SB1076,9,19 18(8) Requirements for plan. The board shall design the plan so that it meets
19all of the following requirements:
SB1076,9,2320 (a) The plan allows eligible individuals employed for compensation in this state
21by a private employer in this state to contribute to WisEARNS accounts through
22payroll deductions. The plan allows self-employed individuals with earnings in this
23state to contribute to WisEARNS accounts.
SB1076,9,2524 (b) The plan requires all private employers in this state to withhold and remit
25employee contributions to the plan through payroll deductions. If an employer offers

1a qualified retirement plan under the Internal Revenue Code, including a plan
2qualified under section 401 (a) or (k), 403 (a) or (b), 408 (k), or 457 (b) of the Internal
3Revenue Code, the employer does not need to withhold and remit employee
4contributions for employees who are eligible to participate in the
5employer-sponsored plan.
SB1076,10,76 (c) Except as provided in par. (d), the plan provides that the default individual
7retirement account is a Roth IRA account.
SB1076,10,108 (d) If the plan offers options for account types other than a Roth IRA, the plan
9allows an enrolled eligible employee to select any of these other account types for
10investing contributions under the plan.
SB1076,10,1311 (e) The plan provides an eligible employee who is enrolled in the plan with
12multiple investment options within each account type, which may include any of the
13following investment options:
SB1076,10,1414 1. A stable value or capital preservation fund.
SB1076,10,1615 2. A target date index fund or age-based fund that automatically rebalances
16asset allocations based on the eligible employee's age.
SB1076,10,1717 3. A low-cost fund focused on income generation.
SB1076,10,1818 4. A low-cost fund focused on asset growth.
SB1076,10,1919 5. A low-cost fund focused on balancing risk and return.
SB1076,10,2020 (f) The investment policy for the plan includes all of the following concepts:
SB1076,10,2121 1. Best practices in the industry for retirement savings vehicles.
SB1076,10,2222 2. The promotion of portability of retirement savings accounts.
SB1076,10,2323 3. The minimization of fees and expenses.
SB1076,10,2524 4. The maximization of possible income replacement, balanced with
25appropriate levels of risk.
SB1076,11,5
1(g) The plan requires the investment administrator to offer to each enrolled
2eligible employee, before the employee makes his or her investment selections, a tool
3allowing the employee to identify the employee's risk tolerance and projected
4retirement date as an aid to the employee in selecting suitable investments under
5the plan.
SB1076,11,156 (h) The plan requires that the first $400 of an enrolled eligible employee's
7contributions be deposited in a WisEARNS savings account and thereafter, unless
8the employee selects a different investment option, the employee's contributions be
9to a WisEARNS retirement account and deposited in a fund described in par. (e) 2.
10The plan shall allow an employee to select a different investment option before the
11first $400 is deposited in a WisEARNS retirement account. An employee shall be
12allowed to withdraw the first $400 for emergency use from the employee's
13WisEARNS savings account, and contributions subsequent to the withdrawal shall
14be deposited in the WisEARNS savings account until the amount in the employee's
15WisEARNS savings account is restored to $400.
SB1076,11,2016 (i) Except as provided in par. (k), during an eligible employee's first year of
17enrollment in the plan, the participating employer's payroll deduction each pay
18period shall be at a rate of 5 percent of the employee's gross wages, and this deducted
19amount shall be remitted to the investment administrator as the employee's account
20contribution.
SB1076,11,2321 (j) Except as provided in par. (k), a participating employer shall increase the
22payroll deduction rate under par. (i) by 1 percent per year until the payroll deduction
23rate is the maximum allowed under the Internal Revenue Code.
SB1076,12,3
1(k) An enrolled eligible employee may elect a different payroll deduction rate
2than that provided for in pars. (i) and (j), except that the rate may not be less than
31 percent or more than the maximum allowed under the Internal Revenue Code.
