Chapter ETF 10

ETF 10.03(5)(b)3. 3. Service as an executive participating employee whose formula rate is determined under s. 40.23 (2m) (e) 2., Stats.

ETF 10.03(5)(b)4. 4. Service as an elected official whose formula rate is determined under s. 40.23 (2m) (e) 2., Stats.

ETF 10.03(5)(b)5. 5. Service as a teacher whose formula rate is determined under s. 40.23 (2m) (e) 1., Stats.

ETF 10.03(5)(b)6. 6. Service of a type not covered under subds. 1. to 5.

ETF 10.03(5)(c) (c) The earnings shall be reported and credited in full without regard to any allocation of creditable service under par. (b).

ETF 10.03(6) (6) 

ETF 10.03(6)(a) (a) For local elected officials who are participating employees, but serving in positions not considered full-time by the local unit of government, the amount of service shall be determined and reported by the employer as follows:

ETF 10.03(6)(a)1. 1. For employment which is essentially ministerial in nature, the number of hours reported shall be the actual number of hours for which the employee is paid if a regular work schedule has been established. If there is no regular work schedule, the number of hours reported may not be greater than the quotient derived from dividing the compensation paid during the reporting period by 2 times the minimum hourly wage rate established by the federal fair labor standards act for non-agricultural employment.

ETF 10.03(6)(a)2. 2. For members of governing bodies or other policy-making groups, the number of hours reported shall be the number of hours in actual attendance at meetings of the governing body, the policy-making group or any sub-group thereof and a reasonable amount of time spent in preparation for such meetings, but in no event shall the number of hours determined to have been spent in preparation time exceed twice the number of hours actually spent at the meetings.

ETF 10.03(6)(b) (b) In applying the standards set forth in par. (a), it is the responsibility of the local unit of government to maintain the necessary documentation to justify the reasonableness of the basis used in reporting service for local elected officials.

ETF 10.03(6)(c) (c) The department may consider other factors in granting creditable service to local elected officials where circumstances warrant and when satisfactory supporting information is provided.

ETF 10.03(7) (7) 

ETF 10.03(7)(a) (a) If a participating employee receives earnings for on-call, standby, extracurricular or other service which is incidental to the primary employment, earnings shall be reported and contributions paid on those earnings pursuant to s. 40.05, Stats. The number of hours determined by the employer and reported pursuant to this subsection shall be the quotient derived from dividing the compensation paid for such service during the annual earnings period by the participating employee’s current basic pay rate.

ETF 10.03(7)(b) (b) The employer shall maintain the necessary documentation to justify the basis upon which service is reported in applying the standards set forth in par. (a).

ETF 10.03(7)(c) (c) In no event shall the number of hours under par. (a), combined with the hours under the primary employment, exceed creditable service of one year during the entire calendar year.

ETF 10.03 Note Note: This rule requires a form which is available at no charge to reporting officials required to use them. The form can be obtained by writing to: department of employee trust funds, P.O. Box 7931, Madison, WI 53707-7931, or by calling: [phone] or toll free at [phone].

ETF 10.03 History History: Emerg. cr. eff. 1-1-85; cr. Register, March, 1985, No. 351, eff. 4-1-85; cr. (7), Register, August, 1986, No. 368, eff. 9-1-86; CR 14-055: am. (1) Register May 2015 No. 713, eff. 6-1-15.

ETF 10.05 ETF 10.05 Creditable service for Milwaukee teachers. Creditable service for Milwaukee teachers shall be granted for teaching services performed for governmental agencies other than the city of Milwaukee pursuant to ss. 42.70 (2) (s), 42.78 (1) (a), 42.81 and 42.91, 1979 Stats., only if the requirements in subs. (1) to (6) are satisfied:

ETF 10.05(1) (1) The teacher was a member, as defined in s. 42.70 (2) (k), 1979 Stats., of the former Milwaukee teachers retirement fund on August 31, 1958, has not received a separation benefit since that date and the teaching service for which creditable service is requested was prior to September 1, 1958.

