ETF 20.17 NoteExample 2. An applicant whose annual earnings periods are calendar years had $34,000 in earnings and 1.0 years of creditable service in 2004, the highest earnings reported for any calendar year as of the date of application. The applicant also had $27,000 in earnings but only 0.75 years of creditable service in 2005. For purposes of calculating the payment due, the actual earnings for 2004 will be used because that is the highest earnings year, and the department will not annualize the lower 2005 earnings to $36,000.
ETF 20.17(5)(c)(c) Requirement to first purchase forfeited service. If a participating employee has previously received a separation benefit or withdrawal of member contributions after serving a qualifying period, the participant may purchase credit for a qualifying period only if the participant has first reestablished the maximum possible years of forfeited creditable service under s. 40.285 (2), Stats., that the participant is eligible to buy as of the date that the department receives the application to buy qualifying service. ETF 20.17(5)(d)(d) Employment category to be credited. The qualifying period of service shall be credited to the employment category in which the service would be credited if the qualifying service had been creditable at the time it was performed. ETF 20.17(6)(6) Purchase of service for teacher improvement leave. ETF 20.17(6)(b)(b) Eligibility; Board of Regents certification. In addition to the other requirements of sub. (1) for applying, the applicant is responsible for first applying to the Board of Regents as required by s. 40.285 (2) (e) 1., Stats., and obtaining the certification of the period of compensated teacher improvement leave occurring between January 1, 1964, and August 31, 1967. The Board of Regents certification must be submitted to the department in order to obtain the application form to apply to purchase credit for the service. ETF 20.17 NoteNote: The form “Uncredited Teaching Service Purchase Estimate/Application,” form ET-4323 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.
ETF 20.17(6)(c)(c) Calculation of amount due. The department’s estimate to purchase service shall be calculated based on all the years and fractions of a year of teacher improvement leave that are identified in the Board of Regents’ certification and are available for purchase under s. 40.285 (2) (e), Stats., and this subsection. ETF 20.17(7)(7) Purchase of previously uncredited service as a junior teacher. ETF 20.17(7)(b)(b) Eligibility. Purchase of service under this subsection is available only to participating employees who were both: ETF 20.17(7)(b)1.1. Engaged as a principal occupation in teaching in the public schools, state colleges or university of the state or any political subdivision of the state, excluding the city of Milwaukee. ETF 20.17(7)(b)2.2. So employed during any part of a school year prior to the 1957-58 school year, when the teacher’s 25th birthday had not occurred by the July 1 immediately preceding the beginning of the school year. ETF 20.17(7)(c)(c) Calculation of amount due. The department’s estimate to purchase service shall be calculated based on all the years and fractions of a year of junior teaching service that are available for purchase under s. 40.285 (2) (f), Stats., and this subsection. ETF 20.17(8)(8) Purchase of previously uncredited service as an executive official. ETF 20.17(8)(a)(a) Scope. This subsection applies to purchases of previously uncredited service as an executive official under s. 40.285 (2) (c), Stats. ETF 20.17(8)(b)(b) Eligibility. Except as provided in par. (c), any current participating employee who, on or after May 3, 1988, was an executive participating employee as defined by s. 40.02 (30), Stats., may purchase credit under s. 40.285 (2) (c), Stats., for service previously uncredited due to any statutory age restriction for persons over age 62, provided the participating employee also meets the criteria of subd. 1. or 2. or both. ETF 20.17(8)(b)1.1. Was born before January 1, 1920, and who at any time from July 1, 1974 through September 30, 1981, held a position listed in s. 20.923 (4), (8) or (9), Stats., during the time of employment. ETF 20.17 NoteNote: Section 20.926 (1) (a), Stats., as in effect from July 1, 1974, through December 31, 1981, excluded credit for service in such position rendered after the end of the calendar quarter in which the person attained age 62.
ETF 20.17(8)(b)2.2. Was born before February 1, 1926, and who at any time from October 1, 1981, through January 31, 1988, held a position listed in s. 20.923 (4), (8) or (9), Stats., during the time of employment. ETF 20.17 NoteNote 1: Section 40.02 (17) (c), Stats., as in effect from January 1, 1982, until May 3, 1988, barred creditable service for persons in such positions after the first day of the fourth month commencing after attaining the age of 62.
