ETF 20.17(1)(g)2. 2. For interest crediting purposes, except as otherwise provided in subd. 3., all payments received to purchase creditable service including plan-to-plan transfer funds shall be treated as amounts received during the year in which the department actually receives the payment or transferred funds.

ETF 20.17(1)(g)3. 3. Notwithstanding subd. 2., for interest crediting purposes, funds transferred from the participant’s voluntary employee additional contributions that were in the prior year’s closing balance of the additional contribution account, including interest credited, when the transfer occurs shall retain that status so that the participant will not forfeit interest to be credited on the prior year’s closing balance. Notwithstanding subd. 1., amounts transferred from a participant’s additional contributions in the core investment fund to buy service shall remain in the core investment fund, and additional contributions transferred from the participant’s variable additional contributions to buy service shall remain in the variable fund. Nothing in this subdivision shall be construed to affect an individual’s variable cancellation rights under s. ETF 10.30 (5).

ETF 20.17(1)(h) (h) Payment shortfalls.

ETF 20.17(1)(h)1. 1. For any type of creditable service purchased under s. 40.285 (2), Stats., if the purchase includes a plan-to-plan transfer and the total amount received by the department is less that amount required for the purchase of the service, and the difference exceeds the threshold for corrections under s. 40.285 (7), Stats., then the department shall proceed under s. 40.285 (5) (c), Stats., and allow the participant 30 days to pay the difference. If the difference is not received within 30 days after notice is sent to the participant, the department shall complete the purchase, reducing the amount of service credit purchased to the credit that can be purchased by the payment actually received.

ETF 20.17 Note Note: See s. ETF 20.17 (3) (d) for the required rules concerning how a forfeited service purchase is prorated when the participant forfeited service under more than one category of employment.

ETF 20.17(1)(h)2. 2. If the department determines that the actual cost of purchasing service under s. 40.285 (2), Stats., is greater than the amount estimated by the department for the participant, and the participant paid the estimated amount in full, then the participant shall be notified and allowed 30 days to either pay the balance due or withdraw the application, without prejudice. If the balance due or is not received prior to the deadline, then the department shall proceed under subd. 2. a., b., c. or d., as appropriate.

ETF 20.17(1)(h)2.a. a. When a plan-to-plan transfer made up part of the payment, the department shall proceed under the payment shortfall provisions of s. 40.285 (5) (c), Stats., except as otherwise provided by subd. 2. c. or d.

ETF 20.17(1)(h)2.b. b. When no plan-to-plan transfer is involved and subd. 2. c. or d. do not apply, or the participant made a timely request to withdraw the application, the department shall refund all amounts received as provided in par. (f).

ETF 20.17(1)(h)2.c. c. If a Wisconsin retirement system annuity or lump sum in lieu of an annuity under s. 40.25 (1), Stats., is to be paid to the applicant, and the applicant so requests, the balance due shall be deducted from the lump sum or a subsequent monthly annuity payment payable. This subdivision paragraph does not apply if the balance due exceeds the amount of the benefit under s. 40.25 (1), Stats., or if the Department determines that the amount of the monthly annuity available for this deduction is insufficient.

ETF 20.17(1)(h)2.d. d. If the application was for the purchase of credit for forfeited service or other governmental service, and subdivision paragraph c. does not apply, the department may complete a partial purchase as provided in sub. (3) (d) or (4) (g), respectively.

ETF 20.17(1)(i) (i) No participant withdrawal or cancellation of application; exception. The participant may not cancel or withdraw an application to purchase service credits once any payment has been received by the department, except under the circumstances specified in par. (h) 2. b.

ETF 20.17(1)(j) (j) Treatment of purchased service credit as pre-2000 or post-1999 service. For purposes of computing formula annuity benefits under s. 40.23 (2m) (e), Stats., and the differing multipliers applicable to creditable service that was performed before January 1, 2000, and on and after that date, purchased service credits will be treated as provided in s. ETF 20.19 (2).

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 Note Note: 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 [phone] or toll free at [phone]. 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. 1. Service performed as an employee of any of the following:

ETF 20.17(2)(f)1.a. a. The federal government.

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 Note Note: 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)(a) (a) Scope. This subsection applies to purchases of service under s. 40.285 (2) (a), Stats.

ETF 20.17(3)(am) (am) Eligibility criteria.

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.