The Wisconsin Department of Employee Trust Funds (ETF) proposes an order pursuant to s.
227.14, Stats., to amend administrative rules s.
ETF 10.01 (3i) and
10.65 and to create ss.
ETF 10.65 (Note), 10.86, 20.0251, and 20.0251 (Note) to clarify how ETF complies with applicable provisions of the Internal Revenue Code (IRC).
A public hearing on the proposed rule will be held.
Hearing Information
Date: Thursday, February 13, 2013
Time: 2:00 p.m.
Location: Conference Room GB
Offices of the Department of Employee Trust Funds
801 West Badger Road
Madison, WI 53713
Persons wishing to attend should come to the reception desk up the stairs (or by elevator) from the main entrance to the building.
Place Where Comments Are To Be Submitted and Deadline for Submissions
Comments may be submitted to the contact person no later than 4:30 p.m., Wednesday, February, 20, 2013. The public hearing will be held at 2:00pm on Wednesday, February 13, 2013 in conference room GB of the Wisconsin Employee Trust Fund building at 801 W. Badger Rd, Madison, WI 53713.
Free 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.
Analysis Prepared by the Department of Employee Trust Funds
Statutes interpreted
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.
The ETF Secretary is also required by statute to ensure that the WRS maintains compliance with the Internal Revenue Code (IRC) as a qualified plan for tax purposes and each plan is administered in compliance with the code. Numerous provisions in Chapter
40 require ETF to comply with the internal revenue code.
Related statutes or rules
There are no other relevant statutes or rules that are related to WRS compliance with the IRC that are not addressed in this rule.
Plain language analysis
Clarify how ETF treats specific situations under the IRC to ensure WRS compliance.
These changes are consistent with current statutory requirements.
• Amending the definition of “maximum voluntary contribution" to clarify that ETF will adjust the amounts according to the limits set by the Internal Revenue Service(IRS) and which are changed periodically.
• Amending s.
ETF 10.65 regarding the refund of excess contributions to clarify that refunds will be processed as required by the IRS.
• Clarifies that ETF will not violate section 503(b) of the IRC regarding prohibited transactions.
• Clarifies that ETF is maintained for the exclusive benefit of participants and their beneficiaries, as required by the IRC.
Summary of, and comparison with, existing or proposed federal statutes and regulations
This rule complies with the IRS, IRS regulations and other requirements. The rules are written to ensure continued compliance with these laws, regulations and requirements.
Comparison with rules in adjacent states
Please see attached Fiscal and Economic Impact Analysis.
Summary of factual data and analytical methodologies
The proposed rule is intended to clarify ETF's rules regarding compliance with the IRC. ETF worked closely with its outside tax counsel to develop the proposed rule.
Accuracy, integrity, objectivity and consistency of data
The present rule changes were a result of recommendations from ETF's outside tax counsel and as required to maintain compliance with the internal revenue code. ETF conducted analysis with integrity in an accurate, objective, and consistent manner in accordance with its fiduciary responsibilities to its members.
Analysis and supporting documents used to determine effect on small business or in preparation of an economic impact analysis
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.
Effect on Small Business
There is no effect on small business.
Proposed Effective Date
This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided by s.
227.22 (2) (intro.), Stats.
Fiscal Estimate
The rule will not have any fiscal effect on the administration of the Wisconsin Retirement System, nor will it have any fiscal effect on the private sector, the state or on any county, city, village, town, school district, technical college district, or sewerage districts.
Agency Contact Person
Mary Alice McGreevy, Compliance Officer, Department of Employee Trust Funds, P.O. Box 7931, Madison WI 53707. Phone: 608-267- 2354; E-mail:
maryalice.mcgreevy@ etf.wi.gov.
ADMINISTRATIVE RULES
FISCAL ESTIMATE
AND ECONOMIC IMPACT ANALYSIS
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Type of Estimate and Analysis
|
X Original ⍽ Updated ⍽ Corrected
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Administrative Rule Chapter, Title and Number
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Amend ETF 10.01(3i), 10.65 and create ETF 10.85 and 20.0251 regarding compliance with the Internal Revenue Code.
|
Subject
|
Internal Revenue Code compliance.
|
Fund Sources Affected
|
Chapter 20 , Stats. Appropriations Affected
|
⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S
|
|
Fiscal Effect of Implementing the Rule
|
X No Fiscal Effect
⍽ Indeterminate
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⍽ Increase Existing Revenues
⍽ Decrease Existing Revenues
|
⍽ Increase Costs
⍽ Could Absorb Within Agency's Budget
⍽ Decrease Costs
|
The Rule Will Impact the Following (Check All That Apply)
|
⍽ State's Economy
⍽ Local Government Units
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⍽ Specific Businesses/Sectors
⍽ Public Utility Rate Payers
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Would Implementation and Compliance Costs Be Greater Than $20 million?
⍽ Yes X No
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Policy Problem Addressed by the Rule
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This rule-making is needed to amend the existing rules and create new rules to clarify how the Wisconsin Retirement System complies with the Internal Revenue Code.
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Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
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There is no economic and fiscal impact on small business, business sectors, public utility rate payers, local governmental units and the state's economy as a whole. The rule change addresses the need to clarify how the Wisconsin Retirement System complies with the Internal Revenue Code.
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Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
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The rule language more accurately reflects tax requirements under IRC §§ 401 (a) and 415. The agency does not see alternatives to achieving the policy goal of the rule amendments.
