40.30
40.30
Intrastate retirement reciprocity. 40.30(1)
(1) This section shall be construed as an enactment of statewide concern to encourage career public service by employes of the state, 1st class cities and counties having a population of 500,000 or more but shall not be construed to affect the authority of any 1st class city to exercise its power granted under
article XI, section 3, of the constitution and
chapter 441, laws of 1947, section 31 over any other provisions of any of the retirement systems established by
chapter 589, laws of 1921,
chapter 423, laws of 1923 or
chapter 396, laws of 1937, or to affect the authority of any county having a population of 500,000 or more to exercise its power granted under
chapter 405, laws of 1965, over any other provisions of the retirement system established by
chapter 201, laws of 1937.
40.30(2)
(2) Except as provided in
sub. (7), any individual who has vested annuity benefit rights under the Wisconsin retirement system or under one of the retirement systems established by
chapter 589, laws of 1921,
chapter 423, laws of 1923,
chapter 201, laws of 1937 or
chapter 396, laws of 1937, who subsequently becomes covered by one or more of those other retirement systems, who, on or after May 11, 1990, terminates all employment covered by any of those retirement systems and who applies to have benefits begin within a 60-day period under all of those retirement systems from which the individual is entitled to receive benefits may, on a form provided by and filed with the department, elect to have retirement benefit computations and eligibility under each of those retirement systems determined as provided in this section.
40.30(3)
(3) The sum of all service credited to the individual under each retirement system specified in
sub. (2) shall be used in determining whether the individual has met any vesting period required for retirement benefit eligibility during any subsequent employment covered by any retirement system specified in
sub. (2), but shall not be used in determining the amount of the benefit nor in determining credit for military service.
40.30(4)
(4) The individual's retirement benefits under each retirement system specified in
sub. (2) shall be determined as follows:
40.30(4)(a)
(a) The benefit formula used for each type of service credited to the individual shall be the benefit formula in effect for that type of service under the respective retirement system on the date on which the individual terminated all employment covered by any retirement system specified in
sub. (2).
40.30(4)(b)
(b) 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, the final average salary or final average earnings used in the benefit formula computation for each retirement system under
par. (a) shall be the individual's final average salary or final average earnings under the respective retirement system, determined in accordance with the provisions of that retirement system based on the earnings covered by that retirement system and on all service permitted under that retirement system to be used in determining the final average salary or final average earnings, increased by the percentage increase in the average of the total wages, as determined under
42 USC 415 (b) (3) (A), between the date on which the individual terminated all employment covered by that retirement system and the date on which the individual terminated all employment covered by any of those retirement systems.
40.30(5)
(5) The benefits computed under this section for each retirement system shall be in lieu of any other benefit payable by that retirement system and may not begin before the individual terminates all employment covered by any retirement system specified in
sub. (2).
40.30(6)
(6) The secretary may promulgate rules affecting any retirement system specified in
sub. (2) to carry out the purposes of this section.
40.30(7)(a)(a) Retirement benefit computations or eligibility may not be determined as provided in this section with respect to service performed by an individual under any retirement system established by
chapter 589, laws of 1921,
chapter 423, laws of 1923, or
chapter 396, laws of 1937, or to service performed by that individual under the Wisconsin retirement system, before the date on which the governing body of the city that established the retirement system under
chapter 589, laws of 1921,
chapter 423, laws of 1923, or
chapter 396, laws of 1937, adopts a resolution approving the application of this section to the retirement benefit computations and eligibility determinations under all of those retirement systems that it has established.
40.30(7)(b)
(b) Retirement benefit computations or eligibility may not be determined as provided in this section with respect to service performed by an individual under a retirement system established by
chapter 201, laws of 1937, or to service performed by that individual under the Wisconsin retirement system, before the date on which the governing body of the county that established the retirement system under
chapter 201, laws of 1937, adopts a resolution approving the application of this section to the retirement benefit computations and eligibility determinations under that retirement system.
40.30(7)(c)
(c) A resolution adopted under
par. (a) or
(b) is irrevocable. Any governing body that adopts a resolution under
par. (a) or
(b) shall provide the department with a copy of the resolution.
40.30 History
History: 1989 a. 323;
1995 a. 81.
