40.21 Annotation
Sub. (4) limits prospective mandatory Wisconsin Retirement System coverage to present and future police and firefighter employes of cities and villages that had police and firefighter employes included in the Wisconsin Retirement Fund prior to March 31, 1978.
75 Atty. Gen. 34.
40.22
40.22
Participating employes. 40.22(1)
(1) Except as provided in
sub. (2), each employe currently in the service of, and receiving earnings from, a state agency or other participating employer shall be included within the provisions of the Wisconsin retirement system as a participating employe of that state agency or participating employer.
40.22(2)
(2) No person may be included within, or receive benefits from, the Wisconsin retirement system for any service if any of the following conditions apply:
40.22(2)(a)
(a) Except as provided in
sub. (2m), the employe is not expected to work at least one-third of what is considered full-time employment by the department, as determined by rule.
40.22(2)(b)
(b) The employe's expected duration of employment is less than one year.
40.22(2)(d)
(d) The employe is subject to
s. 40.19 (4) provided that contributions and benefits shall be paid as provided by that subsection.
40.22(2)(e)
(e) The employe is subject to a contract involving the furnishing by the person of more than the person's personal services.
40.22(2)(f)
(f) The employe is a member of a retirement system of a 1st class city and was an employe of a technical college district created under
ch. 38 on the date the district was created.
40.22(2)(g)
(g) The employe is appointed by the university under
s. 36.19, or by the University of Wisconsin Hospitals and Clinics Authority, as a student assistant or employe in training or is appointed by a school or other education system in which the person is regularly enrolled as a student and is attending classes to perform services incidental to the person's course of study at that school or education system.
40.22(2)(gm)
(gm) The employe is initially employed by a participating employer on or after April 23, 1992, is under the age of 20 and is regularly enrolled, or is expected to be regularly enrolled, as a full-time student in a school, as defined in
s. 118.257 (1) (d).
40.22(2)(h)
(h) The employe is teaching while on leave from an educational institution not a part of the university of Wisconsin system, if the person is a visiting professor, visiting associate professor, visiting assistant professor or visiting lecturer at the university and if the employment at the university is all within 12 consecutive calendar months. If the employment at the university is continued beyond the 12-month period the person shall, at the start of the 13th consecutive calendar month of employment, come under the system for future service.
40.22(2)(i)
(i) The employe contributes to the employe retirement system of the county of Milwaukee if the person was contributing to that system on September 10, 1959.
40.22(2)(j)
(j) The employe is employed by a transportation system in a position that is excluded from the Wisconsin retirement system and is included in another retirement system under
s. 66.944.
40.22(2)(k)
(k) The employe is eligible to receive similar benefits from any other state covering the same service and earnings.
40.22(2)(L)
(L) The employe is employed by a participating employer after the person becomes an annuitant, unless the service is after the annuity is terminated under
s. 40.26.
40.22(2m)
(2m) An employe who is not expected to work at least one-third of what is considered full-time employment by the department, as determined by rule, and who is not otherwise excluded under
sub. (2) from becoming a participating employe shall become a participating employe if he or she is subsequently employed by the state agency or other participating employer for either of the following periods:
40.22(2m)(a)
(a) At least one year for at least one-third of what is considered full-time employment by the department, as determined by rule.
40.22(2m)(b)
(b) At least 600 hours in the immediately preceding 12-month period.
40.22(3)
(3) A person who qualifies as a participating employe shall be included within, and shall be subject to, the Wisconsin retirement system effective on one of the following dates:
40.22(3)(a)
(a) The employer's effective date of participation if the person is an employe of that employer on the employer's effective date and has met all requirements for inclusion on or prior to that effective date.
40.22(3)(b)
(b) The first day after completion of one year of employment for at least one-third of what is considered full-time employment by the department, as determined by rule, if the person becomes a participating employe under
sub. (2m) after the employer's effective date of participation.
40.22(3)(c)
(c) The first day of employment if the person is a participating employe not covered under
par. (a) or
(b).
40.22(3m)
(3m) Any employe who becomes a participating employe shall continue to be a participating employe notwithstanding
sub. (2) (a) or
(b) for periods of subsequent employment with that state agency or other participating employer unless the employment with the state agency or other participating employer is terminated for 12 or more consecutive calendar months or unless the employe receives a benefit under
s. 40.23,
40.25 (1),
(2) or
(2m) or
40.63.
40.22(4)
(4) For purposes of
s. 40.02 (25), a person who is employed by a state agency shall be deemed to have become a state employe on the date the person becomes a participating state employe. No participating employe may be included under
s. 40.52 (3).
40.22(5)
(5) A determination as to whether an employe has met or will meet the actual or anticipated performance of duty or other requirements of this section shall be made by the employer in accordance with rules of the department. The department may by rule identify circumstances and establish procedures under which eligibility for participation shall be based on combined employment when a person is employed by 2 or more employers.
40.22(6)
(6) Notwithstanding
subs. (1) to
(5), if an employe's employment with an employer terminates after a period of service of less than 30 calendar days, the employe is not eligible for retirement coverage for that period of service. This subsection does not affect an employe's eligibility for insurance coverage for that period of service.
40.23
40.23
Retirement annuities. 40.23(1)(a)(a) Except as provided in
par. (am), any participant who has attained age 55, and any protective occupation participant who has attained age 50, on or before the annuity effective date shall be entitled to a retirement annuity in accordance with the actuarial tables in effect on the effective date of the annuity if the participant submits an application for a retirement annuity on a form furnished by the department and all of the following apply:
40.23(1)(a)1.
1. The participant is separated, regardless of cause, and continues to be separated until the annuity effective date, the date 30 days after the application is received by the department or the date 30 days after separation, whichever is later, from all employment meeting the qualifications for inclusion specified in
s. 40.22 for any participating employer.
40.23(1)(a)2.
2. The participant is not on authorized leave of absence from any participating employer.
40.23(1)(a)3.
3. If the participant is initially covered under the Wisconsin retirement system on or after January 1, 1990, the participant has creditable service in at least 5 calendar years.
40.23(1)(am)1.1. In this paragraph "part-time service" is service in a position normally requiring actual performance of duty during fewer than 1,044 hours per calendar year.
40.23(1)(am)2.
2. Any participant who has attained age 55 and who is a participant because of employment other than part-time service as an elected official and who is also a participating employe because of part-time service as an elected official may, after termination of all covered employment other than service as a part-time elected official, waive further participation under the fund for his or her current, and any future, part-time service as an elected official. Any election under this paragraph is irrevocable and is effective beginning the day after the date of election. Notwithstanding
par. (a), any participant initially employed before January 1, 1990, who elects under this paragraph may receive a retirement annuity for all service under the fund credited to the participant to the date he or she elects. Notwithstanding
par. (a), any participant initially employed on or after January 1, 1990, who elects under this paragraph may receive a retirement annuity for all service under the fund credited to the participant to the date he or she elects only if the participant has creditable service in at least 5 calendar years. The date a participant elects under this paragraph is deemed to be the date of separation from the last participating employer by which that participant was employed.
40.23(1)(am)3.
3. No participant who elects under
subd. 2. may have his or her annuity terminated under
s. 40.26 (1) because of earnings received for any part-time services as an elected official.
40.23(1)(b)
(b) Except as provided in
par. (bm), all retirement annuities shall be effective on the day following, or on the first day of a month following, the date of separation from the last participating employer by which the participant was employed, as specified by the participant in the written application for the annuity. However, the date shall not be more than 90 days prior to the date of receipt of the application by the department. The participant may specify that additional contribution accumulations shall not be applied to provide an annuity until a subsequent application is filed for an annuity to be paid from the additional contribution accumulations. The subsequent application shall be made as specified under
sub. (4) or the department shall automatically distribute the accumulated additional contribution accumulations as a lump sum.
40.23 Note
NOTE: Par. (b) is shown as affected by two acts of the 1995 legislature and as merged by the revisor under s. 13.93 (2) (c).
40.23(1)(bm)
(bm) If an application by a participant age 55 or over, or by a protective occupation participant age 50 or over, for long-term disability insurance benefits is disapproved under rules promulgated by the department, the date which would have been the effective date for the insurance benefits shall be the retirement annuity effective date if requested by the applicant within 60 days of the disapproval or, if the disapproval is appealed, within 60 days of the final disposition of the appeal.
40.23(1)(c)
(c) No application specifying an annuity effective date later than 60 days after the date of its receipt by the department shall be accepted, unless the participant files the application on or after January 1 of the calendar year in which the participant attains the age of 69.5 years specifying an annuity effective date that begins before April 1 of the calendar year following the calendar year in which the participant attains the age of 70.5 years.
40.23(1)(d)
(d) Notwithstanding
par. (c), an application for an annuity to be effective on the day following termination of employment may be filed up to 90 days prior to the employe's anticipated termination date. The anticipated termination date shall be stated in the application and the department shall not make an annuity payment until the employe has terminated. The department shall reject any application that is filed more than 90 days prior to the employe's termination date.
40.23(1)(e)
(e) Whenever it is determined that an annuity effective date is incorrect, the annuity effective date shall be corrected and any related computational and payment adjustments shall be made.
40.23(1)(f)
(f) Any participating employe may be retired by the employer after attainment of the employe's normal retirement date, under policies established or agreed to by the employer, except:
40.23(1)(f)2.
2. Each elected official's and each sheriff's employment shall be continued to the end of the official's or sheriff's term of office and to the end of each subsequent term of office to which elected.
40.23(1)(f)4.
4. Any employer may, in a collective bargaining agreement, limit its right to require retirement.
40.23(2)
(2) Except as provided in
ss. 40.19 (2) and
40.26, this subsection applies only to participants who are not participating employes after March 9, 1984. The retirement annuity in the normal form shall be an annuity payable for the life of the annuitant with a guarantee of 60 monthly payments. Except as provided in
sub. (3) and
s. 40.26, the initial monthly amount of the normal form annuity shall be the amount which, when added to the OASDHI benefit, equals 85% of the participant's final average earnings plus the amount which can be provided under
pars. (a) and
(c) and adjusted under
pars. (d) and
(e) or, if less, shall be in the monthly amount equal to the sum of the amounts determined under
pars. (a),
(b) and
(c) as modified by
pars. (d) and
(e) and in accordance with the actuarial tables in effect on the annuity effective date.
40.23(2)(a)
(a) The annuity which can be provided from a sum equal to 200% of the excess accruing after June 30, 1966, for teacher participants, or December 31, 1965, for all other participants, of the participant's required contribution accumulation reserved for a variable annuity over the amount to which the contributions would have accumulated if not so reserved. If the participant's required contribution accumulation reserved for a variable annuity is less than the amount to which the contributions would have accumulated if not so reserved, the annuity shall be reduced by the amount which could be provided by a sum equal to 200% of the deficiency.
40.23(2)(b)
(b) A monthly annuity in the normal form computed on the basis of the participant's final average earnings and creditable service, if the annuity becomes effective on or after the normal retirement date of the participant, determined by multiplying the participant's final average earnings by the participant's creditable service and the following applicable percentage:
40.23(2)(b)1.
1. For each participant for creditable service of a type not otherwise specified in this paragraph, 1.3%.
40.23(2)(b)2.
2. For each participant for creditable service as an elected official and for executive service, as defined under s.
40.02 (31), 1985 stats., 1.8%.
40.23(2)(b)3.
3. For each participant, subject to Titles II and XVIII of the federal social security act, for service as a protective occupation participant, 1.8%.
40.23(2)(b)4.
4. For each participant not subject to Titles II and XVIII of the federal social security act, for service as a protective occupation participant, 2.3%.
40.23(2)(c)
(c) The amount, if any, which can be provided by accumulated employe and employer additional contributions credited to the participant's account.
40.23(2)(d)
(d) If the annuity effective date is prior to the normal retirement date of the participant, the annuity amount computed under
par. (b) shall be reduced, as recommended by the actuary and approved by the board, by a percentage or percentages of the amount of the annuity for each month and any major portion of a month between the effective date of the annuity and the participant's normal retirement date.
40.23(2m)
(2m) The following provisions apply only to participants who are participating employes after March 9, 1984:
40.23(2m)(a)
(a) The retirement annuity in the normal form is a straight life annuity payable for the life of the annuitant.
40.23(2m)(b)
(b) Except as provided in
s. 40.26, subject to the limitations under section
415 of the internal revenue code, the initial amount of the normal form annuity shall be an amount equal to 65%, or 85% for participants whose formula rate is determined under
par. (e) 4., of the participant's final average earnings plus the amount which can be provided under
pars. (c) and
(d) or, if less, shall be in the monthly amount equal to the sum of the amounts determined under
pars. (c),
(d) and
(e) as modified by
par. (f) and in accordance with the actuarial tables in effect on the annuity effective date. If the participant has creditable service under both
par. (e) 4. and another category under
par. (e), the percent applied under this paragraph shall be determined by multiplying the percent that each type of creditable service is of the participant's total creditable service by 85% and 65%, respectively, and adding the results, except that the resulting benefit may not be less than the amount of the normal form annuity that could be paid based solely on the creditable service under
par. (e) 4.
40.23(2m)(c)
(c) The annuity which can be provided from a sum equal to 200% of the excess accruing after June 30, 1966, for teacher participants, or December 31, 1965, for all other participants, of the participant's required contribution accumulation reserved for a variable annuity over the amount to which the contributions would have accumulated at the fixed annuity division effective rate if not so reserved. If the participant's required contribution accumulation reserved for a variable annuity is less than the amount to which the contributions would have accumulated at the fixed annuity division effective rate if not reserved, the annuity shall be reduced by the amount which could be provided by a sum equal to 200% of the deficiency.
40.23(2m)(d)
(d) The amount, if any, which can be provided by accumulated employe and employer additional contributions credited to the participant's account.
40.23(2m)(e)
(e) A monthly annuity in the normal form computed on the basis of the participant's final average earnings and creditable service, if the annuity becomes effective on or after the normal retirement date of the participant, determined by multiplying the participant's final average earnings by the participant's creditable service and the following applicable percentage:
40.23(2m)(e)1.
1. For each participant for creditable service of a type not otherwise specified in this paragraph, 1.6%.
40.23(2m)(e)2.
2. For each participant for creditable service as an elected official or as an executive participating employe, 2%.
40.23(2m)(e)3.
3. For each participant subject to titles II and XVIII of the federal social security act, for service as a protective occupation participant, 2%.
40.23(2m)(e)4.
4. For each participant not subject to titles II and XVIII of the federal social security act, for service as a protective occupation participant, 2.5%.
40.23(2m)(f)1.1. If the annuity effective date is before the normal retirement date of the participant, the annuity amount computed under
par. (e) shall be reduced by 0.4% for each full month, and for each partial month including at least 15 days, before the participant's normal retirement date, except as provided in
subds. 2. to
4.
40.23(2m)(f)2.
2. For a participant who terminates covered employment on or after July 1, 1990, and whose annuity is computed under
par. (e) 1. or
2., the 0.4% reduction of the annuity amount under
subd. 1. shall be reduced by subtracting from the 0.4% an amount equal to 0.001111% for each month of creditable service, except as provided in
subds. 3. and
4.
40.23(2m)(f)3.
3. Subdivision 2. shall not apply to those months specified in
subd. 1. that precede the date on which the participant attains the age of 57.
40.23(2m)(f)4.
4. The resulting percentage by which the annuity amount is reduced under
subd. 2. may not be less than zero.
40.23(2m)(fm)
(fm) Notwithstanding
s. 40.02 (17) (intro.), for purposes of determining creditable service under
par. (f) 2., participants with at least 0.75 of a year of creditable service in any annual earnings period shall be treated as having one year of creditable service for that annual earnings period. To be eligible for the treatment provided by this paragraph, the participant must have earned only a partial year of creditable service in at least 5 of the 10 annual earnings periods immediately preceding the annual earnings period in which the participant terminated covered employment, and the participant must notify the department of the applicability of this paragraph to the participant's service. The participant is not eligible for the treatment provided by this paragraph if such notification is provided by the participant later than 60 days after the participant's annuity effective date. This paragraph does not apply to service credited under
s. 40.02 (15) or to creditable service as a teacher.
