Chapter ETF 20

Register July 2012 No. 679

Chapter ETF 20

WISCONSIN RETIREMENT SYSTEM

ETF 20.015   Participating employees.

ETF 20.016   Student employees.

ETF 20.017   Employer resolutions to participate.

ETF 20.02   Rehired annuitants.

ETF 20.025   Minimum retirement age.

ETF 20.0251   Exclusive benefit.

ETF 20.03   Annuity computations.

ETF 20.04   Optional forms of annuity.

ETF 20.045   Changes to optional form of payment.

ETF 20.05   Accelerated payment annuity options.

ETF 20.055   Spouse’s or domestic partner’s signature on a benefit application.

ETF 20.06   Early retirement reduction factors.

ETF 20.07   Annuity options — automatic distributions.

ETF 20.08   Termination of marriage or domestic partnership for determination of beneficiary.

ETF 20.10   Domestic partner benefits.

ETF 20.12   Payments considered Wisconsin retirement system earnings.

ETF 20.17   Service purchases.

ETF 20.19   Treatment of purchased and other creditable service for percentage rates used to calculate retirement, disability and certain death benefits.

ETF 20.20   Cancellation of application for retirement annuity, separation or lump sum benefit.

ETF 20.21   Changing annuity effective dates.

ETF 20.23   Adjusting annuities for equity after reentry into service.

ETF 20.25   Core and variable annuity changes.

ETF 20.30   Annuity underpayments.

ETF 20.35   Qualified domestic relations orders; division of WRS accounts and annuities.

ETF 20.37   Death benefits.

ETF 20.39   Delinquent state tax obligations.

Ch. ETF 20 Note Note: Corrections made under s. 13.93 (2m) (b) 6., Stats., Register January 2004 No. 577.

ETF 20.015 ETF 20.015 Participating employees.

ETF 20.015(1) (1) Participating employees: one-third of full-time employment.

ETF 20.015(1)(a) (a) Non-teachers. Except as provided in par. (b) and (c), for purposes of s. 40.22, Stats., 600 hours of employment with an employer in one year is considered one-third of full-time employment.

ETF 20.015(1)(b) (b) Teachers. For an employee classified as a teacher under s. 40.02 (55), Stats., for purposes of s. 40.22, Stats., 440 hours of employment with an employer in one year is considered one-third of full-time employment.

ETF 20.015(1)(c) (c) Educational support personnel employee. Except as provided in par. (a), for purposes of s. 40.22, Stats., 440 hours of employment with an employer in one year is considered one-third of full-time employment.

ETF 20.015(2) (2) Participating employees: two-thirds of full-time employment.

ETF 20.015(2)(a) (a) Non-teachers. Except as provided in par. (b) and (c), for purposes of s. 40.22, Stats., 1200 hours of employment with an employer in one year is considered two-thirds of full-time employment.

ETF 20.015(2)(b) (b) Teachers. For an employee classified as a teacher under s. 40.02 (55), Stats., for purposes of s. 40.22, Stats., 880 hours of employment with an employer in one year is considered two-thirds of full-time employment.

ETF 20.015(2)(c) (c) Educational support personnel employee. Except as provided in par. (a), for purposes of s. 40.22, Stats., 880 hours of employment with an employer in one year is considered two-thirds of full-time employment.

ETF 20.015(3) (3) Year. For purposes of this section “year” means 365 consecutive calendar days, or 366 consecutive calendar days if the period measured includes February 29.

ETF 20.015 History History: Cr. Register, January, 1985, No. 349, eff. 2-1-85; r. and recr. Register, September, 1992, No. 441, eff. 10-1-92; CR 12-054: r. and recr. (title), (1), (2) Register October 2013 No. 694, eff. 11-1-13.

ETF 20.016 ETF 20.016 Student employees.

ETF 20.016(1) (1) As provided in s. 40.22 (2) (gm), Stats., a participating employer may not include under the provisions of the Wisconsin retirement system an employee first hired on or after April 23, 1992, if the employee is under the age of 20 and is regularly enrolled or expected to be enrolled as a full-time student in a public, private, or parochial elementary or high school as defined in s. 118.257 (1) (d), Stats.

ETF 20.016(2) (2) For purposes of this section, an employee who is not enrolled in school is expected to be regularly enrolled as a full-time student in a school included under s. 118.257 (1) (d), Stats., if all of the following apply:

ETF 20.016(2)(a) (a) The employee is under age 20 and has not received a high school diploma or a general equivalency diploma;

ETF 20.016(2)(b) (b) The employee was enrolled in a school included under s. 118.257 (1) (d), Stats., during the immediately prior regular semester;

ETF 20.016(2)(c) (c) The employee has not notified the employer, as provided in sub. (3) (c), that he or she does not intend to enroll as a full-time student in a school included under s. 118.257 (1) (d), Stats., during the next regular semester.

