ETF 20.17(2)(2) Definitions. Words, phrases and terms used in this section shall have the same meanings as set forth in s. 40.02, Stats., and s. ETF 10.01. In addition, in this section: ETF 20.17(2)(b)(b) “Current earnings” means the participant’s earnings in the most recent complete annual earnings period, provided the participant was a participating employee for the full annual earnings period. If the participant was not a participating employee throughout the most recently ended annual earnings period, “current earnings” means the product of the participant’s hourly pay rate on the date of application, multiplied by the number of hours the participant would reasonably be expected to be employed as a participating employee during the current annual earnings period, assuming that the participant would continue to be employed for the remainder of the current annual earnings period. ETF 20.17(2)(c)(c) “Date of application” means the date the signed application on the form approved by the department for the purchase of the type of service in question is received by the department, as determined under s. ETF 10.82 (1). ETF 20.17 NoteNote: The forms approved by the department for the purchase of service credits are “Application to Purchase Other Governmental Service,” form ET-2205, “Qualifying Service Purchase Estimate/Application,” form ET-4314, “Forfeited Service Purchase Estimate/Application” form ET-4315, “Uncredited Teaching Service Purchase Estimate/Application,” form ET-4323. These are individually customized forms that reflect the department’s estimate of the amount required from the participant for that particular purchase. In addition, where no standard form exists for the type of service purchase, customized estimates will be prepared by the department upon request. All forms and estimates can be obtained at no charge by writing to: department of employee trust funds, P.O. Box 7931, Madison, WI 53707-7931, or by calling (608) 266-3285 or toll free at (877) 533-5020. Forms should be requested at least four (4) weeks before the date the participating employee intends to apply, and well in advance of any anticipated termination of employment, to allow sufficient time for the department to calculate the personalized estimates of the cost.
ETF 20.17(2)(e)(e) “Money purchase balance” means the sum of the participant’s employee required contributions and accrued interest, including accumulations resulting from purchases under this section, plus an amount from the employer reserve equal to the employee required accumulation less any amount resulting from purchases under s. 40.285 (2) (b), Stats., and interest accumulated on those amounts. ETF 20.17(2)(f)(f) “Other governmental service” means one of the following: ETF 20.17(2)(f)1.b.b. The government of a U.S. state other than Wisconsin or a political subdivision, department or agency of such state. ETF 20.17(2)(f)1.c.c. An employer as defined by s. 40.02 (28), Stats., that does not participate in the Wisconsin retirement system with respect to the employee’s employment category. ETF 20.17(2)(f)2.2. Service as an employee for a participating employer in the Wisconsin retirement system that was performed before the employer began to participate with respect to the employee’s employment category, and that has not been recognized by the employer as creditable prior service. ETF 20.17 NoteNote: Under s. 40.21 (6), Stats., an employer may choose to recognize none, 25%, 50%, 75% or 100% of the previous service of existing employees when the employer first joins the Wisconsin retirement system, and may subsequently increase the recognized percentage for those who are still participating employees at the time. Any percentage of an employee’s previous service remaining unrecognized is “other governmental service” within the meaning of subd. 2. ETF 20.17(3)(3) Purchasing creditable service forfeited by a separation benefit or withdrawal of employee or member contributions. ETF 20.17(3)(am)1.1. An applicant is eligible to purchase service under this subsection if, on the date of application, the applicant is a participating employee with at least 3 continuous years of creditable service, as defined by s. ETF 10.01 (7) and no break in service between the three continuous years and the application date. ETF 20.17(3)(am)2.2. For purposes of s. 40.285 (2) (a) 2. b., Stats., unless barred because of receipt of a benefit as provided in subd. 3. or as otherwise provided in this section or s. 40.285, Stats., a person may purchase credit for rendering services that were then covered by the state teacher retirement system, Milwaukee teacher retirement fund or Wisconsin retirement fund, if the person subsequently received a lump sum payment under one of the separation or withdrawal laws in effect before January 1, 1982, including ss. 41.16, 1969-79 stats., 42.242 (5), 42.243 (7) (e), 1957-79 stats., 42.245 (4), 1965-79 stats., 42.49 (1) (a), 1945-79 stats., 42.49 (14), 1955-79 stats., 42.49 (16), 1965-79 stats., 42.75 (1), 42.76 (10), 42.78 (6), 1971-75 stats., 42.86 (1) and (2) and 42.91, 1969-79 stats., 66.90 (15), 1945 stats., 66.91, 1947-67 stats. ETF 20.17(3)(am)3.3. Conversely, a person who received an annuity, or a lump sum payment in lieu of an annuity under s. 40.25 (1), Stats., is not eligible to purchase credit under s. 40.285 (2) (a), Stats., for any services rendered to a participating employer as a participating employee prior to payment of the benefit. Correspondingly, no person may purchase credit under s. 40.285 (2) (a), Stats., for services rendered prior to receiving a lump sum benefit under the similar laws in effect for the Wisconsin retirement fund, state teacher retirement system or Milwaukee teacher retirement fund prior to January 1, 1982, including ss. 41.11, (11), 1969 stats., 41.11 (8) or (10), 1971-79 stats., 42.242 (7), 1957-79 stats., 42.245 (6), 1965-79 stats., 42.49 (15), 1955-79 stats., 42.73 (1) and 42.76 (12) (c), 1971-79 stats., 42.78 (2) (k) 1. or 2., 1975-79 stats., and 66.906 (3d), 1967 stats. Those are not separation or withdrawal benefit laws within the meaning of s. 40.285 (2) (a) 2. b., Stats. ETF 20.17(3)(b)(b) Service in different categories of employment; Calculation of cost. In cases where the service to be reestablished was earned in more than one employment category, separate calculations shall be done for each period of service using the applicable statutory contribution rate under s. 40.05 (1) (a), Stats., as affected by s. 40.05 (1) (b), Stats., for each employment category. The department’s estimate to purchase service shall be calculated based on all the years and fractions of a year of forfeited service that are then available for purchase under s. 40.285 (2) (a), Stats., and this subsection, including the limits of s. 40.285 (2) (a) 1. a. and b., Stats., unless the applicant specifies a lesser amount. If the applicant so requests on the application received by the department, the final calculation of cost made after the application is received may include all years and fractions of a year of forfeited service eligible for purchase under s. 40.285 (2) (a), Stats., as of the date of application. ETF 20.17(3)(d)(d) Proration of multiple category service for payment shortfall. If the participant’s payment to purchase service forfeited by a separation benefit or withdrawal of employee or member contributions is less than the amount needed to purchase all of the forfeited service that the participant is eligible to buy, the department shall complete the purchase by reducing the service credit purchased to the prorated credit that can be purchased by the payment actually received. Within each category of employment, the payment received shall be applied first to purchase service credit eligible to be treated as pre-2000 service, as provided in s. ETF 20.19 (2) (d). If the participant has forfeited service based on employment in more than one category under s. 40.23 (2) (b), Stats., and the participant does not specify the service category or categories to which the payment is to be applied, the department shall use the following order of priority in determining to which category of service to apply the payment, until the amount paid is exhausted: ETF 20.17(4)(4) Purchase and crediting of other governmental service. ETF 20.17(4)(b)(b) Eligibility criteria. The department shall grant creditable service for other governmental service to participants who meet all of the following requirements: