Section 70.06. Alternate plan administration.

 

(1)  At its discretion, the board may contract with an alternate administrator to offer an alternate plan. An alternate plan shall not be officially supported by the board. Any administrator that meets the criteria set forth in s. ETF 70.05 (1) , (2) and (3) may be allowed to offer an alternate plan. The board shall not contract with more than one alternate administrator at any one time.

(2)  Investment products offered by an alternate administrator shall meet the criteria as established in s. ETF 70.03 (9) and be approved by the board and shall not duplicate any of the specific investment products offered by the primary administrator.

(3)  The alternate administrator shall provide an annual report to the board that describes the investment performance of all investment products offered by the alternate plan, as measured by the criteria in s. ETF 70.03 (9) .

(4)  Potential alternate administrators who meet the minimum requirements as defined in subs. (1) , (2) and (3) may petition the board for approval to participate in the program within a 30 day period beginning the day after publication of these rules in the Wisconsin Administrative Code and then from May 1 through May 31 of every other year starting in 1994 for approval to participate in the program as of the next calendar year. The board shall limit the number of alternate administrators to one through a request for proposal process should there ever be a second, or more, potential administrator that petitions the board.

(5)  If the evaluation of an alternate administrator as required in s. ETF 70.03 (7) results in the termination of the alternate administrator's participation in the program or if their contract is not renewed, members shall be instructed to redirect deferrals and transfer existing balances from investment products offered by the terminated administrator to other investment products offered by the primary administrator or any other alternate administrator within a six-month period or other time period designated by the board. At the end of the six-month period or the date designated by the board, the board shall instruct the terminated administrator to redirect any deferrals and transfer any remaining account balances with investment products offered by the terminated administrator to board designated alternative investment products offered by the primary administrator. Surrender charges that are normally assessed against funds transferred from investment products offered by one administrator to another, shall not be assessed for transactions under this subsection.

History: Cr. Register, June, 1992, No. 438 , eff. 7-1-92; correction in(2), (3), (5) made under s. 13.92 (4) (b) 7. , Stats., Register July 2012 No. 679 , eff. 8-1-12.