40.04(3)(ab)
(ab) Beginning on December 31, 2000, the balance of the transaction amortization account shall be determined and 20% of the balance established on December 31, 2000, shall be distributed annually on December 31 to each participating account in the same ratio as each account's average daily balance within the fixed retirement investment trust bears to the total average daily balance of all participating accounts in the trust until the balance of the transaction amortization account is entirely distributed. Notwithstanding
sub. (3) (intro.), after the entire balance of the transaction amortization account has been distributed, the department shall close the account.
40.04(3)(am)1.1. Beginning on January 1, 2000, there shall be maintained within the fixed retirement investment trust a market recognition account. The department shall establish and administer the market recognition account as recommended by the actuary or actuarial firm retained under
s. 40.03 (1) (d) and as approved by the board.
40.04(3)(am)2.
2. Annually, the total market value investment return earned by the fixed retirement investment trust during the year shall be credited to the market recognition account.
40.04(3)(am)3.
3. Annually, on December 31, the sum of all of the following shall be distributed from the market recognition account to each participating account in the fixed retirement investment trust in the same ratio as each account's average daily balance bears to the total average daily balance of all participating accounts in the trust:
40.04(3)(am)3.a.
a. The expected amount of investment return in the fixed retirement investment trust during the year based on the assumed rate.
40.04(3)(am)3.b.
b. An amount equal to 20% of the difference between the total market value investment return earned by the fixed retirement investment trust and the expected amount of investment return of the fixed retirement investment trust during the year ending on December 31 based on the assumed rate.
40.04(3)(am)3.c.
c. An amount equal to 20% of the sum of the differences between the total market value investment return earned by the fixed retirement investment trust and the expected amount of investment return of the fixed retirement investment trust at the end of the 4 preceding years. For the purpose of making this calculation, the amount in the market recognition account at the end of each year that occurs before the year 2000 shall be assumed to be zero.
40.04(3)(b)
(b) The assets of the fixed retirement investment trust shall be commingled and the assets of the variable retirement investment trust shall be commingled. No particular contributing benefit plan shall have any right in any specific item of cash, investment or other property in either trust other than an undivided interest in the whole as provided in this paragraph. The department of administration shall maintain any records as may be required to account for each contributing account's share in the corresponding trust except that the employee accumulation reserve, the employer accumulation reserve and the annuity reserve shall be treated as a single account, except as provided in
sub. (7).
40.04(3)(c)
(c) The department shall advise the investment board and the state treasurer as to the limitations on the amounts of cash to be invested from investment trusts under this subsection in order to maintain the cash balances deemed advisable to meet current annuity, benefit and expense requirements.
40.04(3)(d)
(d) Notwithstanding
par. (a), assets of the fixed retirement investment trust which are authorized to be invested in common or preferred stock may, if authorized by rule, be invested as a part of the variable retirement investment trust with that portion of the annual distributions of net gains or losses to the fixed retirement investment trust from the variable retirement investment trust being credited to the market recognition account.
40.04(4)(a)(a) An employee accumulation reserve, within which a separate account shall be maintained for each participant, shall be maintained within the fund and:
40.04(4)(a)2.
2. Credited as of each December 31 with interest on the prior year's closing balance at the effective rate on all employee required contribution accumulations in the variable annuity division, on all employee required contributions in the fixed annuity division on December 31, 1984, on all employee required contributions in the fixed annuity division of participants who are not participating employees after December 31, 1984, and on all employee and employer additional contribution accumulations and with interest on the prior year's closing balance at the assumed benefit rate on all employee required contribution accumulations in the fixed annuity division for participants who are participating employees after December 31, 1984, but who terminated covered employment before December 30, 1999.
40.04(4)(a)2g.
2g. Credited as of each December 31, with interest on the prior year's closing balance at the effective rate on all employee required contribution accumulations in the fixed annuity division for participants who are participating employees on or after December 30, 1999.
40.04(4)(a)2m.
2m. Debited, if a participant terminates covered employment on or after January 1, 1990, but before December 30, 1999, and applies for a benefit under
s. 40.25 (2), with an amount equal to the amount by which the fixed annuity division interest credited on or after January 1, 1990, but before December 30, 1999, to employee required contributions, exceeds the interest crediting at an annual rate of 3% on each prior year's closing balance.
40.04(4)(a)3.
3. Debited by the amount available in any participant's account for funding a benefit elected by the participant or the participant's beneficiary. When the amount available has been applied to funding the benefit, no further right to the amounts, or to corresponding creditable service and employer contribution accumulations, shall exist other than the right to the annuity or benefit so granted except as provided in
s. 40.26 or
40.63 (10).
40.04(4)(b)
(b) Whenever a payment under
s. 40.25 (4), an annuity or a death benefit is computed, the prior year's closing balance of all employee contribution accumulations and any accounts maintained for individual participants shall be credited with interest for each full month elapsing between the first day of the calendar year and the annuity effective date or the month in which the payment of a benefit under
s. 40.25 (4) is approved at one-twelfth of the assumed benefit rate. The interest so credited shall be charged to the interest earnings for the current year and shall be paid out or transferred with the amount to which it was so credited.
40.04(4)(bm)
(bm) Whenever a payment under
s. 40.25 (1) is computed under
s. 40.23 (3), the prior year's closing balance of all employee and employer contribution accumulations and any accounts maintained for individual participants shall be credited with interest for each full month elapsing between the first day of the calendar year and the month in which the payment under
s. 40.25 (1) is approved at one-twelfth of the assumed benefit rate. The interest so credited shall be charged to the interest earnings for the current year and shall be paid out or transferred with the amount to which it was so credited.
40.04(4)(c)
(c) Whenever a participant's account is reestablished under
s. 40.26 (2) or
40.63 (10), in lieu of interest credits as provided in
par. (a), any balances remaining in the account at the end of the calendar year in which reestablished shall be credited with interest at one-twelfth the assumed benefit rate for the year for each full month between the date the account was reestablished and the end of the calendar year.
40.04(5)
(5) An employer accumulation reserve shall be maintained within the fund to which, without regard to the identity of the individual employer, shall be:
40.04(5)(a)
(a) Credited all employer required contributions.
40.04(5)(b)
(b) Credited, as of each December 31, all fixed annuity division interest not credited to other accounts and reserves under this section.
40.04(5)(c)
(c) Debited the aggregate excess of the amount of each single sum benefit or in the case of an annuity the present value of the annuity over the amount equal to the accumulated credits of the participant in the employee accumulation reserve applied to provide for the benefit or annuity.
40.04(5)(d)
(d) Credited as of the date of termination of any annuity under
s. 40.26 or
40.63 (9) (c) with the excess of the then present value of the terminated annuity over the aggregate amount of credits reestablished in the accounts of the participant.
40.04(5)(e)
(e) Credited all amounts waived, released or forfeited under any provision of this chapter.
40.04(6)
(6) An annuity reserve shall be maintained within the fund to which shall be transferred amounts equal to the present value as of the date of commencement of annuities granted under this chapter. The reserve shall be increased by investment earnings at the effective rate and shall be reduced by the aggregate amount of annuity payments and death benefits paid with respect to the annuities and by the present value at the date of termination of annuities terminated in accordance with
s. 40.08 (3),
40.26 or
40.63 (9) (c).
40.04(7)
(7) The reserves established under
subs. (4),
(5) and
(6) shall be divided both individually and for the purposes of
sub. (3) between a fixed annuity division and a variable annuity division. All required and additional contributions shall be credited to the fixed annuity division except:
40.04(7)(a)
(a) As otherwise elected by a participant prior to April 30, 1980, or on or after January 1, 2001. Any participant who was a participant prior to April 30, 1980, and whose accounts on January 1, 1982, include credits segregated for a variable annuity shall have his or her required and additional contributions made on or after January 1, 1982, credited to the variable annuity division in a manner consistent with the participant's election prior to April 30, 1980, unless prior to January 1, 1982, the participant terminated such election under s.
40.85, 1979 stats. Any participant who elects or has elected to have any of his or her credits segregated for a variable annuity on or after January 1, 2001, shall have 50% of his or her required and additional contributions made on or after the date of election credited to the variable annuity division. The department shall by rule provide that any participant who elects or has elected variable participation prior to April 30, 1980, or on or after January 1, 2001, may elect to cancel that variable participation as to future contributions. The department's rules shall permit a participant who elects or has elected to cancel variable participation as to future contributions, or an annuitant, to elect to transfer previous variable contribution accumulations to the fixed annuity division. A transfer of variable contribution accumulations under this paragraph shall result in the participant receiving the accrued gain or loss from the participant's variable participation. A participant may specify that election to cancel participation in the variable annuity division is conditional. If the participant so specifies the election is effective on the first date on which it may take effect on which the participant:
40.04(7)(a)1.
