40.65(5)(b)3.
3. Any worker's compensation benefit payable to the participant, including payments made pursuant to a compromise settlement under
s. 102.16 (1). A lump sum worker's compensation payment or compromise settlement shall reduce the participant's benefit under this section in monthly amounts equal to 4.3 times the maximum benefit which would otherwise be payable under
ch. 102 for the participant's disability until the lump sum amount is exhausted.
40.65(5)(b)4.
4. Any disability and retirement benefit payable to the participant under this chapter, or under any other retirement system, that is based upon the participant's earnings record and years of service. A reduction under this subdivision may not be greater in amount than the amount of disability or retirement benefit received by the participant. If the participant is not eligible for a retirement benefit because he or she received a lump sum payment or withdrew his or her contributions on or after the date the participant became eligible to receive a benefit under this section, the amount received or withdrawn shall reduce the participant's benefit under this section in the amount of benefit that would be payable if, on the date the amount was received or withdrawn, the full amount received or withdrawn was applied under
s. 40.23 (2m) (d) as additional employe contributions credited to the participant's account.
40.65(5)(b)5.
5. All earnings payable to the participant from the employer under whom the duty disability occurred.
40.65(5)(b)6.
6. All earnings payable to the participant from an employer, other than the employer under whom the duty disability occurred, and all income from self-employment, the total of such earnings and income shall reduce the participant's benefit as follows:
40.65(5)(b)6.a.
a. For the amount of the total that is less than 40% of the participant's monthly salary, one-third of such amount;
40.65(5)(b)6.b.
b. For the amount of the total that is from 40% to 80% of the participant's monthly salary, one-half of such amount; and
40.65(5)(b)6.c.
c. For the amount of the total that is more than 80% of the participant's monthly salary, two-thirds of such amount.
40.65(5)(c)
(c) The Wisconsin retirement board may not reduce a participant's benefit because of income or benefits that are attributable to the earnings or work record of the participant's spouse or other member of the participant's family, or because of income or benefits attributable to an insurance contract, including income continuation programs.
40.65(6)
(6) The Wisconsin retirement board shall adjust the monthly salary of every participant receiving a benefit under this section using the salary index for the previous calendar year as follows:
40.65(6)(a)
(a) For the purposes of
sub. (5) (b) 6., annually on January 1 until the participant's death;
40.65(6)(b)
(b) For the purposes of
sub. (5) (a), if the participant is receiving an annuity under
s. 40.63 (1), annually on January 1 until the participant's death; and
40.65(6)(c)
(c) For the purposes of
sub. (5) (a), if the participant is not receiving an annuity under
s. 40.63 (1), annually on January 1 until the first January 1 after the participant's 60th birthday. Beginning on the January 1 after the participant's 60th birthday the participant's monthly salary shall be increased annually in a percentage amount equal to the percentage amount of dividend awarded under
s. 40.27 (2) until the participant's death. Notwithstanding
s. 40.27 (2), any benefits payable under this section are not subject to distribution of annuity reserve surpluses.
40.65(7)(a)(a) This paragraph applies to benefits based on applications filed before May 3, 1988. If a protective occupation participant dies as a result of an injury or a disease for which a benefit is paid or would be payable under
sub. (4), and the participant is survived by a spouse or an unmarried child under age 18, a monthly benefit shall be paid as follows:
40.65(7)(a)1.
1. To the surviving spouse, if the spouse was married to the participant on the date the participant was disabled within the meaning of
sub. (4), one-third of the participant's monthly salary as reflected at the time of death until the surviving spouse marries again.
40.65(7)(a)2.
2. To the guardian of a surviving unmarried child under age 18, $15 per child until the child marries, dies or reaches 18 years of age.
40.65(7)(a)3.
3. The total monthly amount paid under
subds. 1. and
2. may not exceed 65% of the participant's monthly salary as reflected at the time of death. Any reduction of benefits caused by such limitation shall be done on a proportional basis.
40.65(7)(am)
(am) This paragraph applies to benefits based on applications filed on or after May 3, 1988. If a protective occupation participant dies as a result of an injury or a disease for which a benefit is paid or would be payable under
sub. (4), and the participant is survived by a spouse or an unmarried child under the age of 18, a monthly benefit shall be paid as follows:
40.65(7)(am)1.
