40.02(23)(a)
(a) For the fixed annuity division, the rate, disregarding fractions of less than one-tenth of one percent, determined by dividing the remaining fixed annuity division investment earnings for the calendar year or part of the calendar year, after making provision for any necessary reserves and after deducting prorated interest and the administrative costs of the fixed annuity division for the year, by the fixed annuity division balance at the beginning of the calendar year as adjusted for benefit payments and refunds paid during the year excluding prorated interest.
40.02(23)(b)
(b) For the variable annuity division, the rate, disregarding fractions less than one percent, which will distribute the net gain or loss of the variable annuity division to the respective variable annuity balances and reserves using the same procedure as provided in
par. (a) for the fixed annuity division.
40.02(24)
(24) "Elected official", except as otherwise provided in
sub. (48), means a participating employe who is:
40.02(24)(a)
(a) A supreme court justice, court of appeals judge, circuit judge or state, county or municipal official elected by vote of the people; or
40.02(24)(b)
(b) Appointed as provided by statute to fill a vacancy in a position specified in
par. (a).
40.02(24)(c)
(c) The chief clerk and sergeant at arms of the senate and assembly.
40.02(25)(a)1.
1. Any participating state employe who has been participating under the Wisconsin retirement system for a period of at least 6 months prior to attainment of age 70 not including any period of leave of absence without pay; or
40.02(25)(a)2.
2. Any state employe who is a member or employe of the legislature, a state constitutional officer, a district attorney who did not elect under
s. 978.12 (6) to continue insurance coverage with a county, or who did elect such coverage but has terminated that election under
s. 978.12 (6), a justice of the supreme court, court of appeals judge, a circuit judge or the chief clerk or sergeant at arms of the senate or assembly; or
40.02(25)(a)3.
3. The blind employes of the Wisconsin workshop for the blind authorized under s.
47.03 (1) (b), 1989 stats., or of the nonprofit corporation with which the department of workforce development contracts under s.
47.03 (1m) (a), 1989 stats., as of the beginning of the calendar month following completion of 1,000 hours of service. Persons employed by an employer who are blind when hired shall not be eligible for life insurance premium waiver because of any disability which is directly or indirectly attributed to blindness and may convert life insurance coverage only once under the contract; or
40.02(25)(a)4.
4. Only a person who has not attained age 70 at the time of becoming initially eligible for the group insurance coverage provided under this chapter; but this subdivision does not exclude any participant from participation in the group health insurance plan nor does it exclude from participation in the group life insurance plan any employe who is initially eligible on the employer's effective date of participation.
40.02(25)(a)5.
5. Any state employe who has been participating under the Wisconsin retirement system for a period of at least 6 months prior to attaining age 70 not including any period of leave of absence without pay and who is on union service leave except the cost for premium payments shall be entirely the responsibility of the state employe on union service leave.
40.02(25)(a)6.
6. Any state employe of the office of district attorney, other than the district attorney, in a county having a population of 500,000 or more who did not elect under
s. 978.12 (6) to continue insurance coverage with that county, or who did elect such coverage but has terminated that election under
s. 978.12 (6), and who has participated under the retirement system established under
chapter 201, laws of 1937, and under the Wisconsin retirement system for a combined and consecutive period, of at least 6 months prior to attainment of age 70, not including any period of leave of absence without pay.
40.02(25)(b)
(b) For the purpose of group health insurance coverage:
40.02(25)(b)1.
1. Any teacher who is employed by the university for an expected duration of not less than 6 months on at least a one-third full-time employment;
40.02(25)(b)2.
2. Any person employed as a graduate assistant and other employes-in-training as are designated by the board of regents of the university, who are employed on at least a one-third full-time basis;
40.02(25)(b)2g.
2g. Any person employed as a graduate assistant and other employes-in-training as are designated by the board of directors of the University of Wisconsin Hospitals and Clinics Authority, who are employed on at least a one-third full-time basis with an expected duration of employment of at least 6 months.
40.02(25)(b)2m.
2m. A crew leader or regional crew leader employed by the Wisconsin conservation corps board for whom the Wisconsin conservation corps board under
s. 106.215 (10) (fm) has authorized group health care coverage;
40.02(25)(b)3.
3. The surviving spouse of an employe, or of a retired employe, who is currently covered by health insurance at the time of death of the employe or retired employe. The spouse shall have the same right to health insurance coverage as the deceased employe or retired employe, but without state contribution, under rules promulgated by the secretary;
40.02(25)(b)4.