SB1076,12,54 (L) The plan sets forth a process for enrollment of eligible employees in the
5plan, which shall include all of the following processes:
SB1076,12,66 1. Automatic enrollment of eligible employees in the plan.
SB1076,12,77 2. Opting out of enrollment in the plan before any payroll deduction is made.
SB1076,12,98 3. Opting out of enrollment in the plan at any time after a payroll deduction
9is made.
SB1076,12,1110 4. Changing the payroll deduction rate from that provided for in pars. (i) and
11(j)
SB1076,12,1212 (m) The plan provides a process for all of the following:
SB1076,12,1513 1. Employer withholding from employees' wages contributions to WisEARNS
14accounts and remittance of those contributions to the investment administrator of
15the plan.
SB1076,12,1716 2. Eligible employees' and self-employed individuals' nonpayroll contributions
17to their WisEARNS retirement accounts.
SB1076,12,1918 3. Emergency withdrawals from WisEARNS savings accounts in accordance
19with procedures established by the board under sub. (7) (f).
SB1076,12,2120 (n) The plan requires contributions to WisEARNS accounts to be deposited
21directly with the investment administrator of the plan.
SB1076,12,2422 (o) The plan, to the greatest extent possible, uses existing employer and public
23infrastructure to facilitate contributions to WisEARNS accounts and outreach to
24employees and private employers.
SB1076,13,2
1(p) The plan prohibits employer contribution to an employee WisEARNS
2account.
SB1076,13,53 (q) The plan requires the maintenance of separate records and accounting for
4each WisEARNS account and provides for reports on the status of accounts to be
5provided to plan participants at least once per quarter.
SB1076,13,96 (r) The plan allows the owner of a WisEARNS retirement account to maintain
7that account regardless of his or her place of employment and to roll over money from
8that account to other retirement accounts as allowed under the Internal Revenue
9Code.
SB1076,13,1110 (s) The plan provides for the pooling of WisEARNS retirement accounts for
11investment purposes by the investment administrator of the plan.
SB1076,13,1512 (t) The plan is professionally managed in a way that keeps administrative costs
13low. The plan shall allow the investment administrator of the plan to charge and
14collect application, account, and administrative fees in an amount that does not
15exceed an amount that is sufficient to defray the costs of administering the plan.
SB1076,13,1816 (u) The plan provides that the state and any employer participating in the plan
17have no proprietary interest in an employee's contributions to a WisEARNS account
18or in the earnings of such an account.
SB1076,13,2119 (v) The plan provides that the investment administrator of the plan is the
20trustee of all contributions to a WisEARNS account and earnings on those
21contributions.
SB1076,13,2522 (w) The plan does not impose any duties under the federal Employee
23Retirement Income Security Act of 1974, 29 USC 1001 to 1461, on an employer and
24does not expose any employer or the state, either as an employer or in the
25administration of the plan, to any potential liability under that act.
SB1076,14,2
1(x) The plan provides a process for making withdrawals from an employee's
2WisEARNS retirement account.
SB1076,14,73 (y) The plan sets forth the requirements that an employer that offers a qualified
4retirement plan described in par. (b) must meet in order to obtain an exemption from
5the requirement under par. (b) that the employer withhold and remit employee
6contributions to the plan through payroll deductions and a process for obtaining such
7an exemption.
SB1076,14,108 (z) The plan sets forth the contents and frequency of disclosures that the board
9must make to employers, eligible employees and other individuals participating in
10the plan. Those disclosures shall include all of the following:
SB1076,14,1211 1. A discussion of the benefits and risks associated with making contributions
12to a retirement savings account.
SB1076,14,1513 2. Instructions on the process for making contributions to a WisEARNS
14account, opting out of participation in the plan, and making withdrawals from a
15WisEARNS account.
SB1076,14,1616 3. Instructions on how to obtain additional information about the plan.
SB1076,14,2017 4. A notice advising that employees should contact a financial or investment
18adviser for financial or investment advice, that participating employers may not
19provide financial or investment advice, and that participating employers are not
20liable for financial or investment decisions made by an employee.