ETF 20.016(3) (3) An employee who is excluded from participation in the Wisconsin retirement system by s. 40.22 (2) (gm), Stats., shall become eligible for participation, subject to s. 40.22 (2) and (2m), Stats., as if he or she had been initially hired on the earliest of the following dates:

ETF 20.016(3)(a) (a) The date the employee attains age 20;

ETF 20.016(3)(b) (b) The employee’s first working day following the date the employee completes all requirements for a high school diploma;

ETF 20.016(3)(c) (c) The employee’s first working day following the date the employee notifies the employer that he or she has ceased to be enrolled, and does not expect to be enrolled during the next regular semester, as a full-time student in a school included under s. 118.257 (1) (d), Stats. The written statement of the employee or, if the employee is under age 18, of the employee’s parent or guardian shall be sufficient to establish that the employee has left school and does not intend to return in the next semester. If the employee intends to continue as a part-time student only, he or she may establish this fact by submitting to the employer a written certification from the principal of the school in which the student is enrolled. The definition of full-time student shall be that of the school in which the student is enrolled.

ETF 20.016 History History: Cr. Register, October, 1992, No. 442, eff. 11-1-92.

ETF 20.017 ETF 20.017 Employer resolutions to participate. If the official notice of election to be included has been received by the department on or before November 15, the effective date of participation of the employer shall be the ensuing January 1. If the department receives the notice of election after November 15, the effective date shall be the January 1 after the ensuing January 1. The employer may withdraw a notice of election to be included if the employer’s written notice to withdraw is received by the department before the November 15 deadline of the year before the January effective date.

ETF 20.017 History History: CR 11-040: cr. Register July 2012 No. 679, eff. 8-1-12.

ETF 20.02 ETF 20.02 Rehired annuitants.

ETF 20.02(1) (1) Scope. In this section, “rehired annuitant” means a participant on or after July 1, 1996, who has applied for and is eligible to receive a monthly annuity under s. 40.23, Stats., including satisfying the requirement to remain separated from participating employment for the period specified under s. 40.23 (1) (a) 1., Stats., and who subsequently is employed by a participating employer in employment which would meet the eligibility criteria for inclusion under the provisions of the Wisconsin retirement system specified in s. 40.22, Stats., but for the exclusion of s. 40.22 (2) (L), Stats., and whose termination of previous employment by a participating employer meets all criteria under s. ETF 10.08 (2) (b).

ETF 20.02(2) (2) Break in service. The minimum break in service period required under s. 40.23 (1) (a), Stats., is satisfied when the rehired annuitant returns to work no earlier than the latest of the following dates:

ETF 20.02(2)(a) (a) The day after the annuity effective date.

ETF 20.02(2)(b) (b) The seventy-sixth day after the date participating employment terminated.

ETF 20.02(3) (3) Required contributions.

ETF 20.02(3)(a) (a) The department shall include a rehired annuitant under the provisions of the Wisconsin retirement system as a participating employee if any of the following conditions apply:

ETF 20.02(3)(a)1. 1. A rehired annuitant who terminated participating employment prior to July 2, 2013, is employed in a position which meets the requirement for participation specified in s. 40.22, Stats., and files with the department a written election to be included under the provisions of the Wisconsin retirement system as a participating employee. The election shall be on a form provided by the department.

ETF 20.02(3)(a)2. 2. A rehired annuitant who terminated participating employment after July 1, 2013, is employed in a position which meets the requirement for participation specified in s. 40.22, Stats., and files with the department a written election to be included under the provisions of the Wisconsin retirement system as a participating employee. The election shall be on a form provided by the department. This subsection does not apply to a rehired annuitant who meets the requirements of s. 40.26 (1m) (a), Stats.

ETF 20.02(3)(a)3. 3. The rehired annuitant meets the requirements for suspension of the annuity under s. 40.26 (1m) (a), Stats.

ETF 20.02(3)(c) (c) An election filed pursuant to par. (a) 1. or 2. shall take effect on the first day of the month following its receipt by the department. The department shall suspend the annuity on the day prior to the effective date of the election, unless the department receives the rehired annuitant’s written notice revoking the election prior to the effective date of the election.

ETF 20.02(3)(d) (d) A suspension of an annuity pursuant to par. (a) 3. shall take effect on the first day of the month following the date the annuitant is rehired.

