40.04
40.04
Accounts and reserves. 40.04(1)
(1) The separate accounts and reserves under
subs. (2) to
(10) and any additional accounts and reserves determined by the department to be useful in achieving the fund's purposes, or necessary to protect the interests of the participants or the future solvency of the fund, shall be maintained within the fund. The accounts and reserves maintained for each benefit plan shall fairly reflect the operations of that benefit plan. Any deficit occurring within the accounts of a benefit plan shall be eliminated as soon as feasible by increasing the premiums, contributions or other charges applicable to that benefit plan. Until eliminated, any deficit shall be charged with interest at the rate the funds would have earned if there had been no deficit.
40.04(2)(a)(a) An administrative account shall be maintained within the fund from which administrative costs of the department shall be paid, except charges for services performed by the investment board, costs of medical and vocational evaluations used in determinations of eligibility for benefits under
ss. 40.61,
40.63 and
40.65 and costs of contracting for insurance data collection and analysis services under
s. 40.03 (6) (j).
40.04(2)(b)
(b) Except as otherwise provided in this section, investment income of this fund and moneys received for services performed or to be performed by the department shall be credited to this account.
40.04(2)(c)
(c) The secretary shall estimate the administrative costs to be incurred by the department in each fiscal year and shall also estimate the investment income which will be credited to this account in the fiscal year. The estimated administrative costs less the estimated investment income shall be equitably allocated by the secretary, with due consideration being given to the derivation and amount of the investment income, to the several benefit plans administered by the department. In determining the amount of the allocation, adjustments shall be made for any difference in prior years between the actual administrative costs and investment income from that originally estimated under this paragraph. An amount equal to the adjusted allocated costs shall be transferred to this account from the investment earnings credited to the respective benefit plan accounts and from payments by the respective insurers or employe-funded reimbursement plan providers for administrative services.
40.04(2)(d)
(d) The costs of investing the assets of the benefit plans and retirement systems, including all costs due to
s. 40.03 (1) (n), shall be paid from the appropriation under
s. 20.515 (1) (r) and charged directly against the appropriate investment income or reserve accounts of the benefit plan or retirement system receiving the services.
40.04(3)
(3) A fixed retirement investment trust and a variable retirement investment trust shall be maintained within the fund under the jurisdiction and management of the investment board for the purpose of managing the investments of the retirement reserve accounts and of any other accounts of the fund as determined by the board, including the accounts of separate retirement systems. Within the fixed retirement investment trust there shall be maintained a transaction amortization account and a current income account, and any other accounts as are established by the board or the investment board. A current income account shall be maintained in the variable retirement investment trust. All costs of owning, operating, protecting and acquiring property in which either trust has an interest shall be charged to the current income or transaction amortization account of the trust having the interest in the property.
40.04(3)(a)
(a) All earnings, profits or losses of the fixed retirement investment trust and the net gain or loss of the variable retirement investment trust shall be distributed annually on December 31 to each participating account in the same ratio as each account's average daily balance within the respective trust bears to the total average daily balance of all participating accounts in that trust. For the fixed retirement investment trust the amount to be distributed shall be the then balance of the current income account plus 20% of the then balance of the transaction amortization account. For the variable retirement investment trust the amount to be distributed shall be the excess of the increase within the period in the value of the assets of the trust resulting from income from the investments of the trust and from the sale or appreciation in value of any investment of the trust, over the decrease within the period in the value of the assets resulting from the sale or the depreciation in value of any investments of the trust.
40.04(3)(b)
(b) The assets of the fixed retirement investment trust shall be commingled and the assets of the variable retirement investment trust shall be commingled. No particular contributing benefit plan shall have any right in any specific item of cash, investment or other property in either trust other than an undivided interest in the whole as provided in this paragraph. The department of administration shall maintain any records as may be required to account for each contributing account's share in the corresponding trust except that the employe accumulation reserve, the employer accumulation reserve and the annuity reserve shall be treated as a single account, except as provided in
sub. (7).
