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(1)
(1)
Supplemental benefits. Any person who received a supplemental benefit under s.
41.23, 1979 stats., s.
42.49 (10), 1979 stats., or s.
42.82, 1979 stats., is eligible to continue receiving a supplemental benefit in the amounts determined under s.
41.23, 1979 stats., s.
42.49 (10), 1979 stats., or s.
42.82, 1979 stats. Any portion of a benefit payable under
s. 40.19 (4) (f) which was not granted in accordance with the law in effect at the time of the granting shall not be subject to this subsection and shall not be eligible for a supplemental benefit.
40.27(1)(a)
(a) Any benefit payable by virtue of this subsection in excess of the amounts payable under other provisions of this chapter shall be paid from and shall be subject to the continuation of the appropriation made by
s. 20.515 (1) (a).
40.27(1)(b)
(b) Determinations of eligibility and the amount of any payment to be made under this subsection or
sub. (1m) or
(3) shall be made by the department, and shall be certified by the department for payment in the same manner as for payments from the Wisconsin retirement system.
40.27(1)(c)
(c) No payment shall be made under this subsection or
sub. (1m) or
(3), nor shall any right accrue under this subsection or
sub. (1m) or
(3), for or after any month following termination of the annuity on which the supplement was based.
40.27(1)(d)
(d) Benefits under this subsection and
subs. (1m) and
(3) shall be payable to the surviving beneficiary, who receives an annuity, of eligible persons.
40.27(1m)
(1m) Additional supplemental benefits. Any person who received an annuity for September 1974 from the Wisconsin retirement system shall be eligible to receive all of the following:
40.27(1m)(a)
(a) The monthly annuities for which that person was eligible and which that person received for September 1974.
40.27(1m)(b)
(b) An amount to be paid from the appropriation account under
s. 20.515 (1) (a), subject to the continuation of that appropriation, equal to 4% times 5 years times either $200 or the initial monthly annuity, excluding amounts provided from additional deposits, whichever is smaller.
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(3)
(3) Additional supplemental benefit adjustment. Beginning on November 1, 1997, any person who is eligible to receive supplemental benefits under
subs. (1) and
(1m) shall be eligible to receive an additional supplemental benefit, to be paid from the appropriation account under
s. 20.515 (1) (a), in an amount equal to the amount by which the supplemental benefits paid under
subs. (1) and
(1m) are exceeded by the supplemental benefit that the person was eligible to receive on October 1, 1997, from the distribution paid under s.
40.04 (3) (e) 1. c., 1995 stats., as affected by adjustments under
sub. (2) made after 1987, less any increase to the person's base annuity under this chapter that results from any equitable distribution made by the board under the judgment in Wisconsin Retired Teachers Ass'n v. Employe Trust Funds Bd.,
207 Wis. 2d 1 (1997), without regard to adjustments to
sub. (2).
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.
40.29(2)
(2) Earnings and creditable service determined under
sub. (1) shall be reported by the employer to the department. The employer shall pay all employer and required employe contributions payable under this section with respect to the earnings and current service except the employer may recover from the employe's earnings paid after the employe returns to employment with the employer the amount which the employer paid on behalf of the employe which is customarily actually paid by the employe under
s. 40.05 (1). The employer may not deduct the amount recoverable under this subsection from the employe's earnings at a rate greater than 5% of each payment of earnings.
40.29 History
History: 1981 c. 96;
1983 a. 290.
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)
(1)
General limitation. 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 maximum benefit limitation established under section
415 (b) of the Internal Revenue Code.
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;
1997 a. 237.
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
ss. 40.04 (4) (a) and
(5) (b) and
40.05 (2) (g) and all employe contributions made under
ss. 40.02 (17) and
40.05 (1) and
(2m), may not in any calendar year exceed the maximum contribution limitation established under section
415 (c) of the Internal Revenue Code.
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 as an additional contribution under
s. 40.05 (1) (a) 5..
40.32 History
History: 1995 a. 302;
1997 a. 237.
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.
