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. 40.25(1)(a)(a) If all other requirements for payment of a retirement annuity are met and if the retirement annuity in the normal form which could be provided under
s. 40.23 is equal to or less than $100 monthly for a benefit with an effective date that is on or after April 23, 1994, but before the end of the calendar year of 1993 or, for a benefit with an effective date in a subsequent calendar year, the monthly amount applied under this paragraph for the previous calendar year increased by the salary index and ignoring fractions of the dollar, the then present value, including additional contributions, of the annuity shall be paid in a single sum instead of as an annuity. The additional contribution accumulations shall not be included in determining whether a single sum should be paid if the optional form provided by
s. 40.24 (1) (f) or a lump sum under
sub. (4) is selected.
40.25(1)(b)
(b) If all other requirements for payment of a retirement annuity are met and if the retirement annuity in the normal form which could be provided under
s. 40.23 from all available accumulations and credits, other than accumulations from additional contributions, is more than $100 and less than $200 monthly for a benefit with an effective date that is on or after April 23, 1994, but before the end of the calendar year of 1993 or, for a benefit with an effective date in a subsequent calendar year, the monthly amounts applied under this paragraph for the previous calendar year increased by the salary index and ignoring fractions of the dollar, then any participant may elect to receive, in lieu of the annuity, the then present value, including additional contributions, of the annuity in a single sum.
40.25(2)
(2) If all requirements for payment of a retirement annuity are met except attainment of age 55 or age 50 for protective occupation participants, a separation benefit may be paid, if the participant's written application for a separation benefit is received by the department prior to the participant's 55th birthday or 50th birthday for protective occupation participants, in an amount equal to the additional and employe required contribution accumulations of the participant on the date the application for a separation benefit is approved.
40.25(2m)
(2m) Notwithstanding
sub. (2), if a participant who is initially covered under the Wisconsin retirement system on or after January 1, 1990, terminates employment and does not have creditable service in at least 5 calendar years, a separation benefit may be paid if the participant submits a written application to the department for a separation benefit in an amount equal to the additional and employe required contribution accumulations of the participant on the date that the application for a separation benefit is approved. For the purposes of this subsection there are no age requirements for receiving a separation benefit.
40.25(3)
(3) Upon administrative approval of payment of an amount under either
sub. (1),
(2) or
(2m), the participant's account shall be closed and there shall be no further right, interest or claim on the part of the former participant to any benefit from the Wisconsin retirement system except as provided by
subs. (5) and
(6). Any former participant who is subsequently employed by any participating employer shall be treated as a new participating employe for all purposes of this chapter. New accumulations of contributions and credits and the computation of any future benefits shall bear no relationship to any accumulations and credits paid as single sums under
sub. (1),
(2) or
(2m).
40.25(3m)
(3m) A participant's application for a lump sum payment under
sub. (1) (b) or
(2), filed after May 7, 1994, shall be signed by both the participant and the participant's spouse, if the participant has been married to that spouse for at least one year immediately preceding the date the application is filed. The department may promulgate rules that allow for the waiver of the requirements of this subsection for a situation in which, by reason of absence or incompetency, the spouse's signature may not be obtained. This subsection does not apply to any benefits paid from accumulated additional contributions.
40.25(4)
(4) If all the requirements for payment of a retirement annuity or a separation benefit are met, except filing of an application, a participant may elect that the accumulation from the participant's additional contributions made under
s. 40.05 (1) (a) 5. be paid as a lump sum in lieu of an annuity from those additional contributions.
40.25(5)(a)(a) Rights and creditable service forfeited under
sub. (3) or
s. 40.04 (4) (a) 3. shall be reestablished if the participant receives the benefit resulting in the forfeiture after being discharged and is subsequently reinstated to a position with the participating employer by court order, arbitration award or compromise settlement as a result of an appeal of the discharge.
40.25(5)(b)
(b) The full amount of the benefit paid, plus interest at the effective rate, shall be repaid to the Wisconsin retirement system by the employer of an employe whose rights and creditable service are reestablished under
par. (a) within 60 days after the effective date of the employe's reinstatement. The amount repaid by the employer under this paragraph shall be deducted by the employer from any payment due the employe as a result of the resolution of the appeal or, if that amount is insufficient, the balance shall be deducted from the employe's earnings except the amount deducted from each earnings payment shall be not less than 10% nor more than 25% of the earnings payment. If the employe terminates employment the employer shall notify the department of the amount not yet repaid, including any interest due, at the same time it notifies the department of the termination of employment, and the department shall repay to the employer the balance of the amount due from retentions made under
s. 40.08 (4). The employer may charge interest at a rate not in excess of the current year's assumed rate on any amount unpaid at the end of any calendar year after the year of reinstatement.