1. To the surviving spouse until the surviving spouse remarries, if the spouse was married to the participant on the date that the participant was disabled under
sub. (4), 50% of the participant's monthly salary at the time of death, but reduced by any amount payable under
sub. (5) (b) 1. to
6.
40.65(7)(am)2.
2. To a guardian for each of that guardian's wards who is an unmarried surviving child under the age of 18, 10% of the participant's monthly salary at the time of death, payable until the child marries, dies or reaches the age of 18, whichever occurs first. The marital status of the surviving spouse shall have no effect on the payments under this subdivision.
40.65(7)(am)3.
3. The total monthly amount paid under
subds. 1. and
2. may not exceed 70% of the participant's monthly salary at the time of death reduced by any amounts under
sub. (5) (b) 1. to
6. that relate to the participant's work record.
40.65(7)(am)4.
4. Benefits payable under this paragraph shall be increased each January 1 by the salary index determined for the prior year.
40.65(7)(b)
(b) Any person entitled to a benefit under both this subsection and
ch. 102 because of the death of the same participant, shall have his or her benefit under this subsection reduced in an amount equal to the death benefit payable under
ch. 102.
40.65(9)
(9) This section is applicable to protective occupation participants who apply for a benefit under this section on or after July 1, 1982. A participant may not apply for a benefit under this section if he or she is receiving a benefit under s.
66.191, 1981 stats., on July 1, 1982.
40.65 Cross-reference
Cross-reference: See s.
891.45 for provision as to presumption of employment-connected disease for certain municipal fire fighters.
40.65 Annotation
The Wisconsin Retirement Board may not reduce duty disability benefits under sub. (5) (b) 3. for worker's compensation benefits which are paid to a participant before the duty disability payments commence, and may do so only for worker's compensation not yet paid. Coutts v. Wisconsin Retirement Board, 201 W (2d) 178, 547 NW (2d) 821 (Ct. App. 1996).
SURVIVOR BENEFITS
40.70
40.70
Life insurance coverage. 40.70(1)
(1) Except as provided in
sub. (11), each eligible employe of an employer shall be insured under the group life insurance plan provided under this subchapter if all of the following apply:
40.70(1)(a)
(a) The employer is a participating employer under the Wisconsin retirement system and was included in the group life insurance program by s.
40.20 (5m), 1979 stats., or the governing body of the employer has adopted a resolution in a form prescribed by the department to make coverage available to its employes or is the state. Coverage may also be extended by rule to employes under other retirement systems if the employer adopts a resolution as specified in this paragraph. A certified copy of the resolution shall be filed with the department and the resolution takes effect on the first day of the 4th month beginning after the date of filing. An employer may provide group life insurance for its employes through separate contracts in addition to, or in lieu of, the group life insurance provided by the department under this subchapter.
40.70(1)(b)
(b) The employe files with the department an application, to be effective on a date fixed by the department, for one or more of the types of coverage established under this subchapter. The group insurance board may provide a different method of enrollment than provided under this subsection.
40.70(1)(c)
(c) The employe pays the employe contribution toward the life insurance premium under
s. 40.05 (6).
40.70(2)
(2) A resolution adopted under
sub. (1) (a) takes effect only if the department determines that at least 50% of the eligible employes of that employer will be covered at the time that the resolution is effective. The department's determination shall be based on the employer's prior year-end report of the number of employes participating in the Wisconsin retirement system or, if the employer was not a participating employer in the prior year, on the number of employes who, on or before the 15th day of the month immediately preceding the effective date of the resolution, have applied for group life insurance coverage under this subchapter. If the department nullifies a resolution based on insufficient participation, the employer may not file another resolution under
sub. (1) (a) during the first 6 months after the date of the previous filing.
40.70(3)
(3) Employers may adopt resolutions providing all the coverages provided under this subchapter or provided by contract or may identify in the resolution only specified coverages that are authorized by contract to be offered separately. Employes may file an application under
sub. (1) (b) for the amount of coverage provided under
s. 40.72 (1) and for any other coverage offered by their employer. The department shall determine the method of administration and the procedure for collection of premiums and employer costs.