ETF 20.17 NoteNote 2: The referenced positions listed in s. 20.923 (4), (8) and (9), Stats., include the president of the university of Wisconsin system, which was so listed in s. 20.923 (4) (j) 1., Stats., effective from August 4, 1973, and at all times material to s. 40.285 (2) (c), Stats. ETF 20.17(8)(c)(c) Exclusion from eligibility. No person who purchased creditable service under s. 40.02 (17) (e), Stats., as in effect from May 3, 1988, until July 26, 2003, is eligible to purchase creditable service under s. 40.285 (2) (c), Stats. ETF 20.17(8)(d)(d) Calculation of amount due. The department’s estimate shall be calculated based on all the years and fractions of a year of previously uncredited service that are available for purchase under s. 40.285 (2) (c), Stats., and this subsection. All participating employees purchasing service under s. 40.285 (2) (c), Stats., shall pay the same rate for such service, as prescribed by that statute, regardless of whether the participating employee is a present or former elected official or an appointee of such an official. ETF 20.17(8)(e)(e) No retroactive effect on prior payment. No present or former elected official, or an appointee of such an official, who purchased service under former s. 40.02 (17) (e), Stats., as in effect from May 3, 1988 through August 14, 1991, shall be entitled to any refund or additional benefit based upon the amendment of s. 40.02 (17) (e), 1989 stats., by 1991 Wisconsin act 39 or the renumbering and subsequent amendment of s. 40.02 (17) (e), Stats., by 2003 Wisconsin act 33. ETF 20.17 HistoryHistory: CR 07-062: cr. Register June 2008 No. 630, eff. 7-1-08; CR 09-057: am. (4) (d) 2. (intro.) and g. Register May 2010 No. 653, eff. 6-1-10; correction in (1) (c) 3. a. made under s. 13.92 (4) (b) 7., Stats., Register August 2013 No. 692, eff. 9-1-13; correction in (3) (b) made under s. 13.92 (4) (b) 7., Stats., Register October 2013 No. 694, eff. 11-1-13; CR 14-055: r. (2) (d), am. (2) (f) 1. (intro.), (4) (b) 3. b., r. and recr. (4) (c) 6., am. (4) (c) 7. (intro.), a., e., cr. (4) (c) 8. Register May 2015 No. 713, eff. 6-1-15; 2015 Wis. Act 330 s. 20: am. (6) (b), (c) Register April 2016 No. 724, eff. 5-1-16; CR 19-126: am. (1) (b) 2., (d) 4., (4) (b) 3. b., (e) 5. b. Register May 2021 No. 785, eff. 6-1-21. ETF 20.19ETF 20.19 Treatment of purchased and other creditable service for percentage rates used to calculate retirement, disability and certain death benefits. ETF 20.19(1)(1) Purpose. 1999 Wisconsin Act 11 provides a higher percentage rate under s. 40.23 (2m) (e), Stats., for creditable service performed before January 1, 2000. The purpose of this section is to further clarify what percentage rate will apply to creditable service added to a participant’s account through service purchases, creditable military service, creditable prior service, and any other service added to the participant’s account as a result of a court decision, legislation, or any other means, and assumed creditable service used to calculate a disability benefit as provided in s. 40.63 (8), Stats. ETF 20.19(2)(2) Purchased and other creditable service. For purposes of s. 40.23 (2m) (e), Stats., all of the following shall apply: ETF 20.19(2)(b)(b) Purchased service credit under s. 40.285 (2) (a), Stats., for service forfeited after January 1, 2000 shall be treated as post-1999 service, regardless of when the services were actually rendered. This same treatment applies to purchased service credit for service that was originally forfeited before January 1, 2000, then purchased under s. 40.285 (2) (a), Stats., or s. 40.25 (6), 1981-2001 stats., was subsequently forfeited after January 1, 2000, through a separation benefit paid under s. 40.25 (2), Stats., then later purchased under s. 40.285 (2) (a), Stats., or s. 40.25 (6), 1999-2001 stats. ETF 20.19 NoteNote: Section 40.25 (6), Stats., was repealed by 2003 Wis. Act 33. ETF 20.19(2)(c)(c) Purchased service credit under s. 40.285 (2) (a), Stats., for creditable service forfeited before January 1, 2000, will be treated as pre-2000 service if the creditable service in question was forfeited before January 1, 2000, regardless of when the service credit is purchased. ETF 20.19(2)(d)(d) If for any reason a participant who is eligible to purchase service credit for both service that was forfeited before January 1, 2000 and service that was forfeited after January 1, 2000, purchases less than all of the available service credit, then the payment received shall first be applied to purchase credit for service treated as pre-2000 service. ETF 20.19(2)(dm)(dm) Purchased service credits under s. 40.285 (2) (b), Stats., for other governmental service will be treated as pre-2000 or post-1999 service depending on when the actual services for which credit is purchased were rendered to the governmental entity described in s. ETF 20.17 (1) (f). ETF 20.19(2)(e)(e) A qualifying period of service purchased under s. 40.285 (2) (d), Stats., shall be considered to be performed before January 1, 2000. ETF 