4. Any insured employe who is retired on an immediate or disability annuity, or who receives a lump sum payment under
s. 40.25 (1) which would have been an immediate annuity if paid as an annuity, if the employe meets all of the requirements for an immediate annuity including filing of application whether or not final administrative action has been taken;
40.02(25)(b)5.
5. Any participating state employe under the Wisconsin retirement system, notwithstanding
par. (a) 1.;
40.02(25)(b)6.
6. A participating state employe who terminates creditable service:
40.02(25)(b)6.b.
b. Who is eligible for an immediate annuity but defers application;
40.02(25)(b)6g.
6g. Any state constitutional officer, member or officer of the legislature, head of a state department or state agency who is appointed by the governor with senate confirmation, or head of a legislative service agency, as defined in
s. 13.90 (1m) (a), who terminates all creditable service on or after January 1, 1992, who is eligible for and has applied for a retirement annuity or a lump sum payment under
s. 40.25 (1), who, if eligible, is receiving medicare coverage under both part A and part B of Title XVIII of the federal social security act,
42 USC 1395 to
1395zz, and who has acted under
s. 40.51 (10m) to elect group health insurance coverage.
40.02(25)(b)6m.
6m. Beginning on the date specified by the department, but not earlier than March 20, 1992, and not later than July 1, 1992, any of the following persons who, if eligible, is receiving medicare coverage under both part A and part B of Title XVIII of the federal social security act,
42 USC 1395 to
1395zz, and who has acted under
s. 40.51 (16) to elect group health insurance coverage:
40.02(25)(b)6m.a.
a. A retired employe of the state who is receiving a retirement annuity or has received a lump sum payment under
s. 40.25 (1).
40.02(25)(b)6m.b.
b. An employe of the state who terminates creditable service after attaining 20 years of creditable service, remains a participant and is not eligible for an immediate annuity.
40.02(25)(b)6r.
6r. Any insured employe of the state who terminates creditable service on or after April 23, 1992, after attaining at least 20 years of creditable service, remains a participant and is not eligible for an immediate annuity or is not receiving a retirement or disability annuity, and who, if eligible, is receiving medicare coverage under both part A and part B of Title XVIII of the federal social security act,
42 USC 1395 to
1395zz.
40.02(25)(b)9.
9. Except as provided under
s. 40.51 (7), any other employe of any employer, other than the state, which has acted under
s. 40.51 to make such coverage available to its employes;
40.02(25)(b)10.
10. Any participating employe who is an employe of this state and who qualifies for a disability benefit under
s. 40.63 or
40.65; or
40.02(25)(b)11.
11. Beginning on July 1, 1988, any retired public employe, other than a retired employe of the state, who is receiving an annuity under the Wisconsin retirement system, or any dependent of such an employe, as provided in the health insurance contract, who is receiving a continuation of the employe's annuity, and, if eligible, is receiving medicare coverage under both part A and part B of Title XVIII of the federal social security act,
42 USC 1395 to
1395zz, and who has acted under
s. 40.51 (10) to elect group health insurance coverage.
40.02(25)(bm)
(bm) For the purpose of long-term care insurance, in addition to any state annuitant under
s. 40.02 (54m), any employe of the state who received a salary or wages in the previous calendar year, and any participant who was at one time employed by the state who receives a lump sum payment under
s. 40.25 (1) which would have been an immediate annuity if paid as an annuity, if the employe is a resident of this state and meets all of the requirements for an immediate annuity including filing of an application, whether or not final administrative action has been taken.
40.02(25)(c)
(c) For the purpose of group life insurance coverage, for participating employes and employes subject to
s. 40.19 (4) of any employer, other than the state, which has acted under
s. 40.70 (1) (a) to make group life insurance available to its employes the same as provided under
par. (a) 1. and
3.
40.02(25)(d)
(d) For the purpose of income continuation insurance coverage, and except as provided under
s. 40.61 (3), for participating employes of any employer under
sub. (28), other than the state, which has acted under
s. 40.61 to make such coverage available to its employes.
40.02(26)
(26) "Employe" means any person who receives earnings as payment for personal services rendered for the benefit of any employer including officers of the employer. An employe is deemed to have separated from the service of an employer at the end of the day on which the employe last performed services for the employer, or, if later, the day on which the employe-employer relationship is terminated because of the expiration or termination of leave without pay, sick leave, vacation or other leave of absence. A person shall not be considered an employe if a person:
40.02(26)(a)
(a) Is employed under a contract involving the furnishing of more than personal services.
40.02(26)(b)
(b) Is customarily engaged in an independently established trade, business or profession providing the same type of services to private individuals and organizations as is provided to the employer and whose services to a participating employer are not compensated for on a payroll of that employer, except that persons holding offices provided for by statute shall be considered employes.
