Rule-Making Notices
Notice of Hearing
Employee Trust Funds
The Wisconsin Department of Employee Trust Funds proposes an order to amend ss.
ETF 70.08 (3) and
70.10, and to create s.
ETF 70.02, relating to the start date for phasing out funds under the Wisconsin deferred compensation plan and to emergency withdrawals for beneficiaries.
Hearing Information
A public hearing on this proposed rule will be held on March 19, 2008 at 1:30 p.m. in Conference Room GB at the offices of the Department of Employee Trust Funds, 801 West Badger Road, Madison, Wisconsin. Persons wishing to attend should come to the reception desk up the stairs (or by elevator) from the main entrance to the building.
Agency Contact Person
Please direct any questions about the proposed rule to David Nispel, Deputy Chief Counsel, Department of Employee Trust Funds, P. O. Box 7931, Madison, WI 53707. The email address:
david.nispel@etf.state.wi.us. The telephone number is: (608) 264-6936.
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.
Submission of Written Comments
Written comments on the proposed rule may be submitted to David Nispel, Deputy Chief Counsel, Department of Employee Trust Funds, 801 W. Badger Road, P. O. Box 7931, Madison, WI 53707. Written comments must be received at the Department of Employee Trust Funds no later than 4:30 p.m. on Thursday, March 20, 2008.
Analysis Prepared by the Department of Employee Trust Funds
Statute interpreted
Section
40.80, Wis. Stats.
Statutory authority
Explanation of agency authority
By statute, the DETF 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.
Related statute or rule
Ch.
ETF 70, Wis. Admin. Code, establishes a procedure for administration of the deferred compensation program as provided by s.
40.80, Wis. Stats. There are no other related administrative rules or statutes.
Plain language analysis
The purpose of this rule is to adjust the start date for phasing out a primary or alternate plan in order to reduce complications associated with the phase out and to expand financial emergency hardship withdrawals to include hardships for a named beneficiary.
Comparison with federal regulations
FUND CLOSURE: There are no know existing or proposed federal regulations that are intended to address the fund closure start date or timeline regulated by this proposed rule.
FINANCIAL HARDSHIPS AND BENEFICIARIES: The proposed rule would be in conformance with changes to federal regulations made by s. 826 of the federal Pension Protection Act of 2006, which expanded financial emergency hardship withdrawals to include hardships for a named beneficiary.
Comparison with rules in adjacent states
FUND CLOSURE: A query to adjacent states and the National Association of Government Defined Contribution Administrators list serve revealed that Wisconsin is unique in providing a specific start date and timeline for fund closures. Most other state programs have not formalized this process or provided a specific timeframe. Based on the query, it appears that the fund closeout process can take, on average, 30 to 90 days, and begins whenever a plan's governing body makes the decision to remove a fund.
FINANCIAL HARDSHIPS AND BENEFICIARIES: In order to be in compliance with recent federal regulations, most states and other s. 457 plan providers are in the process of modifying or already have modified their definition of financial emergency hardship withdrawals to include hardships for a named beneficiary.
Summary of factual data and analytical methodologies
Currently s.
ETF 70.08 (3) requires that phase one of the twelve month investment fund removal process begin on January 1 of the year following the deferred compensation board's decision to remove a fund from the Wisconsin deferred compensation program. Starting the process on January 1
st and ending the process on December 31
st of that calendar year presents many difficulties, including reconciliation requirements and other end of calendar year activities, and additional days that the financial markets are closed for holidays. By eliminating the January 1
st start date and permitting the process to begin six months after the board has made a fund removal decision many of these complications will be eliminated.
The proposed revision would create a rolling fund closure window outside of end of the calendar year complications, but retain the 12-month time frame to notify participants of the pending closure.
Financial emergency hardship withdrawals from the deferred compensation program are permitted under s.
ETF 70.10. The federal Pension Protection Act of 2006 expanded financial emergency hardship withdrawals to include hardships for a named beneficiary. While the Wisconsin Deferred Compensation Plan and Trust Document already provides for this type of hardship withdrawal, there is not a similar provision in the Wisconsin administrative code. It is necessary to revise the administrative rule in order to allow hardship withdrawals for named beneficiaries, which could be done by adding the word “beneficiary" to the applicable subsections of s.
ETF 70.10. The definition of “beneficiary" in this rule is the same as in s.
40.02 (8), Stats.
Analysis and supporting documents used to determine effect on small business
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 deferred compensation program. The deferred compensation program is an optional, supplementary retirement plan covering only governmental employees.
Initial Regulatory Flexibility Analysis
There is no effect on small business.
Fiscal Estimate
The rule will have no effect on county, city, village, town, school district, technical college district or sewerage district fiscal liabilities or revenues. The rule will have no effect on state funds.
Notice of Hearing
Financial Institutions - General
NOTICE IS HEREBY GIVEN That pursuant to ss.
895.59 (2) and
227.11 (2), Stats., and interpreting s.
895.59, Stats., the Department of Financial Institutions will hold a public hearing at the Department of Financial Institutions, Office of the Secretary, 345 W. Washington Avenue, 5
th Floor, in the City of Madison, Wisconsin, on the
13th day of March, 2008, at 1:00 p.m. to consider a rule to create ch.
DFI-Gen 2 relating to small business enforcement discretion.
Contact Person, Copy of Rule, and Submission of Written Comments
To obtain a copy of the proposed rule or fiscal estimate at no charge, to submit written comments regarding the proposed rule, for substantive questions on the proposed rule, and for questions regarding the agency's internal processing of the proposed rule, contact Mark Schlei, Deputy General Counsel, Department of Financial Institutions, Office of the Secretary, P.O. Box 8861, Madison, WI 53708-8861, tel. (608) 267-1705. A copy of the proposed rule may also be obtained and reviewed at the Department of Financial Institution's website,
www.wdfi.org. Written comments regarding the proposed rule may also be submitted via the department's website contact page, e-mail the secretary. Written comments must be received by the conclusion of the department's hearing regarding the proposed rule.
Analysis Prepared by the Wis. Department of Financial Institutions, Office of the Secretary
Statute(s) interpreted
Statutory authority
Related statute or rule
None.
Explanation of agency authority
Pursuant to s.
895.59 (2), Stats., the legislature directed that the department promulgate a rule that discloses in advance the discretion that the agency will follow in the enforcement of rules and guidelines against a small business.
Summary of proposed rule
The objective of the rule is create ch. DFI—Gen 2. Pursuant to s.
895.59 (2), Stats., the legislature directed that the department promulgate a rule that discloses in advance the discretion that the agency will follow in the enforcement of rules and guidelines against a small business. Pursuant to s.
895.59 (2), Stats., the purpose of this rule is to disclose the discretion the department will follow in the enforcement of rules and guidelines against a small business. The rule sets forth situations when the department shall and shall not exercise discretion in the enforcement of rules or guidelines against a small business.