SB1076,14,2221 5. A notice advising that the plan is not an employer-sponsored retirement
22savings plan.
SB1076,15,223 6. A notice that a rate of interest or return on a WisEARNS retirement account,
24and the payment of principal, interest, or a return on such an account, are not

1guaranteed by the state and that the state may not be held liable for any loss incurred
2by any person as a result of participating in the plan.
SB1076,15,6 3(9) Construction. Nothing in this section guarantees any rate of interest or
4return on a WisEARNS retirement account or the payment of principal, interest, or
5a return on such an account. The state may not be held liable for any loss incurred
6by any person as a result of participating in the plan.
SB1076,15,9 7(10) Confidentiality. All personal and financial information pertaining to the
8owner or a beneficiary of a WisEARNS account is confidential and may not be
9disclosed except as follows:
SB1076,15,1110 (a) As necessary to administer the plan, the tax laws of this state, and the
11Internal Revenue Code.
SB1076,15,1212 (b) With the prior written consent of the subject of the information.
SB1076,15,15 13(11) Liability for private employers. No private employer is a fiduciary with
14respect to the plan. No private employer is liable for any of the following with respect
15to the plan or an eligible employee:
SB1076,15,1616 (a) An eligible employee's decision to participate in the plan.
SB1076,15,1817 (b) Investment decisions made by the board or an eligible employee who
18participates in the plan.
SB1076,15,2019 (c) The administration or investment performance of the plan, including any
20interest rate or other rate of return on any contribution or account balance.
SB1076,15,2121 (d) The plan design.
SB1076,15,2422 (e) An eligible employee's familiarity with and compliance with the applicable
23provisions of the Internal Revenue Code and U.S. department of treasury
24regulations related to individual retirement accounts.
SB1076,16,4
1(f) Any loss, failure to realize any gain, or other adverse consequences,
2including any adverse tax consequences or loss of favorable tax treatment, public
3assistance, or other benefits, incurred by any eligible employee as a result of
4participating in the plan.
SB1076,16,15 5(12) Liability of board and state. No cause of action of any nature may arise
6against and no civil liability may be imposed upon a member of the board for any act
7or omission in the performance of his or her powers and duties related to the plan,
8unless the individual asserting liability proves that the act or omission constitutes
9willful misconduct. No cause of action of any nature may arise against and no civil
10liability may be imposed upon the state or an employee of the state for any act or
11omission related to the powers and duties of the state or employee in the performance
12of any powers or duties related to the plan unless the individual asserting liability
13proves that the act or omission constitutes willful misconduct. No member of the
14board, the state, board or commission of the state, appointee, or employee of the state
15is liable for any of the following:
SB1076,16,1816 (a) An eligible employee's familiarity with and compliance with the applicable
17provisions of the Internal Revenue Code and U.S. department of treasury
18regulations related to individual retirement accounts.
SB1076,16,2019 (b) The interest rate or other rate of return, on an account balance or
20investment performance.
SB1076,16,2421 (c) Any loss, failure to realize any gain, or other adverse consequences,
22including any adverse tax consequences or loss of favorable tax treatment, public
23assistance, or other benefits, incurred by any eligible employee as a result of
24participating in the plan.
SB1076,16,2525 (d) The debts, contracts, and obligations of the plan or the board.
SB1076,17,4
1(13) Reports. (a) By October 15 of each year, the board shall submit a report
2of its activities to the governor and the appropriate standing committees of the
3legislature under s. 13.172 (3). The report shall include information on the
4performance of the plan and any recommended changes to the plan.
SB1076,17,75 (b) By January 1, 2028, the board shall submit a report of its activities to the
6governor and the appropriate standing committees of the legislature under s. 13.172
7(3).
