DEFERRED COMPENSATION PLANS
40.80
40.80
State deferred compensation plan. 40.80(1)
(1) The deferred compensation board shall select and contract with deferred compensation plan providers to be used by state agencies for providing deferred compensation plans to state employees.
40.80(2)
(2) The deferred compensation board shall:
40.80(2)(a)
(a) Determine the requirements for and the qualifications of the deferred compensation plan providers.
40.80(2)(b)
(b) Approve the terms and conditions of the proposed contracts for administrative and investment services.
40.80(2)(c)
(c) Determine the procedure for the selection of the deferred compensation plan providers.
40.80(2)(d)
(d) Approve the terms and conditions of model salary reduction agreements which shall be used by each state agency.
40.80(2)(e)
(e) Require as a condition of the contractual agreements entered into under this section that approved deferred compensation plan providers shall provide service to state agencies only as approved by the deferred compensation board.
40.80(2)(f)
(f) Require as a condition of the contractual agreements entered into under this section that the deferred compensation plan providers shall reimburse the department, to be credited to the administrative account of the public employee trust fund in
s. 40.04 (2), for any costs incurred directly or indirectly by the department in soliciting, evaluating, monitoring and servicing deferred compensation plans.
40.80(2g)
(2g) The deferred compensation board may accept timely appeals of determinations made by the department affecting any right or benefit under any deferred compensation plan provided for under this section.
40.80(2m)
(2m) The deferred compensation board shall promulgate rules establishing procedures, requirements and qualifications for offering deferred compensation plans to state employees in addition to the deferred compensation plans offered by deferred compensation providers selected and contracted with under
sub. (2).
40.80(3)
(3) Any action taken under this section shall apply to employees covered by a collective bargaining agreement under
subch. V of ch. 111.
40.80 Cross-reference
Cross Reference: See also s.
ETF 70.01, Wis. adm. code.
40.80 Annotation
Sub. (2m) requires the establishment of rules for alternative or supplemental deferred compensation plans, but does not require that any such plans be offered.
79 Atty. Gen. 168.
40.81
40.81
Deferred compensation plan authorization. 40.81(1)(1) An employer other than the state or the University of Wisconsin Hospitals and Clinics Authority may provide for its employees the deferred compensation plan established under
s. 40.80. Any employer, including this state and the University of Wisconsin Hospitals and Clinics Authority, who makes the plan under
s. 40.80 available to any of its employees shall make it available to all of its employees under procedures established by the department under this subchapter.
40.81(2)
(2) Any local government employer, or 2 or more employers acting jointly, may also elect under procedures established by the employer or employers to contract directly with a deferred compensation plan provider to administer a deferred compensation plan or to manage any compensation deferred under the plan and may also provide a plan under section
403 (b) of the internal revenue code under procedures established by the local government employer or employers.
40.81(3)
(3) Any action taken under this section shall apply to employees covered by a collective bargaining agreement under
subch. IV or
V of ch. 111.
40.82
40.82
General provisions. 40.82(1)(1) Any part of gross compensation deferred under a deferred compensation plan established under this subchapter which would have been treated as current earnings or wages if paid immediately to the employee shall be treated as current earnings or wages for purposes of the federal social security act or any retirement, pension, or group insurance benefit plan provided by the department.
40.82(2)
(2) Compensation which is withheld under a deferred compensation plan contract between an employer and an employee may be invested by the employer or a person other than the employer who is authorized by contract to administer the funds. The employer may determine the types of investments in which the deferred compensation funds may be invested. The deferred compensation funds may be invested and reinvested in the same manner provided for investments under
s. 881.01 (1).
40.82 History
History: 1981 c. 187.
40.82 Annotation
Section 40.08 (1) does not permit the division of a deferred compensation account pursuant to a qualified domestic relations order. Preiss v. Preiss, 2000 WI App 185,
238 Wis. 2d 368,
617 N.W.2d 514.
EMPLOYEE-FUNDED REIMBURSEMENT
ACCOUNTS
40.85
40.85
Employee-funded reimbursement account plan. 40.85(1)(1) The board shall select and contract with employee-funded reimbursement account plan providers to be used by state agencies.
40.85(2)
(2) The board shall do all of the following:
40.85(2)(a)
(a) Determine the requirements for and the qualifications of the employee-funded reimbursement account plan providers.
40.85(2)(b)
(b) Approve the terms and conditions of the proposed contracts for administrative and related services.
40.85(2)(c)
(c) Determine the procedure for the selection of the employee-funded reimbursement account plan providers in accordance with
s. 16.705.
40.85(2)(d)
(d) Approve the terms and conditions of model agreements which shall be used by each state employee to establish an employee-funded reimbursement account.
40.85(2)(e)
(e) Require as a condition of the contractual agreements entered into under this section that approved employee-funded reimbursement account plan providers may provide service to state agencies only as approved by the board.
40.85(2)(f)
(f) Require as a condition of the contracts entered into under
sub. (1) that the employee-funded reimbursement account plan providers reimburse the department, to be credited to the administrative account of the public employee trust fund under
s. 40.04 (2) (c), for administrative costs incurred by the department in connection with employee-funded reimbursement account plans.
40.85(2)(g)
(g) Deposit into the appropriate accounts established under
s. 40.04 (9m) (a) that part of an employee's gross compensation that the employee wants placed in each employee-funded reimbursement account.
40.86
40.86
Covered expenses. An employee-funded reimbursement account plan may provide reimbursement to an employee for only the following expenses that are actually incurred and paid by an employee and that the board determines are consistent with the applicable requirements of the internal revenue code:
40.86(1)
(1) Dependent care assistance for a person who is dependent on the employee.