40.70(4)(a)(a) The governing body of any employer may do any of the following:
40.70(4)(a)1.
1. Change the coverage that it makes available to its employes under
s. 40.72 (2) or
(3) by adopting an amended resolution and filing a certified copy of the amended resolution with the department.
40.70(4)(a)2.
2. Withdraw from making coverage under this subchapter available to its employes by adopting a withdrawal resolution and filing a certified copy of the withdrawal resolution with the department.
40.70(4)(a)3.
3. Nullify its amended resolution or withdrawal resolution at any time before it becomes effective by adopting a nullifying resolution and filing a certified copy of the nullifying resolution with the department.
40.70(4)(b)
(b) Except as provided in
sub. (5), amended resolutions and withdrawal resolutions take effect on the first day of the 4th month beginning after the date of filing. Nullifying resolutions take effect on the date of filing.
40.70(4)(c)
(c) If a withdrawal resolution becomes effective, the employer may not file another resolution under
sub. (1) (a) during the first 12 months after the effective date of the withdrawal resolution.
40.70(5)
(5) The department may accept or reject an amended resolution, or a resolution under
sub. (1) (a) that is filed after the employer's withdrawal resolution becomes effective, and may charge the employer for any postretirement insurance liability.
40.70(6)
(6) Except as provided in
sub. (7m), any employe who has not applied for coverage under
sub. (1) within 6 months after becoming eligible for coverage or any employe whose insurance terminates under
sub. (8) shall not thereafter become insured for that coverage unless prior to the attainment of age 55 the employe furnishes evidence of insurability satisfactory to the insurer, at his or her own expense. If the evidence is approved, the employe shall become insured on the first day of the first month beginning after the approval.
40.70(7m)
(7m) If, as a result of employer error, an employe has not filed an application with the department as required under
sub. (1) (b) or made premium contributions as required under
sub. (1) (c) within 60 days after becoming eligible for group life insurance coverage, the employe is considered not to be insured for that coverage. The employe may become insured by filing a new application under
sub. (1) (b) within 30 days after the employe receives from the employer written notice of the error. An employe is not required to furnish evidence of insurability to become insured under this subsection. An employe becomes insured under this subsection on the first day of the first month beginning after the date on which the employer receives the employe's new application under
sub. (1) (b).
40.70(8)
(8) An insured employe may at any time cancel one or more of the types of life insurance coverage provided under this subchapter by filing a cancellation form with the employing office. The cancellation form shall be transmitted immediately to the department. The cancellation shall be effective and the insurance shall cease at the end of the calendar month which begins after the cancellation form is received by the appropriate office.
40.70(9)
(9) The life insurance shall terminate as provided in the contract which shall also provide an option for an employe to convert insurance coverage upon termination of employment if covered by the insurance during the entire 6 months preceding termination or if covered by the insurance from the initial effective date for that employer, to the date of termination.
40.70(10)
(10) The group insurance board may provide for the continuation or suspension of insurance coverage during any month in which no earnings are received during a leave of absence.
40.70(11)
(11) An eligible state employe shall not be insured under the group life insurance provided under this subchapter if the employe elects insurance coverage with a county under
s. 978.12 (6).
40.71
40.71
Death benefit eligibility. The following described persons are entitled to death benefits from the Wisconsin retirement system, in the form and at the times specified:
40.71(1)
(1) The beneficiary of any participant or of any annuitant on the date of death of the participant or annuitant. For purposes of this subsection:
40.71(1)(a)
(a) A participant is deemed a participating employe on the date of death even though the participant is then an applicant for a retirement or disability annuity, except as provided by
s. 40.63 (8) (h), if the participant's application was received by the board within 30 days after the participant ceased to be a participating employe and the participant would have been entitled to the annuity had the participant lived.
40.71(1)(b)
(b) If the date of death is less than one year after the last day for which earnings were paid, a participant is deemed a participating employe on leave of absence, notwithstanding the fact that no formal leave of absence is in effect, if the participating employer for which the participant last performed services as a participating employe has not filed notice of the termination of employment prior to the employe's death.
40.71(1)(c)
(c) If the death of a participating employe on leave of absence, other than a leave for purposes of military service, arises from employment by any employer other than a participating employer, employment is deemed to have terminated and the participant shall not be considered a participating employe on the date of his or her death.
40.71(1)(d)
(d) Every participant is deemed an annuitant immediately upon the effective date of the participant's annuity, or the date the application is received by the department if the participant is living on that date, whichever is later.
40.71(1)(e)
(e) Any annuitant whose annuity is terminated shall cease to be an annuitant as of the last day of the month preceding the last day on which the annuity is payable.
40.71(2)
(2) Any death benefit may be paid as a beneficiary annuity, subject to
s. 40.73 (3), or as a single cash sum as specified by the beneficiary in the application for the death benefit unless the participant prohibited payment of a single cash sum in a written notice received by the department prior to the participant's death. A prohibition on payment of a single cash sum shall not be effective if the monthly amount of the annuity would be less than the amount determined under
s. 40.25 (1) (a) or if the beneficiary is the participant's estate or a trust in which the beneficiary has a beneficial interest.
40.71(3)
(3) Whenever any death benefit is payable in a single cash sum, it shall be paid only after receipt by the department of the following:
40.71(3)(a)
(a) A copy of the death certificate of the participant or annuitant;
40.71(3)(b)
(b) A written application of the beneficiary for the benefit; and
40.71(3)(c)
(c) Any additional evidence deemed necessary or desirable by the department.
40.71 History
History: 1981 c. 96;
1987 a. 309.
40.72
40.72
Life insurance benefits. 40.72(1)
(1) Except as provided in
sub. (2),
(3),
(3m),
(8) or
(10), the amount of group life insurance of an insured employe under age 70 shall be $1,000 of insurance for each $1,000 or part of $1,000 of the employe's annual earnings during the prior calendar year, notwithstanding any limitation of amount that may otherwise be provided by law. For persons covered initially the earnings shall be a projection on an annual basis of the compensation at the time of coverage until the date determined by the group insurance board for establishing new annual amounts of insurance.
40.72(2)
(2) Except as provided by
sub. (3), the amount of life insurance for any insured eligible employe who is 70 years of age or older or insured retired eligible employe under
sub. (4) who is 65 years of age or over shall be the amount as computed under
sub. (1) reduced by 25% of that amount on each birthday of the employe commencing with the employe's 65th birthday, with a maximum reduction of 75%.
40.72(3)
(3) The maximum reduction in the amount of insurance for any insured employe to whom this subsection applies by an election under
s. 40.70 (3) and for any insured state employe shall be 50%.
40.72(3m)
(3m) The group insurance board may, by contract, limit the amount of group life insurance for any insured employe who becomes insured by electing coverage under
s. 40.70 (6).
40.72(4)
(4) The amount of life insurance for any insured employe who was either a participating employe before January 1, 1990, or who has been covered under the group life insurance plan in at least 5 calendar years after 1989, who terminates employment shall be the same as if the employe had not terminated employment and earnings had continued at the same amount as at the time of termination, except as provided in
subs. (2) and
(3) and
s. 40.70 (3), if any of the following applies on the date of termination:
40.72(4)(a)
(a) The employe meets all of the requirements for receiving an immediate annuity except the filing of an application.
40.72(4)(b)
(b) The sum of the employe's creditable service on January 1, 1990, and the number of calendar years after 1989 in which the employe has been covered under the group life insurance plan equals at least 20 years.
40.72(4)(c)
(c) The employe's number of years of service with the participating employer by whom the employe was employed immediately before termination equals at least 20 years.
40.72(4r)
(4r) At any time after an insured employe's amount of life insurance is reduced under
subs. (2) and
(3) and life insurance premiums are no longer required under
s. 40.05 (6) (b), the employe may convert the present value of the life insurance to pay the premiums for health or long-term care insurance provided under
subch. IV, but only if the department determines that the value of the conversion is exempt from taxation under the internal revenue code.
40.72(5)
(5) The amount of insurance specified under
sub. (4) shall be adjusted when the person again becomes an employe of an employer participating in the group life insurance plan and while employed again the person shall pay premiums under
s. 40.05 (6) for the insurance.