40.04(3)(c)
(c) The department shall advise the investment board and the state treasurer as to the limitations on the amounts of cash to be invested from investment trusts under this subsection in order to maintain the cash balances deemed advisable to meet current annuity, benefit and expense requirements.
40.04(3)(d)
(d) Notwithstanding
par. (a), assets of the fixed retirement investment trust which are authorized to be invested in common or preferred stock may, if authorized by rule, be invested as a part of the variable retirement investment trust with that portion of the annual distributions of net gains or losses to the fixed retirement investment trust from the variable retirement investment trust as provided in
par. (a) which results from transactions or events described in
s. 25.17 (14) (f) being credited to the transaction amortization account and the balance of the distributions being credited to the current income account.
40.04(3)(e)1.1. As of September 30, 1987, $230,000,000 shall be distributed from the transaction amortization account of the fixed retirement investment trust to the appropriate reserve of the fixed retirement investment trust as follows:
40.04(3)(e)1.a.
a. The portion credited to the fixed annuity reserve shall be distributed by the board as soon as possible after August 1, 1987, but with an effective date of July 1, 1987. Notwithstanding
s. 40.27 (2), the board shall make the distribution as a special investment performance dividend to provide an annuity increase only to those persons currently receiving a supplemental benefit under s.
40.27 (1) and
(1m), 1985 stats. Any payment under
s. 20.515 (1) (a) to annuitants receiving special investment performance dividends under this subdivision shall be reduced by the amount of the special investment performance dividends under this subdivision.
40.04(3)(e)1.b.
b. The board, on recommendation of the actuary, shall provide that the portion of funds transferred from the transaction amortization account under this subdivision credited to the fixed employer accumulation reserve shall be included in the actuary's recommendation of the required employer contribution for calendar year 1988, as otherwise determined under
s. 40.05 (2) (am).
40.04(3)(e)1.c.
c. The board shall make the distribution under
subd. 1. a. as soon as possible after August 1, 1987. Until such time as the special investment performance dividend is effective, the supplemental annuity benefit under s.
40.27 (1) and
(1m), 1985 stats., shall continue to be funded from money available under
s. 20.515 (1) (a). After the effective date of the special investment performance dividend, the department shall provide from the portion to be credited to the fixed annuity reserve funds sufficient to reimburse the appropriation under
s. 20.515 (1) (a) for supplemental benefits payments made after June 30, 1987.
40.04(4)(a)(a) An employe accumulation reserve, within which a separate account shall be maintained for each participant, shall be maintained within the fund and:
40.04(4)(a)2.
2. Credited as of each December 31 with interest on the prior year's closing balance at the effective rate on all employe required contribution accumulations in the variable annuity division, on all employe required contributions in the fixed annuity division on December 31, 1984, on all employe required contributions in the fixed annuity division of participants who are not participating employes after December 31, 1984, and on all employe and employer additional contribution accumulations and with interest on the prior year's closing balance at the assumed benefit rate on all employe required contribution accumulations in the fixed annuity division for participants who are participating employes after December 31, 1984.
40.04(4)(a)2m.
2m. Debited, if a participant terminates covered employment on or after January 1, 1990, and applies for a benefit under
s. 40.25 (2) or
(2m), with an amount equal to the amount by which the fixed annuity division interest credited on or after January 1, 1990, to employe required contributions, exceeds the interest crediting at an annual rate of 3% on each prior year's closing balance.
40.04(4)(a)3.
3. Debited by the amount available in any participant's account for funding a benefit elected by the participant or the participant's beneficiary. When the amount available has been applied to funding the benefit, no further right to the amounts, or to corresponding creditable service and employer contribution accumulations, shall exist other than the right to the annuity or benefit so granted except as provided in
s. 40.26 or
40.63 (10).
40.04(4)(b)
(b) Whenever a payment under
s. 40.25 (4), an annuity or a death benefit is computed, the prior year's closing balance of all employe contribution accumulations and any accounts maintained for individual participants shall be credited with interest for each full month elapsing between the first day of the calendar year and the annuity effective date or the month in which the payment of a benefit under
s. 40.25 (4) is approved at one-twelfth of the assumed benefit rate. The interest so credited shall be charged to the interest earnings for the current year and shall be paid out or transferred with the amount to which it was so credited.
40.04(4)(bm)
(bm) Whenever a payment under
s. 40.25 (1) is computed under
s. 40.23 (3), the prior year's closing balance of all employe and employer contribution accumulations and any accounts maintained for individual participants shall be credited with interest for each full month elapsing between the first day of the calendar year and the month in which the payment under
s. 40.25 (1) is approved at one-twelfth of the assumed benefit rate. The interest so credited shall be charged to the interest earnings for the current year and shall be paid out or transferred with the amount to which it was so credited.
40.04(4)(c)
(c) Whenever a participant's account is reestablished under
s. 40.26 (2) or
40.63 (10), in lieu of interest credits as provided in
par. (a), any balances remaining in the account at the end of the calendar year in which reestablished shall be credited with interest at one-twelfth the assumed benefit rate for the year for each full month between the date the account was reestablished and the end of the calendar year.
40.04(5)
(5) An employer accumulation reserve shall be maintained within the fund to which, without regard to the identity of the individual employer, shall be:
40.04(5)(a)
(a) Credited all employer required contributions.
40.04(5)(b)
(b) Credited, as of each December 31, all fixed annuity division interest not credited to other accounts and reserves under this section.
40.04(5)(c)
(c) Debited the aggregate excess of the amount of each single sum benefit or in the case of an annuity the present value of the annuity over the amount equal to the accumulated credits of the participant in the employe accumulation reserve applied to provide for the benefit or annuity.
40.04(5)(d)
(d) Credited as of the date of termination of any annuity under
s. 40.26 or
40.63 (9) (c) with the excess of the then present value of the terminated annuity over the aggregate amount of credits reestablished in the accounts of the participant.
40.04(5)(e)
(e) Credited all amounts waived, released or forfeited under any provision of this chapter.
40.04(6)
(6) An annuity reserve shall be maintained within the fund to which shall be transferred amounts equal to the present value as of the date of commencement of annuities granted under this chapter. The reserve shall be increased by investment earnings at the effective rate and shall be reduced by the aggregate amount of annuity payments and death benefits paid with respect to the annuities and by the present value at the date of termination of annuities terminated in accordance with
s. 40.08 (3),
40.26 or
40.63 (9) (c).
40.04(7)
(7) The reserves established under
subs. (4),
(5) and
(6) shall be divided both individually and for the purposes of
sub. (3) between a fixed annuity division and a variable annuity division. All required and additional contributions shall be credited to the fixed annuity division except:
40.04(7)(a)
(a) As otherwise elected by a participant prior to April 30, 1980. Any participant whose accounts on January 1, 1982, include credits segregated for a variable annuity shall have his or her required and additional contributions made on or after January 1, 1982, credited to the variable annuity division in a manner consistent with the participant's election prior to April 30, 1980, unless prior to January 1, 1982, the participant terminated such election under s.
40.85, 1979 stats. The department shall by rule provide that any participant who elected variable participation prior to April 30, 1980, may elect to cancel that variable participation as to future contributions. The department's rules shall permit a participant who elects or has elected to cancel variable participation as to future contributions, or an annuitant, to elect to transfer previous variable contribution accumulations to the fixed annuity division. A transfer of variable contribution accumulations under this paragraph shall result in the participant receiving the accrued gain or loss from the participant's variable participation. A participant may specify that election to cancel participation in the variable annuity division is conditional. If the participant so specifies the election is effective on the first date on which it may take effect on which the participant:
40.04(7)(a)1.
1. Is an annuitant and the amount of the annuity the participant or member will receive if the election is made effective is greater than or equal to the amount of the annuity the participant or member would have received if the participant or member had not elected variable participation; or
40.04(7)(a)2.
2. Is not an annuitant and the accumulated amount which is to be transferred to the fixed annuity division is equal to or greater than the amount which would have accumulated if the segregated contributions had been originally credited to the fixed annuity division.
40.04(7)(b)
(b) An election under
par. (a) is irrevocable and continuing except a participant or member may make a conditional election unconditional by filing written notice with the department.
40.04(7)(c)
(c) Any participant whose required contributions are segregated in any portion to provide for a variable annuity may direct that any part or all of subsequent additional contributions credited to the participant's account be segregated to provide for a variable annuity and may at any time by filing a form prescribed by the department change the portion being segregated for any future additional contributions.
40.04(8)
(8) A social security account shall be maintained within the fund to which shall be credited all moneys received from employe and employer OASDHI contributions including any penalties for late transmission of moneys or reports. All disbursements under
subch. III shall be charged to this account.
40.04(9)
(9) Separate group health, income continuation and life insurance accounts, and additional accounts for any other type of insurance provided under this chapter shall be maintained within the fund, to which shall be credited moneys received from operations of the respective group insurance plans for insurance premiums, as dividend or premium credits arising from the operation of the respective insurance plans and from investment income on any reserves established in the fund for the respective insurance plans. Premium payments to insurers, any insurance benefit to be paid directly by the fund and reimbursements of 3rd parties for benefits paid on behalf of an insurance plan shall be charged to the corresponding account established for that benefit plan. This subsection shall not be construed to prohibit the direct payment of premiums to insurers when appropriate administrative procedures have been established for direct payments.
40.04(9m)
(9m) The department shall do all of the following:
40.04(9m)(a)
(a) Maintain a separate account in the fund for the employe-funded reimbursement account plan authorized under
subch. VIII.
40.04(9m)(b)
(b) Credit to the account established under
par. (a) money received from employes in connection with the employe-funded reimbursement account plan and income from investment of the reserves in the account.
40.04(9m)(c)
(c) Charge to the account established under
par. (a) payments made to reimburse employe-funded reimbursement account plan providers for payments made to employes under the employe-funded reimbursement account plan under
subch. VIII.
40.04(10)
(10) An accumulated sick leave conversion account shall be maintained within the fund, to which shall be credited all money received under
s. 40.05 (4) (b),
(bc),
(bf),
(bm),
(br) and
(bw) for health insurance premiums, as dividends or premium credits arising from the operation of health insurance plans and from investment income on any reserves established in the fund for health insurance purposes for retired employes and their surviving dependents. Premium payments to health insurers authorized in
s. 40.05 (4) (b),
(bc),
(bf),
(bm) and
(bw) shall be charged to this account. The department shall separately account for premium payments authorized under
s. 40.05 (4) (bf) for purposes of reimbursement from the appropriation under
s. 20.515 (1) (b). This subsection does not prohibit the direct payment of premiums to insurers when appropriate administrative procedures have been established for direct payments.
40.04(11)
(11) A health insurance premium credit account shall be maintained within the fund, to which shall be credited all moneys received under
s. 40.05 (4) (by) for the payment of health insurance premiums, as dividends or premium credits arising from the operation of health insurance plans and from investment income on any reserves established in the fund for health insurance purposes for retired employes and their surviving dependents. Premium payments to health insurers authorized in
subch. IX may only be charged to this account after all other health insurance premium credits under
s. 40.05 (4) (b),
(bc),
(bf),
(bm) and
(bw) are exhausted. This subsection does not prohibit the direct payment of premiums to insurers when appropriate administrative procedures have been established for direct payments.
40.04 History
History: 1981 c. 96,
386;
1983 a. 27,
141,
247,
504;
1987 a. 27,
83;
1989 a. 13,
14,
31,
355;
1991 a. 39,
141,
152,
269;
1995 a. 88,
89,
225,
240.
40.04 Annotation
The implementation of the amendment of s. 20.515 (1) (a), the creation of s. 40.04 (3) (e) and the repeal of s. 40.27 (1) and (1m) by
1987 Wisconsin Act 27 unconstitutionally takes the property of retirement system annuitants. Retired Teachers Ass'n v. Employe Trust Funds Board, 195 W (2d) 1001, 537 NW (2d) 400 (Ct. App. 1995).
