Notice of Hearing
Employe Trust Funds
Notice is hereby given that pursuant to s. 40.03 (1), (6), (7) and (8), Stats., and interpreting s. 40.03 (6) and 40.63, Stats., the Department of Employe Trust Funds will hold a public hearing at the time and place indicated below to consider the amendment of ss. ETF 50.30 (1m) and 50.50 (1) (c) 3., and creation of ss. ETF 50.32 (4) and 50.42 (8m), Wis. Adm. Code, relating to eligible disability applicants.
Hearing Information
April 4, 2000 Room 2A, ETF
Tuesday 801 West Badger Rd.
1:00 p.m. MADISON, WI
Written Comments
The public record on this proposed rule-making will be held open until 4:30 PM on Thursday, April 6, 2000 to permit the submission of written comments from persons unable to attend the public hearing in person, or who wish to supplement testimony offered at the hearing. Any such written comments should be addressed to Diane M. Bass, Disability Programs Bureau, Division of Insurance Services, Department of Employe Trust Funds, 801 W. Badger Road, P.O. Box 7931, Madison, Wisconsin 53707-7931.
Analysis Prepared by the Wis. Dept. of Employe Trust Funds
Under s. 40.63, Stats., to be eligible for a disability benefit from the Wisconsin Retirement System (WRS), an employe, prior to reaching their normal retirement age, must be totally disabled by a mental or physical impairment which is likely to be permanent and meet the requirements listed below:
• The employe must be a participating WRS employe.
• The employe must have a total of at least five years of creditable service or at least one-half year of creditable service in each of five of the years. The seven full calendar years before the received date of the disability application will be used to determine whether the service requirement is met.
• The employe must not be entitled to any further earnings from the employer.
• The employer must certify that the employe ceased employment due to a disability.
• The employe must be totally and permanently disabled as certified by two licensed physicians.
Pursuant to s. 40.63 (2), Stats., a participant shall be considered a participating employe only if no other employment which is substantial gainful activity has intervened since service for the participating employer terminated and if the termination of active service for the participating employer was due to disability. Section 40.63 (11), Stats., defines “substantial gainful activity" as employment for which the annual compensation exceeds a specified dollar amount for a specific period of time. The current rule, s. ETF 50.30 (1m) for disability benefits under s. 40.63, Stats., relies on a monthly test to determine if the employe was gainfully employed since employment terminated with the WRS-covered employer. The amended rule will clarify that the Department will rely on a twelve consecutive month period of time rather than the monthly test to determine whether the employe was gainfully employed.
The Long Term Disability Insurance (LTDI) program provides an alternative to s. 40.63, Stats., disability benefits. Many of the provisions under s. ETF 50.40, Wis. Adm. Code, are very similar to the eligibility provisions for disability benefits under s. 40.63, Stats. The current rule, s. ETF 50.50 (1) (c) 3. for disability benefits under the LTDI program, also relies on a monthly test to determine gainful employment. The rule will be amended to clarify that the Department will rely on a twelve consecutive month period of time rather than the monthly test to determine whether the employe was gainfully employed.
The rule applies to the disability applicant who applies for either a disability benefit under s. 40.63, Stats., or LTDI benefit under s. ETF 50.40, Wis. Adm. Code. The LTDI program will eventually replace the WRS disability program under s. 40.63, Stats.
Under the provisions of s. 40.63, Stats., and LTDI s. ETF 50.40, Wis. Adm. Code, to be eligible to apply for either of these benefits, the applicant must be totally disabled by a mental or physical impairment which is likely to be permanent. In addition to meeting the service requirement, the medical definition, and the employer certifying that the applicant ceased employment due to a disability, the applicant must be a participating WRS employe. An employe who has terminated employment with the WRS-covered employer shall be considered a participating employe only if no other employment which is substantial gainful activity has intervened since service for the participating employer terminated.
The proposed rules define the “termination of employment" for purpose of determining whether a person is a participating employe as used in the eligibility criteria for WRS disability and LTDI benefits. The rules clarify the earned income test used to determine whether a terminated employe had intervening employment since the employe last worked for a covered Wisconsin Retirement System (WRS) employer. With the amended rule the Department will rely on an entire twelve consecutive month period of time rather than the monthly test to determine whether the employe was gainfully employed. This amendment to the current rule is intended to not only look at the “level of earnings" as required under substantial gainful activity, but to also look at the disability applicant's ability to sustain the level of earnings.
Text of Rule
SECTION 1. ETF 50.30 (1m) is amended to read:
ETF 50.30 (1m) For purposes of eligibility under s. 40.63 (2), Stats., employment which is substantial gainful activity has intervened if, during any month twelve (12) consecutive calendar months beginning with the first of the month following the date since service for the participating employer terminated, the participant received aggregate earnings, wages, salary and other earned income exceeding one-twelfth of the
annual dollar amount determined under s. 40.63 (11), Stats., that is in effect at the end of the 12 consecutive calendar month period.
SECTION 2. ETF 50.32. (4) is created to read:
ETF 50.32 (4) “Termination of employment" for the purpose of determining whether a person is a participating employe means the last day rendered services as defined under sub. (2).