40.25(6)(a)(a) A participating employe may reestablish creditable service forfeited, subject to the following conditions and requirements:
40.25(6)(a)1.
1. The participating employe must have at least 3 continuous years of creditable service under the fund at the time of application for reestablishment of creditable service under this subsection.
40.25(6)(a)2.
2. Applications for reestablishment of creditable service must include all creditable service that has been forfeited except that the number of years which may be reestablished under this subsection may not be greater than the creditable service of the participating employe at the date of application, or 10 years, whichever is smaller.
40.25(6)(a)3.
3. The participating employe applying for forfeited creditable service under this subsection shall pay to the fund an amount equal to the employe's statutory contribution on earnings under
s. 40.05 (1) (a) for each year of forfeited service to be reestablished, based upon the participating employe's final average earnings, determined as if the employe retired on the date the department receives the application. The amount payable under this subdivision shall be paid in a lump sum payment, except that the department may, by rule, permit a participating employe to reestablish creditable service by making payments over a period of more than one year. No employer may pay any amount payable under this subdivision on behalf of any participating employe.
40.25(6)(a)4.
4. Upon receipt by the fund of the total payment required under
subd. 3., the creditable service meeting the conditions and requirements of this subsection shall be reestablished to the account of the participating employe making the payment.
40.25(6)(a)5.
5. The payment under
subd. 3., in combination with any other required contributions or additional contributions, may not exceed the maximum contribution limit under section
415 of the internal revenue code.
40.25(6)(b)
(b) Creditable service may be reestablished under this subsection if it was:
40.25(6)(b)2.
2. Forfeited because of receipt of a separation or withdrawal benefit under the applicable laws and rules in effect prior to January 1, 1982.
40.25(7)(a)(a) Each participating employe whose creditable service terminates on or after May 1, 1992, and who has performed service, other than military service, as an employe of the federal government or a state or local governmental entity in the United States, other than a participating employer, that is located within or outside of this state, or each participating employe whose creditable service terminates on or after May 4, 1994, and who has performed service as an employe for an employer who was not at the time a participating employer but who subsequently became a participating employer, may receive creditable service for such service if all of the following conditions are met:
40.25(7)(a)1.
1. The participant files an application to receive creditable service under this paragraph before termination of employment as a participating employe.
40.25(7)(a)2.
2. The participant has at least 3 continuous years of creditable service under the fund at the time of application under
subd. 1.
40.25(7)(a)3.
3. The number of years of creditable service applied for under this paragraph does not exceed the number of years of creditable service that the participant has at the date of application or 10 years, whichever is less.
40.25(7)(a)4.
4. At the time of application under
subd. 1., the participant furnishes evidence of such service which is acceptable to the department.
40.25(7)(a)5.
5. At the time of application under
subd. 1., the participant pays to the department a lump sum equal to the present value of the creditable service applied for under this paragraph, in accordance with rates actuarially determined to be sufficient to fund the cost of the increased benefits that will result from granting the creditable service under this paragraph. The department shall by rule establish different rates for different categories of participants, based on factors recommended by the actuary.
40.25(7)(b)
(b) Creditable service granted under
par. (a) shall be calculated in an amount equal to the year and fractions of a year to the nearest one-hundredth of a year for service other than military service performed for the governmental entity, as determined by evidence of such service furnished under
par. (a) 4. Creditable service granted under
par. (a) shall be the same type of creditable service as the type that is granted to participants who are not executive participating employes, elected officials or protective occupation participants. A participating employe may apply to receive part or all of the creditable service that he or she is eligible to receive under
par. (a).
40.25(7)(c)
(c) If a participant applies to receive creditable service under
par. (a) and the department denies the participant creditable service, the department shall refund the participant's lump sum payment made under
par. (a) 5.
40.25(7)(d)
(d) The lump sum payment under
par. (a) 5. shall be credited and treated as an employe required contribution for all purposes of the retirement system, except for purposes of
s. 40.23 (3).
40.25(7)(e)
(e) A participant may transfer available employe additional contribution accumulations to the employe required contribution account under
par. (d) as payment of the lump sum under
par. (a) 5.