40.31
40.31
Maximum benefit limitations. 40.31(1)(a)(a)
Limitation amounts. Except as otherwise expressly provided in this section, the maximum retirement benefits payable to a participant in a calendar year, excluding benefits attributable to contributions subject to any limitations under
s. 40.23 (2) (a),
(2m) (c) and
(3), may not exceed the lesser of the following:
40.31(1)(a)1.
1. For a straight-life annuity terminating at the death of the annuitant, $120,000. If the annuity is in a form other than a straight-life annuity, the limitation is the reduced actuarial equivalent of a straight-life annuity terminating at the death of the annuitant and paying $120,000 per year.
40.31(1)(a)2.
2. One hundred percent of the participant's average annual compensation for the period of up to 3 consecutive calendar years during which the person was a participating employe and which yield the highest average annual compensation. In this subdivision, "compensation" has the meaning of "compensation" under section
415 (c) (3) of the internal revenue code.
40.31(1)(b)
(b)
Early commencement. If the participant's benefit commencement date occurs before the date on which the participant attains the age of 62, the dollar limitation under
par. (a) shall be the actuarial equivalent of the dollar limitation of an annual straight life annuity beginning at the age of 62 and terminating at the death of the annuitant. For the purposes of this paragraph, the interest rate assumption that is used to determine the actuarial equivalency may not exceed 5%. Under this subsection, the dollar limitation shall be:
40.31(1)(b)1.
1. Not less than $75,000 if the benefit commences at or after the age of 55.
40.31(1)(b)2.
2. Equal to $75,000 if the benefit commences before the age of 55.
40.31(1)(b)3.
3. Not less than $50,000 for participants who have at least 15 years of service as a full-time employe of any police or fire department which is organized and operated by the employer to provide police protection, fire fighting services or emergency medical services for any geographic area within the jurisdiction of the employer.
40.31(1)(c)
(c)
Deferred commencement. If the participant's benefit commencement date occurs after the date on which the participant attains the age of 65, the dollar limitation under
par. (a) shall be the actuarial equivalent of the dollar limitation of an annual straight life annuity beginning at the age of 65 and terminating at the death of the annuitant. For the purposes of this paragraph, the interest rate assumption that is used to determine the actuarial equivalency may not exceed 5%.
40.31(1)(d)
(d)
Limitation adjustments. The dollar limitations under
pars. (a) 1. and
(b) and the compensation limit under
par. (a) 2. may be adjusted by the department by rule to conform with any applicable U.S. treasury regulations concerning cost-of-living adjustments.
40.31(2)
(2) Exceptions to general limitation. Benefits payable to a participant shall be considered not to exceed any limitation under this section if one of the following applies:
40.31(2)(a)
(a) The amount of the benefit does not exceed the total benefits of the participant under all of the qualified defined benefit plans maintained or previously maintained by all of a participant's employers, as determined by the department without regard to any amendment to any of the benefit plans made after October 14, 1987.
40.31(2)(b)
(b) The amount of the benefit does not exceed $10,000 for the plan year and none of the participant's employers have at any time maintained a defined contribution plan in which the participant participated.
40.31(3)
(3) Treatment of defined benefit and defined contribution plans. For the purpose of determining whether a participant's retirement benefits exceed the maximum retirement limitations under this section, all defined benefit plans of the employer, including defined benefit plans that are terminated, shall be treated as a single defined benefit plan and all defined contribution plans of the employer, including defined contribution plans that are terminated, shall be treated as a single defined contribution plan. The department may provide by rule additional limitations for participants who are participating in more than one retirement system.
40.31(4)
(4) Division of benefits. For the purpose of determining whether a participant's retirement benefits exceed the maximum retirement limitations under this section for a participant whose retirement benefits have been divided under
s. 40.08 (1m), the participant's retirement benefits shall be measured as if no division had occurred.
40.31 History
History: 1995 a. 302.