SECTION 3. ETF 50.42 (8m) is created to read:
ETF 50.42 (8m) “Termination of employment" for the purpose of determining whether a claimant is a participating employe means the last day rendered services as defined under sub. (4).
SECTION 4. ETF 50.50 (1) (c) 3. is amended to read:
ETF 50.50 (1) (c) 3. Excluding earnings from the claimant's last participating employer, the claimant has not received aggregate earnings, wages, salary and other earned income in any month since twelve (12) consecutive calendar months beginning with the first of the month following the date the claimant last rendered services to the participating employer exceeding one-twelfth of the earnings limit in effect during the period in question the annual dollar amount determined under s. 50.32 (3) that is in effect at the end of the 12 consecutive calendar month period.
Initial Regulatory Flexibility Analysis
The Department anticipates that the provisions of this proposed rule will have no direct adverse effect on small businesses.
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.
Copies of Rule
Copies of this rule are available without cost by making a request to:
Department of Employe Trust Funds
Office of the Secretary
P.O. Box 7931
Madison, WI 53707-7931
Telephone (608) 266-1071
Contact Information
For questions about this rule-making, please call:
Diane M. Bass
Disability Programs Bureau
Division of Insurance Services
Telephone (608) 266-8083
Notice of Hearing
Financial Institutions
(Division of Banking)
Pursuant to s. 227.17, Stats, notice is hereby given that the Department of Financial Institutions, Division of Banking will hold a public hearing at the time and place indicated below to consider the creation of ch. DFI-Bkg 4, regarding financial subsidiaries.
Hearing Information
March 27, 2000 Tommy G. Thompson
Monday Conference Room
9:00 a.m. 5th Floor
Dept. of Financial Institutions
345 W. Washington Ave.
Madison, WI 53703
This facility is accessible to individuals with disabilities through levels A, B or the first floor lobby. If you require reasonable accommodation to access any meeting, please call Lisa Bauer at (608) 264-7877 or TDY (608) 266-8818 for the hearing impaired at least 10 days prior to the hearing date. Reasonable accommodation includes materials prepared in an alternative format, as provided by the Americans with Disabilities Act.
Text of the Proposed Rule
SECTION 1. CHAPTER DFI—Bkg 4 is created to read:
Chapter DFI—Bkg 4
FINANCIAL SUBSIDIARIES
DFI—Bkg 4.01 DEFINITIONS. In this chapter:
(1) “Affiliate," “company," “control," and “subsidiary" have the meanings set forth in s. 221.0901, Stats.
(2) “Division" means the division of banking.
(3) “Financial activity" means any activity defined to be financial in nature or incidental to a financial activity for bank holding companies pursuant to 12 USC 1843(k)(4), and any activity determined by the Secretary of the Treasury to be financial in nature or incidental to a financial activity for financial subsidiaries of national banks in accordance with 12 USC 24a(b)(1)(B).
(4) “Financial institution" means a state bank chartered under ch. 221, Stats.
(5) “Financial subsidiary" means any company that is controlled by one or more insured depository institution other than a subsidiary that a financial institution is authorized to control under other applicable law, or a subsidiary that engages solely in activities that a financial institution is permitted to engage in directly and are conducted subject to the same terms and conditions that govern the conduct of such activities by the financial institution.
(6) “Insured depository institution" has the meaning set forth in 12 USC 1813(c)(2).
(7) “Well capitalized" has the meaning set forth in 12 USC 1831o(b)(1)(A).
DFI—Bkg 4.02 CONTROL AND INTEREST. Subject to s. DFI—Bkg 4.03 and s. DFI—Bkg 4.04, a financial institution may control a financial subsidiary or hold an interest in a financial subsidiary to engage in financial activities.
DFI—Bkg 4.03 APPLICATION. A financial institution desiring to control or hold an interest in a financial subsidiary shall apply to the division on forms prescribed by the division and shall pay the fee prescribed by the division. An application submitted to the division shall either be approved or disapproved by the division in writing within 30 days after its submission to the division. The division and the financial institution may mutually agree to extend the application period for an additional period of 30 days.
DFI—Bkg 4.04 CONDITIONS AND REQUIREMENTS. (1) A financial institution may control a financial subsidiary or hold an interest in a financial subsidiary to engage in financial activities only if the financial subsidiary engages in financial activities or activities in which the financial institution is permitted to engage under other applicable law. The financial subsidiary may also engage in any other activity approved by rule of the division. However, the financial subsidiary may not engage in any activity as a principal that is not permissible for a financial subsidiary of a national bank as a principal unless the activity is authorized by the Federal Deposit Insurance Corporation pursuant to 12 USC 1831a.
(2) The financial institution must receive the prior approval of the division to control or hold an interest in a financial subsidiary.
(3) The financial institution and each insured depository institution affiliate of the financial institution must be well capitalized (after the capital deduction required under s. DFI—Bkg 4.05)).
(4) The financial institution must meet any requirements of 12 USC 1831w applicable to the financial institution.
(5) The division may establish additional limits or requirements on financial institutions and financial subsidiaries if the division determines that the limits or requirements are necessary for the protection of depositors, members, investors or the public.