ETF 10.05(2) (2) The participant has 10 or more years of teaching service in the city of Milwaukee and the outside teaching credit granted, when added to the participant’s separate, combined and formula teaching service in the city of Milwaukee, does not exceed 35 years for benefit computation purposes. If at the time of a benefit computation the total service exceeds 35 years, any payment made previously for outside teaching service including interest which cannot be used shall be transferred to the additional contributions of that participant.

ETF 10.05(3) (3) The participant applies in writing for the outside teaching credit giving pertinent details on when, where and for whom the outside teaching service was performed.

ETF 10.05(4) (4) The outside teaching service is verified by the school district, successor school district or public retirement plan.

ETF 10.05(5) (5) The applicable public retirement plan certifies to the department that the participant is not entitled to any benefit, absolute, contingent or otherwise, from that retirement plan as a result of the teaching service.

ETF 10.05(6) (6) The participant makes the contributions which would have been required if the service to be credited had been subject to s. 42.80, 1979 Stats., at the time the teacher became a member, as defined in s. 42.70 (2) (k), 1979 Stats., of the former Milwaukee teachers retirement fund, or if later, at the time the teacher returned to covered Milwaukee teaching after the period of outside teaching. The amount due shall be increased with interest at the effective rate, as defined in s. 40.02 (23), Stats., as though the contributions were in the fund on September 1, 1959.

ETF 10.05 History History: Cr. Register, June, 1983, No. 330, eff. 7-1-83; am. (2), Register, September, 1983, No. 333, eff. 10-1-83; correction in (1) and (6) made under s. 13.93 (2m) (b) 7., Stats., Register, July, 1994, No. 463.

ETF 10.07 ETF 10.07 Leave of absence.

ETF 10.07(1) (1) A person on a paid leave of absence from a position in which the person was a participating employee shall continue to qualify as a participating employee.

ETF 10.07(2) (2) Service shall be determined and reported by the employer in the following manner:

ETF 10.07(2)(a) (a) If the compensation paid during the leave of absence is less than the earnings paid during the participant’s immediately preceding service with that employer in a time period of the same length as the leave, then the service shall be computed by dividing the compensation paid during the leave by the earnings paid in that preceding period and multiplying the result by the service reported for that preceding period.

ETF 10.07(2)(b) (b) If the compensation paid during the leave of absence is equal to or greater than the earnings paid during the participant’s immediately preceding service with that employer in a time period of the same length as the leave, then the service reported shall be the same as in that preceding period.

ETF 10.07(3) (3) Compensation paid during a paid leave of absence shall be treated the same as earnings for purposes of ch. 40, Stats.

ETF 10.07 Note Note: This rule requires a form which is available at no charge to reporting officials required to use them. The form can be obtained by writing to: department of employee trust funds, P.O. Box 7931, Madison, WI 53707-7931, or by calling: [phone] or toll free at [phone].

ETF 10.07 History History: Cr. Register, March, 1985, No. 351, eff. 4-1-85.

ETF 10.08 ETF 10.08 Separation from employment.

ETF 10.08(1) (1) Scope.

ETF 10.08(1)(a) (a) This section defines separation of employment under s. 40.23 (1) (a) 1., Stats., for purposes of establishing eligibility to receive benefits from the Wisconsin retirement system, including separation benefits, lump sum benefits and retirement annuity benefits as provided by ss. 40.23, 40.24 and 40.25, Stats. For purposes of the Wisconsin retirement system, the terms “separation from employment” and “termination” are used interchangeably. An otherwise valid termination may become void and without effect as the result of reinstatement of the employee under s. 40.25 (5), Stats., and s. ETF 10.01 (3t), or because the employee received remedial payments deemed to be earnings under s. ETF 20.12 for a period in question, or if the employee failed to meet the minimum break in service requirements as a rehired annuitant under s. ETF 20.02 and s. 40.26 (5), Stats., and shall thereby be treated as employed during that period.

ETF 10.08(1)(b) (b) The effective date of disability annuity benefits shall be determined as provided by ss. 40.23 (1) (b) and (bm) and 40.63 (8) (intro.) and (f), Stats.

ETF 10.08(2) (2) Termination of employment.