SB1076,17,11 8(14) Standard of responsibility. Members of the board and any 3rd-party
9administrators of the plan shall discharge their duties as fiduciaries with respect to
10the trust fund under s. 25.52 for the interest of eligible employees who participate
11in the plan as follows:
SB1076,17,1412 (a) To administer assets of the trust fund solely for the purpose of providing
13benefits to eligible employees who are enrolled in the plan at a reasonable cost and
14not for any other purpose.
SB1076,17,1815 (b) To manage the money and property of the trust fund with the care, skill,
16prudence, and diligence under the circumstances then prevailing that a prudent
17person acting in a similar capacity, with the same resources, and familiar with like
18matters exercises in the conduct of an enterprise of a like character with like aims.
SB1076,17,21 19(15) Assistance. The office of the state treasurer shall provide the board with
20any assistance necessary to carry out this section, including staff, equipment, and
21office space.
SB1076,3 22Section 3 . 16.705 (9) of the statutes is amended to read:
SB1076,18,523 16.705 (9) The department shall maintain a list of persons that are or have
24been a party to a contract with the state under this subchapter or s. 14.69 who have
25violated a provision of this subchapter or a contract under this subchapter or s. 14.69.

1The parties on the list are ineligible for state contracts and no state contract may be
2awarded to a party on the ineligible list. The department may remove any party from
3the ineligible list if the department determines that the party's practices comply with
4this subchapter or s. 14.69 and provide adequate safeguards against future
5violations of this subchapter or s. 14.69 or contracts under this subchapter or s. 14.69.
SB1076,4 6Section 4 . 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
7the following amounts for the purposes indicated: - See PDF for table PDF - See PDF for table PDF - See PDF for table PDF - See PDF for table PDF
SB1076,5 8Section 5 . 20.517 of the statutes is created to read:
SB1076,18,10 920.517 WisEARNS. There is appropriated to the WisEARNS board for the
10following programs:
SB1076,18,13 11(1) WisEARNS plan. (a) Establishment and administration of plan.
12Biennially, the amounts in the schedule to establish and administer the plan under
13s. 14.69.
SB1076,18,1614 (q) Board operating expenses; WisEARNS plan administration trust fund.
15From the WisEARNS plan administration trust fund, all moneys deposited in that
16fund under s. 14.69 (7) (b) for the operating expenses of the board.
SB1076,19,217 (r) Gifts and grants; WisEARNS plan administration trust fund. From the
18WisEARNS plan administration trust fund, all moneys received as contributions,

1gifts, grants, and bequests for that trust fund under s. 14.69 (6) (b) to carry out the
2purposes for which made and received.
SB1076,6 3Section 6. 20.923 (4) (c) 7. of the statutes is created to read:
SB1076,19,44 20.923 (4) (c) 7. State treasurer; WisEARNS board: executive director.
SB1076,7 5Section 7 . 25.52 of the statutes is created to read:
SB1076,19,9 625.52 WisEARNS plan administration trust fund. There is established a
7separate nonlapsible trust fund designated as the WisEARNS plan administration
8trust fund, to consist of all moneys deposited in that fund under s. 14.69 (6) (b) and
9(7) (b).
SB1076,8 10Section 8. 71.05 (6) (a) 15. of the statutes is amended to read:
SB1076,19,1611 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm),
12(2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (4s), (4w), (5e),
13(5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a partnership,
14limited liability company, or tax-option corporation that has added that amount to
15the partnership's, company's, or tax-option corporation's income under s. 71.21 (4)
16or 71.34 (1k) (g).
SB1076,9 17Section 9 . 71.07 (4s) of the statutes is created to read:
SB1076,19,1918 71.07 (4s) Retirement plan startup costs tax credit. (a) Definitions. In this
19subsection:
SB1076,19,2120 1. “Claimant” means an eligible employer, as defined in section 45E (c) of the
21Internal Revenue Code, that files a claim under this subsection.
SB1076,19,2322 2. “First credit year” has the meaning given in section 45E (d) (3) of the Internal
23Revenue Code.
Loading...
Loading...