Section ETF 10.12 - Separate retirement system participation in the retirement trust fund(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,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.Wis. Admin. Code Department of Employee Trust Funds ETF 10.12
Cr. Register, October, 1985, No. 358, eff. 11-1-85; am. (2) (e) and (f), Register, December, 1990, No. 420, eff. 1-1-91; am. (4) (b) and (c) and r. (4) (d), Register, June, 1998, No. 510, eff. 7-1-98; CR 05-114: renum. (intro.) to be (1g) and am., renum. (1) (a), (b) and (c) to be (1r) (a), (b) and (c), r. (1) (d), cr. (1r) (d), (4) (d), (5) and (6), r. and recr. (2), am. (4) (c) (intro.) Register September 2006 No. 609, eff. 10-1-06; CR 09-057: am. (1r) (b), (d), (2) (a), (b) and (e) Register May 2010 No. 653, eff. 6-1-10. 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.