ETF 20.02(4) (4) Employer reporting. Employers shall report to the department all rehired employees receiving an annuity from the Wisconsin retirement system, regardless of whether the employee qualifies as a rehired annuitant under this section and whether the employee’s position meets the qualifications for inclusion under s. 40.22, Stats. Employers shall report rehired annuitants in the manner, form, and at the time requested by the department.

ETF 20.02 Note Note: A rehired annuitant or employer may obtain a copy of the “Rehired Annuitant Election” form, ET-2319, required by s. ETF 20.02 at no charge 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]. The form also is available on the department’s website: etf.wi.gov.

ETF 20.02 History History: Emerg. cr. eff. 7-1-83; cr. Register, October, 1983, No. 334, eff. 11-1-83; r. and recr. Register, October, 1992, No. 442, eff. 11-1-92; correction in (3) (a) 2. made under s. 13.93 (2m) (b) 7., Stats., Register, July, 1999, No. 523; am. (1) and (3) (a) 3., r. and recr. (2) and r. (3) (a) 2., (b), (4) and (5), Register, August, 2000, No. 536, eff. 9-1-00; CR 11-042: am. (1), cr. (2) (title), (3) (title), (4) Register July 2012 No. 679, eff. 8-1-12; CR 14-055: am. (2) (b), (c), r. and recr. (3) (a), am. (3) (c), cr. (3) (d) Register May 2015 No. 713, eff. 6-1-15; CR 19-126: r. (2) (c) Register May 2021 No. 785, eff. 6-1-21.

ETF 20.025 ETF 20.025 Minimum retirement age.

ETF 20.025(1) (1) Regular retirement annuities and lump sums in lieu of an annuity. The earliest age at which a person may qualify to receive an annuity under s. 40.23 or 40.24, Stats., or a lump sum in lieu of an annuity under s. 40.25 (1), Stats., is the minimum retirement age.

ETF 20.025(2) (2) Separation benefits. An application for a lump sum benefit under s. 40.25 (2), Stats., must be received by the department before the applicant has reached minimum retirement age unless the applicant is eligible for a lump sum benefit under s. 40.23 (2m) (er) or 40.23 (3) (b), Stats.

ETF 20.025 Note Note: The term “minimum retirement age” currently is not used in ch. 40, Stats. or ETF administrative rules., except for ss. ETF 10.01 (3o) and 20.025 as proposed in this rule (CR 09-057). The term is defined in this rule to be consistent with s. 40.23 (1) (a) (intro.), Stats., which is implicitly referenced by s. 40.25 (1) (a), Stats., and with s. 40.25 (2), Stats.

ETF 20.025 History History: CR 09-057: cr. Register May 2010 No. 653, eff. 6-1-10; CR 14-055: am. (2) Register May 2015 No. 713, eff. 6-1-15.

ETF 20.0251 ETF 20.0251 Exclusive benefit.

ETF 20.0251(1) (1) The Wisconsin retirement system is maintained for the exclusive benefit of participants and their beneficiaries.

ETF 20.0251(2) (2) No contributions or earnings on contributions may revert, and no contributions may be permitted to be returned to a participating employer, except as permitted by Revenue Ruling 91-4.

ETF 20.0251 Note Note: Revenue Ruling 91-4 provides for circumstances under which money contributed by a participating employer may be returned to the employer. A copy of the ruling may be obtained by writing: Superintendent of Documents, P.O. Box 979050, St. Louis, MO 63197-9000.

ETF 20.0251 History History: CR 13-004: cr. Register August 2013 No. 692, eff. 9-1-13.

ETF 20.03 ETF 20.03 Annuity computations.

ETF 20.03(1) (1) For purposes of annuity computations, an applicant’s age shall be determined to the nearest month.

ETF 20.03(2) (2) For purposes of determining maximum benefits under s. 40.23 (2), Stats., and accelerated benefits under s. 40.24 (4), Stats., except as provided to the contrary in s. ETF 20.35 (4) (c), the estimated OASDHI benefit shall be based on the following:

ETF 20.03 Note Note: 2007 Wis. Act 131 revised s. 40.24 (1) (e), Stats., for annuities effective after July 1, 2008 to remove the alternative provision terminating the temporary annuity portion of the benefit at death and thereby made the temporary annuity an annuity certain payable until the annuitant would have reached age 62. Once called “Social Security Integrated” or “integrated” annuities, these two-part annuity options are now known as accelerated annuity options. This rule (CR 09-057) updates the last remaining reference in the administrative rules to an “integrated” annuity benefit.