CR 19-097 Rule Text

Fiscal Estimate and Economic Impact Analysis   4

Text of Rule   5-9

Department of Administration s. 227.137 Report   None

Energy Impact Report   None

Legislative Council Staff Clearinghouse Report   10-12

Response to Legislative Council Staff Recommendations   13

List of Persons Who Appeared or Registered at the Public Hearing   13

Summary of Public Comments   13

Modifications to the Rule as Originally Proposed as a Result of Public Comments   13

Modifications to the Analysis Accompanying the Proposed Rule   13

Modifications to the Fiscal Estimate   13

Board Authorization for Promulgation   13

Effective Date   13

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.

Agency Person to be Contacted for Questions

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

Statement Explaining Need for Rule

This rulemaking is needed to bring the code up to date with the closure of the Long-Term Disability Insurance program (LTDI), which was closed to new applications on January 1, 2018. The rule also makes two minor changes to clarify provisions related to the duty disability program.

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 LTDI program 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 two minor technical modifications to the regulations related to the Duty Disability Program established by s. 40.65, Stats. These modifications clarify the amount of benefits refunded when the amount of benefits withheld pending receipt of worker’s compensation benefits exceeds the amount of lump sum worker’s compensation benefits eventually received and clarify to whom survivor benefits are not available in certain situations.

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.   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.

8.   Summary of factual data and analytical methodologies:

Due to the closure of the LTDI program 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.

9.   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.

10.   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 and Economic Impact Statement:

Please see the attached Fiscal Estimate and Economic Impact Statement.

Text of Proposed Rule

SECTION 1. ETF 50.30 (1g) is amended to read:

  ETF 50.30 (1g) For purposes of eligibility under s. 40.63 (1), Stats., and notwithstanding s. ETF 50.46 (2) (b), an election of coverage filed under s. ETF 50.46 (1) to receive benefits under subch. III previously filed with the department will not cause a person to be ineligible for a disability annuity if a claim is filed on or after January 1, 2018 and the person is not receiving benefits under subch. III.

SECTION 2. ETF 50.40 is amended to read:

  ETF 50.40 Purpose. The purpose of this subchapter is to provide administer the long-term disability insurance coverage to program for participating employees as of October 15, 1992, who elect its benefits as provided in s. ETF 50.46 and to all persons who become participating employees on or after October 16, 1992, who are receiving benefits under this subchapter or who have filed a claim for benefits. For a claim to be approved under this subchapter, it must have been filed with the department before January 1, 2018.