40.32
40.32
Limitations on contributions. 40.32(1)
(1) The sum of all contributions allocated to a participant's account under each defined contribution plan sponsored by the employer, including all employer contributions and picked-up contributions credited with interest at the effective rate under
s. 40.04 (4) (a) and
(5) (b) and all employe contributions made under
ss. 40.02 (17),
40.05 (1) and
(2m) and
40.25 (6) (a) and
(7) (a), may not in any calendar year exceed the lesser of the following:
40.32(1)(b)
(b) Twenty-five percent of the participant's compensation, as defined in the internal revenue code, for the calendar year.
40.32(2)
(2) The department may provide by rule additional limitations for participants who are participating in more than one retirement system.
40.32(3)
(3) Any contribution that the department receives, which is allocated to the account of a participant and which exceeds the contributions limitation under this section, may be refunded or credited as provided in
s. 40.08 (6). If the department refunds any contributions that exceed the limitation under this section, the department shall first refund amounts voluntarily contributed by a participating employe, either as an additional contribution under
s. 40.05 (1) (a) 5. or a purchase of forfeited or creditable service under
s. 40.02 (17) or
40.25 (6) (a) or
(7) (a).
40.32 History
History: 1995 a. 302.
SOCIAL SECURITY FOR PUBLIC EMPLOYES
40.40
40.40
State-federal agreement. The secretary may, upon receipt of a certified copy of a resolution adopted by the governing body of any employer in accordance with
s. 40.41 execute on behalf of the state a modification of the state-federal agreement with the secretary of the federal department of health and human services for the inclusion of a coverage group of the employes of the employer under the OASDHI system in conformity with federal regulations. The state and each employer included under the agreement or modification of the agreement shall thereafter be bound by federal regulations.
40.40 History
History: 1981 c. 96.
40.41(1)(1) Except as provided in
sub. (6), all the employes of any employer shall be included under OASDHI through adoption of a resolution by the governing body of the employer providing for the coverage and stating the effective date of coverage. All groups covered by OASDHI, under s.
40.41, 1979 stats., prior to January 1, 1982, shall continue to be covered by OASDHI. Whenever any employer is created, the territory of which includes more than one-half of the last assessed valuation of an employer which prior to creation of the new employer had adopted a resolution under this subsection, and the employer so created assumes the functions and responsibilities of the previous employer with respect to the territory, then the employes of the employer so created shall be covered from the inception of the created employer as if a resolution had been adopted under this subsection.
40.41(2)
(2) The resolution provided for in
sub. (1) may specify a coverage group comprised of persons under a retirement system which is eligible under federal regulations for inclusion under the state-federal OASDHI agreement, in which case a referendum in conformity with section 218 (d) (3) of the federal social security act shall be conducted. The governor may take any and all actions which may be required in connection with such a referendum. The agreement with the secretary of health and human services may be modified to cover the coverage group.
40.41(3)
(3) No agreement with the federal department of health and human services may be executed for the purpose of permitting one or more individuals to transfer by individual choice from that part of a retirement system which is composed of positions of employes who do not desire coverage under OASDHI to that part of a retirement system which is composed of positions of employes who desire OASDHI coverage.
40.41(4)
(4) Except as provided in
sub. (6), all state employes, all teachers, the participating employes of all participating employers under the Wisconsin retirement system and all employes who would have become a participating employe of a participating employer except for the requirement of
s. 40.22 (6) shall be included under OASDHI, notwithstanding
sub. (1).
40.41(5)
(5) Except as provided in
sub. (6), employes under any retirement system included in whole or in part under OASDHI, prior to January 1, 1982, under a referendum or a choice held in conformity with section 218 (d) (3) or 218 (d) (6) of the federal social security act, shall continue to be included under OASDHI in accordance with the results of the referendum or choice, notwithstanding
sub. (1).
40.41(6)
(6) The following services shall be excluded from OASDHI coverage, and subsequent modifications of the state-federal agreement shall continue to provide for their exclusion:
40.41(6)(a)
(a) Services performed by persons or in positions not eligible for inclusion under federal regulations. Any exclusion under this paragraph shall not continue if federal regulations are subsequently modified to include the services.
40.41(6)(b)
(b) Services performed by a student or a member of a board or commission, except members of governing bodies, in a position or office which does not normally require actual performance of duty for at least 600 hours in each calendar year. For purposes of this paragraph, a "board" or "commission" is a body referred to in the statutes as a board or commission.