40.86(2)
(2) The employee's share of premiums for any group insurance benefit plan provided by the department under this chapter, or any other group insurance benefit plan approved under
s. 20.921 (1) (a) 3., except premiums for income continuation benefits under
s. 40.62.
40.86(3)
(3) Medical expenses which are not covered under a health insurance contract.
40.86(4)
(4) Transportation expenses authorized under section
132 of the Internal Revenue Code.
40.87
40.87
Treatment of compensation. Any part of gross compensation that an employer places in a reimbursement account under an employee-funded reimbursement account plan established under this subchapter which would have been treated as current earnings or wages if paid immediately to the employee shall be treated as current earnings or wages for purposes of any retirement or group insurance benefit plan provided by the department.
40.87 History
History: 1987 a. 399;
1991 a. 39.
40.875
40.875
Administrative and contract costs. 40.875(1)
(1) The department shall do all of the following:
40.875(1)(a)
(a) Beginning on January 1, 1990, collect, from each state agency with employees eligible to participate in an employee-funded reimbursement account plan, a fee in an amount determined by the department to equal that state agency's share of all of the following:
40.875(1)(a)1.
1. Costs under contracts with employee-funded reimbursement account plan providers.
40.875(1)(a)2.
2. The department's administrative costs under this subchapter.
40.875(1)(b)
(b) Establish a formula, subject to approval by the board, to determine the fees charged to state agencies under
par. (a).
40.875(1)(c)
(c) Establish procedures for collecting the fees charged under
par. (a).
40.875(1)(d)
(d) Collect forfeitures from employee-funded reimbursement accounts, under the terms of contracts with employee-funded reimbursement account plan providers or with employees.
40.875(1)(e)
(e) Deposit fees collected under
par. (a), forfeitures collected under
par. (d) and interest earned on the fees and forfeitures in the fund, credited to the account established under
s. 40.04 (9m) (a) to pay costs described in
par. (a) 1. and
2.
40.875(2)
(2) The department may base the fees charged under
sub. (1) (a) on estimates of anticipated administrative and contract costs.
40.875 History
History: 1989 a. 14.
HEALTH INSURANCE PREMIUM CREDITS
40.95
40.95
Health insurance premium credits. 40.95(1)(a)(a) Subject to
sub. (2), the department shall administer a program that provides health insurance premium credits for the purchase of health insurance for a retired employee, or the retired employee's surviving insured dependents, for the benefit of an eligible employee whose compensation includes such health insurance premium credits and who satisfies at least one of the following:
40.95(1)(a)2.
2. The employee has his or her compensation established in a collective bargaining agreement under
subch. V of ch. 111.
40.95(1)(a)3.
3. The employee has his or her compensation established in a collective bargaining agreement under
subch. I of ch. 111 and the employee is employed by the University of Wisconsin Hospitals and Clinics Authority.
40.95(1)(b)
(b) The health insurance premium credits shall be based on the employee's years of continuous service, accumulated unused sick leave and any other factor specified as part of the employee's compensation.
40.95(2)
(2) The department is not required to administer any program that provides health insurance premium credits for the purchase of health insurance for a retired employee, or the retired employee's surviving insured dependents, if the department determines that the program does not conform to the program approved by the joint committee on employment relations under
s. 230.12 (9).
40.95 History
History: 1995 a. 88,
89,
216.
PRIVATE EMPLOYER HEALTH
CARE COVERAGE
Effective date note
NOTE: This subchapter is repealed eff. 1-1-10 by
1999 Wis. Act 9.
40.98
40.98
Health care coverage. 40.98(1)(ag)
(ag) "Abortion" means the use of an instrument, medicine, drug or other substance or device with intent to terminate the pregnancy of a woman known to be pregnant or for whom there is reason to believe that she may be pregnant and with intent other than to increase the probability of a live birth, to preserve the life or health of the infant after live birth or to remove a dead fetus.
40.98(1)(ar)
(ar) "Board" means the private employer health care coverage board.
40.98(1)(b)
(b) "Dependent" means a spouse, an unmarried child under the age of 19 years, an unmarried child who is a full-time student under the age of 21 years and who is financially dependent upon the parent, or an unmarried child of any age who is medically certified as disabled and who is dependent upon the parent.
40.98(1)(c)
(c) "Employee" means any person who receives earnings as payment for personal services rendered for the benefit of any employer including officers of the employer. An employee is considered to have separated from the service of an employer at the end of the day on which the employee last performed services for the employer, or, if later, the day on which the employee-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 employee if any of the following applies:
40.98(1)(c)1.
1. The person is employed under a contract involving the furnishing of more than personal services.
40.98(1)(c)2.
2. The person is customarily engaged in an independently established trade, business or profession providing the same type of services to more than one employer and the person's services to an employer are not compensated for on a payroll of that employer.
40.98(1)(c)3.
3. The person is a patient or inmate of a hospital, home or institution and performs services in the hospital, home or institution.
40.98(1)(d)
(d) "Employer" means any person doing business or operating an organization in this state and employing at least 2 eligible employees, except that for a person operating a farm business the person must employ at least one eligible employee. "Employer" does not include an employer as defined in
s. 40.02 (28).
40.98(1)(e)
(e) "Health care coverage program" means the health care coverage program established under
sub. (2) (a).
40.98(1)(g)
(g) "Nontherapeutic abortion" means an abortion that is not directly and medically necessary to prevent the death of the woman.