1. Is an annuitant and the amount of the annuity the participant or member will receive if the election is made effective is greater than or equal to the amount of the annuity the participant or member would have received if the participant or member had not elected variable participation; or
40.04(7)(a)2.
2. Is not an annuitant and the accumulated amount which is to be transferred to the fixed annuity division is equal to or greater than the amount which would have accumulated if the segregated contributions had been originally credited to the fixed annuity division.
40.04(7)(b)
(b) An election under
par. (a) is irrevocable and continuing except a participant or member may make a conditional election unconditional by filing written notice with the department.
40.04(7)(c)
(c) Any participant whose required contributions are segregated in any portion to provide for a variable annuity may direct that any part or all of subsequent additional contributions credited to the participant's account be segregated to provide for a variable annuity and may at any time by filing a form prescribed by the department change the portion being segregated for any future additional contributions.
40.04(8)
(8) A social security account shall be maintained within the fund to which shall be credited all moneys received from employee and employer OASDHI contributions including any penalties for late transmission of moneys or reports. All disbursements under
subch. III shall be charged to this account.
40.04(9)
(9) Separate group health, income continuation and life insurance accounts, and additional accounts for any other type of insurance provided under this chapter shall be maintained within the fund, to which shall be credited moneys received from operations of the respective group insurance plans for insurance premiums, as dividend or premium credits arising from the operation of the respective insurance plans and from investment income on any reserves established in the fund for the respective insurance plans. Premium payments to insurers, any insurance benefit to be paid directly by the fund and reimbursements of 3rd parties for benefits paid on behalf of an insurance plan shall be charged to the corresponding account established for that benefit plan. This subsection shall not be construed to prohibit the direct payment of premiums to insurers when appropriate administrative procedures have been established for direct payments.
40.04(9m)
(9m) The department shall do all of the following:
40.04(9m)(a)
(a) Maintain a separate account in the fund for each employee-funded reimbursement account plan authorized under
subch. VIII.
40.04(9m)(b)
(b) Credit to the appropriate accounts established under
par. (a) money received from employees in connection with each employee-funded reimbursement account plan and income from investment of the reserves in the account.
40.04(9m)(c)
(c) Charge to the appropriate accounts established under
par. (a) payments made to reimburse employee-funded reimbursement account plan providers for payments made to employees under each employee-funded reimbursement account plan under
subch. VIII.
40.04(10)
(10) An accumulated sick leave conversion account shall be maintained within the fund, to which shall be credited all money received under
s. 40.05 (4) (b),
(bc),
(bf),
(bm),
(br), and
(bw) for health insurance premiums, as dividends or premium credits arising from the operation of health insurance plans and from investment income on any reserves established in the fund for health insurance purposes for retired employees and their surviving dependents. Premium payments to health insurers authorized in
s. 40.05 (4) (b),
(bc),
(bf),
(bm), and
(bw) shall be charged to this account. This subsection does not prohibit the direct payment of premiums to insurers when appropriate administrative procedures have been established for direct payments.
40.04(11)
(11) A health insurance premium credit account shall be maintained within the fund, to which shall be credited all moneys received under
s. 40.05 (4) (by) for the payment of health insurance premiums, as dividends or premium credits arising from the operation of health insurance plans and from investment income on any reserves established in the fund for health insurance purposes for retired employees and their surviving dependents. Premium payments to health insurers authorized in
subch. IX may only be charged to this account after all other health insurance premium credits under
s. 40.05 (4) (b),
(bc),
(bf),
(bm) and
(bw) are exhausted. This subsection does not prohibit the direct payment of premiums to insurers when appropriate administrative procedures have been established for direct payments.
40.04 History
History: 1981 c. 96,
386;
1983 a. 27,
141,
247,
504;
1987 a. 27,
83;
1989 a. 13,
14,
31,
355;
1991 a. 39,
141,
152,
269;
1995 a. 88,
89,
225,
240;
1997 a. 26,
69;
1999 a. 11;
2001 a. 16.
40.04 Annotation
An employee sick leave account cannot be considered an asset of a marital estate subject to division in a divorce action. Preiss v. Preiss, 2000 WI App 185,
238 Wis. 2d 368,
617 N.W.2d 514.
40.05
40.05
Contributions and premiums. 40.05(1)
(1)
Employee retirement contributions. For Wisconsin retirement system purposes employee contributions on earnings for service credited as creditable service shall be subject to the annual compensation limits under
26 USC 401 (a) (17) for a participating employee who first becomes a participating employee on or after January 1, 1996, and shall be made as follows:
40.05(1)(a)1.