40.05
40.05
Contributions and premiums. 40.05(1)
(1)
Employe retirement contributions. For Wisconsin retirement system purposes employe contributions on earnings for service credited as creditable service shall be 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, and shall be made as follows:
40.05(1)(a)1.
1. For each participating employe not otherwise specified, 5% of each payment of earnings.
40.05(1)(a)5.
5. Additional contributions may be made by any participant by deduction from earnings or otherwise or may be provided on behalf of any participant in any calendar year in which the participant has earnings, subject to any limitations imposed on contributions by the internal revenue code, applicable regulations adopted under the internal revenue code and rules of the department.
40.05(1)(a)6.
6. Under the rules promulgated under
s. 40.03 (2) (r), additional contributions, other than the first $5,000 of contributions, or a beneficiary's prorated share thereof, that are attributable to a death benefit paid under
s. 40.73, may be made to the fixed annuity division by any participant by rollover contribution of a payment or distribution from a pension or annuity qualified under section
401 of the internal revenue code, subject to any limitations imposed on contributions by the internal revenue code, applicable regulations adopted under the internal revenue code and rules of the department.
40.05(1)(a)7.
7. Subject to any applicable limitations under the internal revenue code, a participating employe may elect to use part or all of his or her accumulated after-tax additional contributions, including interest, made under
subd. 5., other than contributions treated by the department as contributions to a tax sheltered annuity under section
403 (b) of the internal revenue code, to purchase creditable service under this chapter.
40.05(1)(b)
(b) In lieu of employe payment, the employer may pay all or part of the contributions required by
par. (a), but all the payments shall be available for benefit purposes to the same extent as required contributions deducted from earnings of the participating employes. Action to assume employe contributions as provided under this paragraph shall be taken at the time and in the form determined by the governing body of the participating employer. The state and the University of Wisconsin Hospitals and Clinics Authority shall pay under this paragraph for employes who are covered by a collective bargaining agreement under
subch. V of ch. 111 and for employes whose fringe benefits are determined under
s. 230.12 an amount equal to 4% of the earnings paid by the state or authority unless otherwise provided in a collective bargaining agreement under
subch. V of ch. 111 or unless otherwise determined under
s. 230.12. The state shall pay under this paragraph for employes who are not covered by a collective bargaining agreement under
subch. V of ch. 111 and for employes whose fringe benefits are not determined under
s. 230.12 an amount equal to 4% of the earnings paid by the state unless a different amount is recommended by the secretary of employment relations and approved by the joint committee on employment relations in the manner provided for approval of changes in the compensation plan under
s. 230.12 (3). The University of Wisconsin Hospitals and Clinics Authority shall pay under this paragraph for employes who are not covered by a collective bargaining agreement under
subch. V of ch. 111 an amount equal to 4% of the earnings paid by the authority unless a different amount is established by the board of directors of the authority under
s. 233.10.
Effective date note
NOTE: Par. (b) is repealed and recreated eff. 7-1-97 by
1995 Wis. Act 27 to read:
Effective date text
(b) In lieu of employe payment, the employer may pay all or part of the contributions required by par. (a), but all the payments shall be available for benefit purposes to the same extent as required contributions deducted from earnings of the participating employes. Action to assume employe contributions as provided under this paragraph shall be taken at the time and in the form determined by the governing body of the participating employer. The state shall pay under this paragraph for employes who are covered by a collective bargaining agreement under subch. V of ch. 111 and for employes whose fringe benefits are determined under s. 230.12 an amount equal to 4% of the earnings paid by the state unless otherwise provided in a collective bargaining agreement under subch. V of ch. 111 or unless otherwise determined under s. 230.12. The University of Wisconsin Hospitals and Clinics Authority shall pay under this paragraph for employes who are covered by a collective bargaining agreement under subch. I of ch. 111 and for employes whose fringe benefits are determined under s. 233.10 an amount equal to 4% of the earnings paid by the authority unless otherwise provided in a collective bargaining agreement under subch. I of ch. 111 or unless otherwise determined under s. 233.10. The state shall pay under this paragraph for employes who are not covered by a collective bargaining agreement under subch. V of ch. 111 and for employes whose fringe benefits are not determined under s. 230.12 an amount equal to 4% of the earnings paid by the state unless a different amount is recommended by the secretary of employment relations and approved by the joint committee on employment relations in the manner provided for approval of changes in the compensation plan under s. 230.12 (3). The University of Wisconsin Hospitals and Clinics Authority shall pay under this paragraph for its employes who are not covered by a collective bargaining agreement under subch. I of ch. 111 an amount equal to 4% of the earnings paid by the authority unless a different amount is established by the board of directors of the authority under s. 233.10.