40.25(7)(f)
(f) A participant may not receive creditable service under
par. (a) for service that is used for the purpose of establishing entitlement to, or the amount of, any other benefit to be paid by any federal, state or local government entity, except a disability or OASDHI benefit or a benefit paid for service in the national guard.
40.25(7)(g)
(g) The payment under
par. (a) 5., in combination with any other required contributions or additional contributions, may not exceed the maximum contribution limit under section
415 of the internal revenue code.
40.26
40.26
Reentry into service. 40.26(1)
(1) Except as provided in
ss. 40.05 (2) (g) 2. and
40.23 (1) (am), if a participant receiving a retirement annuity, or a disability annuitant who has attained his or her normal retirement date, receives earnings that are subject to
s. 40.05 (1) or that would be subject to
s. 40.05 (1) except for the exclusion specified in
s. 40.22 (2) (L), the annuity shall be terminated and no annuity payment shall be payable after the month in which the participant files with the department a written election to be included within the provisions of the Wisconsin retirement system as a participating employe.
40.26(2)
(2) Upon termination of an annuity under
sub. (1), the retirement account of the participant whose annuity is so terminated shall be reestablished on the following basis:
40.26(2)(a)
(a) The then present value of any portion of the terminated annuity which was originally provided by employe or employer additional contributions shall be credited to the corresponding additional contribution account.
40.26(2)(b)
(b) The amount of the annuity payments, excluding any portion originally provided by additional contributions, which would have been paid under the terminated annuity, if the annuity had been a straight life annuity, prior to the participant's normal retirement date or prior to the annuity termination date, whichever would first occur, shall be credited to a memorandum account which is subject to
s. 40.04 (4) (a) 2. and
2m. and
(c). If the annuity was recomputed under
s. 40.08 (1m) because of a qualified domestic relations order, the memorandum account established under this paragraph shall be adjusted as provided under
s. 40.08 (1m) (f) 2.
40.26(2)(c)
(c) Except as provided in
pars. (a) and
(b), the retirement account shall be reestablished as if the terminated annuity had never been effective, including crediting of interest and of any contributions made and creditable service earned during the period the annuity was in force.
40.26(3)(a)(a) Upon subsequent retirement and application for an annuity, the annuity of a former annuitant shall be recomputed, except as provided by
pars. (b),
(bm) and
(c), as an original annuity, based upon the participant's attained age on the effective date of the recomputed annuity, in an optional form as elected by the participant under
s. 40.24.
40.26(3)(b)
(b) Except as provided in
par. (bm), if changes in the statutes after the effective date of the original annuity would result in a change in the amount of an annuity recomputed under this subsection, the statutory changes shall not apply to any benefit based on creditable service earned prior to the effective date of the original annuity and the laws in effect as of that original effective date apply.
40.26(3)(bm)
(bm) If a former annuitant becomes a participating employe and accumulates at least 3 continuous years of creditable service before subsequent retirement and application for an annuity under this subsection, and if changes in the statutes after the effective date of the original annuity would result in a change in the amount of an annuity recomputed under this subsection, the annuity of the former annuitant shall be recomputed as follows:
40.26(3)(bm)1.
1. For creditable service earned after termination of the original annuity, the annuity shall be recomputed as provided under
par. (a).
40.26(3)(bm)2.
2. For creditable service earned before the effective date of the original annuity, the annuity shall be recomputed based on the laws in effect as of that original effective date, except that the portion of creditable service earned under this subdivision which is in an amount equal to the amount of creditable service earned under
subd. 1. shall be recomputed as provided under
par. (a).
40.26(3)(c)
(c) The amount of the recomputed annuity shall be reduced by the amount of annuity which could be provided, under the actuarial tables in effect on the annuity effective date, by the balance in the memorandum account established under
sub. (2) (b) and that account shall be closed out.
40.26(4)
(4) Upon subsequent termination of all participating employment of an annuitant who receives compensation subject to
s. 40.05 (1), but whose compensation did not exceed the level specified in
sub. (1) which would have required termination of the original annuity, any contributions made under
s. 40.05 (1) or
(2) (g) 1. based on the additional employment shall upon application be paid the annuitant on the basis specified in
s. 40.25 (2) and
(3) without regard to the age requirement and without any change in the original annuity.
40.26(5)
(5) If a participant applies for an annuity or lump sum payment during the period in which less than 30 days have elapsed between the termination of employment with a participating employer and becoming a participating employe with any participating employer, all of the following shall apply:
40.26(5)(b)
(b) The participant may not receive any benefit under this chapter on which the receipt of an annuity is a condition.