40.72(6)
(6) The amount of insurance of an employe who retires on disability annuity shall be the same as if the employe had not retired and his or her earnings had continued in the same amount as at the time of his or her retirement, except as provided by
subs. (2) and
(3).
40.72(7)
(7) During a period of disability in which premiums are waived under the terms of the insurance contract the amount of insurance shall be the same as if the employe had not become disabled and earnings had continued at the same amount as at the time of becoming disabled, and the contract may provide that the insurance continues during the continuance of the disability even if the person ceases to be an employe.
40.72(8)
(8) The life insurance in effect during the previous year shall not be reduced during subsequent consecutive years of eligible employment with the same employer unless the employe elects to have the amount of life insurance recomputed under
subs. (1) to
(3) or cancels coverage. The election shall be made under procedures established by the department. This subsection is subject to the limitations of
subs. (2) and
(3).
40.72(9)
(9) In addition to the insurance provided under
sub. (1), insurance may be provided against accidental death and dismemberment as defined by the group insurance board in accordance with benefit schedules established by contract.
40.72(10)
(10) Each insured state employe, and each insured employe to whom this subsection applies by an election under
s. 40.70 (3), who is under 70 years of age, or 65 years of age if retired, shall be provided an amount of group life insurance in addition to that provided under
sub. (1) equal to 100% of the employe's earnings rounded to the next higher $1,000, if earnings are not in even $1,000 increments. The employe may cancel, in accord with the procedures specified by
s. 40.70, the amount of additional insurance provided under this subsection.
40.73
40.73
Death benefits. 40.73(1)(1) The amount of the Wisconsin retirement system death benefit shall be:
40.73(1)(a)
(a) Upon the death of a participant, other than an annuitant, the sum of the additional and employe required contribution accumulations credited to the participant's account on the beneficiary annuity effective date or, in the case of a lump sum payment, the first day of the month in which the death benefit is approved. In addition:
40.73(1)(a)1.
1. For teacher participants who were members of the state teachers retirement system or the Milwaukee teachers retirement fund on June 30, 1966, the amount shall be increased by the employer contribution accumulation credited to the participant's account on or prior to June 30, 1973, plus interest at the effective rate subsequently credited to the accumulations.
40.73(1)(a)2.
2. For participants who were participants of the Wisconsin retirement fund on or prior to December 31, 1965, the amount shall be increased by the employer contribution accumulation credited to the participant's account on December 31, 1965, plus interest at the effective rate subsequently credited to the accumulations.
40.73(1)(b)
(b) Upon the death of an annuitant, in addition to any amounts payable by virtue of the annuity option elected by an annuitant, the amount determined under
par. (a) for contributions made under
s. 40.05 (1) subsequent to the effective date of the annuity, or additional contributions not applied to provide an annuity, provided the amounts have not been previously paid out as a lump sum under
s. 40.25.
40.73(1)(c)
(c) In lieu of the benefit payable under
par. (a) or
(b), upon the death of a participating employe who has attained the age of 60 years, or age 55 if a protective occupation participant, if the beneficiary to whom a death benefit is payable is a dependent of the participating employe, or a trust in which such a beneficiary has a beneficial interest, the present value on the day following the date of death of the life annuity to the beneficiary which would have been payable if the participating employe had been eligible to receive a retirement annuity, computed under
s. 40.23 or
40.26, beginning on the date of death and had elected to receive the annuity in the form of a joint and survivor annuity providing the same amount of annuity to the surviving beneficiary as the reduced amount payable during the participant's lifetime. If there is more than one beneficiary the amount of the annuity and its present value will be determined as if the oldest of the beneficiaries were the sole beneficiary. If the death benefit payable to the beneficiary under this paragraph would be less than the amount determined under
par. (a) or
(b) the death benefit shall be payable under
par. (a) or
(b) and this paragraph shall not be applicable to the beneficiary. An annuitant receiving an annuity only under
s. 40.24 (1) (f), which annuity was an immediate annuity, shall be deemed a participating employe for purposes of this paragraph only, but the amount payable under
s. 40.24 (1) (f) shall not be changed.