1. For each participating employee not otherwise specified, 5% of each payment of earnings.
40.05(1)(a)5.
5. Additional contributions may be made by any participant by deduction from earnings or otherwise or may be provided on behalf of any participant in any calendar year in which the participant has earnings, subject to any limitations imposed on contributions by the internal revenue code, applicable regulations adopted under the internal revenue code and rules of the department.
40.05(1)(a)6.
6. Under the rules promulgated under
s. 40.03 (2) (r), additional contributions, other than the first $5,000 of contributions, or a beneficiary's prorated share thereof, that are attributable to a death benefit paid under
s. 40.73, may be made to the fixed annuity division by any participant by rollover contribution of a payment or distribution from a pension or annuity qualified under section
401 of the internal revenue code, subject to any limitations imposed on contributions by the internal revenue code, applicable regulations adopted under the internal revenue code and rules of the department.
40.05(1)(a)7.
7. Subject to any applicable limitations under the internal revenue code, a participating employee may elect to use part or all of his or her accumulated after-tax additional contributions, including interest, made under
subd. 5., other than contributions treated by the department as contributions to a tax sheltered annuity under section
403 (b) of the internal revenue code, to purchase creditable service under this chapter.
40.05(1)(b)
(b) In lieu of employee payment, the employer may pay all or part of the contributions required by
par. (a), but all the payments shall be available for benefit purposes to the same extent as required contributions deducted from earnings of the participating employees. Action to assume employee contributions as provided under this paragraph shall be taken at the time and in the form determined by the governing body of the participating employer. The state shall pay under this paragraph for employees who are covered by a collective bargaining agreement under
subch. V of ch. 111 and for employees whose fringe benefits are determined under
s. 230.12 an amount equal to 4% of the earnings paid by the state unless otherwise provided in a collective bargaining agreement under
subch. V of ch. 111 or unless otherwise determined under
s. 230.12. The University of Wisconsin Hospitals and Clinics Authority shall pay under this paragraph for employees who are covered by a collective bargaining agreement under
subch. I of ch. 111 and for employees whose fringe benefits are determined under
s. 233.10 an amount equal to 4% of the earnings paid by the authority unless otherwise provided in a collective bargaining agreement under
subch. I of ch. 111 or unless otherwise determined under
s. 233.10. The state shall pay under this paragraph for employees who are not covered by a collective bargaining agreement under
subch. V of ch. 111 and for employees whose fringe benefits are not determined under
s. 230.12 an amount equal to 4% of the earnings paid by the state unless a different amount is recommended by the secretary of employment relations and approved by the joint committee on employment relations in the manner provided for approval of changes in the compensation plan under
s. 230.12 (3). The University of Wisconsin Hospitals and Clinics Authority shall pay under this paragraph for its employees who are not covered by a collective bargaining agreement under
subch. I of ch. 111 an amount equal to 4% of the earnings paid by the authority unless a different amount is established by the board of directors of the authority under
s. 233.10.
40.05(2)
(2) Employer retirement contributions. For Wisconsin retirement system purposes and subject to the annual compensation limits under
26 USC 401 (a) (17) for a participating employee who first becomes a participating employee on or after January 1, 1996:
40.05(2)(a)
(a) Each participating employer shall make contributions for current service determined as a percentage of the earnings of each participating employee, determined as though all employees of all participating employers were employees of a single employer, but with a separate percentage rate determined for the employee occupational categories specified under
s. 40.23 (2m). A separate percentage shall also be determined for subcategories within each category determined by the department to be necessary for equity among employers.
40.05(2)(am)
(am) The percentage of earnings under
par. (a) shall be determined on the basis of the information available at the time the determinations are made and on the assumptions the actuary recommends and the board approves by dividing the amount determined by subtracting from the then present value of all future benefits to be paid or purchased from the employer accumulation reserve on behalf of the then participants the amount then credited to the reserve for the benefit of the members and the present value of future unfunded prior service liability contributions of the employers under
par. (b) by the present value of the prospective future compensation of all participants.
40.05(2)(ar)
(ar) Participating employers of employees subject to
s. 40.65 shall contribute an additional percentage or percentages of those employees' earnings based on the experience rates determined to be appropriate by the board with the advice of the actuary.