ETF 10.08(2)(a) (a) Intent to terminate. No person may receive any retirement annuity, separation benefit or lump-sum payment from the Wisconsin retirement system without first terminating from his or her current participating employment with all participating employers. Whether the termination is a voluntary termination by the employee or an involuntary termination by the employer, the employer and employee shall act with the good-faith intent of ending the employee-employer relationship.

ETF 10.08(2)(b) (b) Required conditions. Termination from participating employment occurs when all of the following conditions are met:

ETF 10.08(2)(b)1. 1. The employee ceases to render compensable personal services to or on behalf of the employer, and the employer has no further rights to any future services from the employee for which the employee [has received or] will receive compensation. This paragraph does not apply to services rendered as a part-time elected official after the effective date of a participant’s waiver of [WRS coverage for] part-time elected service under s. 40.23 (1) (am), Stats.

ETF 10.08 Note Note: Missing language is shown in brackets.

ETF 10.08(2)(b)2. 2. If the employee’s termination is voluntary, the employee and employer comply with the employer’s policies for voluntary termination, including the filing of a letter of resignation.

ETF 10.08(2)(b)3. 3. As of the end of the day that participating employment terminates, the employee has no rights to any future compensable employment that meets the qualifications for inclusion under the Wisconsin retirement system provided under s. 40.22, Stats. A right to future compensable employment includes, but is not limited to, a contract for future employment with any participating employer, or having already been elected as of the termination date to a term of public office meeting the qualifications for participating employment, which term commences on or after the date of termination of employment, other than a term of public office as a part-time elected official for which the participant has waived WRS coverage under the provisions of s. 40.23 (1) (am), Stats.

ETF 10.08(2)(b)4. 4. Except as provided in s. ETF 50.30 (4), upon termination of employment the participant is treated consistently with the status of a former employee. This includes, but is not limited to the terminated employee no longer being eligible for benefits available only to active employees. Examples of such benefits may include health insurance, life insurance, income continuation insurance coverage, making deferred compensation or tax sheltered annuity contributions, worker’s compensation coverage, internal grievance, promotion or transfer rights, or rights available to active employees under a collective bargaining agreement. This subdivision shall not apply to benefits that may be available to the employer’s retired employees, such as severance pay, post-retirement insurance coverage and/or employer payment of premiums, or post-retirement benefits or other rights provided through collective bargaining or other retirement agreements. However, agreements made after the termination date for future compensable services to be rendered by the employee would not be precluded under subd. 3.

ETF 10.08(2)(b)5. 5. Immediately upon termination of employment, the participant has no authority to act as a representative of the employer in any capacity or to exercise any authority or control over other employees of the employer, and the employer has no responsibility or liability for any actions of the terminated employee. This subdivision shall not apply to employees of any WRS participating employer who provide services for which they have not and will not receive compensation of any kind, including but not limited to payment at some other time or compensatory paid leave.

ETF 10.08 Note Example: Emeritus professors could render services for the university after termination on the condition that they do not receive any form of compensation, including employer contributions to IRC s. 403 (b) accounts.

ETF 10.08(2)(b)6. 6. As of the termination of employment the employer has paid to the employee any accumulated benefits that similarly situated employees of that employer customarily receive upon termination of employment, including but not limited to accumulated vacation, compensatory time and sick leave, and the employee has no entitlement to any such remaining benefits.

ETF 10.08(2)(c) (c) Rehired annuitants. In order to receive a benefit under s. 40.23 or 40.25, Stats., a person terminated from participating employment shall remain terminated from all employment meeting the qualifications for inclusion under s. 40.22, Stats., throughout a period beginning with the date of termination from all participating employment and ending on the latest of the following dates:

ETF 10.08(2)(c)1. 1. The day after the date which would be the effective date of the annuity as determined in accordance with s. 40.23 (1) (b) and (bm), Stats., as applicable to the annuity in question.

ETF 10.08(2)(c)3. 3. The seventy-sixth day after termination of employment in accordance with this section.

ETF 10.08(2)(d) (d) Terminated annuities. For purposes of determining whether employment meets the qualifications under s. 40.22, Stats., the exclusion of s. 40.22 (2) (L), Stats., does not apply unless the person has met all qualifications for entitlement to an annuity, including termination from participating employment for the period specified in par. (c) 1. and 3. Payment of an annuity or other benefits in error does not qualify a person as an annuitant for purposes of s. 40.22 (2) (L), Stats.

ETF 10.08 Note Note: Refer to s. ETF 20.02 (2) on rehired annuitants.

ETF 10.08(3) (3) Determining the date of termination.

ETF 10.08(3)(a) (a) The employer shall make the initial determination that an employee has terminated from employment under this section. Except as provided under par. (b), (c) or (d) the date of termination shall be the earliest of the dates determined under all the following applicable subdivisions:

ETF 10.08(3)(a)1. 1. The date an unpaid leave of absence expires, if the employer-employee relationship is terminated because the employee fails to return to work following an unpaid leave of absence granted by the employer.

ETF 10.08(3)(a)2. 2. The date 3 years after an unpaid leave of absence began, in accordance with s. 40.02 (40), Stats. This subdivision does not apply to a military leave or union service leave.

ETF 10.08(3)(a)3. 3. The effective date that the employer discharges the employee, other than as provided in subd. 1.

ETF 10.08(3)(a)4. 4. The effective date that the employer determines that the employer-employee relationship terminates, except that the effective date of the termination cannot be earlier than the date on which the employer notifies the employee of the termination.

ETF 10.08(3)(a)5. 5. The last date for which the employee receives earnings for personal services rendered to or on behalf of the employer. If the employer has granted an unpaid leave of absence for a period of time after this date, this subdivision does not apply.

ETF 10.08(3)(a)6. 6. The date on which the employee’s voluntary resignation is effective as accepted by the employer or, if later, the date on which the employer receives the employee’s notice of resignation.

ETF 10.08(3)(a)7. 7. The date of the employee’s death.

ETF 10.08(3)(b) (b) Any report of a termination is subject to review by the department. Notwithstanding par. (a), the department is not bound by an employer’s report and may determine a different termination date in accordance with this section and s. 40.02 (26), Stats., upon evidence satisfactory to the department.

ETF 10.08(3)(c) (c) Except as expressly provided by law, no termination may be effective retroactive to a date earlier than the date on which the employee or employer notifies the other of the decision to terminate the participant’s employment.

ETF 10.08 Note Note: See ss. ER 18.14 (4) and 21.03 (2) concerning termination retroactive to the date the leave of absence expired.

ETF 10.08(3)(d) (d) No termination date may predate the last date for which the employee receives earnings for personal services rendered to or on behalf of the employer, except as provided in sub. (2) (b) 1., and except that operation of s. 40.29, Stats., does not preclude termination of an employee prior to the expiration of a period for which the employee receives temporary disability compensation under s. 102.43, Stats.

ETF 10.08 History History: Cr. Register, June, 1998, No. 510, eff. 7-1-98; CR 08-026: am. (2) (b) 4. Register September 2009 No. 645, eff. 10-1-09; CR 11-042: am. (1) (a), (2) (a), cr. (2) (b) (title), am. (2) (b) 2., cr. (2) (c) (title), (d) (title) Register July 2012 No. 679, eff. 8-1-12; CR 14-055: am. (2) (a), (c) 2., 3. Register May 2015 No. 713, eff. 6-1-15; CR 19-126: am. (2) (c) (intro.), r. (2) (c) 2., am. (2) (d) Register May 2021 No. 785, eff. 6-1-21.

ETF 10.10 ETF 10.10 Employee trust funds board and teachers retirement board elections.

ETF 10.10(1) (1) Purpose. This section establishes procedures for all elections of persons to the employee trust funds board or the teachers retirement board, pursuant to ss. 15.16 (1) (d) and (f), 15.165 (1) and (3) (a) 1., 2., 6., and 7., and 40.03 (2) (p), Stats. Except where noted otherwise, these procedures shall apply for elections to either the employee trust funds board or the teachers retirement board.

ETF 10.10(1m) (1m) Definitions. In this section:

ETF 10.10(1m)(a) (a) “Annuitant” has the meaning given in s. 40.02 (4), Stats.

ETF 10.10(1m)(b) (b) “Election category” means the class of participating employees or annuitants who are eligible under s. 15.16 (1) (d) or (f), or 15.165 (3) (a) 1., 2., 6., or 7., Stats., to vote to elect a member to the employee trust funds board or the teachers retirement board.

