effective January 1, 1999 for HIRSP policies that provide supplemental health insurance coverage for persons eligible for Medicare, and adjusts total HIRSP insurer assessments and provider payment rates for the 6-month period beginning January 1, 1999. This is being done to cover Plan costs.
The rule changes will not, by themselves, affect the expenditures or revenues of state government or local governments. They adjust premiums as permitted under the program statute to help offset increased program costs. The rule changes also adjust the insurer assessments and provider payment rates, in accordance with a statute-specified methodology, to offset program costs. There is no local government involvement in the administration of HIRSP.
Initial Regulatory Flexibility Analysis
The rule changes will not affect small businesses as “small business" is defined in s. 227.114(1)(a), Stats. Although the program statutes and rules provide for assessment of insurers to help finance the Health Insurance Risk-Sharing Plan (HIRSP), no assessed insurer is a small business as defined in s. 227.114(1)(a), Stats. Moreover, s. 149.143, Stats., prescribes how the amount of an insurer's assessment to help finance HIRSP is to be determined.
Notice of Hearing
Natural Resources
Notice is hereby given that pursuant to ss. 227.26(2)(b), Stats., interpreting ss. 101.144, 292.11 and 292.31, Stats., the Department of Natural Resources will hold a public hearing on Natural Resources Board Emergency Order No. RR-61-98(E) pertaining to the creation of ch. Comm 46. This emergency order was published by the Department on February 5, 1999. Pursuant to s. 101.144(3m), Stats., the Departments of Commerce and Natural Resources entered into a Memorandum of Understanding regarding the remediation of sites with petroleum contamination. The Department of Commerce has jurisdiction for low and medium priority sites, and the Department of Natural Resources has jurisdiction for high priority sites and those with other types of contamination.
The Joint Committee for the Review of Administrative Rules adopted a resolution directing the Departments of Commerce and Natural Resources to promulgate a joint emergency rule incorporating those portions of the Memorandum of Understanding related to the classification of contaminated sites. Prior to the publication of an emergency rule, the Joint Committee for Review of Administrative Rules directed the departments to incorporate additional features into the rule. The emergency rule incorporating all the provisions required by the Joint Committee for Administrative Rules was published by the Department of Commerce as ch. Comm 46 effective January 1, 1999. At its January 27, 1999 meeting, the Natural Resources Board also adopted ch. Comm 46.
Hearing Information
March 11, 1999 Room 511, GEF #2
Thursday 101 S. Webster St.
at 1:00 p.m. 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 Dale Ziege at (608) 267-7533 with specific information on your request at least 10 days before the date of the scheduled hearing.
Written Comments
Written comments on the emergency rule may be submitted to Mr. Dale Ziege, Bureau of Remediation and Redevelopment, P.O. Box 7921, Madison, WI 53707 no later than March 12, 1999. Written comments will have the same weight and effect as oral statements presented at the hearing. A copy of the emergency rule [RR-61-98(E)] may be obtained from Mr. Ziege.
Fiscal Estimate
Background
1995 Act 27 divided the responsibility for overseeing the remediation of sites with petroleum contamination between the Department of Commerce (COM) and the Department of Natural Resources (DNR). This legislation gave jurisdiction for low and medium priority sites to COM and jurisdiction for high priority sites and those with other types of contamination to DNR. It also directed the agencies to enter into a Memorandum of Understanding (MOU) that establishes: 1) the respective functions of the two departments ir administrating the remediation of these sites; 2) procedures to ensure that remedial actions for these sites are consistent with actions taken under the Spill Law; and 3) the procedures, standards and schedules for determining whether sites are classified as high, medium or low priority.
On September 16, 1998 the Joint Committee for Review of Administrative Rules (JCRAR) held a public hearing on a number of items, including implementation of the MOU between COM and DNR. At that hearing, JCRAR adopted a resolution directing COM and DNR to promulgate a Joint Emergency Rule, within 30 days, incorporating those portions of the MOU related to the classification of contaminated sites. Since this rule merely codifies existing procedures, no additional workload is created by its promulgation.
Fiscal Impact to State Government
The creation of ch. Comm 46 does not create additional regulatory workload. No state fiscal impact is anticipated as a result of the creation of ch. Comm 46.
Notice of Hearing
Natural Resources
(Fish, Game, etc., Chs. NR 1-)
Notice is hereby given that pursuant to ss. 29.014, 29.192(3), 227.11(2)(a) and 227.24, Stats., interpreting s. 29.192(3), Stats., the Department of Natural Resources will hold a public hearing on Natural Resources Board Emergency Order No. FH-9-99(E) relating to special closure of the sturgeon spearing season. This emergency order took effect on February 5, 1999. The emergency order will allow the Department to limit the sturgeon spearing harvest during the February 1999 season to no more than 400 adult female sturgeon, 400 juvenile female sturgeon OR 2150 male sturgeon. This emergency order establishes Department authority to close the sturgeon spearing season within 24 hours if actual harvest of sturgeon meets or exceeds 80% of the total allowable harvest.
Hearing Information
March 16, 1999 Winnebago County
Tuesday Coughlin Center
at 7:00 p.m. 625E. Co. Trunk Hwy. Y
Oshkosh
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 Tim Simonson at (608) 266-5222 with specific information on your request at least 10 days before the date of the scheduled hearing.
Written Comments
Written comments on the emergency rule may be submitted to Ron Bruch, Department of Natural Resources, P.O. Box 565, Oshkosh, WI 54903 no later than March 18, 1999. Written comments will have the same weight and effect as oral statements presented at the hearing. A copy of the emergency rule [FH-9-99(E)] may be obtained from Tim Simonson, Bureau of Fisheries Management and Habitat Protection, P.O. Box 7921, Madison, WI 53707.
Fiscal Estimate
There is no fiscal effect.