CR 19-097 Rule Text

State of Wisconsin

Department of Employee Trust Funds

Employee Trust Funds Board

Wisconsin Retirement Board

Teachers Retirement Board

The scope statement for this rule, SS 017-19, was approved by the Governor on January 30, 2019, published in Register No. 758A2, on February 11, 2019, and approved by ETF Secretary Robert Conlin on March 22, 2019.

The Wisconsin department of employee trust funds proposes an order to repeal ETF 50.42 (1), (3m) and (4), 50.44 (2), 50.46, 50.48, 50.50, 50.54 (2), and 50.56 (2) (b); to renumber and amend 50.44 (1); to amend ETF 50.30 (1g), 50.40, 50.54 (3) and (4), 50.56 (title), (3) (a) 1., 4 (a), and (5), 50.62 (1) and (Notes) 1. and 2., 52.16 (4) (b) 2., 52.22 (3), and 52.24 (1); and to repeal and recreate ETF 50.58, 50.60 and 52.16 (6); relating to updating ETF rules to reflect the closure of the Long-Term Disability Insurance program to new claims and making technical changes to the ETF rules related to the Duty Disability Program established by s. 40.65, Stats.

Analysis Prepared by the Department of Employee Trust Funds

1.   Statutes interpreted:

Sections 40.63 and 40.65 Stats.

2.   Statutory authority:

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

3.   Explanation of agency authority:

By statute, the ETF Secretary is expressly authorized, with approval by the Employee Trust Funds Board, Wisconsin Retirement Board and Teachers Retirement Board, to promulgate rules that are required for the efficient administration of the fund or of any of the benefit plans established by 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.

4.   Related statutes or rules:

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

5.   Plain language analysis:

The purpose of this rule is to make technical updates to account for the previous closure of the Long-Term Disability Insurance program (LTDI) to new claims effective January 1, 2018. This consists of changes to ETF 50 such as repealing sections of the rules that are no longer in effect due to the closure of LTDI, changing verb tenses to past tense, removing references in ETF 50 to sections of ETF 50 that are being repealed, and updating the percentages used to calculate annual adjustments to benefits to reflect current percentages.

Additionally, ETF proposes minor technical modifications to the regulations related to the Duty Disability Program established by s. 40.65, Stats. These modifications to ETF 52 add clarification to the current language in ETF 52, such as adding language to clarify the meaning of earnings for purposes of offsetting duty disability benefits.

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

There are no existing or proposed federal regulations that directly pertain to this proposed rule.

7.   Summary of public comments and feedback on the statement of scope:

Pursuant to s. 227.136, Stats. a preliminary public hearing was held on statement of scope, SS 017-19, on March 21, 2019. A corresponding public comment period was also conducted. No members of the public attended the hearing or submitted written comments.

8.   Comparison with rules in adjacent states:

As the changes proposed are technical updates to correct obsolete language and make ETF rules consistent with recent program changes, there is no directly applicable comparison to adjacent states. Periodically, similar agencies in adjacent states promulgate technical rules to update existing administrative rules.

9.   Summary of factual data and analytical methodologies:

Due to the closure of the Long-Term Disability Insurance Program (LTDI) to new claims, the ETF rules contain obsolete regulatory provisions, terms, and cross-references. These changes would allow ETF rules to be consistent with recent program changes, rather than continuing with outdated language in the code.

10.   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 attached economic impact analysis.

11.   Effect on small business:

The rule has no effect on small businesses.

12.   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.

13.   Fiscal Estimate

Please see the attached fiscal estimate.

14.   Agency contact person (including e-mail and telephone):

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. E-mail: [e-mail]. Telephone: [phone].

15.   Place where comments are to be submitted and deadline for submissions:

Written comments on the proposed rule may be submitted to David Nispel, General Counsel, Department of Employee Trust Funds, P.O. Box 7931, Madison, WI 53707, or emailed to [e-mail]. Written comments must be received at the Department of Employee Trust Funds no later than 4:30 p.m. on [date to be determined].