Section 70.05. Primary plan administration.

 

(1)  Based upon a request for proposal process, the board shall contract with one primary administrator to offer the primary plan that is approved and officially supported by the board. The administrator awarded the contract for the primary plan shall have:

(a) At least 5 years experience administering other section 457 deferred compensation programs. The administrator's experience shall include administering at least one program that meets each of the following:

1. Participation level of 30,000 members or more.

2. Program involves multiple payroll reporting agencies.

3. Record keeping includes consolidated record keeping for all investment products that are offered.

(b) Marketing and enrollment services that include the following:

1. A staffed office located in Madison and field representatives to provide services to all areas of the state.

2. Contacts to each eligible employee at least annually to describe the plan being offered by this administrator.

3. Frequent enrollment opportunities at intervals established by the board.

4. Presentations to employees that include full disclosure of all direct and indirect costs to members as well as advantages and disadvantages of participating in the plan offered by this administrator.

5. Literature and forms regarding the plan to be distributed to employees and payroll personnel that are in a form approved by the department.

(c) Member services that include the following:

1. Unlimited opportunities to increase or decrease deferral amounts.

2. Unlimited opportunities to redirect deferral amounts to any other investment product offered by the administrator.

(d) Accounting procedures and consolidated record keeping for member account transactions that maintains all individual member records and submits deferrals, transfers and withdrawals to the investment companies offering investment products to the primary plan.

(2)  The potential administrator shall agree to return all interest earned on idle funds of the plan that are held by the administrator to the department to offset plan costs.

(3)  The potential administrator shall provide the necessary financial disclosure for assurance of its financial soundness.

(4)  The investment products offered by the primary administrator shall meet the criteria in s. ETF 70.03 (9) and be approved by the board.

(5)  The primary administrator shall provide an annual report to the board illustrating the investment performance of all investment products offered by the primary plan, as measured by criteria established under s. ETF 70.03 (8) .

History: Cr. Register, June, 1992, No. 438 , eff. 7-1-92; correction in (4), (5) made under s. 13.92 (4) (b) 7. , Stats., Register July 2012 No. 679 , eff. 8-1-12; CR 14-055 : am. (1) (a) 1. Register May 2015 No. 713 , eff. 6-1-15.