40.02(26)(c)
(c) Is a patient or inmate of a hospital, home or institution and performs services in the hospital, home or institution.
40.02(26g)
(26g) "Employe-funded reimbursement account plan" means a plan in accordance with section
125 of the internal revenue code under which an employe may direct an employer to place part of the employe's gross compensation in an account to pay for certain future expenses of the employe under section
125 of the internal revenue code.
40.02(26r)
(26r) "Employe-funded reimbursement account plan provider" means a person who provides administrative services related to employe-funded reimbursement account plans.
40.02(28)
(28) "Employer" means the state, including each state agency, any county, city, village, town, school district, other governmental unit or instrumentality of 2 or more units of government now existing or hereafter created within the state and any federated public library system established under
s. 43.19 whose territory lies within a single county with a population of 500,000 or more, except as provided under
ss. 40.51 (7) and
40.61 (3), or a local exposition district created under
subch. II of ch. 229. Each employer shall be a separate legal jurisdiction for OASDHI purposes.
40.02(30)
(30) "Executive participating employe" means a participating employe in a position designated under
s. 19.42 (10) (L) or
20.923 (4),
(4g),
(4m),
(8) or
(9) or authorized under
s. 230.08 (2) (e) during the time of employment. All service credited prior to May 17, 1988, as executive service as defined under s.
40.02 (31), 1985 stats., shall continue to be treated as executive service as defined under s.
40.02 (31), 1985 stats., but no other service rendered prior to May 17, 1988, may be changed to executive service as defined under s.
40.02 (31), 1985 stats.
40.02(32)
(32) "Federal regulations" means the provisions of section 218 of Title II of the federal social security act and applicable regulations adopted under the federal social security act.
40.02(33)
(33) "Final average earnings" means:
40.02(33)(a)
(a) The monthly rate of earnings, ignoring any fractions of a dollar, obtained by dividing:
40.02(33)(a)1.
1. The participant's total earnings received or considered to be received under
sub. (22) (e) or
(em) and for which contributions are made under
s. 40.05 (1) and
(2) during the 3 annual earnings periods (excluding any period more than 3 years prior to the effective date for any participating employer) in which the earnings were the highest, 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; by
40.02(33)(a)2.
2. Twelve times the total amount of creditable service for the 3 periods.
40.02(33)(b)1.1. For a state elected official who is prohibited by law from receiving an increase in compensation during the official's term of office and who so elects, one-twelfth of the annual salary, 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, which would have been payable to the participant during the last completed month in which the participant was a participating employe in such a position if the participant had not been prohibited by law from receiving an increase in salary during his or her term of office, but only with respect to service as a state elected official.
40.02(33)(b)2.
2. For a state senator who so elects, one-twelfth of the annual salary which would have been payable to the participant during the last completed month in which the participant was a participating employe in such a position if the participant had not been prohibited by law from receiving an increase in salary during part of his or her term of office, but only with respect to service as a state senator.
40.02(33)(c)
(c) For a participant who makes an election under
s. 40.30 (2), the monthly rate of earnings applicable under
par. (a) or
(b), increased as provided under
s. 40.30 (4) (b) but 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.
40.02(34)
(34) "Fixed annuity" means any annuity other than a variable annuity.
40.02(35)
(35) "Fund" means the public employe trust fund.
40.02(36)
(36) "Governing body" means the legislature or the head of each state agency with respect to employes of that agency for the state, the common council in cities, the village board in villages, the town board in towns, the county board in counties, the school board in school districts, or the board, commission or other governing body having the final authority for any other unit of government, for any agency or instrumentality of 2 or more units of government, for any federated public library system established under
s. 43.19 whose territory lies within a single county with a population of 500,000 or more or for a local exposition district created under
subch. II of ch. 229.
40.02(37)
(37) "Health insurance" means contractual arrangements which may include, but are not limited to, indemnity or service benefits, or prepaid comprehensive health care plans, which will provide full or partial payment of the financial expense incurred by employes and dependents as the result of injury, illness or preventive medical procedures. The plans may include hospitalization, surgical and medical care, as well as ancillary items or services as determined by the group insurance board. The plans may include the type of coverage normally referred to as "major medical" insurance.
40.02(38)
(38) "Immediate annuity" means an annuity, not including an annuity from additional contributions, which begins to accrue not later than 30 days after termination of employment.
40.02(39)
(39) "Insured employe" means, for purposes of each insurance benefit plan, any eligible employe who is properly enrolled in the benefit plan.