40.23(2m)(g)
(g) The employer may pay to the department part or all of the costs of the actuarial reduction applicable to a participating employe under
par. (f), and the actuarial reduction for the amount paid may not be applied under
par. (f), if all of the following conditions are met:
40.23(2m)(g)1.
1. The employer has elected to pay part or all of the costs of the required actuarial reduction, the action is effective after June 30, 1990, and the employer has not taken any action to rescind the election.
40.23(2m)(g)2.
2. The participant voluntarily terminates employment with the employer after June 30, 1990, and after the employer elects under
subd. 1.
40.23(2m)(g)3.
3. The employer pays to the department the difference, as determined by the department, between the actuarial cost of the annuity which would have been paid if the employer had not elected under
subd. 1. and the actuarial cost of the annuity payable. The amount so paid shall be credited as employer current service contributions under
s. 40.05 (2) (a), and shall be included with the first payment made under
s. 40.05 (2) after the department notifies the employer of the amount due.
40.23(3)
(3) The initial monthly amount of any retirement annuity in the normal form shall not be less than the money purchase annuity which can be provided by applying the sum of the participant's accumulated additional and required contributions plus an amount from the employer accumulation reserve equal to the participant's accumulated required contributions to fund the annuity in accordance with the actuarial tables in effect on the annuity effective date.
40.23(4)(a)(a) Subject to all requirements under the internal revenue code, the department shall distribute to the participant the entire amount that is credited to the account of a participant under the Wisconsin retirement system no later than the required beginning date, unless the department distributes this amount as an annuity or in more than one payment. If the department distributes this amount as an annuity or in more than one payment, the department shall begin the distribution no later than the required beginning date.
40.23(4)(b)
(b) In the calendar year immediately preceding the calendar year of a participant's required beginning date, if the department distributes the amount that is credited to the account of a participant under the Wisconsin retirement system in a form other than as a lump sum payment, the department, subject to all requirements under the internal revenue code, shall calculate the distribution to the participant according to one of the following:
40.23(4)(b)1.
1. The life of a participant or, if the annuity is in the form of a joint and survivor annuity, the joint lives of the participant and the named survivor.
40.23(4)(b)2.
2. For an annuity authorized under
s. 40.24 (1) (f), a term certain not to exceed the life expectancy of the participant or, if the annuity is in the form of a joint and survivor annuity, the joint life expectancies of the participant and the named survivor.
40.23(4)(c)
(c) If a participant during the calendar year in which he or she attains 69.5 years, or the alternate payee during the calendar year in which the participant attains 69.5 years, does not apply before December 31 in that year for a distribution of the amount that is credited to the account of a participant under the Wisconsin retirement system, the department shall begin, effective the following January 1, an automatic distribution to the participant or alternate payee in the form of an annuity specified under
s. 40.24 (1) (c) or as determined by the department by rule. If the department makes an automatic distribution under this paragraph, the beneficiary designation filed with the department before the date on which the department begins the automatic distribution is no longer applicable under
ss. 40.71 and
40.73. Unless the participant or alternate payee files a subsequent beneficiary designation with the department after the date on which the department begins the automatic distribution, the department shall pay any death benefit as provided under
s. 40.02 (8) (a) 2.
40.23(4)(d)
(d) If a participant dies after the department begins to distribute the amount that is credited to the account of a participant under the Wisconsin retirement system, but before the entire amount in the account has been distributed, the department shall distribute the remaining portion of the account at least as rapidly as is provided in the manner of distribution selected by the participant. If the beneficiary does not apply to the department to continue the distribution, within a period specified by rule, the department shall pay the remaining distribution to the beneficiary as a lump sum.
40.23(4)(e)1.1. Subject to
subds. 2. to
4., if a participant dies before the distribution of benefits has commenced and the participant's beneficiary is the spouse, the department shall begin the distribution within 5 years after the date of the participant's death.
