State of Wisconsin
Department of Employee Trust Funds
Employee Trust Funds Board
Wisconsin Retirement Board
Teachers Retirement Board
Wisconsin Deferred Compensation Board
The scope statement for this rule, SS 018-19, 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. The Wisconsin department of employee trust funds proposes an order to repeal ETF 10.08 (2) (c) 2., 10.82 (2) (f) 1. c., 2. and (Note), 11.06 (3) and (Note), 20.02 (2) (c), 20.10 (2) (b), and 20.19 (6) (b) and (Note); to renumber and amend ETF 20.19 (6) (a); to amend ETF 10.01 (1k) and (1L), (2) (a), (b) (intro.), (3m) and (8), 10.08 (2) (c) (intro.) and (d), 10.82 (2) (f) 1. b., 11.03 (1) (b), 11.04 (6) (b) and (8), 11.06 (4) (a) and (b), 11.08 (2) (b) 3., 11.09 (5), 11.12 (1) (d) 3. and (7), 11.13 (1) (intro) and (3), 11.14 (4) (a), 11.16 (2) (intro.), 20.04 (4), 20.07 (5) (Note), 20.10 (2) (b) and (5) (Note), 20.17 (1) (b) 2. and (d) 4. and (4) (b) 3. b. and (e) 5. b., 60.60 (8) (d), and 70.03 (4), 70.08 (3) (intro.), (a) (intro.) and 2., and (b) (intro.) and 1.; to repeal and recreate ETF 20.35; and to create ETF 10.01 (2g), relating to technical 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, Wisconsin Retirement Board, and Deferred Compensation 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 ETF rules by removing obsolete language, adjusting language to account for changes in Wisconsin law, and correcting references to repealed or renumbered statutes. This consists of changes to ETF 10, 20, and 60 to account for the changes in Wisconsin law regarding the availability of Domestic Partnerships. Additionally, changes to ETF 10 and 20 address recent changes to Wisconsin law regarding break in service and service purchases, Wisconsin circuit courts’ e-filing initiative, and Qualified Domestic Relations Orders (QDROs) more than 20 years old. The section on QDROs is recreated for better organization. Amendments to ETF 11 seek to bring the code up to date with current ETF practices. Finally, this rule proposes changes to ETF 11 and 20 to correct links that currently link to renumbered or repealed statutes and references to repealed, amended, or renumbered statutes.
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 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 David Nispel, General Counsel, Department of Employee Trust Funds, P.O. Box 7931, Madison, WI 53707. E-mail: david.nispel@etf.wi.gov. Telephone: (608) 264-6936. 14. Place where comments are to be submitted and deadline for submissions:
Written comments on the proposed rule may be submitted to David Nispel, General Counsel, Department of Employee Trust Funds, 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 October 24, 2019.
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:
