Department of Employee Trust Funds
Employee Trust Funds Board
Wisconsin Retirement Board
Teachers Retirement Board
FINAL DRAFT REPORT ON CLEARINGHOUSE RULE #17-031
An order to repeal ETF 50.30 (1) (a) to (c) and 50.40 (2); to renumber and amend ETF 50.30 (1) (intro.) and 50.40 (1); to amend ETF 50.30 (1), 50.44 (1) and (2) (a), 50.48 (4) (a) and (c), 50.54 (1), 50.56 (1) (j), (2) (e) and (3) (b), and 50.60 (2) (b); to repeal and recreate ETF 50.46 (2) (d); and create ETF 50.30 (1g), 50.30 (3m) and 50.48 (7), relating to closing the Long-Term Disability Insurance program (LTDI) to new claims and re-opening the Wis. Stat. §40.63 Disability Annuity Program (40.63) to all eligible employees effective January 1, 2018.
Agency Person to be Contacted for Questions 2
Statement Explaining Need for Rule 2
Analysis Prepared by Department of Employee Trust Funds 2
Statutes interpreted 2
Statutory authority 2
Explanation of agency authority 2-3
Related statutes or rules 3
Plain language analysis 3
Summary of, and comparison with, existing or proposed federal regulations 3
Comparison with rules in adjacent states 3-4
Summary of factual data and analytical methodologies 4
Analysis and documentation concerning effect on small businesses 4
Statement of effect on small business 4
Regulatory Flexibility Analysis 4
Fiscal Estimate and Economic Impact Analysis 4
Text of Rule 5-8
Department of Administration s. 227.137 Report None Energy Impact Report None
Legislative Council Staff Clearinghouse Report 9-10
Response to Legislative Council Staff Recommendations 11
List of Persons Who Appeared or Registered at the Public Hearing 11
Summary of Public Comments 11
Modifications to the Rule as Originally Proposed as a Result of Public Comments 11
Modifications to the Analysis Accompanying the Proposed Rule 11
Modifications to the Fiscal Estimate 11
Board Authorization for Promulgation 11
Effective Date 11
The scope statement for this rule, SS 025-17, was approved by the Governor on March 6, 2017, published in Register No. 735A2, on March 13, 2017, and approved by ETF Secretary Robert Conlin on March 23, 2017. 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: (608) 264-6936. E-mail address: david.nispel@etf.wi.gov. Statement Explaining Need for Rule
This rule-making is needed to close the Long-Term Disability Insurance program (LTDI) to new claims and re-open the Wis. Stat. §40.63 Disability Annuity Program (40.63) to all eligible employees effective January 1, 2018. This is part of the department’s effort to streamline, simplify and modernize the disability programs offered to Wisconsin Retirement System members. 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, 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. Also by statute, the Employee Trust Funds Board may determine that some or all of the disability annuities and death benefits provided from the Wisconsin retirement system shall instead be provided through group insurance plans to be established by the group insurance board either as separate plans or as integral parts of the group life and income continuation insurance plans established under ch. 40 of the Wisconsin Statutes. By this rule, the ETF Board has determined that disability benefits claimed after December 31, 2017, shall no longer be provided through the Long-Term Disability Insurance group insurance plan that was established by the Group Insurance Board. 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 close the Long-Term Disability Insurance program (LTDI) to new claims and re-open the Wis. Stat. §40.63 Disability Annuity Program (40.63) to all eligible employees effective January 1, 2018. Closing the LTDI program entails moving oversight of the program’s runout from the Group Insurance Board to the Employee Trust Funds Board.
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.