40.26(5)(c)
(c) Any annuity or lump sum payment made to the participant shall be considered to have been made in error and is subject to
s. 40.08 (4). The sum of the payments made in error shall be credited to a memorandum account. The memorandum account is subject to
s. 40.04 (4) (a) 2. and
2m. and
(c). If the annuity was recomputed under
s. 40.08 (1m), the memorandum account established under this paragraph shall be adjusted pursuant to
s. 40.08 (1m) (f) 2. The retirement account of a participant paid in error, and whose annuity was terminated, shall be reestablished as if the terminated annuity had never been effective, including the crediting of interest.
40.27
40.27
Post-retirement adjustments. 40.27(2)
(2)
Fixed annuity reserve surplus distributions. Surpluses in the fixed annuity reserve established under
s. 40.04 (6) and
(7) shall be distributed by the board if the distribution will result in at least a 2% increase in the amount of annuities in force, on recommendation of the actuary, as follows:
40.27(2)(a)
(a) The distributions shall be expressed as percentage increases in the amount of the monthly annuity in force, including prior distributions of surpluses but not including any amount paid from funds other than the fixed annuity reserve fund, preceding the effective date of the distribution. For purposes of this subsection, annuities in force include any disability annuity suspended because the earnings limitation had been exceeded by that annuitant in that year.
40.27(2)(b)
(b) Prorated percentages based on the annuity effective date may be applied to annuities with effective dates during the calendar year preceding the effective date of the distribution, as provided by rule, but no other distinction may be made among the various types of annuities payable from the fixed annuity reserve.
40.27(2)(c)
(c) The distributions shall not be offset against any other benefit being received but shall be paid in full, nor shall any other benefit being received be reduced by the distributions. The annuity reserve surplus distributions authorized under this subsection may be revoked by the board in part or in total as to future payments upon recommendation of the actuary if a deficit occurs in the fixed annuity reserves.
40.27 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).
40.28
40.28
Variable benefits. 40.28(1)(1) Any annuity provided to a participant whose accounts include credits segregated for a variable annuity shall consist of a fixed annuity and a variable annuity.
40.28(1)(a)
(a) The initial amount of the variable annuity shall be the amount which can be provided on the basis of the actuarial tables in effect on the effective date of the annuity by the following amounts, if otherwise available:
40.28(1)(a)1.
1. The amount of the additional contribution accumulations reserved for a variable annuity as of the date the annuity begins;
40.28(1)(a)2.
2. The amount equal to 200% of employe required contribution accumulations reserved for a variable annuity as of the date the annuity begins; and
40.28(1)(a)3.
3. The amount equal, as of the date the annuity begins, to the accumulated prior service credits reserved for the participant for a variable annuity within the employer accumulation account, together with the net gain or loss credited to the accumulations.
40.28(1)(b)
(b) The initial amount of the fixed annuity shall be the excess of the total annuity payable, as determined under
s. 40.23, over the amount of the variable annuity.
40.28(2)
(2) Whenever the balance in the variable annuity reserve, as of December 31 of any year, exceeds or is less than the then present value of all variable annuities in force, determined in accordance with the rate of interest and approved actuarial tables then in effect, by at least 2% of the present value of all variable annuities in force, the amount of each variable annuity payment shall be proportionately increased or decreased, disregarding fractional percentages, and effective on a date determined by rule, so as to reduce the variance between the balance of the variable annuity reserve and the present value of variable annuities to less than one percent.
40.28(3)
(3) Except as otherwise specifically provided, benefits based on variable accumulations shall be determined on the same basis and paid in the same manner and at the same time as benefits based on accumulations not so segregated insofar as practicable considering the nature of variable annuities.
40.28 History
History: 1981 c. 96.
40.29
40.29
Temporary disability; creditable service. 40.29(1)
(1) If a participating employe receives temporary disability compensation under
s. 102.43 for any period prior to termination of employment with the participating employer which commences on or after April 30, 1980, the employe shall be:
40.29(1)(a)
(a) Credited with creditable service during that period on the same basis as the employe was credited with creditable service immediately prior to the commencement of the period; and
40.29(1)(b)
(b) Treated for all purposes of the Wisconsin retirement system, including, but not limited to, contributions and benefits, as having received the amount and rate of earnings the employe would have received if the disability had not occurred, including adjustments in the rate of earnings of the employe made during that period in good faith.
