Current through February 26, 2024
(1g) Procedure. The governing body of a
separate retirement system qualifying under sub. (5) may request participation
in the retirement trust fund by the adoption of a resolution accepting the
provisions of this section in a form approved by the department. A certified
copy of the resolution shall be forwarded to the department and participation
shall be effective on the first day of the month following board approval of
the resolution under s.
40.03(1)
(n), Stats. Funds may be delivered or sent to
the department subject to this section.
(1r) Deposits.
(a) Deposits shall be made in accordance with
instructions issued by the department.
(b) The separate retirement system may
designate any portion of its deposit for investment in the variable retirement
investment trust. Deposits shall be invested in the core retirement trust
unless otherwise designated.
(c)
The separate retirement system shall provide the department 30 days advance
notice of any deposit in excess of $10 million. This requirement may be waived
by the secretary.
(d) Deposits in
the core and variable retirement investment trusts shall be accepted on the
last working day of the month only, even if actually received earlier. Each
investment shall be effective the last day of the month for purposes of
investment valuation.
(2) Investment valuation. Investments by a
separate retirement system shall be valued as follows:
(a) The current market values of the core and
variable retirement investment trusts shall be determined as of the close of
the last calendar day of the month.
(b) The market gain or loss of the core and
variable retirement investment trusts shall each be determined for the month,
net of administrative and investment costs.
(c) Each separate retirement system's share
of the respective retirement investment trust's market gain or loss shall be
determined and credited effective the close of the last calendar day of the
month.
(d) Each separate retirement
system's share of the retirement investment trust's market gain or loss shall
be calculated as the total retirement investment trust's gain or loss
multiplied by that separate retirement system's proportionate share of the
average daily net assets available for investment during the month.
(e) The core or variable retirement
investment trust's average daily net assets available for investment during the
month shall be calculated as the sum of its daily beginning asset balances
divided by the number of calendar days in the month.
Note: This rule (CR 09-057) replaces the term
"fixed", when referring to the retirement investment trust, with the term
"core" when referring to that retirement investment trust. 2005 Wis. Act 153
changed the name of the Fixed Fund to the Core Fund. This rule replaces the
term "fixed" with the term "core" wherever it appears in the ETF administrative
rules, specifically in ss. ETF 10.12(1r) (b) and (d) and (2) (a) (b) and (e);
10.25 (intro.), (1) (a) and (b), (2), (3) (intro.), (b), (c) and (d) and (4);
10.30 (4) (a) and (b), (5) (a) 1., 2., 3. b., and (f); 11.16 (2) (a); 20.23
(2); and 20.25 (intro.), (1) (a) and (2).
(f) Each separate retirement system's average
daily net assets available for investment during the month shall be calculated
as the sum of its daily beginning asset balances divided by the number of
calendar days in the month.
(3) Reports. The department shall provide, at
least quarterly, each separate retirement system a report showing all
transactions in its account during the preceding quarter and the current value
of the system's investment.
(4)
Withdrawals.
(a) Requests for withdrawal of
funds shall be on a form prescribed by and in accordance with instructions
issued by the department.
(b) The
separate retirement system shall provide the secretary no less than 21 days
advance notice of any withdrawal.
(c) Withdrawals by a separate retirement
system shall be limited in any calendar month to one withdrawal paid on the
last working day of the month of the greater of:
1. 5% of the system's balance on deposit or
as was last calculated by the department,
2. $2 million, or
3. Such other amount as the secretary, after
consulting with respect to each withdrawal with the executive director of the
state of Wisconsin investment board, determines may be withdrawn without
necessitating the premature liquidation of any investment or imprudently
reducing cash holdings of the trust fund or otherwise causing actual harm to
the participants of the Wisconsin retirement system who have a beneficial
interest in the trust fund and its earnings.
(d) For investment valuation purposes,
withdrawals shall be treated as if effective at the close of the last calendar
day of the month.
(e) If a separate
retirement system's balance on deposit drops below $2 million, that system's
investment shall be refunded and the account closed.
(5) Participating employers eligible.
(a) "Separate retirement system" for purpose
of this section and s.
40.03(1) (n) and (2)
(q), Stats., means a pension benefit plan
which is all of the following:
1. Established
by the state or a political subdivision of the state which is also a
participating employer subject to the provisions of the Wisconsin retirement
system under s.
40.21,
Stats.
2. A governmental plan as
defined by (d) and (32).
3.
Qualified for federal tax purposes under the applicable provisions of the
internal revenue code.
4.
Maintained and administered for the exclusive benefit of the employees of that
employer and their beneficiaries.
(b) Any separate retirement system that fails
to certify upon the department's request, and at least annually, that it
continues to meet the criteria of par. (a), and any separate retirement system
that the department determines does not meet the criteria of par. (a), shall be
compelled to withdraw its entire investment as rapidly as permitted under sub.
(4).
(6) Termination of
program. The employee trust funds board or the secretary of the department may
close the investment option under s.
40.03(1)
(n), Stats., to any or all separate
retirement systems and compel withdrawal of investments under sub. (4) if the
board or the secretary determines that the separate retirement system
investment interferes with the duty to manage, administer, invest and otherwise
deal with the public employee trust fund solely for the benefit of the
participants in the benefits plans under ch. 40, Stats., and their
beneficiaries as provided in that chapter.
This rule requires a form which is available at no charge.
The form can be obtained by writing to: department of employee trust funds,
P.O. Box 7931, Madison, WI 53707-7931, or by calling: (608) 266-3285 or toll
free at (877) 533-5020.