Section ETF 70.07 - Primary and alternate plan administration(1) All contracts with administrators shall be approved by the board and signed by the board chair or designee. Any administrator who participates in the program shall sign a contract in which the administrator agrees to: (a) Follow all requirements and regulations of the program as defined in the plan and trust document.(b) Share information, such as member's annual deferral amounts, with the department and any other administrator contracted by the board to ensure compliance with internal revenue code section 457.(c) Provide full disclosure of all revenues received by the administrator from members and investment providers of their plan to the department at least annually.(d) Provide quarterly reports to the department to allow adequate monitoring of program administration and compliance with internal revenue code section 457 regulations.(e) Provide an annual independently audited financial statement of the administrator to the department within 120 days from the end of the calendar year.(f) Submit to the department an acceptable contingency plan to address both data processing systems failures and administrative services interruptions.(g) Provide to members, upon enrollment, full disclosure of all fees and charges that are assessed, either directly or indirectly as an offset of earnings, by the administrator or the investment providers. A memorandum of understanding detailing key aspects and restrictions of the primary plan or any alternate plan shall be presented to and signed by employees enrolling in either the primary plan or any alternate plan.(h) Provide to members, when requested, a copy of the fund prospectus and annual report for each investment product offered by the administrator and the ability to transfer account balances from investment products offered by one administrator to those offered by another.(i) Provide statements to members, at least quarterly, detailing member's year to date annual deferral amounts, account balance information and disclosure of all fees and charges affecting member's interest earnings or account balances.(j) Provide information and counseling to members at termination of employment or retirement, regarding the options offered by the administrator for distribution of their account and timely processing of payouts. The type of distribution options offered shall include lump sum and partial lump sum payments, installment payment options and annuity options.(2) The primary plan and any alternate plan shall reimburse the department for their proportionate share of the department's costs associated with the program.(3) The administrator, their agents and the investment products they offer shall meet all applicable state and federal regulations including section 457 of the internal revenue code, security and exchange commission regulations, and state and federal insurance laws and regulations.Wis. Admin. Code Department of Employee Trust Funds ETF 70.07
Cr. Register, June, 1992, No. 438, eff. 7-1-92.Amended by, CR 14-055: am. (1) (a), (d), (e), (i) Register May 2015 No. 713, eff.6/1/2015