40.02(22)(a)
(a) Except as provided in
pars. (b) to
(f) and
s. 40.63 (1) (c), means the gross amount paid to an employe by a participating employer as salary or wages, including amounts provided through deferred compensation or tax shelter agreements, for personal services rendered to or for an employer, or which would have been available for payment to the employe except for the employe's election that part or all of the amount be used for other purposes and also includes the money value, as determined by the employer, of any board, lodging, fuel, laundry and other allowances provided for the employe in lieu of money. For purposes of this paragraph, the gross amount shall be determined prior to deductions for taxes, insurance premiums, retirement contributions or deposits, charitable contributions or similar amounts and shall be considered received as of the date when the earnings would normally be payable by the employer. For reporting and computation purposes, fractions of a dollar shall be disregarded in determining annual earnings.
40.02(22)(b)
(b) Does not mean payments made for reasons other than for personal services rendered to or for an employer, including, but not limited to:
40.02(22)(b)2.
2. Employer contributions for insurance and retirement.
40.02(22)(b)4.
4. Payments contingent on the employe providing the employer with or assisting the employer in acquiring tangible or intangible property of the employe.
40.02(22)(b)5.
5. Payments contingent on the employe having attained an age which, if increased by 5 years, is greater than what the employe's age would be on the employe's normal retirement date.
40.02(22)(b)6.
6. Lump sum payments at termination for accumulated vacation, sick leave or compensatory time, except that for disability purposes any lump sum payments shall be treated as a continuation of the employe's earnings and service at the employe's then current rate of pay. This subdivision does not exclude payments which are broadly applicable to the employes of the employer regardless of age, length of service or likelihood of employment termination.
40.02(22)(b)7.
7. Payments contingent on the employe having terminated covered employment or having died.
40.02(22)(b)8.
8. Payments contingent on the employe terminating employment at a specified time in the future including payments to secure voluntary release of an unexpired contract of employment.
40.02(22)(b)9.
9. Payments for damages, attorney fees, interest or penalties paid under court judgment or by compromise settlement to satisfy a grievance or wage claim even though the amount of damages or penalties might be based on previous salary levels. However, the department may by rule provide that a payment of additional wages to a continuously participating employe, or the payment of salary to a participant for any period of improper termination of participating employment, is earnings, if the payment is treated by the employer and employe as taxable income and is consistent with previous payment for hours of service rendered by the employe.
40.02(22)(b)10.
10. Payments made in the last 5 years of employment which are the result of a change in the method of computing the base compensation of an employe, unless the change in method for computing the base compensation is a permanent change and is broadly applicable to the employes of that employer or unless the change is the result of a significant change in the nature of the duties and activities expected of the employe.
40.02(22)(b)11.
11. Payment in lieu of fringe benefits normally paid for or provided by the employer but which can be paid to the employe at the employe's option.
40.02(22)(b)12.
12. For any employer, earnings paid to an employe directly by any other unit of government except county supplements to judges under s.
20.923 (3m), 1977 stats., s.
753.016, 1977 stats., s.
753.071, 1977 stats., and s.
753.075, 1977 stats., are earnings if the supplemental payments were subject to subch.
I of ch. 41, 1977 stats.
40.02(22)(b)14.
14. Any other type of payment determined by the department by rule to be a distortion of the normal progression patterns on which an individual's benefits should be based.
40.02(22)(c)
(c) For OASDHI purposes, has the meaning specified for wages under federal regulations.
40.02(22)(d)
(d) For Wisconsin retirement system purposes only, for a state elected official who is prohibited by law from receiving an increase in compensation during the official's term of office, means the compensation which would have been payable to the participant if the participant had not been prohibited by law from receiving an increase in compensation during his or her term of office.
40.02(22)(e)
(e) Except for OASDHI purposes, means compensation deemed to have been paid for services deemed to have been rendered while serving in a position covered under, and meeting the requirements of,
38 USC 4301, et seq., at the employe's rate of pay prior to beginning such service, provided contributions and premiums on the deemed earnings are paid as required under
s. 40.05.
40.02(22)(em)
(em) For Wisconsin retirement system purposes only, for a member of the faculty, as defined in
s. 36.05 (8), of a university who is on sabbatical leave under
s. 36.11 (17), means the compensation that would have been payable to the participant, at the participant's rate of pay immediately prior to beginning the sabbatical leave, for service that would have been rendered at the university during the period of the sabbatical leave if the participant had continued to render services for the participant's employer during that period. Contributions and premiums on earnings considered to be received under this paragraph shall be paid as required under
s. 40.05.
40.02(22)(f)
(f) Does not mean credits for payment of health insurance premiums converted from accumulated unused sick leave for a participating employe who qualifies for a disability benefit under
s. 40.63 or
40.65, and who qualifies for the conversion of accumulated unused sick leave under
s. 40.05 (4) (b)
,
(bc) or
(bf) or as provided by a participating employer's compensation plan or contract.
40.02(22)(g)
(g) Does not include credits for the payment of health insurance premiums provided under
s. 40.05 (4) (bw) or
subch. IX or any sabbatical or vacation leave converted into such credits.
40.02(22m)
(22m) "Educational support personnel employe" means a person who is a school district employe, but who is not a teacher.
40.02(23)(a)
(a) For the fixed annuity division, the rate, disregarding fractions of less than one-tenth of one percent, determined by dividing the remaining fixed annuity division investment earnings for the calendar year or part of the calendar year, after making provision for any necessary reserves and after deducting prorated interest and the administrative costs of the fixed annuity division for the year, by the fixed annuity division balance at the beginning of the calendar year as adjusted for benefit payments and refunds paid during the year excluding prorated interest.
40.02(23)(b)
(b) For the variable annuity division, the rate, disregarding fractions less than one percent, which will distribute the net gain or loss of the variable annuity division to the respective variable annuity balances and reserves using the same procedure as provided in
par. (a) for the fixed annuity division.
40.02(24)
(24) "Elected official", except as otherwise provided in
sub. (48), means a participating employe who is:
40.02(24)(a)
(a) A supreme court justice, court of appeals judge, circuit judge or state, county or municipal official elected by vote of the people; or
40.02(24)(b)
(b) Appointed as provided by statute to fill a vacancy in a position specified in
par. (a).
40.02(24)(c)
(c) The chief clerk and sergeant at arms of the senate and assembly.
40.02(25)(a)1.
1. Any participating state employe who has been participating under the Wisconsin retirement system for a period of at least 6 months prior to attainment of age 70 not including any period of leave of absence without pay; or
40.02(25)(a)2.
2. Any state employe who is a member or employe of the legislature, a state constitutional officer, a district attorney who did not elect under
s. 978.12 (6) to continue insurance coverage with a county, or who did elect such coverage but has terminated that election under
s. 978.12 (6), a justice of the supreme court, court of appeals judge, a circuit judge or the chief clerk or sergeant at arms of the senate or assembly; or
40.02(25)(a)3.
3. The blind employes of the Wisconsin workshop for the blind authorized under s.
47.03 (1) (b), 1989 stats., or of the nonprofit corporation with which the department of industry, labor and job development contracts under s.
47.03 (1m) (a), 1989 stats., as of the beginning of the calendar month following completion of 1,000 hours of service. Persons employed by an employer who are blind when hired shall not be eligible for life insurance premium waiver because of any disability which is directly or indirectly attributed to blindness and may convert life insurance coverage only once under the contract; or
40.02(25)(a)4.
4. Only a person who has not attained age 70 at the time of becoming initially eligible for the group insurance coverage provided under this chapter; but this subdivision does not exclude any participant from participation in the group health insurance plan nor does it exclude from participation in the group life insurance plan any employe who is initially eligible on the employer's effective date of participation.
40.02(25)(a)5.
5. Any state employe who has been participating under the Wisconsin retirement system for a period of at least 6 months prior to attaining age 70 not including any period of leave of absence without pay and who is on union service leave except the cost for premium payments shall be entirely the responsibility of the state employe on union service leave.
40.02(25)(a)6.
6. Any state employe of the office of district attorney, other than the district attorney, in a county having a population of 500,000 or more who did not elect under
s. 978.12 (6) to continue insurance coverage with that county, or who did elect such coverage but has terminated that election under
s. 978.12 (6), and who has participated under the retirement system established under
chapter 201, laws of 1937, and under the Wisconsin retirement system for a combined and consecutive period, of at least 6 months prior to attainment of age 70, not including any period of leave of absence without pay.
40.02(25)(b)
(b) For the purpose of group health insurance coverage:
40.02(25)(b)1.
1. Any teacher who is employed by the university for an expected duration of not less than 6 months on at least a one-third full-time employment;
40.02(25)(b)2.
2. Any person employed as a graduate assistant and other employes-in-training as are designated by the board of regents of the university, who are employed on at least a one-third full-time basis;
40.02(25)(b)2g.
2g. Any person employed as a graduate assistant and other employes-in-training as are designated by the board of directors of the University of Wisconsin Hospitals and Clinics Authority, who are employed on at least a one-third full-time basis with an expected duration of employment of at least 6 months.
40.02(25)(b)2m.
2m. A crew leader or regional crew leader employed by the Wisconsin conservation corps board for whom the Wisconsin conservation corps board under
s. 106.215 (10) (fm) has authorized group health care coverage;
40.02(25)(b)3.
3. The surviving spouse of an employe, or of a retired employe, who is currently covered by health insurance at the time of death of the employe or retired employe. The spouse shall have the same right to health insurance coverage as the deceased employe or retired employe, but without state contribution, under rules promulgated by the secretary;
40.02(25)(b)4.
4. Any insured employe who is retired on an immediate or disability annuity, or who receives a lump sum payment under
s. 40.25 (1) which would have been an immediate annuity if paid as an annuity, if the employe meets all of the requirements for an immediate annuity including filing of application whether or not final administrative action has been taken;
40.02(25)(b)5.
5. Any participating state employe under the Wisconsin retirement system, notwithstanding
par. (a) 1.;
40.02(25)(b)6.
6. A participating state employe who terminates creditable service:
40.02(25)(b)6.b.
b. Who is eligible for an immediate annuity but defers application;
40.02(25)(b)6g.
6g. Any state constitutional officer, member or officer of the legislature, head of a state department or state agency who is appointed by the governor with senate confirmation, or head of a legislative service agency, as defined in
s. 13.90 (1m) (a), who terminates all creditable service on or after January 1, 1992, who is eligible for and has applied for a retirement annuity or a lump sum payment under
s. 40.25 (1), who, if eligible, is receiving medicare coverage under both part A and part B of Title XVIII of the federal social security act,
42 USC 1395 to
1395zz, and who has acted under
s. 40.51 (10m) to elect group health insurance coverage.
40.02(25)(b)6m.
6m. Beginning on the date specified by the department, but not earlier than March 20, 1992, and not later than July 1, 1992, any of the following persons who, if eligible, is receiving medicare coverage under both part A and part B of Title XVIII of the federal social security act,
42 USC 1395 to
1395zz, and who has acted under
s. 40.51 (16) to elect group health insurance coverage:
40.02(25)(b)6m.a.
a. A retired employe of the state who is receiving a retirement annuity or has received a lump sum payment under
s. 40.25 (1).
40.02(25)(b)6m.b.
b. An employe of the state who terminates creditable service after attaining 20 years of creditable service, remains a participant and is not eligible for an immediate annuity.
40.02(25)(b)6r.
6r. Any insured employe of the state who terminates creditable service on or after April 23, 1992, after attaining at least 20 years of creditable service, remains a participant and is not eligible for an immediate annuity or is not receiving a retirement or disability annuity, and who, if eligible, is receiving medicare coverage under both part A and part B of Title XVIII of the federal social security act,
42 USC 1395 to
1395zz.
Effective date note
NOTE: Subd. 8. is repealed and recreated eff. 7-1-97 by
1995 Wis. Act 27 to read:
Effective date text
8. Any other state employe for whom coverage is authorized under a collective bargaining agreement pursuant to subch. I or V of ch. 111 or under s. 230.12 or 233.10;
40.02(25)(b)9.
9. Except as provided under
s. 40.51 (7), any other employe of any employer, other than the state, which has acted under
s. 40.51 to make such coverage available to its employes;
40.02(25)(b)10.
10. Any participating employe who is an employe of this state and who qualifies for a disability benefit under
s. 40.63 or
40.65; or
40.02(25)(b)11.
11. Beginning on July 1, 1988, any retired public employe, other than a retired employe of the state, who is receiving an annuity under the Wisconsin retirement system, or any dependent of such an employe, as provided in the health insurance contract, who is receiving a continuation of the employe's annuity, and, if eligible, is receiving medicare coverage under both part A and part B of Title XVIII of the federal social security act,
42 USC 1395 to
1395zz, and who has acted under
s. 40.51 (10) to elect group health insurance coverage.
40.02(25)(bm)
(bm) For the purpose of long-term care insurance, in addition to any state annuitant under
s. 40.02 (54m), any employe of the state who received a salary or wages in the previous calendar year, and any participant who was at one time employed by the state who receives a lump sum payment under
s. 40.25 (1) which would have been an immediate annuity if paid as an annuity, if the employe is a resident of this state and meets all of the requirements for an immediate annuity including filing of an application, whether or not final administrative action has been taken.
40.02(25)(c)
(c) For the purpose of group life insurance coverage, for participating employes and employes subject to
s. 40.19 (4) of any employer, other than the state, which has acted under
s. 40.70 (1) (a) to make group life insurance available to its employes the same as provided under
par. (a) 1. and
3.
40.02(25)(d)
(d) For the purpose of income continuation insurance coverage, and except as provided under
s. 40.61 (3), for participating employes of any employer under
sub. (28), other than the state, which has acted under
s. 40.61 to make such coverage available to its employes.
40.02(26)
(26) "Employe" means any person who receives earnings as payment for personal services rendered for the benefit of any employer including officers of the employer. An employe is deemed to have separated from the service of an employer at the end of the day on which the employe last performed services for the employer, or, if later, the day on which the employe-employer relationship is terminated because of the expiration or termination of leave without pay, sick leave, vacation or other leave of absence. A person shall not be considered an employe if a person:
40.02(26)(a)
(a) Is employed under a contract involving the furnishing of more than personal services.
40.02(26)(b)
(b) Is customarily engaged in an independently established trade, business or profession providing the same type of services to private individuals and organizations as is provided to the employer and whose services to a participating employer are not compensated for on a payroll of that employer, except that persons holding offices provided for by statute shall be considered employes.
40.02(26)(c)
(c) Is a patient or inmate of a hospital, home or institution and performs services in the hospital, home or institution.
40.02(26g)
(26g) "Employe-funded reimbursement account plan" means a plan in accordance with section
125 of the internal revenue code under which an employe may direct an employer to place part of the employe's gross compensation in an account to pay for certain future expenses of the employe under section
125 of the internal revenue code.
40.02(26r)
(26r) "Employe-funded reimbursement account plan provider" means a person who provides administrative services related to employe-funded reimbursement account plans.
40.02(28)
(28) "Employer" means the state, including each state agency, any county, city, village, town, school district, other governmental unit or instrumentality of 2 or more units of government now existing or hereafter created within the state and any federated public library system established under
s. 43.19 whose territory lies within a single county with a population of 500,000 or more, except as provided under
ss. 40.51 (7) and
40.61 (3), or a local exposition district created under
subch. II of ch. 229. Each employer shall be a separate legal jurisdiction for OASDHI purposes.
40.02(30)
(30) "Executive participating employe" means a participating employe in a position designated under
s. 19.42 (10) (L) or
20.923 (4),
(4m),
(8) or
(9) or authorized under
s. 230.08 (2) (e) during the time of employment. All service credited prior to May 17, 1988, as executive service as defined under s.
40.02 (31), 1985 stats., shall continue to be treated as executive service as defined under s.
40.02 (31), 1985 stats., but no other service rendered prior to May 17, 1988, may be changed to executive service as defined under s.
40.02 (31), 1985 stats.
40.02(32)
(32) "Federal regulations" means the provisions of section 218 of Title II of the federal social security act and applicable regulations adopted under the federal social security act.
40.02(33)
(33) "Final average earnings" means:
40.02(33)(a)
(a) The monthly rate of earnings, ignoring any fractions of a dollar, obtained by dividing:
40.02(33)(a)1.
1. The participant's total earnings received or considered to be received under
sub. (22) (e) or
(em) and for which contributions are made under
s. 40.05 (1) and
(2) during the 3 annual earnings periods (excluding any period more than 3 years prior to the effective date for any participating employer) in which the earnings were the highest, subject to the annual compensation limits under
26 USC 401 (a) (17) for a participating employe who first becomes a participating employe on or after January 1, 1996; by
40.02(33)(a)2.
2. Twelve times the total amount of creditable service for the 3 periods.
40.02(33)(b)
(b) For a state elected official who is prohibited by law from receiving an increase in compensation during the official's term of office and who so elects, one-twelfth of the annual salary, subject to the annual compensation limits under
26 USC 401 (a) (17) for a participating employe who first becomes a participating employe on or after January 1, 1996, which would have been payable to the participant during the last completed month in which the participant was a participating employe in such a position if the participant had not been prohibited by law from receiving an increase in salary during his or her term of office, but only with respect to service as a state elected official.
40.02(33)(c)
(c) For a participant who makes an election under
s. 40.30 (2), the monthly rate of earnings applicable under
par. (a) or
(b), increased as provided under
s. 40.30 (4) (b) but subject to the annual compensation limits under
26 USC 401 (a) (17) for a participating employe who first becomes a participating employe on or after January 1, 1996.
40.02(34)
(34) "Fixed annuity" means any annuity other than a variable annuity.
40.02(35)
(35) "Fund" means the public employe trust fund.
40.02(36)
(36) "Governing body" means the legislature or the head of each state agency with respect to employes of that agency for the state, the common council in cities, the village board in villages, the town board in towns, the county board in counties, the school board in school districts, or the board, commission or other governing body having the final authority for any other unit of government, for any agency or instrumentality of 2 or more units of government, for any federated public library system established under
s. 43.19 whose territory lies within a single county with a population of 500,000 or more or for a local exposition district created under
subch. II of ch. 229.
40.02(37)
(37) "Health insurance" means contractual arrangements which may include, but are not limited to, indemnity or service benefits, or prepaid comprehensive health care plans, which will provide full or partial payment of the financial expense incurred by employes and dependents as the result of injury, illness or preventive medical procedures. The plans may include hospitalization, surgical and medical care, as well as ancillary items or services as determined by the group insurance board. The plans may include the type of coverage normally referred to as "major medical" insurance.
40.02(38)
(38) "Immediate annuity" means an annuity, not including an annuity from additional contributions, which begins to accrue not later than 30 days after termination of employment.
40.02(39)
(39) "Insured employe" means, for purposes of each insurance benefit plan, any eligible employe who is properly enrolled in the benefit plan.
40.02(39m)
(39m) "Internal revenue code" means the internal revenue code, as defined for the current taxable year under
s. 71.01 (6), and applicable regulations adopted under the internal revenue code, including temporary regulations.
40.02(40)
(40) "Leave of absence" means any period during which an employe has ceased to render services for a participating employer and receive earnings and there has been no formal termination of the employer-employe relationship. For purposes of the fund every leave of absence, except a military leave or union service leave, shall terminate 3 years after it begins or, if earlier, upon the date specified by the employer in a notification to the department that the employer-employe relationship has terminated. A leave of absence is not deemed ended or interrupted by reason of resumption of active duty until the employe has resumed active performance of duty for 30 consecutive calendar days for at least 50% of what is considered that employe's normal work time with that employer. For the purpose of group health insurance coverage, every leave of absence due to employe layoff which has not been terminated before 3 years have elapsed shall continue for affected insured employes until an additional 2 years elapse or until sick leave credits used to pay health insurance premiums are exhausted, whichever occurs first.