40.02(39m)
(39m) "Internal revenue code" means the internal revenue code, as defined for the current taxable year under
s. 71.01 (6), and applicable regulations adopted under the internal revenue code, including temporary regulations.
40.02(39r)
(39r) "Joint and survivor annuity" means an optional annuity form, described under
s. 40.24 (1) (d) or a rule promulgated under
s. 40.24 (1) (g), that is payable for the life of the participant and, after the death of the participant, a continuing percentage of which is payable in monthly instalments to the named survivor.
40.02(40)
(40) "Leave of absence" means any period during which an employe has ceased to render services for a participating employer and receive earnings and there has been no formal termination of the employer-employe relationship. For purposes of the fund every leave of absence, except a military leave or union service leave, shall terminate 3 years after it begins or, if earlier, upon the date specified by the employer in a notification to the department that the employer-employe relationship has terminated. A leave of absence is not deemed ended or interrupted by reason of resumption of active duty until the employe has resumed active performance of duty for 30 consecutive calendar days for at least 50% of what is considered that employe's normal work time with that employer. For the purpose of group health insurance coverage, every leave of absence due to employe layoff which has not been terminated before 3 years have elapsed shall continue for affected insured employes until an additional 2 years elapse or until sick leave credits used to pay health insurance premiums are exhausted, whichever occurs first.
40.02(40m)
(40m) "Long-term care insurance" means insurance that primarily provides coverage for care that is provided in institutional and community-based settings and that is convalescent or custodial care or care for a chronic condition or terminal illness. The term does not include a medicare supplement policy, as defined in
s. 600.03 (28r), a medicare replacement policy, as defined in
s. 600.03 (28p), or a continuing care contract, as defined in
s. 647.01 (2).
40.02(41)
(41) "Milwaukee teacher" means any teacher employed by the board of school directors of the city of Milwaukee.
40.02(41m)
(41m) "Monthly salary" means the gross amount paid to a participant making a claim under
s. 40.65, at the time he or she becomes disabled within the meaning of
s. 40.65 (4), by the employer in whose employ the injury occurred or the disease was contracted. Overtime pay may not be considered part of an employe's monthly salary unless the employe received it on a regular and dependable basis.
40.02(41r)
(41r) "Named survivor" means the natural person designated by a participant on an application for a joint and survivor annuity or pursuant to a request under
s. 40.24 (4) to receive, after the death of the participant, a continuing percentage of the annuity payable in monthly instalments. A participant may not designate more than one natural person as the named survivor for a joint and survivor annuity. A participant's designation of a named survivor on an application for a joint and survivor annuity is irrevocable after the deadline specified under
s. 40.24 (4). Pursuant to rules promulgated by the department, a named survivor may designate one or more beneficiaries to receive any remaining guaranteed monthly instalments that are unpaid at the time of the named survivor's death.
40.02(42)
(42) "Normal retirement date" means:
40.02(42)(a)
(a) The date on which a participant attains the age of 55 years for a protective occupation participant who terminates covered employment before July 1, 1990, or, for a protective occupation participant who terminates covered employment on or after July 1, 1990, the date on which the participant attains the age of 54 years if the participant has accumulated less than 25 years of creditable service or the age of 53 years if the participant has accumulated at least 25 years of creditable service, except as provided in
par. (g).
40.02(42)(b)
(b) The date on which a participant attains the age of 62 years for an elected official or an executive participating employe, except as provided in
par. (g).
40.02(42)(d)
(d) The date on which a participant attains the age of 65 years for any participant not subject to
par. (a) or
(b), except as provided in
par. (g).
40.02(42)(g)
(g) The date applicable to the participant under
pars. (a) to
(d) at the earlier of either the date it is necessary to make any determination or to take any action relative to the participant for purposes of the retirement system or the date of termination of employment of the participant, notwithstanding the fact that a participant may have been in one or more different employment categories at any previous time except for the purpose of calculating an annuity. For the purpose of calculating an annuity, the normal retirement date for each category provided by
pars. (a) to
(d) applies to service which is subject to that category. For the purpose of calculating a retirement benefit for an executive participating employe qualifying only under s.
40.02 (30) (b), 1985 stats., a normal retirement date of the date the executive participating employe attains the age of 62 years shall be applied to creditable service of the executive participating employe for which
par. (d) would otherwise apply except the number of creditable service years to which that normal retirement date shall be applied under this paragraph may not exceed the number of executive service years of the executive participating employe.
40.02(43)
(43) "OASDHI" means federal old-age, survivors, disability and health insurance under Titles II and XVIII of the federal social security act.