40.05(2)(b)
(b) Contributions shall be made by each participating employer for unfunded prior service liability in a percentage of the earnings of each participating employee. A separate percentage rate shall be determined for the employee occupational categories under
s. 40.23 (2m) as of the employer's effective date of participation. The rates shall be sufficient to amortize as a level percent of payroll over a period of 40 years from the later of that date or January 1, 1986, the unfunded prior service liability for the categories of employees of each employer determined under s.
40.05 (2) (b), 1981 stats., increased to reflect any creditable prior service granted on or after January 1, 1986, increased to reflect the effect of
1983 Wisconsin Act 141, increased at the end of each calendar year after January 1, 1986, by interest at the assumed rate on the unpaid balance at the end of the year and adjusted under
pars. (bu),
(bv) and
(bw).
40.05(2)(bg)
(bg) Contributions of amounts under
par. (b) may be made in advance to reduce an employer's existing unfunded prior service liability.
40.05(2)(bm)
(bm) Contributions under
par. (b) for each category of employee shall be made until full payment of that employer's unfunded prior service liability for all categories is made.
40.05(2)(br)
(br) The contribution under
par. (b) by an employer in any calendar year before full payment of the unfunded prior service liability determined under
par. (bm) may not be less than the dollar amount determined to be necessary in the first calendar year of the amortization schedule established by
par. (b).
40.05(2)(bt)
(bt) The department may reallocate prior service liability from one employer to another and adjust as necessary the contribution rates established under
par. (b) to reflect transfers of responsibilities and employees among different employers.
40.05(2)(bu)
(bu) The employer contribution rate determined under
par. (b) for each employer shall be adjusted, if necessary, to reflect the added prior service liability of paying additional joint and survivor death benefits to beneficiaries of participating employees as a result of
1997 Wisconsin Act 58 and that rate shall be sufficient to amortize the unfunded prior service liability of the employers over the remainder of the 40-year amortization period under
par. (b).
40.05(2)(bv)
(bv) The employer contribution rate determined under
par. (b) for participating employees who served in the U.S. maritime service shall be adjusted to reflect the cost of granting creditable service under
s. 40.02 (15) (a) 7. and that rate shall be sufficient to amortize the unfunded prior service liability of the employers over the remainder of the 40-year amortization period under
par. (b).
40.05(2)(bw)
(bw) The employer contribution rate determined under
par. (b) for the University of Wisconsin System shall be adjusted to reflect the cost of granting creditable service under
s. 40.02 (17) (i) and that rate shall be sufficient to amortize the unfunded prior service liability of the employers over the remainder of the 40-year amortization period under
par. (b).
40.05(2)(bz)
(bz) The employer contribution rate determined under
par. (b) for the department of administration shall be adjusted to reflect the cost of granting creditable service under
s. 40.02 (17) (gm) and that rate shall be sufficient to amortize the unfunded prior service liability of the department of administration over the remainder of the 40-year amortization period under
par. (b).
40.05(2)(c)
(c) The percentage rates determined under this subsection shall become effective as of the beginning of the calendar year to which they are applicable and shall remain in effect during the calendar year, except that the secretary, upon the written certification of the actuary, may change any percentage determined under
par. (b) during any calendar year for the purpose of reflecting any reduced obligation which results from any payment of advance contributions.
40.05(2)(cm)
(cm) The department may adjust the unfunded prior service liability balance of the Wisconsin retirement system under
par. (b) and of each employer that makes contributions under
par. (b) to reflect any changes in the assumed rate and the assumption for across-the-board salary increases specified in
s. 40.02 (7) and any other factor specified by the actuary if the actuary recommends and the board approves the changes or if otherwise provided by law.
40.05(2)(d)
(d) The amount of each employer's monthly contribution shall be the sum of the amounts determined by applying the proper percentage rates as determined in accordance with
pars. (a) and
(b) to the total of all earnings paid to participating employees on each payday.
40.05(2)(f)
(f) Whenever the existence of any participating employer is terminated because of consolidation or for any other reason, the employer who thereafter has responsibility for the governmental functions of the previous employer shall be liable for all contributions payable by the previous employer in the following manner:
40.05(2)(f)1.
1. If the territory of the previous employer is attached to 2 or more employers, the total liability of the previous employer shall be allocated to the new employers in proportion to the equalized valuation of each area so attached.
40.05(2)(f)2.
2. Whenever the existence of any participating employer, who was an instrumentality of 2 or more employers, is terminated for any reason and there is no territory to be divided, the liability for contributions of the previous employer shall be divided between the sponsoring employers in the same proportion as the net assets of the terminating employer are divided.
40.05(2)(f)3.
