Chapter ETF 70
DEFERRED COMPENSATION PLANS
Subchapter I — General Provisions
ETF 70.01 Statement of purpose.
ETF 70.03 Board responsibilities.
ETF 70.04 Department responsibilities.
ETF 70.05 Primary plan administration.
ETF 70.06 Alternate plan administration.
ETF 70.07 Primary and alternate plan administration.
ETF 70.08 Investment providers.
ETF 70.09 Member responsibilities.
ETF 70.10 Emergency withdrawals.
Subchapter II — State Deferred Compensation Plan for Local Employees
ETF 70.11 Participation in the deferred compensation plan.
ETF 70.12 Effective date.
ETF 70.15 Terminating participation in the deferred compensation plan.
ETF 70.01
ETF 70.01
Statement of purpose. The purpose of this chapter is to establish a procedure for administration of a deferred compensation program as provided by s.
40.80, Stats. The procedure includes requirements and regulations for the primary deferred compensation plan and any alternate deferred compensation plan. All plans shall be monitored, evaluated and approved by the deferred compensation board. However, only the primary plan shall be supported by the board as the official state of Wisconsin deferred compensation plan.
ETF 70.01 History
History: Cr.
Register, June, 1992, No. 438, eff. 7-1-92.
ETF 70.02
ETF 70.02
Definitions. In this chapter, words and phrases shall have the following meanings:
ETF 70.02(1)
(1) “Administrator" means any company with which the board contracts to provide administrative services for deferred compensation plans authorized under s.
40.80, Stats.
ETF 70.02(2)
(2) “Alternate administrator" means any company with which the board contracts to provide administrative services for an alternate deferred compensation plan authorized under s.
40.80 (2m), Stats.
ETF 70.02(3)
(3) “Alternate plan" means any deferred compensation plan authorized under s.
40.80 (2m), Stats., and offered by an alternate administrator.
ETF 70.02(5)
(5) The “board" means the deferred compensation board.
ETF 70.02(6)
(6) The “department" means the department of employee trust funds.
ETF 70.02(7)
(7) “Employee" means any person who receives earnings as payment for personal services rendered for the benefit of any employer including officers of the employer and is eligible to participate in the deferred compensation program.
ETF 70.02(8)
(8) “Investment product" means any insurance or annuity contract, bank or credit union account, mutual or money market fund or other type of investment vehicle.
ETF 70.02(9)
(9) “Investment provider" means any company that manages and offers investments products.
ETF 70.02(10)
(10) “Member" means any employee electing to participate in the deferred compensation program.
ETF 70.02(11)
(11) “Plan and trust document" means the document developed by the department and approved by the board to describe in detail the regulations of the program and ensure program compliance with section
457 of the internal revenue code which requires the availability of this document to members.
ETF 70.02(12)
(12) “Primary administrator" means the company contracted to provide administrative services for the primary deferred compensation plan authorized under s.
40.80 (1), Stats.
ETF 70.02(13)
(13) “Primary plan" means the deferred compensation plan authorized under s.
40.80 (1), Stats., and offered by the primary administrator.
ETF 70.02(14)
(14) “Program" includes the primary plan and any alternate plan authorized under s.
40.80, Stats., and approved by the board for offering to eligible employees.
ETF 70.02 History
History: Cr.
Register, June, 1992, No. 438, eff. 7-1-92;
CR 08-016: cr. (4m)
Register August 2008 No. 632, eff. 9-1-08;
CR 11-040: renum. (1) to (4m) to be (intro.) to (4)
Register July 2012 No. 679, eff. 8-1-12;
CR 14-055: am. (11)
Register May 2015 No. 713, eff. 6-1-15.
ETF 70.03
ETF 70.03
Board responsibilities. The board shall have the following responsibilities in regard to the program:
ETF 70.03(1)
(1) Act, at all times, in a manner consistent with that of a trustee with a fiduciary duty to the program and members.
ETF 70.03(2)
(2) Determine and implement the most efficient and cost effective method for administration of the program consistent with high quality services to members.
ETF 70.03(3)
(3) Establish standards by which the primary administrator shall be evaluated for initial and continued participation in the primary plan.
ETF 70.03(4)
(4) Evaluate the performance of the primary administrator, biennially, to determine contractual compliance and compliance with standards as established under sub.
(3).
ETF 70.03(5)
(5) Declare the board's official support of the primary plan to participating employers and members in the publication prepared by the department as required in s.
ETF 70.04 (5) (c).
ETF 70.03(6)
(6) Determine the initial eligibility of any potential alternate administrator that petitions the board to offer an alternate plan based on criteria established in s.
ETF 70.06.
ETF 70.03(7)
(7) Evaluate alternate administrators, annually, based on criteria established in s.
ETF 70.06 to determine their continued eligibility.
ETF 70.03(8)
(8) Define general categories of investment products to be offered under the primary plan and any alternate plan.
ETF 70.03(9)
(9) Establish criteria by which specific investment products shall be evaluated for initial and continued participation in the primary plan or any alternate plan.
ETF 70.03(10)
(10) Evaluate investment products offered by the administrator, annually, based on criteria established in sub.
(9) to determine if the investment product continues to be acceptable for offering by the primary plan or alternate plan.
ETF 70.03 History
History: Cr.
Register, June, 1992, No. 438, eff. 7-1-92;
CR 11-040: renum. (1) to (11) to be (intro.) to (10), correction in (4), (5), (10), as renumbered, made under s. 13.92 (4) (b) 7., Stats.,
Register July 2012 No. 679, eff. 8-1-12;
CR 19-126: am. (4) Register May 2021 No. 785, eff. 6-1-21. ETF 70.04
ETF 70.04
Department responsibilities. The department shall be responsible for the following:
ETF 70.04(1)
(1) Negotiate and implement contracts with administrators and investment companies.