40.02(44)
(44) "OASDHI benefit" means the primary or disability insurance monthly benefit amount for which a person is eligible, or for which a participant will be eligible upon attaining the lowest age at which old-age benefits are payable under the OASDHI program.
40.02(45)
(45) "Participant" means any person included within the provisions of the Wisconsin retirement system by virtue of being or having been a participating employe whose account has not been closed under
s. 40.25 (1) or
(2).
40.02(46)
(46) "Participating employe" means an employe who is currently in the service of, or an employe who is on a leave of absence from, a participating employer under the Wisconsin retirement system and who has met the requirements for inclusion within the provisions of the Wisconsin retirement system under
s. 40.22.
40.02(47)
(47) "Participating employer" means, for purposes of each of the respective benefit plans, any employer subject to the provisions of that plan under this chapter.
40.02(48)(a)(a) "Protective occupation participant" means any participant whose principal duties are determined by the participating employer, or, subject to
s. 40.06 (1) (dm), by the department head in the case of a state employe, to involve active law enforcement or active fire suppression or prevention, provided the duties require frequent exposure to a high degree of danger or peril and also require a high degree of physical conditioning.
40.02(48)(am)
(am) "Protective occupation participant" includes any participant whose name is certified to the fund as provided in
s. 40.06 (1) (d) and
(dm) and who is a conservation warden, conservation patrol boat captain, conservation patrol boat engineer, conservation pilot, conservation patrol officer, forest fire control assistant, member of the state patrol, state motor vehicle inspector, police officer, fire fighter, sheriff, undersheriff, deputy sheriff, state probation and parole officer, county traffic police officer, state forest ranger, fire watcher employed by the Wisconsin veterans home, state correctional-psychiatric officer, excise tax investigator employed by the department of revenue, special criminal investigation agent in the department of justice, assistant or deputy fire marshal, or person employed under
s. 61.66 (1).
40.02(48)(b)
(b) Each determination of the status of a participant under this subsection shall include consideration, where applicable, of the following factors:
40.02(48)(b)1.
1. A "police officer" is any officer, including the chief, or employe of a police department, except one whose principal duties are those of a telephone operator, clerk, stenographer, machinist or mechanic and whose functions do not clearly fall within the scope of active law enforcement even though such an employe is subject to occasional call, or is occasionally called upon, to perform duties within the scope of active law enforcement. Police officer includes any person regularly employed and qualifying as a patrol officer or a person of equal or higher rank, even if temporarily assigned to other duties.
40.02(48)(b)2.
2. A "fire fighter" is any officer, including the chief, or employe of a fire department, except one whose principal duties are those of a telephone operator, clerk, stenographer, machinist or mechanic and whose functions do not clearly fall within the scope of active fire suppression or prevention even though such an employe is subject to occasional call, or is occasionally called upon, to perform duties within the scope of active fire suppression or prevention. Fire fighter includes any person regularly employed and qualifying as a fire fighter, hose handler or a person of equal or higher rank, even if temporarily assigned to other duties.
40.02(48)(b)3.
3. A "deputy sheriff" or a "county traffic police officer" is any officer or employe of a sheriff's office or county traffic department, except one whose principal duties are those of a telephone operator, clerk, stenographer, machinist or mechanic and whose functions do not clearly fall within the scope of active law enforcement even though such an employe is subject to occasional call, or is occasionally called upon, to perform duties within the scope of active law enforcement. Deputy sheriff or county traffic police officer includes any person regularly employed and qualifying as a deputy sheriff or county traffic police officer, even if temporarily assigned to other duties.
40.02(48)(bm)
(bm) "Protective occupation participant" includes any participant who is an emergency medical technician if the participant's employer classifies the participant as a protective occupation participant and the department receives notification of the participant's name as provided in
s. 40.06 (1) (d) and
(dm). Notwithstanding
par. (a), an employer may classify a participant who is an emergency medical technician as a protective occupation participant without making a determination that the principal duties of the participant involve active law enforcement or active fire suppression or prevention. A determination under this paragraph may not be appealed under
s. 40.06 (1) (e) or
(em), but a determination under this paragraph regarding the classification of a state employe is subject to review under
s. 40.06 (1) (dm). Notwithstanding
sub. (17) (d), each participant who is classified as a protective occupation participant under this paragraph on or after January 1, 1991, shall be granted creditable service as a protective occupation participant for all covered service as an emergency medical technician that was earned on or after the date on which the department receives notification of the participant's name as provided in
s. 40.06 (1) (d) and
(dm), but may not be granted creditable service as a protective occupation participant for any covered service as an emergency medical technician that was earned before that date.