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Long Range Implications of Implementing the Rule
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There are no long range economic or fiscal impacts of the rule.
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Compare With Approaches Being Used by Federal Government
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The proposed rule amendments are required to maintain written plan document compliance with federal tax requirements under IRC §§401 (a) and 415. Therefore the goal of the rule amendment is to more accurately reflect current legal requirements under the federal government.
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Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
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Illinois — The Illinois Pension Code provides comparable provisions regarding compliance of the public employee pension system with the Internal Revenue Code.
Iowa — The Iowa Public Employees' Retirement System is governed by Iowa Code Chapter 97(B) and Chapter 495 of the Iowa Administrative Rules. These laws and rules provide comparable provisions regarding compliance of the public employee pension system with the Internal Revenue Code.
Michigan — Chapter 38 of the Michigan Statutes contain some provisions that are comparable regarding the State Employees' Defined Benefit Pension Plan compliance with the Internal Revenue Code.
Minnesota — Chapters 352 to 356A of the Minnesota Statutes contain some provisions that are comparable regarding compliance of the Public Employees' Retirement Association Defined Benefit Pension Plan with the Internal Revenue Code.
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Notice of Hearing
Natural Resources
Fish, Game, etc., Chs.
NR 1—
(DNR # ER-19-10)
NOTICE IS HEREBY GIVEN THAT pursuant to ss.
227.16 and
227.17, Wisconsin Stats, the Department of Natural Resources will hold a public hearing to discuss revisions to Chapter
NR 18, Wisconsin Administrative code on Wisconsin's falconry rules related to governing the sport of falconry,
on the date and at the time and location listed below.
Hearing Information
Date: Tuesday, February 12, 2013
Time: 6:00 p.m. until 8:00 p.m.
Location: Fitchburg DNR Service Center
3911 Fish Hatchery Road
Fitchburg, WI 53711
A public hearing will be held to discuss revisions to Wisconsin's falconry administrative code, ch.
NR 18. The hearing will be held in the Gathering Waters Room of the Fitchburg Service Center, and the presiding hearing officer will be DNR Attorney Michael Kowalkowski. There will be
Live Meeting availability for those who are unable to attend in person.
Pursuant to the Americans with Disabilities Act, reasonable accommodations, including the provision of informational material in an alternative format, will be provided for qualified individuals with disabilities upon request. Contact Sumner Matteson in writing at the Department of Natural Resources, Bureau of Endangered Resources (ER/6),101 S Webster, Madison, WI 53707; by E-mail to
Sumner.matteson@wisconsin.gov or by calling (608) 266-1571.
For more information or to request a Live Meeting link, please contact Sumner Matteson at the addresses or numbers above.
Availability of the proposed rules and Submitting Comments
The proposed rule and supporting documents may be reviewed and comments can be electronically submitted at the following internet site:
http://adminrules.wisconsin.gov. A copy of the proposed rule and supporting documents may also be obtained from Sumner Matteson, Department of Natural Resources, Bureau of Endangered Resources (ER/6), 101 S. Webster St, Madison, WI, 53703, by calling (608) 266-1571or by contacting
Sumner.matteson@wisconsin. gov and at
www.legis.state.wi.us/rsb/code.htm (Wisconsin Administrative Register).
Written comments on the proposed rule may be submitted via U.S. mail or email to Sumner Matteson at the addresses noted above. Written comments, whether submitted electronically or by U.S. main, will have the same weight and effect as oral statements presented at the public hearings. Comments may be submitted until February 12, 2013.
Analysis Prepared by the Department of Natural Resources
Chapter
NR 18 is being revised to comply with federal regulations governing the sport of falconry. The US Fish and Wildlife Service will no longer issue a permit to individuals engaged in falconry; permits will be issued by states with oversight by the Service.
Statutes interpreted
Section
29.319, Wis. Stats., Falconry Regulation.
Statutory authority
Explanation of agency authority
The department holds authority under Wis. Stat. s.
29.319 to regulate falconry and the taking of raptors for falconry. The department is also authorized to establish rules for falconry, which is administrative code ch.
NR 18. The department may provide permits to both Wisconsin residents and non-residents. The department is also authorized to charge a fee for these permits and to deposit these fees in the Endangered Resources Fund, s.
20.370 (1) (fs) Wis. Stats.
Related statute or rule
Chapter
NR 18, governing the sport of falconry.
Statutory section Title [or subject]
29.014(1)
Rule making for Ch.
29
29.039 Non game species
169.04 Possession of live wild animals.
169.05 Taking of wild animals.
169.06 Introduction, stocking, and release of wild animals.
169.07 Exhibition of live wild animals.
169.10 Sale and purchase of live wild animals.
227.11 (2) Rule making authority.
Plain language analysis
The proposed rule defines and clarifies different falconry terms and conditions.
Summary of, and comparison with, existing or proposed federal regulations
The U.S. fish and wildlife service will no longer issue a permit to individuals engaged in the sport of falconry. Pursuant to
50 CFR 21.29(b), permits will be issued by states with oversight provided by the Service. The Service has formulated revisions as to how the sport of falconry is to be conducted and supervised by the states. The proposed rule makes the revisions to current code to ensure compliance with federal rules by January 1, 2014.
Comparison with rules in adjacent states
All states must comply with federal rules pertaining to the sport of falconry by January 1, 2014.
Summary of factual data and analytical methodologies