ETF 10.10(1m)(c) (c) “Participating employee” has the meaning given in s. 40.02 (46), Stats.

ETF 10.10(1m)(d) (d) “Teacher” has the meaning given in s. 40.02 (55), Stats.

ETF 10.10(2) (2) Scheduling of elections.

ETF 10.10(2)(ag) (ag) Situations requiring an election. The secretary shall schedule an election when the term for an elective board position is due to expire or the position is vacated for any reason.

ETF 10.10(2)(ar) (ar) Regular elections. When a term is due to expire, the secretary shall schedule the election to ensure that the election is completed and the new board member announced prior to the date the new term commences.

ETF 10.10(2)(b) (b) Vacancies. If an elective board position is vacant for any reason other than the term expiring, the secretary shall schedule an election at a time determined by the secretary. The annuitant or participating employee elected in an election to fill a position vacated prior to the end of a term shall serve the remainder of the unexpired term.

ETF 10.10(3) (3) Call for nominations. The department shall publish, in a manner determined by the secretary, the notice of the election, the nomination timetable, and instructions explaining the nomination process for a prospective candidate.

ETF 10.10(4) (4) Nomination Procedures. A candidate shall be nominated by petition on forms provided by the department. Petitions shall be received by the department no later than the petition filing date in the nomination time schedule published under sub. (3). A nominating petition received after this date is invalid. A candidate shall do all of the following:

ETF 10.10(4)(a) (a) Submit a nominating petition. Submit to the department a nominating petition containing at least 25 but no more than 50 printed names and valid signatures of participating employees or annuitants eligible to vote in that election. The nominating petition shall contain the name and address of each signer’s employer and the date signed. For an annuitant, the name and address of the signer’s employer shall be that of the signer’s last participating employer in the Wisconsin retirement system. The department will verify the entries on the petition based on records in the department. Entries that cannot be verified shall not be counted. If more than 50 signatures are submitted, the department shall review for validity only the first 50 signatures, based on the earliest date signed, and disregard the balance.

ETF 10.10(4)(b) (b) Certify the nominating petition. Sign the nomination petition to certify that all signers are eligible to vote in the election category for which the candidate is running.

ETF 10.10(4)(c) (c) Submit a candidate statement. Submit a candidate information form to the department containing no more than 150 words. The department shall print no more than the first 150 words of the candidate’s information and make it available to eligible voters with the ballots. The candidate must sign the candidate information form verifying the accuracy and truthfulness of the information provided.

ETF 10.10 Note Note: A Board Election Packet containing the Nominating Petition form and Candidate Information form can be obtained from the department by contacting the department’s board liaison at 877-533-5020.

ETF 10.10(5) (5) Nominations for the employee trust funds board. Any person who meets the eligibility requirements of s. 15.16 (1) (d) or (f), Stats., on the date the person files nomination papers with the department and who plans to continue meeting the eligibility requirements upon election, may be nominated for election to the employee trust funds board by satisfying the requirements of pars. (4) (a) to (c) within the calendar dates established by the department.

ETF 10.10(6) (6) Nominations for the teachers retirement board. Any person who meets the eligibility requirements of s. 15.165 (3) (a) 1., 2., 6., or 7., Stats., on the date the person files nomination papers with the department and who plans to continue meeting the eligibility requirements upon election, may be nominated for election to the teachers retirement board by satisfying the requirements of par. (4) (a) to (c) within the calendar dates established by the department.

ETF 10.10(7) (7) Eligibility to vote.

ETF 10.10(7)(a) (a) General requirements. A person shall be eligible to vote if the person is an annuitant or participating employee in the election category for which the election is being held and meets the other voting eligibility requirements in this section at the time ballot materials are printed for distribution and the department has a record of his or her eligibility.

ETF 10.10(7)(b) (b) Teachers retirement board elections. A participating employee of the state department of public instruction, state department of health services, state technical college system, and the state educational communications board, who is classified as a teacher under the Wisconsin retirement system, is not employed by a public school or a technical college system district and may not vote in any election to elect a teacher to serve on the teachers retirement board.