20.19(2)(g)(g) Creditable service granted under s. 40.02 (17) (gm), Stats., for services performed as an assistant district attorney shall be considered to be performed before January 1, 2000. ETF 20.19(2)(h)(h) Teacher improvement leave purchased under s. 40.285 (2) (e), Stats., shall be considered to be performed before January 1, 2000. ETF 20.19(2)(j)(j) Service performed as a member or employee of the legislature or employee of a legislative service agency that is purchased under 1999 Wis. Act 11, section 27 (2), shall be considered to be performed before January 1, 2000. ETF 20.19(2)(k)(k) Creditable prior service credited under s. 40.02 (16), Stats., that was actually performed before January 1, 2000 shall be considered to be performed before January 1, 2000. Creditable prior service that was actually performed after December 31, 1999 shall be considered to be performed after that date. ETF 20.19(2)(L)(L) Any other service actually performed before January 1, 2000 that is credited to the participant’s account as a result of a court decision, legislation, or any other means shall be considered to be performed before January 1, 2000 for the purpose of determining the applicable percentage rate under s. 40.23 (2m) (e), Stats. ETF 20.19(3)(3) Creditable military service. For purposes of s. 40.23 (2m) (em) 1. c., Stats.,the amount of creditable military service that is considered to be performed before January 1, 2000, is granted in proportion to the final amount of the participant’s total creditable service, other than creditable military service, credited to the participant’s account. ETF 20.19(4)(a)(a) The assumed creditable service under s. 40.63 (8), Stats., that is calculated through December 31, 1999 shall be considered to be performed before January 1, 2000, and the assumed creditable service calculated for any period after December 31, 1999 shall be considered to be performed after that date. ETF 20.19(4)(b)(b) Any assumed creditable military service for which a participant is eligible based on actual and assumed creditable service that is calculated through December 31, 1999 shall be considered to be performed before January 1, 2000. Any assumed creditable military service for which a participant is eligible based on actual and assumed creditable service that is calculated for any period after December 31, 1999 shall be considered to be performed after that date. ETF 20.19(5)(5) Creditable service for periods of temporary disability. Creditable service granted for any period of temporary disability through December 31, 1999 under s. 40.29, Stats., shall be considered to be performed before January 1, 2000. The creditable service granted for any period of temporary disability after December 31, 1999 shall be considered to be performed after that date. ETF 20.19(6)(6) Treatment of creditable service after a retirement annuity is terminated and the account reestablished. When a participant’s account is reestablished under s. 40.26 (2), Stats., if the participant was not a participating employee after December 31, 1999 but before the effective date of the participant’s retirement annuity that was terminated under s. 40.26 (1), Stats., the percentage rates under s. 40.23 (2m) (e), Stats., shall not apply to the creditable service considered to be performed before January 1, 2000 that was performed before the annuity effective date. ETF 20.19(7)(7) Treatment of creditable service after a disability annuity is terminated and the account reestablished. ETF 20.19(7)(a)(a) When a participant’s account is reestablished under s. 40.63 (10), Stats., if the participant is a participating employee after December 31, 1999, all creditable service that is considered to be performed before January 1, 2000 under this section and under s. 40.23 (2m) (em), Stats., shall be considered to be performed before January 1, 2000, for any subsequent benefit calculations. ETF 20.19(8)(8) Creditable service divided per a qualified domestic relations order. ETF 20.19(8)(a)(a) The percentage of a participant’s account that is awarded to an alternate payee in qualified domestic relations order under s. 40.08 (1m), Stats., shall be applied equally to the creditable service considered to be performed both before January 1, 2000 and the service considered to be performed after December 31, 1999, which is credited or creditable to the participant’s account as of the decree date. ETF 20.19(8)(b)(b) The percentage of a participant’s account that is awarded to an alternate payee in a qualified domestic relations order under s. 40.08 (1m), Stats., shall be applied equally to the creditable military service considered to be performed both before January 1, 2000 and the creditable military service considered to be performed after December 31, 1999, date for which the participant would be eligible based on the years of service that are credited or creditable to the participant’s account as of the decree date. Creditable service performed after the decree date does not increase the amount of creditable military service that is awarded to the alternate payee. ETF 20.19 HistoryHistory: CR 00-022: cr. Register July 2001, No. 547 eff. 8-1-01; corrections in (2) (e), (f), (h) and (i) made under s. 13.93 (2m) (b) 7., Stats., Register January 2004 No. 577; CR 07-062: am. (2) (b), (d) and (3) (d) 2., r. and recr. (2) (c), cr. (2) (dm) Register June 2008 No. 630, eff. 7-1-08; CR 11-040: am. (3) (a), r. (3) (b) Register July 2012 No. 679, eff. 8-1-12; renum. (3) (a) to (3) under s. 13.92 (4) (b) 1., Stats., Register July 2012 No. 679; CR 19-126: renum. (6) (a) to (6) and am., r. (6) (b) Register May 2021 No. 785, eff. 6-1-21. ETF 20.20ETF 20.20 Cancellation of application for retirement annuity, separation or lump sum benefit. ETF 20.20(1)(1) Any separation, retirement or lump sum benefit payment application canceled pursuant to this section shall have no force or effect, and any subsequent application shall be treated as a new application. Repayment in full of any sum paid under the application for which cancellation is sought shall be required. The employer may not make this payment on behalf of the recipient of the benefit. ETF 20.20(2)(2) A request to cancel an application under this section shall be in writing. The request to cancel shall be rejected unless received by the department by the close of regular office hours on the last working day prior to the applicable deadline under sub. (3) or (4). If the deadline specified under sub. (3) or (4) falls on a Saturday, Sunday or holiday under s. 230.35 (4) (a), Stats., the request to cancel shall be timely only if received in the department by the close of regular office hours on the last working day preceding the Saturday, Sunday or holiday. ETF 20.20 NoteExample: If the date the account will be debited in response to the application falls on a Monday which is not a holiday, then the request to cancel must be received by the department no later than 4:30 p.m. on the preceding Friday, the last working day prior to the debiting date. If that Monday were a holiday, the debiting date would be Tuesday, the next working day as provided by s. ETF 10.633 (3), but the deadline for cancelling the application would remain Friday, the last working day preceding the debiting date. ETF 20.20(3)(3) An application for a separation benefit under s. 40.25 (2), Stats., shall be canceled if: ETF 20.20(3)(a)(a) The applicant’s written request for cancellation is received by the department no later than the close of the department’s regular office hours on the last working day before the participant’s account in the employee accumulation reserve is debited for funding the benefit as provided by s. ETF 10.633 (1) (c). ETF 20.20(3)(b)(b) The applicant becomes a participating employee within 30 days after the application was received by the department. ETF 20.20(3)(c)(c) The applicant dies prior to the date of the separation benefit check. ETF 20.20(4)(4) An application for a retirement annuity under s. 40.23 or 40.24, Stats., or s. ETF 20.04, or a lump sum payment under s. 40.25 (1) or (4), Stats., shall be canceled if the participant’s written request for cancellation is received by the department no later than the close of the department’s regular office hours on the last day before the participant’s account in the employee accumulation reserve is debited for funding the benefit as provided by s. ETF 10.633 (1) (a) or (c) for retirement annuities or lump sum payments, respectively. ETF 20.20 HistoryHistory: Cr. Register, April, 1983, No. 328, eff. 5-1-83; am. (3) (intro.), Register, October, 1992, No. 442, eff. 11-1-92; am. (1), (2), (3) (intro.) and (a) and (4), Register, January, 1996, No. 481, eff. 2-1-96; correction in (3) (intro.) made under s. 13.93 (2m) (b) 7., Stats., Register, July, 1999, No. 523. ETF 20.21ETF 20.21 Changing annuity effective dates. An annuity effective date shall not be changed after the effective date of the annuity unless the applicant’s written request for the change is received by the department within 60 days after the date on which the first annuity check, share draft or other draft is issued or funds are otherwise transferred. ETF 20.21 NoteNote: This rule (CR 09-057) codifies the department’s use of a deadline pertaining to annuity effective date changes and makes that deadline consistent with the deadline for annuity option changes in s. 40.24 (4), Stats. ETF 20.21 HistoryHistory: CR 09-057: cr. Register May 2010 No. 653, eff. 6-1-10. ETF 20.23ETF 20.23 Adjusting annuities for equity after reentry into service. ETF 20.23(1)(1) Pursuant to s. 40.03 (1) (a), Stats., in determining the monthly amount of a recomputed annuity in the normal form under s. 40.26 (3), Stats., the applicant’s estimated social security benefit shall not be greater than the amount determined by: ETF 20.23(1)(a)(a) Dividing the creditable service earned prior to the effective date of the prior annuity by the participant’s total creditable service. ETF 20.23(1)(b)(b) Dividing the final average earnings determined for the new annuity computation by the final average earnings determined in computing the prior annuity. ETF 20.23(1)(c)(c) Multiplying the result in par. (a) times the result in par. (b) times the social security benefit amount used in determining the amount of the prior annuity. ETF 20.23(1)(d)(d) Dividing the creditable service earned since the effective date of the prior annuity by the participant’s total creditable service. ETF 20.23(1)(e)(e) Multiplying the result in par. (d) times the social security benefit amount determined under s. ETF 20.03 (2) based on the participant’s total service and earnings. ETF 20.23(2)(2) Pursuant to s. 40.03 (1) (a), Stats., the monthly amount of a recomputed annuity in the normal form under s. 40.26 (3), Stats., excluding any portion which on either the original or recomputed annuity was a variable annuity, shall not be less than the monthly amount of the original core annuity in the normal form increased by any dividends granted prior to termination of the original annuity. ETF 20.23(3)(3) The board may review adjustments made under this section and may make other adjustments as necessary to prevent any inequity. ETF 20.23 HistoryHistory: Cr. Register, February, 1984, No. 338, eff. 3-1-84; CR 09-057: am. (2) Register May 2010 No. 653, eff. 6-1-10. ETF 20.25ETF 20.25 Core and variable annuity changes. Annuity changes shall be made as follows: ETF 20.25(1)(a)(a) Except as otherwise provided in par. (b), a core annuity dividend, as recommended by the actuary and approved by the chair of the employee trust funds board and the department’s secretary, shall be distributed based on each December 31 valuation as specified in s. 40.27 (2), Stats. The dividend shall be effective on the April 1 following the valuation date and shall apply to core annuities effective on or prior to the date of the valuation. As authorized under s. 40.27 (2) (b), Stats., different percentages shall be determined for annuities effective for less than a full year on the valuation date. The percentages shall be determined by multiplying the number of full months the annuity was in force times the percentage change applicable to annuities effective for the full year, dividing the result by 12 and rounding the answer to the nearest tenth of a percent. No increase shall be applied to any annuity for which the resulting increase would be less than one tenth of a percent. ETF 20.25(1)(b)(b) The total amount distributed to the annuity reserve under 1999 Wis. Act 11, section 27 (1) (a) shall be distributed effective April 1, 2000, in the form of a percentage increase. The percentage shall be recommended by the actuary separate from the distribution of any surplus created by the annual distribution under s. 40.04 (3) (a), Stats., or otherwise. The percentage under this paragraph shall be the same for all affected annuities, including those with effective dates after December 31, 1998 and before January 1, 2000. ETF 20.25(2)(2) Variable annuity changes, as recommended by the actuary and approved by the secretary, shall be made based on each December 31 valuation as specified in s. 40.28 (2), Stats. The changes shall be effective on the April 1 following the valuation and shall apply to variable annuities effective on or prior to the date of the valuation, regardless of whether the annuity becomes a core annuity in the following year. ETF 20.25 HistoryHistory: Cr. Register, November, 1957, No. 23, eff. 12-31-57; r. and recr. Register, December, 1976, No. 252, eff. 1-1-77; renum. from Ret 8.05 (2) and am., Register, January, 1983, No. 325, eff. 2-1-83; emerg. r. and recr. eff. 1-1-84; r. and recr. Register, April, 1984, No. 340, eff. 5-1-84; renum. (1) to (1) (a) and am., cr. (1) (b), Register, September, 2000, No. 537, eff. 10-1-00; CR 02-049: am. (1) (a) and (2) Register September 2002 No. 561, eff. 10-1-02; CR 03-062: am. (1) (a) and (2), Register January 2004 No. 577, eff. 2-1-04; CR 09-057: am. (intro.), (1) (a) and (2) Register May 2010 No. 653, eff. 6-1-10. ETF 20.30ETF 20.30 Annuity underpayments. Pursuant to s. 40.08 (7) (c), Stats., if an annuity under s. 40.23, 40.24, 40.63, or 40.73, Stats., is underpaid by more than $2 in a month, and if that underpayment is uncorrected for 12 or more months, then the payment to the annuitant to correct the underpayment shall include interest at 0.4% per month for each full month between the date the underpayment occurred and the date the retroactive correction is paid. The interest due shall be calculated separately for each month’s underpaid amount. For purposes of this section, “full month” means the period from any date in a month to the corresponding date in the next month, or to the end of the month if there is no corresponding date. ETF 20.30 NoteNote: This rule (CR 09-057) changes the calculation of interest on underpayments to conform to s. 40.08 (7) (c), Stats., and pay monthly interest on a particular month’s underpayment until it is corrected. ETF 20.30 HistoryHistory: Cr. Register, October, 1992, No. 442, eff. 11-1-92; CR 09-057: am. Register May 2010 No. 653, eff. 6-1-10.