ETF 70.04(2)
(2) Monitor plan administration and ensure contract compliance.
ETF 70.04(3)
(3) Develop and maintain a plan document that defines rules and requirements of the program regarding member enrollment in the program, member deferral amounts, distribution of account balances, and administration of the program that will be distributed, by the administrator, to new and current members by request.
ETF 70.04(4)
(4) Provide information and recommendations to the board and its committees that shall be necessary to complete the evaluation of the primary and alternate administrator as required in s.
ETF 70.03 (4) and
(7) and the investment products as required in s.
ETF 70.03 (10).
ETF 70.04(5)
(5) Prepare and distribute to members an annual publication that presents a balanced and impartial overview of the primary plan and any alternate plan that includes the following:
ETF 70.04(5)(a)
(a) Description of investment products and corresponding investment risks.
ETF 70.04(5)(b)
(b) Full disclosure of all direct and indirect costs to members.
ETF 70.04(5)(d)
(d) General information about deferred compensation plans including the maximum deferral amount allowed under internal revenue code section 457.
ETF 70.04(6)
(6) Review and approve all material prepared by the primary administrator and alternate administrator to describe the primary plan and alternate plan and investment products to eligible employers, employees and members.
ETF 70.04(7)
(7) Review and issue a determination on all requests for emergency withdrawals as defined in s.
ETF 70.10.
ETF 70.04(8)
(8) Provide reports to the board at each board meeting that detail emergency withdrawals, enrollment statistics, plan assets and any other information that may be requested by the board.
ETF 70.04 History
History: Cr.
Register, June, 1992, No. 438, eff. 7-1-92;
CR 11-040: renum. (1) to (9) to be (intro.) to (8), correction in (5), (6) (c) made under s.
13.92 (4) (b) 7., Stats.,
Register July 2012 No. 679, eff. 8-1-12.
ETF 70.05
ETF 70.05
Primary plan administration. ETF 70.05(1)(1)
Based upon a request for proposal process, the board shall contract with one primary administrator to offer the primary plan that is approved and officially supported by the board. The administrator awarded the contract for the primary plan shall have:
ETF 70.05(1)(a)
(a) At least 5 years experience administering other section 457 deferred compensation programs. The administrator's experience shall include administering at least one program that meets each of the following:
ETF 70.05(1)(a)3.
3. Record keeping includes consolidated record keeping for all investment products that are offered.
ETF 70.05(1)(b)
(b) Marketing and enrollment services that include the following:
ETF 70.05(1)(b)1.
1. A staffed office located in Madison and field representatives to provide services to all areas of the state.
ETF 70.05(1)(b)2.
2. Contacts to each eligible employee at least annually to describe the plan being offered by this administrator.
ETF 70.05(1)(b)3.
3. Frequent enrollment opportunities at intervals established by the board.
ETF 70.05(1)(b)4.
4. Presentations to employees that include full disclosure of all direct and indirect costs to members as well as advantages and disadvantages of participating in the plan offered by this administrator.
ETF 70.05(1)(b)5.
5. Literature and forms regarding the plan to be distributed to employees and payroll personnel that are in a form approved by the department.
ETF 70.05(1)(c)1.
1. Unlimited opportunities to increase or decrease deferral amounts.
ETF 70.05(1)(c)2.
2. Unlimited opportunities to redirect deferral amounts to any other investment product offered by the administrator.
ETF 70.05(1)(d)
(d) Accounting procedures and consolidated record keeping for member account transactions that maintains all individual member records and submits deferrals, transfers and withdrawals to the investment companies offering investment products to the primary plan.
ETF 70.05(2)
(2) The potential administrator shall agree to return all interest earned on idle funds of the plan that are held by the administrator to the department to offset plan costs.
ETF 70.05(3)
(3) The potential administrator shall provide the necessary financial disclosure for assurance of its financial soundness.
ETF 70.05(4)
(4) The investment products offered by the primary administrator shall meet the criteria in s.
ETF 70.03 (9) and be approved by the board.
ETF 70.05(5)
(5) The primary administrator shall provide an annual report to the board illustrating the investment performance of all investment products offered by the primary plan, as measured by criteria established under s.
ETF 70.03 (8).
ETF 70.05 History
History: Cr.
Register, June, 1992, No. 438, eff. 7-1-92; correction in (4), (5) made under s.
13.92 (4) (b) 7., Stats.,
Register July 2012 No. 679, eff. 8-1-12;
CR 14-055: am. (1) (a) 1.
Register May 2015 No. 713, eff. 6-1-15.
ETF 70.06
ETF 70.06
Alternate plan administration. ETF 70.06(1)(1)
At its discretion, the board may contract with an alternate administrator to offer an alternate plan. An alternate plan shall not be officially supported by the board. Any administrator that meets the criteria set forth in s.
ETF 70.05 (1),
(2) and
(3) may be allowed to offer an alternate plan. The board shall not contract with more than one alternate administrator at any one time.
ETF 70.06(2)
(2) Investment products offered by an alternate administrator shall meet the criteria as established in s.
ETF 70.03 (9) and be approved by the board and shall not duplicate any of the specific investment products offered by the primary administrator.
ETF 70.06(3)
(3) The alternate administrator shall provide an annual report to the board that describes the investment performance of all investment products offered by the alternate plan, as measured by the criteria in s.
ETF 70.03 (9).
