ETF 20.045 Note If the request is received too late to prevent issuance of one or more monthly payments, the value of the payments issued shall be deducted from the lump sum payment.

ETF 20.045(4) (4) Subject to the restrictions in s. 40.24 (7) (a), Stats., a participant’s request to change the designation of a named survivor to a different named survivor shall be subject to the deadline specified in s. 40.24 (4), Stats., for changing the optional form of payment selected.

ETF 20.045 History History: CR 09-057: cr. Register May 2010 No. 653, eff. 6-1-10; CR 11-040: cr. (4) Register July 2012 No. 679, eff. 8-1-12.

ETF 20.05 ETF 20.05 Accelerated payment annuity options.

ETF 20.05(1) (1) A participant, alternate payee or beneficiary shall not be eligible for the accelerated payment annuity if the reduced annuity payable for life in the normal form under s. 40.24 (1) (e), Stats., would be equal to or less than $129 per month for a benefit with an effective date in calendar year 2001 or, for a benefit with an effective date in a subsequent calendar year, the monthly amount applied under this section for the previous calendar year increased by the salary index, as defined in s. 40.02 (52), Stats., ignoring fractions of the dollar.

ETF 20.05(2) (2) Pursuant to s. 40.03 (2) (k), Stats., the department will assume that the primary OASDHI benefit, as defined in s. 40.02 (44), Stats., for a person eligible to receive a beneficiary annuity and selecting an option payable under s. 40.24 (1) (e), Stats., will be based on the work record of the participant from whose account the benefit is being paid.

ETF 20.05 History History: Cr. Register, June, 1979, No. 282, eff. 1-1-80; cr. (2), (1) renum. from ETF 7.02 (1) and am., Register, November, 1982, No. 323, eff. 12-1-82; am. (1), Register, December, 1987, No. 384, eff. 1-1-88; CR 01-096: am. (1) and (2), Register December 2001 No. 552, eff. 1-1-02.

ETF 20.055 ETF 20.055 Spouse’s or domestic partner’s signature on a benefit application. Documentation of inability to obtain a spouse’s or domestic partner’s signature on an annuity application as required under s. 40.24 (7) (a) or s. 40.25 (3m), Stats., or on a separation benefit application as provided in s. 40.25 (3m), Stats., shall be accepted for any of the following reasons:

ETF 20.055(1) (1) 

ETF 20.055(1)(a) (a) The spouse or domestic partner is incompetent as defined under s. 54.10 (3), Stats., and a copy of the court order appointing the spouse’s or domestic partner’s guardian is submitted to the department.

ETF 20.055(1)(b) (b) The guardian’s signature shall be required on the annuity application in lieu of the spouse’s or domestic partner’s signature if the participant chooses an annuity option other than an option specified under s. 40.24 (7) (a) or 40.25 (1) (a), Stats.

ETF 20.055(1)(c) (c) The spouse’s, domestic partner’s or guardian’s signature is not required when the participant is only eligible for a single sum benefit payable under s. 40.25 (1) (a), Stats.

ETF 20.055(2) (2) The participant certifies, on a form provided by the department, that the participant does not now know and has not known the whereabouts of the spouse or domestic partner for at least the 90 days immediately prior to the date the application is signed, or the participant provides evidence to the department’s satisfaction that the spouse’s or domestic partner’s signature is otherwise not obtainable.

ETF 20.055 Note Note: Section ETF 20.055 (2) requires a form which 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: [phone] or toll free at [phone].

ETF 20.055(3) (3) The requirements in s. 40.24 (7) (a) (intro.) and (b), Stats., and in s. 40.25 (3m), Stats., as it applies to s. 40.25 (1) (b), Stats., related to the requirement for the domestic partner’s signature on benefit applications, shall not apply if the participant is prohibited under the internal revenue code from selecting a joint and survivor annuity with the domestic partner as the named survivor, based on the participant’s and domestic partner’s respective ages.

ETF 20.055 History History: Cr. Register, September, 1986, No. 369, eff. 10-1-86; EmR0938: emerg. am. eff. 1-1-10; CR 10-004: am. Register July 2010 No. 655, eff. 8-1-10; CR 10-137: am. Register August 2011 No. 668, eff. 9-1-11.

