Written comments on the proposed rule may be submitted to David Nispel, Deputy Chief Counsel, Department of Employee Trust Funds, 801 W. Badger Road, P. O. Box 7931, Madison, WI 53707. Written comments must be received at the Department of Employee Trust Funds no later than 4:30 p.m. on Thursday, March 20, 2008.
Analysis Prepared by the Department of Employee Trust Funds
Statute interpreted
Section
40.80, Wis. Stats.
Statutory authority
Explanation of agency authority
By statute, the DETF 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
Ch.
ETF 70, Wis. Admin. Code, establishes a procedure for administration of the deferred compensation program as provided by s.
40.80, Wis. Stats. There are no other related administrative rules or statutes.
Plain language analysis
The purpose of this rule is to adjust the start date for phasing out a primary or alternate plan in order to reduce complications associated with the phase out and to expand financial emergency hardship withdrawals to include hardships for a named beneficiary.
Comparison with federal regulations
FUND CLOSURE: There are no know existing or proposed federal regulations that are intended to address the fund closure start date or timeline regulated by this proposed rule.
FINANCIAL HARDSHIPS AND BENEFICIARIES: The proposed rule would be in conformance with changes to federal regulations made by s. 826 of the federal Pension Protection Act of 2006, which expanded financial emergency hardship withdrawals to include hardships for a named beneficiary.
Comparison with rules in adjacent states
FUND CLOSURE: A query to adjacent states and the National Association of Government Defined Contribution Administrators list serve revealed that Wisconsin is unique in providing a specific start date and timeline for fund closures. Most other state programs have not formalized this process or provided a specific timeframe. Based on the query, it appears that the fund closeout process can take, on average, 30 to 90 days, and begins whenever a plan's governing body makes the decision to remove a fund.
FINANCIAL HARDSHIPS AND BENEFICIARIES: In order to be in compliance with recent federal regulations, most states and other s. 457 plan providers are in the process of modifying or already have modified their definition of financial emergency hardship withdrawals to include hardships for a named beneficiary.
Summary of factual data and analytical methodologies
Currently s.
ETF 70.08 (3) requires that phase one of the twelve month investment fund removal process begin on January 1 of the year following the deferred compensation board's decision to remove a fund from the Wisconsin deferred compensation program. Starting the process on January 1
st and ending the process on December 31
st of that calendar year presents many difficulties, including reconciliation requirements and other end of calendar year activities, and additional days that the financial markets are closed for holidays. By eliminating the January 1
st start date and permitting the process to begin six months after the board has made a fund removal decision many of these complications will be eliminated.
The proposed revision would create a rolling fund closure window outside of end of the calendar year complications, but retain the 12-month time frame to notify participants of the pending closure.
Financial emergency hardship withdrawals from the deferred compensation program are permitted under s.
ETF 70.10. The federal Pension Protection Act of 2006 expanded financial emergency hardship withdrawals to include hardships for a named beneficiary. While the Wisconsin Deferred Compensation Plan and Trust Document already provides for this type of hardship withdrawal, there is not a similar provision in the Wisconsin administrative code. It is necessary to revise the administrative rule in order to allow hardship withdrawals for named beneficiaries, which could be done by adding the word “beneficiary" to the applicable subsections of s.
ETF 70.10. The definition of “beneficiary" in this rule is the same as in s.
40.02 (8), Stats.
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 deferred compensation program. The deferred compensation program is an optional, supplementary retirement plan covering only governmental employees.
Initial Regulatory Flexibility Analysis
There is no effect on small business.
Fiscal Estimate
The rule will have no effect on county, city, village, town, school district, technical college district or sewerage district fiscal liabilities or revenues. The rule will have no effect on state funds.
Notice of Hearing
Financial Institutions - General
NOTICE IS HEREBY GIVEN That pursuant to ss.
895.59 (2) and
227.11 (2), Stats., and interpreting s.
895.59, Stats., the Department of Financial Institutions will hold a public hearing at the Department of Financial Institutions, Office of the Secretary, 345 W. Washington Avenue, 5
th Floor, in the City of Madison, Wisconsin, on the
13th day of March, 2008, at 1:00 p.m. to consider a rule to create ch.
DFI-Gen 2 relating to small business enforcement discretion.
Contact Person, Copy of Rule, and Submission of Written Comments
To obtain a copy of the proposed rule or fiscal estimate at no charge, to submit written comments regarding the proposed rule, for substantive questions on the proposed rule, and for questions regarding the agency's internal processing of the proposed rule, contact Mark Schlei, Deputy General Counsel, Department of Financial Institutions, Office of the Secretary, P.O. Box 8861, Madison, WI 53708-8861, tel. (608) 267-1705. A copy of the proposed rule may also be obtained and reviewed at the Department of Financial Institution's website,
www.wdfi.org. Written comments regarding the proposed rule may also be submitted via the department's website contact page, e-mail the secretary. Written comments must be received by the conclusion of the department's hearing regarding the proposed rule.
Analysis Prepared by the Wis. Department of Financial Institutions, Office of the Secretary
Statute(s) interpreted
Statutory authority
Related statute or rule
None.