40.41(6)(d)
(d) Services of an employe whose participating employment in a position covered by a specific retirement system is not covered by OASDHI by reason of eligibility for a choice provided by statute prior to January 1, 1982, but only with respect to services in a position covered by that retirement system.
40.41(6)(e)
(e) Services in police and fire fighter positions under a retirement system except:
40.41(6)(e)1.
1. If the services were covered under the federal OASDHI system under this section prior to the effective date of the retirement system coverage.
40.41(6)(e)2.
2. If the services have been covered under the federal OASDHI system under section 218 (m) of the federal social security act.
40.41(6)(f)
(f) Services in a position eligible for participation in the Wisconsin retirement system only by virtue of
s. 40.22 (2m). This exclusion does not apply to any employe who is a teacher, who is a participating employe in the Wisconsin retirement system or whose employer has adopted a resolution under
sub. (1).
HEALTH AND LONG-TERM CARE BENEFITS
40.51
40.51
Health care coverage. 40.51(1)
(1) The procedures and provisions pertaining to enrollment, premium transmitted and coverage of eligible employes for health care benefits shall be established by contract or rule except as otherwise specifically provided by this chapter.
40.51(2)
(2) Except as provided in
subs. (10),
(10m),
(11) and
(16), any eligible employe may become covered by group health insurance by electing coverage within 30 days of being hired, to be effective as of the first day of the month which begins on or after the date the application is received by the employer, or by electing coverage prior to becoming eligible for employer contribution towards the premium cost as provided in
s. 40.05 (4) (a) to be effective upon becoming eligible for employer contributions. Any employe who does not so elect at one of these times, or who subsequently cancels the insurance, shall not thereafter become insured unless the employe furnishes evidence of insurability satisfactory to the insurer, at the employe's own expense or obtains coverage subject to contractual waiting periods. The method to be used shall be specified in the health insurance contract.
40.51(3)
(3) The health insurance contract shall establish provisions by which an insured employe or dependents may continue group coverage or convert group coverage to a nongroup policy which, at a minimum, comply with
s. 632.897.
40.51(4)
(4) The group insurance board shall establish provisions for the continuance of insurance coverage which shall, at a minimum, comply with
s. 632.897.
40.51(6)
(6) This state shall offer to all of its employes at least 2 insured or uninsured health care coverage plans providing substantially equivalent hospital and medical benefits, including a health maintenance organization or a preferred provider plan, if those health care plans are determined by the group insurance board to be available in the area of the place of employment and are approved by the group insurance board.
40.51(7)
(7) Any employer, other than the state, may offer to all of its employes a health care coverage plan through a program offered by the group insurance board. Notwithstanding
sub. (2) and
ss. 40.05 (4) and
40.52 (1), the department may by rule establish different eligibility standards or contribution requirements for such employes and employers and may by rule limit the categories of employers, other than the state, which may be included as participating employers under this subchapter.
Effective date note
NOTE: Sub. (8) is shown as amended eff. 5-1-97 by
1995 Wis. Act 289. Prior to 5-1-97 it reads:
Effective date text
(8) Every health care coverage plan offered by the state under sub. (6) shall comply with ss. 631.89, 631.90, 631.93 (2), 632.72 (2), 632.87 (3) to (5), 632.895 (5m) and (8) to (10) and 632.896.
40.51(9)
(9) Every health maintenance organization and preferred provider plan offered by the state under
sub. (6) shall comply with
s. 632.87 (2m).
40.51(10)
(10) Beginning on July 1, 1988, any eligible employe, as defined in
s. 40.02 (25) (b) 11., may become covered by group health insurance by electing coverage within 60 days after the date on which he or she ceases to be a participating employe, and by paying the cost of the required premiums, as provided in
s. 40.05 (4) (ad). Any eligible employe who does not so elect at the time specified, or who later cancels the insurance, shall not thereafter become insured unless the employe furnishes evidence of insurability satisfactory to the insurer, at the employe's expense or obtains coverage subject to contractual waiting periods, and pays the cost of the required premiums, as provided in
s. 40.05 (4) (ad). The method of payment shall be specified in the health insurance contract.
