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 005-23, was approved by the Governor on December 15, 2022, published in Register No. 805A3, on January 17, 2023, and approved by ETF Secretary A. John Voelker on January 30, 2023. The Wisconsin department of employee trust funds proposes an order to repeal ETF 10.61 and 62, 10.82 (2) (f) 3., 52.06 (1) and (2) (b), and 52.10 (2); to renumber ETF 10.50, 10.82 (2) (f) 1., 52.06 (2) (a), and 52.10 (1); to amend ETF 10.01 (3d), 10.64 (1), 10.75 (2) (e), 20.03 (1), 20.07 (3), (5) and (5) Note, 20.35 (1) (a), 50.58 (2), 52.07 (3) (d), 52.28 (2), and 60.53 (2) (e) 1. c., (2) (f) and (2) (g); and to create ETF 10.50 (2), 20.35 (1) (a) Note, and 50.315; relating to technical and minor substantive changes to update ETF rules.
Analysis Prepared by the Department of Employee Trust Funds
1. Statutes interpreted:
2. Statutory authority:
3. Explanation of agency authority:
By statute, the ETF Secretary is expressly authorized, with approval by the Employee Trust Funds Board, Teachers Retirement Board and Wisconsin 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. Brief summary of the proposed rule:
The objective of this rule is to make technical updates to existing ETF rules, delete obsolete language in ETF rules, and make other minor substantive changes. The changes include updating the code to be consistent with required minimum distribution provisions of the federal Setting Every Community Up for Retirement Enhancement (SECURE) Act, SECURE 2.0 Act and 2021 Wisconsin Act 245, updating the definition of “guardian” to be consistent with changes in the child guardianship law, removing obsolete sections related to Social Security wage reporting requirements, adding a reference to the Chapter 244 definition of “incapacity” to power of attorney requirements, clarifying that sick leave must be earned during participating employment to be used in the calculation of accumulated sick leave credits, amending the code to round an annuity applicant’s age to the nearest month, rather than the nearest quarter year for annuity option conversion purposes, require a domestic relations order to be submitted on ETF’s form, correcting outdated cross-references, and other minor changes.
6. Summary of, and comparison with, existing or proposed federal statutes and regulations:
The required minimum distribution (RMD) provisions of the of the federal SECURE Act are codified at 26 U.S.C. § 401 (a) (9). Recent amendments change the required beginning date for RMDs. The Wisconsin Retirement System is a qualified plan under the federal Internal Revenue Code and must comply with 26 U.S.C. § 401 (a) (9).
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 changes in Wisconsin law, 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 changes in Wisconsin law, the ETF rules contain obsolete regulatory provisions, terms, and cross-references. The proposed technical changes would allow ETF rules to be consistent with recent changes in Wisconsin law, rather than continuing with outdated language in the code. Additionally, correction of obsolete terms and incorrect links will make the ETF rules more accurate and prevent confusion by those subject to the rules.
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.
11. 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. 12. Fiscal Estimate
Please see the attached fiscal estimate.
13. Agency contact person (including e-mail and telephone):
Please direct any questions about the proposed rule to Daniel Hayes, Attorney, Department of Employee Trust Funds, P.O. Box 7931, Madison, WI 53707. E-mail: daniel.hayes@etf.wi.gov. Telephone: (608) 266-0222. 14. Place where comments are to be submitted and deadline for submissions:
Written comments on the proposed rule may be submitted to Daniel Hayes, Attorney, Department of Employee Trust Funds, P.O. Box 7931, Madison, WI 53707 or submitted via email to etfadminrulecomments@etf.wi.gov. Written comments must be received at the Department of Employee Trust Funds no later than 4:30 p.m. on June 1, 2023. 15. Proposed Effective Date:
This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.), Stats. 16. Free Copies of Proposed Rule:
Copies of the proposed rule are available without cost by contacting the Department of Employee Trust Funds, P. O. Box 7931, Madison, WI 53707-7931. You can also obtain a copy by calling (608) 266-0222 or by emailing daniel.hayes@etf.wi.gov.