Explanation of agency authority
Pursuant to s.
895.59 (2), Stats., the legislature directed that the department promulgate a rule that discloses in advance the discretion that the agency will follow in the enforcement of rules and guidelines against a small business.
Summary of proposed rule
The objective of the rule is create ch. DFI—Gen 2. Pursuant to s.
895.59 (2), Stats., the legislature directed that the department promulgate a rule that discloses in advance the discretion that the agency will follow in the enforcement of rules and guidelines against a small business. Pursuant to s.
895.59 (2), Stats., the purpose of this rule is to disclose the discretion the department will follow in the enforcement of rules and guidelines against a small business. The rule sets forth situations when the department shall and shall not exercise discretion in the enforcement of rules or guidelines against a small business.
Summary of and preliminary comparison with existing or proposed federal regulation
None known.
Comparison with rules in adjacent states
None known.
Summary of factual data and analytical methodologies
The department reviewed the requirements of s.
895.59, Stats., and similar rules promulgated by other Wisconsin state agencies.
Analysis and supporting documentation used to determine effect on small business
The rule sets forth, as mandated by the legislature in s.
895.59, Stats., existing department policies. The rule creates no additional requirements on small business.
Fiscal Estimate
The rule's requirements place no additional duties or burdens on state or local government, and hence has no affect on costs to either.
Notice of Hearings
Natural Resources
Fish, Game, etc., Chs.
NR 1—
NOTICE IS HEREBY GIVEN that pursuant to ss.
23.09 (2) (b),
23.11,
27.01 (2) (j),
29.014,
29.041,
29.192 (3),
169.20 and
169.21, Stats., interpreting ss.
23.09 (2) (b),
23.11,
27.01 (2) (j),
29.014,
29.192 (3),
160.20 and
169.21, Stats., the Department of Natural Resources will hold public hearings on revisions to chs.
NR 10,
11,
17,
19 and
45, Wis. Adm. Code, relating to hunting and trapping regulations and the use of department managed lands.
NOTICE IS HEREBY FURTHER GIVEN that pursuant to ss.
29.014 (1),
29.039,
29.041,
29.053 and
227.11 (2) (a), Stats., interpreting ss.
29.014 (1),
29.039,
29.041,
29.053,
29.531 and
29.533, Stats., the Department of Natural Resources will hold public hearings on revisions to chs.
NR 20,
21,
22 and
23, Wis. Adm. Code, relating to fishing on the inland, outlying and boundary waters of Wisconsin.
NOTICE IS HEREBY FURTHER GIVEN that at 7:00 p.m. on Monday, April 14, 2008, the Wisconsin Conservation Congress will hold its election of county delegates in each county. Upon completion of the delegate elections, the joint Spring Hearing/Conservation Congress meeting will convene to take comments on the foregoing rule modifications.
Hearing Information
NOTICE IS HEREBY FURTHER GIVEN that the hearings will be held on Monday, April 14, 2008 at 7:00 p.m. at the following locations:
Adams Adams County Courthouse, Board Room
402 Main Street, Friendship
Ashland Ashland Senior High School, Auditorium,
1900 Beaser Avenue, Ashland
Barron Old Courthouse Building Lower Level
330 E. LaSalle Ave., Barron
Bayfield Bayfield County Old Courthouse,
Second Floor, 117 E. 5th, Washburn
Brown Franklin Middle School, Auditorium,
1234 W. Mason, Green Bay
Buffalo Alma High School, Gymnasium,
S1618 STH 35, Alma
Burnett Siren Government Center, Room 165,
7410 County Road K, Siren
Calumet Calumet County Courthouse, B025,
206 Court Street, Chilton
Chippewa Chippewa Falls Middle School,
750 Tropicana Blvd., Chippewa Falls
Clark Greenwood High School, West Gymnasium,
306 W. Central Ave., Greenwood
Columbia Columbia County Courthouse,
Community Room, 400 DeWitt St., Portage
Crawford Crawford County Courthouse, Court Room,
220 N. Beaumont Road, Prairie du Chien
Dane Dane County Alliant Energy Center,
Exhibition Hall, 1919 Alliant Energy Way,
Madison
Dodge Horicon City Hall, 404 E. Lake Street,
Horicon
Door Sturgeon Bay High School, Auditorium,
1230 Michigan, Sturgeon Bay
Douglas Springs High School, 8993 E. Baldwin Ave.,
Solon Springs
Dunn Dunn County Fish And Game Club,
1900 Pioneer Ave., Menomonie
Eau Claire South Middle School, Auditorium,
2115 Mitscher Ave., Eau Claire
Florence Florence Natural Resources Center,
Highway 70/101, Florence
Fond du Lac Theisen Middle School, 525 E Pioneer Road,
Fond du Lac
Forest Crandon High School, Auditorium,
9750 USH 8 W, Crandon
Grant Grant Co. Youth & Ag Building,
916 E. Elm Street, Lancaster
Green Monroe Middle School
1510 13th Street, Monroe
Green Lake Green Lake High School, Small Gym,
612 Mill St., Green Lake
Iowa Dodgeville High School, Gymnasium,
912 West Chapel Street, Dodgeville