3. If the department determines that it is not feasible to allocate the liability as provided in
subd. 1. or
2., then the liability shall be allocated in proportion to the equalized valuation of the remaining employers.
40.05(2)(f)4.
4. The amount of the allocations to the respective employers shall be certified by the department to each employer.
40.05(2)(f)5.
5. If the employer to whom such an allocation is made is or becomes a participating employer the allocations so certified shall be added to the liability otherwise determined for the employer and the amortization schedule provided for under
par. (b) adjusted so that the required annual amount shall approximate the sum of the annual amounts otherwise required.
40.05(2)(f)6.
6. If the employer who becomes responsible for any part of the liability of the previous employer is not a participating employer the contributions required to liquidate the allocated liability shall be made by the successor employer in equal quarterly payments sufficient to liquidate the allocated liability over the remainder of the amortization period.
40.05(2)(f)7.
7. If an allocation based on equalized valuation is required by this paragraph, the equalized valuations used shall be the valuation determined for the calendar year immediately preceding the calendar year in which the allocation is required to be made by this paragraph.
40.05(2)(f)8.
8. If it is not possible to apply the procedures under this paragraph, the terminating employer and any successor employer shall immediately pay the full outstanding prior service liability balance unless an agreement for a different procedure is approved by the department.
40.05(2)(g)1.1. A participating employer may make contributions as provided in its compensation agreements for any participating employee in addition to the employer contributions required by this subsection. The additional employer contributions made under this paragraph shall be available for all benefit purposes and shall be administered and invested on the same basis as employee additional contributions made under
sub. (1) (a) 5., except that
ss. 40.24 (1) (f) and
40.25 (4) and
(6) (a) 3. do not apply to additional employer contributions made under this paragraph.
40.05(2)(g)2.
2. Under the rules promulgated under
s. 40.03 (2) (r), a participant may, as a payout option for the deferred compensation plan established under
subch. VII, elect to have the entire balance in the participant's account under
subch. VII treated as an additional contribution to the fixed annuity division, subject to any limitations imposed on contributions by the internal revenue code, applicable regulations adopted under the internal revenue code and rules of the department. Additional contributions under this subdivision shall be available for all benefit purposes and shall be administered and invested on the same basis as employee additional contributions, except that
ss. 40.24 (1) (f) and
40.25 (4) do not apply to additional contributions under this subdivision and
s. 40.26 does not apply to an annuity received from additional contributions under this subdivision.
40.05(2)(i)
(i) If an annuity is calculated under s.
40.02 (42) (f), 1987 stats., the employer shall pay to the department the difference, as determined by the department, between the actuarial cost of the annuity which would have been paid if the employer had not elected under s.
42.245 (2) (bm), 1979 stats., or s.
42.78 (2) (bm), 1979 stats., or s.
40.02 (42) (f) 2., 1987 stats., and the actual cost of the annuity payable. The amount payable shall be paid to the department in 3 equal annual payments, plus interest at the effective rate unless the employer pays the full amount due. Each annual payment is due and shall be included with the first payment made under
s. 40.06 (1) in each fiscal year after the annuity effective date. The amount so paid shall be credited as employer required contributions.
40.05(2m)
(2m) Benefit adjustment contribution. Except as provided in
sub. (2n), in addition to the amounts under
subs. (1) and
(2), a benefit adjustment contribution equal to 1% of earnings shall be paid by or for participating employees whose formula rate is determined under
s. 40.23 (2m) (e) 1. and
3. This contribution shall be deducted from each payment of earnings to participating employees unless the employer provides through its compensation provisions or agreements that all or part of the contribution will be paid by the employer. For benefit purposes, this contribution shall be treated as if it were an employer required contribution regardless of whether the employer or the employee pays the contribution and, for a participating employee who first becomes a participating employee on or after January 1, 1996, shall be subject to the annual compensation limits under
26 USC 401 (a) (17).
40.05(2n)(a)(a) If the board, on the advice of the actuary, determines that an increase or decrease in contribution rates is necessary for any annual period after 1989, the board, on the advice of the actuary, shall adjust contribution rates in the following manner:
40.05(2n)(a)1.
1. One-half of the increase or decrease in contribution rates shall be provided for by an increase or decrease in employer contributions under
sub. (2) (a) and
(am), except as provided in
subd. 3.
40.05(2n)(a)2.
2. One-half of the increase or decrease in contribution rates shall be provided for by an increase or decrease in benefit adjustment contributions under
sub. (2m), except as provided in
subd. 3. or
par. (b).