ETF 20.06 ETF 20.06 Early retirement reduction factors. Pursuant to s. 40.23 (2), Stats., this section applies only to participants who are not participating employees after March 9, 1984. In computing a formula annuity in the normal form beginning prior to the normal retirement date of a participant, there shall be a .5% reduction for each month the participant’s age is under 65 but at least 60 and a .4% reduction for each month the participant’s age is under 60.

ETF 20.06 History History: Cr. Register, June, 1979, No. 282, eff. 1-1-80; renum. from ETF 7.02 (2), Register, November, 1982, No. 323, eff. 12-1-82; am. Register, March, 1986, No. 363, eff. 4-1-86.

ETF 20.07 ETF 20.07 Annuity options — automatic distributions.

ETF 20.07(1) (1) When the department begins to distribute an account under the provisions of s. 40.23 (4) (c), Stats., the benefit shall include the amount, if any, which can be provided by accumulated employer and employee required and additional contributions credited to the account. The department may not distribute a participating employee’s account under this section.

ETF 20.07(2) (2) The benefit shall be paid in the first of the following forms that applies:

ETF 20.07(2)(a) (a) For benefits payable solely from the participant’s additional contribution accumulations under s. 40.05 (1) (a) 5., Stats., or if the amount of the annuity in the normal form based on all undistributed balances in the account is less than the amount determined under s. 40.25 (1) (a), Stats., a lump sum payment.

ETF 20.07(2)(b) (b) If the participant’s or alternate payee’s age on the birthday which occurs during the year that the distribution begins is less than 72, the option specified in s. 40.24 (1) (c), Stats.

ETF 20.07(2)(c) (c) If the participant’s or alternate payee’s age on the birthday which occurs during the year that the distribution begins is 72 or more, except as provided in par. (d), the option specified in s. ETF 20.04 (4).

ETF 20.07(2)(d) (d) If the number of guaranteed payments determined under s. ETF 20.04 (4) is less than 60, a lump sum payment equal to the present value of the annuity.

ETF 20.07(3) (3) The effective date of the automatic distribution paid under sub. (2) shall be January 1 of the year in which the participant attains or would have attained the age provided in section 401 (a) (9) of the Internal Revenue Code, or January 1 of the year following the year in which the participant retires, if later. Standard sequence under s. 40.02 (8) (a) 2., Stats., shall become effective with regard to beneficiaries of death benefits under ss. 40.71 and 40.73, Stats., on the effective date of the automatic distribution.

ETF 20.07(4) (4) The participant or alternate payee may not cancel distributions under this section, except as provided in sub. (5). Subject to the requirements of the internal revenue code, the participant or alternate payee may change the optional form of payment as provided under s. 40.24 (4), Stats.

ETF 20.07(5) (5) The department shall distribute the account as specified in this section unless the department receives the participant’s or alternate payee’s application for the benefit on a form provided by the department. The application may specify a deferred effective date which may not be later than March 1 of the calendar year after the year in which participant attains the age provided in section 401 (a) (9) of the Internal Revenue Code, or March 1 of the calendar year following the year in which the participant retires, if later. For alternate payees of deceased participants, the deferred effective date may not be later than March 1 of the calendar year after the participant would have attained the age provided in section 401 (a) (9) of the Internal Revenue Code. The department must receive the application specifying a deferred benefit effective date on or after January 1 of the year before the year in which the participant attains (or, for alternate payees of deceased participants, would have attained) the age provided in section 401 (a) (9) of the Internal Revenue Code, but no later than the deadline to request cancellation provided under s. ETF 20.20 (3) or (4) with respect to the benefit which is being automatically distributed.

ETF 20.07 Note Note: Federal regulations require that a distribution from a qualified retirement plan begin no later than April 1 of the year following the year in which the participant would have attained the age provided in section 401 (a) (9) of the Internal Revenue Code or retires, whichever is later. A form specifying a requested annuity effective date, form ET-4934, is available from the department of employee trust funds at no charge.