40.05(2)
(2) Employer retirement contributions. For Wisconsin retirement system purposes and 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:
40.05(2)(a)
(a) Each participating employer shall make contributions for current service determined as a percentage of the earnings of each participating employe, determined as though all employes of all participating employers were employes of a single employer, but with a separate percentage rate determined for the employe occupational categories specified under
s. 40.23 (2m). A separate percentage shall also be determined for subcategories within each category determined by the department to be necessary for equity among employers.
40.05(2)(am)
(am) The percentage of earnings under
par. (a) shall be determined on the basis of the information available at the time the determinations are made and on the assumptions the actuary recommends and the board approves by dividing the amount determined by subtracting from the then present value of all future benefits to be paid or purchased from the employer accumulation reserve on behalf of the then participants the amount then credited to the reserve for the benefit of the members and the present value of future unfunded prior service liability contributions of the employers under
par. (b) by the present value of the prospective future compensation of all participants.
40.05(2)(ar)
(ar) Participating employers of employes subject to
s. 40.65 shall contribute an additional percentage or percentages of those employes' earnings based on the experience rates determined to be appropriate by the board with the advice of the actuary.
40.05(2)(b)
(b) Contributions shall be made by each participating employer for unfunded prior service liability in a percentage of the earnings of each participating employe. A separate percentage rate shall be determined for the employe occupational categories under
s. 40.23 (2m) as of the employer's effective date of participation. The rates shall be sufficient to amortize as a level percent of payroll over a period of 40 years from the later of that date or January 1, 1986, the unfunded prior service liability for the categories of employes of each employer determined under s.
40.05 (2) (b), 1981 stats., increased to reflect any creditable prior service granted on or after January 1, 1986, increased to reflect the effect of
1983 Wisconsin Act 141, increased at the end of each calendar year after January 1, 1986, by interest at the assumed rate on the unpaid balance at the end of the year and adjusted under
pars. (bv) and
(bw).
40.05(2)(bg)
(bg) Contributions of amounts under
par. (b) may be made in advance to reduce an employer's existing unfunded prior service liability.
40.05(2)(bm)
(bm) Contributions under
par. (b) for each category of employe shall be made until full payment of that employer's unfunded prior service liability for all categories is made.
40.05(2)(br)
(br) The contribution under
par. (b) by an employer in any calendar year before full payment of the unfunded prior service liability determined under
par. (bm) may not be less than the dollar amount determined to be necessary in the first calendar year of the amortization schedule established by
par. (b).
40.05(2)(bt)
(bt) The department may reallocate prior service liability from one employer to another and adjust as necessary the contribution rates established under
par. (b) to reflect transfers of responsibilities and employes among different employers.
40.05(2)(bv)
(bv) The employer contribution rate determined under
par. (b) for participating employes who served in the U.S. maritime service shall be adjusted to reflect the cost of granting creditable service under
s. 40.02 (15) (a) 7. and that rate shall be sufficient to amortize the unfunded prior service liability of the employers over the remainder of the 40-year amortization period under
par. (b).