40.51(10m)
(10m) Any eligible employe, as defined in
s. 40.02 (25) (b) 6g., may become covered under any health care coverage plan offered under
sub. (6), without furnishing evidence of insurability, by submitting to the department, on a form provided by the department and within 30 days after the date on which the department receives the employe's application for a retirement annuity or for a lump sum payment under
s. 40.25 (1), an election to obtain the coverage, by obtaining coverage subject to contractual waiting periods and by paying the cost of the required premiums, as provided in
s. 40.05 (4) (ad).
40.51(11)
(11) An eligible state employe who elects insurance coverage with a county under
s. 978.12 (6) may not elect coverage under this section.
40.51(12)
(12) Every health maintenance organization offered by the state under
sub. (6) shall comply with
s. 609.655.
40.51(15m)
(15m) Every health care plan, except a health maintenance organization or a preferred provider plan, offered by the state under
sub. (6) shall comply with
s. 632.86.
40.51(16)
(16) Beginning on the date specified by the department, but not earlier than March 20, 1992, and not later than July 1, 1992, any eligible employe, as defined in
s. 40.02 (25) (b) 6m., may elect coverage under any health care coverage plan offered under
sub. (6) by furnishing, at the employe's expense, evidence of insurability satisfactory to the insurer or by obtaining coverage subject to contractual waiting periods, and by paying the cost of the required premiums, as provided in
s. 40.05 (4) (ad). The method to be used shall be specified in the health insurance contract.
40.51 History
History: 1981 c. 96;
1983 a. 27;
1985 a. 29;
1987 a. 27,
107,
356;
1987 a. 403 s.
256;
1989 a. 31,
93,
121,
129,
182,
201,
336,
359;
1991 a. 39,
70,
113,
152,
269,
315,
1993 a. 450,
481;
1995 a. 289.
40.51 Annotation
Monies appropriated to the Public Employe Trust Fund are not ``state funds", and therefore the legislature may not restrict the use of those funds by a statute governing the use of ``state or local funds". The restrictions on the use of ``state and local" funds for abortions under s. 20.927 do not apply to health plans offered under this section.
OAG 1-95 40.52
40.52
Health care benefits. 40.52(1)
(1) The group insurance board shall establish by contract a standard health insurance plan in which all insured employes shall participate except as otherwise provided in this chapter. The standard plan shall provide:
40.52(1)(a)
(a) A family coverage option for persons desiring to provide for coverage of all eligible dependents and a single coverage option for other eligible persons.
40.52(1)(b)
(b) Coverage for expenses incurred by the installation and use of an insulin infusion pump, coverage for all other equipment and supplies used in the treatment of diabetes and coverage of diabetic self-management education programs. Coverage required under this paragraph shall be subject to the same deductible and coinsurance provisions of the plan as other covered expenses, except that insulin infusion pump coverage may be limited to the purchase of one pump per year and the plan may require the covered person to use a pump for 30 days before purchase.
40.52(2)
(2) Health insurance benefits under this subchapter shall be integrated, with exceptions determined appropriate by the group insurance board, with benefits under federal plans for hospital and health care for the aged and disabled. Exclusions and limitations with respect to benefits and different rates may be established for persons eligible under federal plans for hospital and health care for the aged and disabled in recognition of the utilization by persons within the age limits eligible under the federal program. The plan may include special provisions for spouses and other dependents covered under a plan established under this subchapter where one spouse is eligible under federal plans for hospital and health care for the aged but the others are not eligible because of age or other reasons. As part of the integration, the department may, out of premiums collected under
s. 40.05 (4), pay premiums for the federal health insurance.
40.52(3)
(3) The group insurance board, after consulting with the board of regents of the university of Wisconsin system, shall establish the terms of a health insurance plan for graduate assistants, and for employes-in-training designated by the board of regents, who are employed on at least a one-third full-time basis and for teachers who are employed on at least a one-third full-time basis by the university of Wisconsin system with an expected duration of employment of at least 6 months but less than one year.
40.52(3m)
(3m) The group insurance board, after consulting with the board of directors of the University of Wisconsin Hospitals and Clinics Authority, shall establish the terms of a health insurance plan for graduate assistants, and for employes-in-training designated by the board of directors, who are employed on at least a one-third full-time basis with an expected duration of employment of at least 6 months.
