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.
40.23(4)(e)2.
2. If the spouse files a subsequent beneficiary designation with the department, the payment of the distribution may be deferred until the January 1 of the year in which the participant would have attained the age of 70.5 years.
40.23(4)(e)3.
3. If the spouse does not apply for a distribution, the distribution shall begin as an automatic distribution as provided under
subd. 1. or under
par. (c), whichever distribution date is earlier.
40.23(4)(e)4.
4. If the spouse dies, but has designated a new beneficiary, the birth date of the spouse shall be used for the purposes of determining the required beginning date.
40.23(4)(e)5.
5. The department shall specify by rule all procedures relating to an automatic distribution to the spouse. These rules shall comply with the internal revenue code.
40.23(4)(f)
(f) If a participant dies before the distribution of benefits has commenced and the participant's beneficiary is not the spouse, the beneficiary shall do one of the following:
40.23(4)(f)1.
1. Elect a lump sum payment by December 31 of the 5th calendar year after the date of the participant's death.
40.23(4)(f)2.
2. Elect an annuity benefit, not to exceed his or her life expectancy, by December 31 of the calendar year after the date of the participant's death.
40.23(4)(g)
(g) Nothing in this subsection shall be construed to create any benefit, lump sum payment option or form of annuity not otherwise expressly provided for in this subchapter.
40.24
40.24
Annuity options. 40.24(1)(1) Except as provided in
subs. (2) to
(4) and
(7), any participant who is eligible to receive a retirement annuity in the normal form may elect to receive the actuarial equivalent of the normal form annuity in any of the following optional annuity forms:
40.24(1)(a)
(a) A straight-life annuity terminating at the death of the annuitant.
40.24(1)(b)
(b) A straight life annuity with a guarantee of 60 monthly payments.
40.24(1)(c)
(c) An annuity payable for the life of the annuitant with a guarantee of 180 monthly payments.
40.24(1)(d)
(d) An annuity payable for the life of the annuitant, and after the death of the annuitant, monthly payments as elected by the participant of either 100% or 75% of the amount of the annuity paid to the annuitant to be continued to the one beneficiary, for life, who was designated by the participant in the original application for an annuity. If the participant's annuity effective date is on or after January 1, 1992, or, if the department specifies an earlier date that is not earlier than April 23, 1992, on or after the date specified by the department, and if the death of the beneficiary occurs before the death of the annuitant and before the first day of the 61st month beginning after the annuity effective date, the annuity option under this paragraph shall be converted to the annuity option under
par. (a) and, beginning with the annuity payment for the first month beginning after the death of the beneficiary, the annuity amount shall be the amount that the annuitant would be receiving on that date if the participant had elected the annuity option under
par. (a) in the original application for an annuity.
40.24(1)(e)
(e) A reduced annuity payable in the normal form or any of the optional life forms provided under this section, plus a temporary annuity payable monthly but terminating with the payment payable in the month following the month in which the annuitant attains age 62 or, if earlier, on the death of the annuitant. It is the intent of this option that so far as is practicable the amounts of the life annuity and temporary annuity shall be determined so that the annuitant's total anticipated benefits from the fund and from his or her primary OASDHI benefit will be the same each month both before and after attainment of age 62.
40.24(1)(f)
(f) From accumulated additional contributions made under
s. 40.05 (1) (a) 5. only, an annuity certain payable for and terminating after the number of months specified by the applicant, regardless of whether the applicant dies before or after the number of months specified, provided that the monthly amount of the annuity certain is at least equal to the minimum amount established under
s. 40.25 (1) (a). Subject to the period of distribution required under
s. 40.23 (4) (b) 2., the number of months specified shall not exceed 180 and shall not be less than 24. If the death of the annuitant occurs prior to the expiration of the certain period, the remaining payments shall be made in accordance with
s. 40.73 (2) without regard to any other annuity payments payable to the beneficiary. An annuity under this paragraph may be initiated prior to any other annuity amount provided under this subchapter and prior to age 55 if all other qualifications for receiving an annuity payment are met.
40.24(1)(g)
(g) Any one optional life annuity form provided by rule.
40.24(2)
(2) The department may modify any optional annuity form prescribed in
sub. (1) (a) to
(f) by rule as necessary to conform to federal regulations.
40.24(3)
(3) Any participant specified under
sub. (1) (intro.) may elect to receive the amount provided by accumulated additional contributions in a different optional form than the balance of the annuity.
40.24(4)
(4) Any optional annuity form under this section shall be based on actuarial equivalent values with due regard to selection against the fund, shall not provide a greater monthly amount payable to others upon the death of the participant than the amount which would have been payable to the participant if the participant had continued to live and shall not be changed after the effective date of the annuity unless the participant's 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.
40.24(5)
(5) An annuity in a form other than the normal form shall be the actuarial equivalent of the annuity in the normal form if, on the effective date of the annuity, the annuity has the same single-sum present value as the annuity in the normal form, as calculated by the department according to methods and assumptions specified by the actuary.
40.24(6)
(6) If a participant's annuity is not effective until after the earlier of the participant's normal retirement date under
s. 40.02 (42) (a) to
(d) or the date on which the participant attains the age of 62 years and the participant elects an optional annuity form, the monthly amount of annuity provided by conversion of the benefit computed under
s. 40.23 (2m) (e) to the optional form elected shall not be less than the monthly amount of annuity which would have been paid had the participant retired on the earlier of the participant's normal retirement date under
s. 40.02 (42) (a) to
(d) or the date on which the participant attains the age of 62 years and elected the same optional form of annuity and the same beneficiary. It shall be assumed for purposes of calculating the amount of an annuity under this subsection that all of the participant's earned annuity was earned prior to the participant's normal retirement date, but the department shall use the beneficiary's actual age on the effective date of the annuity.
40.24(7)(a)(a) Any participant who has been married to the same spouse for at least one year immediately preceding the participant's annuity effective date shall elect the annuity option under
sub. (1) (d), the annuity option under
sub. (1) (e), if the reduced annuity under
sub. (1) (e) is payable in an optional life form provided under
sub. (1) (d), or an annuity option in a form provided by rule, if the annuity is payable for life with monthly payments of at least 75% of the amount of the annuity to be continued to the beneficiary, for life, upon the death of the participant, and the participant shall designate the spouse as the beneficiary, unless the participant's application for a retirement annuity in a different optional annuity form is signed by both the participant and the participant's spouse or unless the participant establishes to the satisfaction of the department that, by reason of absence or other inability, the spouse's signature may not be obtained. This subsection does not apply to any of the following:
40.24(7)(a)1.
1. Participants whose applications for a retirement annuity specify an annuity effective date before August 1, 1986.
40.24(7)(a)2.
2. That portion of a disability annuity which, under
s. 40.63 (8) (d), is not eligible for election of an annuity option by the participant.
40.24(7)(a)4.
4. Benefits paid from accumulated additional contributions.
40.24(7)(a)5.
5. Benefits payable to a beneficiary from a deceased participant's account.
40.24(7)(b)
(b) In administering this subsection, the secretary may require the participant to provide the department with a certification of the participant's marital status and of the validity of the spouse's signature. If a participant is exempted from the requirements under
par. (a) on the basis of a certification which the department or a court subsequently determines to be invalid, the liability of the fund and the department shall be limited to a conversion of annuity options at the time the certification is determined to be invalid. The conversion shall be from the present value of the annuity in the optional form originally elected by the participant to an annuity with the same present value but in the optional form under
sub. (1) (d) and with monthly payments of 100% of the amount of the annuity paid to the annuitant to be continued to the spouse beneficiary.
40.25
40.25
Lump sum payments.