40.05(2)(bw)
(bw) The employer contribution rate determined under
par. (b) for the university of Wisconsin system shall be adjusted to reflect the cost of granting creditable service under
s. 40.02 (17) (i) and that rate shall be sufficient to amortize the unfunded prior service liability of the employers over the remainder of the 40-year amortization period under
par. (b).
40.05(2)(c)
(c) The percentage rates determined under this subsection shall become effective as of the beginning of the calendar year to which they are applicable and shall remain in effect during the calendar year, except that the secretary, upon the written certification of the actuary, may change any percentage determined under
par. (b) during any calendar year for the purpose of reflecting any reduced obligation which results from any payment of advance contributions.
40.05(2)(d)
(d) The amount of each employer's monthly contribution shall be the sum of the amounts determined by applying the proper percentage rates as determined in accordance with
pars. (a) and
(b) to the total of all earnings paid to participating employes on each payday.
40.05(2)(f)
(f) Whenever the existence of any participating employer is terminated because of consolidation or for any other reason, the employer who thereafter has responsibility for the governmental functions of the previous employer shall be liable for all contributions payable by the previous employer in the following manner:
40.05(2)(f)1.
1. If the territory of the previous employer is attached to 2 or more employers, the total liability of the previous employer shall be allocated to the new employers in proportion to the equalized valuation of each area so attached.
40.05(2)(f)2.
2. Whenever the existence of any participating employer, who was an instrumentality of 2 or more employers, is terminated for any reason and there is no territory to be divided, the liability for contributions of the previous employer shall be divided between the sponsoring employers in the same proportion as the net assets of the terminating employer are divided.
40.05(2)(f)3.
3. If the department determines that it is not feasible to allocate the liability as provided in
subd. 1. or
2., then the liability shall be allocated in proportion to the equalized valuation of the remaining employers.
40.05(2)(f)4.
4. The amount of the allocations to the respective employers shall be certified by the department to each employer.
40.05(2)(f)5.
5. If the employer to whom such an allocation is made is or becomes a participating employer the allocations so certified shall be added to the liability otherwise determined for the employer and the amortization schedule provided for under
par. (b) adjusted so that the required annual amount shall approximate the sum of the annual amounts otherwise required.
40.05(2)(f)6.
6. If the employer who becomes responsible for any part of the liability of the previous employer is not a participating employer the contributions required to liquidate the allocated liability shall be made by the successor employer in equal quarterly payments sufficient to liquidate the allocated liability over the remainder of the amortization period.
40.05(2)(f)7.
7. If an allocation based on equalized valuation is required by this paragraph, the equalized valuations used shall be the valuation determined for the calendar year immediately preceding the calendar year in which the allocation is required to be made by this paragraph.
40.05(2)(f)8.
8. If it is not possible to apply the procedures under this paragraph, the terminating employer and any successor employer shall immediately pay the full outstanding prior service liability balance unless an agreement for a different procedure is approved by the department.
40.05(2)(g)1.1. A participating employer may make contributions as provided in its compensation agreements for any participating employe in addition to the employer contributions required by this subsection. The additional employer contributions made under this paragraph shall be available for all benefit purposes and shall be administered and invested on the same basis as employe additional contributions made under
sub. (1) (a) 5., except that
ss. 40.24 (1) (f) and
40.25 (4) and
(6) (a) 3. do not apply to additional employer contributions made under this paragraph.
40.05(2)(g)2.
2. Under the rules promulgated under
s. 40.03 (2) (r), a participant may, as a payout option for the deferred compensation plan established under
subch. VII, elect to have the entire balance in the participant's account under
subch. VII treated as an additional contribution to the fixed annuity division, subject to any limitations imposed on contributions by the internal revenue code, applicable regulations adopted under the internal revenue code and rules of the department. Additional contributions under this subdivision shall be available for all benefit purposes and shall be administered and invested on the same basis as employe additional contributions, except that
ss. 40.24 (1) (f) and
40.25 (4) do not apply to additional contributions under this subdivision and
s. 40.26 does not apply to an annuity received from additional contributions under this subdivision.
