Rule-Making Notices (Hearing Notices)

Copies of the proposed rule are available without cost by contacting the General Counsel, Department of Employee Trust Funds, P. O. Box 7931, Madison, WI 53707-7931. You can also obtain a copy by calling [phone] or by emailing [e-mail].

Analysis Prepared by the Department of Employee Trust Funds

Statutes interpreted

Sections 40.01 (1) and (2), 40.05 (4) (b), 40.23 (2m) (er) and (3) (b), 40.26, 40.285 (2) (b), 40.55, and 40.80, Stats.

Statutory authority

Sections 40.03 (2) (i), (ig), and (ir) and 227.11 (2) (a), Stats.

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.

In addition, 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 statutes or rules

There are no other related statutes or administrative rules directly related to this technical rule.

Plain language analysis

The objective of this technical rule is to make technical updates to existing ETF rules, delete obsolete language in ETF rules, create consistency with provisions in 2013 Wisconsin Act 20 related to rehired annuitants, and make other minor substantive changes.

Summary of, and comparison with, existing or proposed federal statutes and regulations

The only federal regulations that may be affected by this proposed rule are provisions of the Internal Revenue Code regulating qualified pension plans. The Wisconsin Retirement System is required to be maintained as a qualified plan by s. 40.015, Stats.

Comparison with rules in adjacent states

Periodically, retirement systems in adjacent states promulgate technical rules to update existing administrative rules.

Summary of factual data and analytical methodologies

The department is proposing this rule to update existing rules and interpretations of existing statutes.

Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis

This 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. Please see economic impact analysis below.

Effect on Small Business

The rule has no effect on small businesses.

Regulatory Flexibility Analysis

The proposed rule has no effect on small businesses because only governmental employers and their employees may participate in the benefit programs under ch. 40 of the statutes administered by the Department of Employee Trust Funds.

Fiscal Estimate

Please see the fiscal estimate below.

Agency Contact Person

Please direct any questions about the proposed rule to David Nispel, General Counsel, Department of Employee Trust Funds, P.O. Box 7931, Madison, WI 53707. The e-mail address: [e-mail]. The telephone number is: [phone].

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

1. Type of Estimate and Analysis
X Original   ⍽ Updated   Corrected
2. Administrative Rule Chapter, Title and Number
ETF 10, 11, 20, 40, 41, 52, 55, 60, and 70
3. Subject
Technical and minor substantive changes in existing ETF administrative rules
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   ⍽ FED   ⍽ PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S
6. Fiscal Effect of Implementing the Rule
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers ⍽ Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes   X No
9. Policy Problem Addressed by the Rule
The objective of this technical rule is to make technical updates to existing ETF rules, delete obsolete language in ETF rules, create consistency with provisions in 2013 Wisconsin Act 20 related to rehired annuitants, and make other minor substantive changes.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
Information, including the proposed rule language, will be made available by posting on the ETF website and the Wisconsin administrative rules website and by submitting the information to the Governor's Office of Regulatory Compliance.
11. Identify the local governmental units that participated in the development of this EIA.
None
12. 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)
No substantive impact is anticipated.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Implementation of the Rule will update ETF adminstrative code provisions to be consistent with recent statutory changes. This will enhance clarity and minimize confusion for the general public and public employers. The Rule deletes obsolete language from ETF administrative code provisions, such as multiple references throughout ETF Chapter 70 to "primary and alternative" plans within the Wisconsin Deferred Compensation Program. Such changes moderize the code and bring it into conformance with present-day realities. The Rule also makes minor changes to reflect current ETF administrative practices and to correct minor technical inacuracies in the existing code. The alternative would be to fail to comply with recent legislative changes, and allow obsolete language to continue to exist.
14. Long Range Implications of Implementing the Rule
Implementation will bring the affected ETF rules into compliance with recent legislative changes, update affected ETF rules to reflect current administrative practices and delete obsolete language from ETF rules.
15. Compare With Approaches Being Used by Federal Government
Not applicable
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
Periodically, retirement systems in adjacent states promulgate technical rules to update existing administrative rules.
17. Contact Name				18. Contact Phone Number
David H. Nispel, General Counsel				608-264-6936

This document can be made available in alternate formats to individuals with disabilities upon request.

ATTACHMENT A

1. Summary of Rule's Economic and Fiscal Impact on Small Businesses (Separately for each Small Business Sector, Include Implementation and Compliance Costs Expected to be Incurred)

Not applicable

2. Summary of the data sources used to measure the Rule's impact on Small Businesses

Not applicable

3. Did the agency consider the following methods to reduce the impact of the Rule on Small Businesses?

⍽ Less Stringent Compliance or Reporting Requirements ⍽ Less Stringent Schedules or Deadlines for Compliance or Reporting ⍽ Consolidation or Simplification of Reporting Requirements ⍽ Establishment of performance standards in lieu of Design or Operational Standards ⍽ Exemption of Small Businesses from some or all requirements ⍽ Other, describe: Small business analysis is not applicable.

4. Describe the methods incorporated into the Rule that will reduce its impact on Small Businesses

Not applicable

5. Describe the Rule's Enforcement Provisions

Not applicable

6. Did the Agency prepare a Cost Benefit Analysis (if Yes, attach to form)

⍽ Yes X No