40.02(55m)
(55m) "Timely appeal" means a written request for the review of a determination that is filed within 90 days after the determination is mailed to the person aggrieved by the determination.
40.02(56)
(56) "Union service leave" means that period of absence from employment commencing on the date an employee commences a leave of absence for the purpose of serving in a position with a labor organization representing employees of the employee's employer, and terminating on the date that leave of absence terminates or the date that service with that labor organization terminates, whichever first occurs.
40.02(57)
(57) "University" means the University of Wisconsin System under
ch. 36.
40.02(57m)
(57m) "U.S. armed forces" means any of the following:
40.02(57m)(f)
(f) The U.S. maritime service, including the merchant marine.
40.02(58)
(58) "Variable annuity" means any annuity provided by the accumulations in the variable annuity division established under
s. 40.04 (7) providing for the dollar amount of benefits or other contractual payments or values to vary so as to reflect differences which may arise between the total value of the annuity reserve for variable annuities and the reserve that would be required if the annuities were fixed annuities.
40.02 History
History: 1981 c. 96,
187,
250,
274,
386;
1983 a. 9,
27;
1983 a. 81 s.
11;
1983 a. 83 s.
20;
1983 a. 106,
140;
1983 a. 141 ss.
1 to
3,
20;
1983 a. 191 ss.
1,
6;
1983 a. 192 s.
304;
1983 a. 255 s.
6;
1983 a. 275,
290,
368;
1983 a. 435 s.
7;
1985 a. 29,
225;
1985 a. 332 ss.
52,
251 (1);
1987 a. 27,
62,
83,
107,
309,
340,
356,
363,
372,
399;
1987 a. 403 ss.
43 to
45,
256;
1989 a. 13,
14,
31;
1989 a. 56 s.
259;
1989 a. 166,
182,
189,
218,
230,
240,
323,
327,
336,
355,
357,
359;
1991 a. 32,
39,
113,
152,
229,
269,
315;
1993 a. 16,
263,
383,
490,
491;
1995 a. 27, ss.
1946 to
1953,
9130 (4);
1995 a. 81,
88,
89,
216,
240,
302,
381,
417;
1997 a. 3,
27,
39,
69,
110,
162,
237,
238;
1999 a. 9,
11,
42,
63,
65,
83;
2001 a. 16,
38,
103,
104,
109;
2003 a. 33.
40.02 Annotation
A union request that the county make pension contributions for jailers equal in amount to those for its "protective occupation participants" under sub. (48) did not require reclassification of the jailers as "POPS," is allowed under s. 40.05 (2) (g) 1., and is a mandatory subject of bargaining under s. 111.70 (1) (a). County of LaCrosse v. WERC,
180 Wis. 2d 100,
508 N.W.2d 9 (1993).
40.02 Annotation
"Active military service" and "active service" as used in sub. (15) (c) do not include "active duty for training." Morris v. Employee Trust Funds Board,
203 Wis. 2d 172,
554 N.W.2d 205 (Ct. App. 1996),
94-0857.
40.02 Annotation
It was reasonable to determine jailers' status based on their duties performed as sheriff's department employees regardless of their appointment as deputy sheriff. Being a deputy sheriff is a necessary qualification to being a protective occupation participant under sub. (48) (am), but is not a sufficient one. The employee's name must also be certified to the fund as provided in s. 40.06 (1) (d). Mattila v. Employee Trust Funds Board, 2001 WI App 79,
243 Wis. 2d 90,
626 N.W.2d 33.
40.03
40.03
Powers and duties. 40.03(1)(1)
Employee trust funds board. The board:
40.03(1)(a)
(a) Shall authorize and terminate the payment of all annuities and death benefits, except disability annuities, in accordance with this chapter and may adjust the computation of the amount, as provided by this chapter, as necessary to prevent any inequity which might otherwise exist if a participant has a combination of full-time and part-time service, a change in annual earnings period during the high years of earnings or has previously received an annuity which was terminated.
40.03(1)(am)
(am) Shall ensure that the Wisconsin retirement system complies with the internal revenue code as a qualified plan for income tax purposes and shall ensure that each benefit plan is administered in a manner consistent with all internal revenue code provisions that authorize and regulate the benefit plan.
40.03(1)(b)
(b) Shall approve the tables to be used for computing benefits under the Wisconsin retirement system after certification of the tables in writing by the actuary.
40.03(1)(c)
(c) Shall appoint the secretary of the department and may employ or select any medical, legal and other independent contractors as are required for the administration of the fund.
40.03(1)(d)
(d) Shall select and retain an actuary or an actuarial firm, under one or more contractual agreements which shall run to the department for the purpose of performing all actuarial services which are necessary for the operation and control of each of the insurance and benefit programs under this chapter. Under this paragraph, the board shall:
40.03(1)(d)1.
1. Determine the requirements for and qualifications of the actuary or the actuarial firms so retained.
40.03(1)(d)2.
2. Determine the terms and conditions of each contractual agreement, and the time any contractual agreement shall be in force.
40.03(1)(d)3.
3. Determine the procedure for the selection of an actuary or an actuarial firm.
40.03(1)(d)4.
4. Direct the secretary to sign on behalf of the department any contractual agreement approved by the board.
40.03(1)(e)
(e) Shall approve the contribution rates and actuarial assumptions determined by the actuary under
sub. (5) (b) and
(c).
40.03(1)(f)
(f) May compel witnesses to attend meetings and to testify upon any necessary matter concerning the fund and authorize fees not in excess of the statutory provisions for witnesses.
40.03(1)(g)
(g) May determine the length of creditable prior service from information available. Any determination shall be conclusive as to any period of service unless, within the time limits specified in
s. 40.08 (10), the board reconsiders any case and changes the determination.
40.03(1)(h)
(h) May accept any gift, grant or bequest of any money or property of any kind, for the purposes designated by the grantor if the purpose is specified as providing cash benefits to some or all of the participants, insured employees or annuitants of this fund or for reducing employer or employee costs; or, if no purposes are designated, then for the purpose of distribution to the several accounts and reserves of the Wisconsin retirement system at the end of the year as if the money or property were investment earnings of the fixed annuity division.
40.03(1)(i)
(i) May determine that some or all of the disability annuities and death benefits provided from the Wisconsin retirement system shall instead be provided through group insurance plans to be established by the group insurance board either as separate plans or as integral parts of the group life and income continuation insurance plans established under this chapter.
40.03(1)(j)
(j) Shall accept timely appeals from determinations made by the department, other than appeals of determinations made by the department regarding disability annuities. The board shall review the relevant facts and may hold a hearing. Upon completion of its review and hearing, if any, the board shall make a determination which it shall certify to the participating employer or the appropriate state agency and to the appropriate employee, if any. The board's determination of an employee's status under
s. 40.06 (1) (e) shall remain in effect until receipt by the department of notification indicating a different classification. A participant may appeal that determination as provided by
s. 40.06 (1) (e).
40.03(1)(k)
(k) May require any employer to distribute to its employees any materials which are determined to be necessary for the efficient administration of the fund.
40.03(1)(L)
(L) May delegate powers and duties as deemed necessary or desirable.
40.03(1)(m)
(m) Shall approve or reject all administrative rules proposed by the secretary under
sub. (2) (i).
40.03(1)(n)
(n) May allow any separate retirement system for employees of one or more employers to deliver or send funds representing assets of that system to the department. If the department accepts delivery or transmission, the department shall purchase shares of the fixed retirement investment trust or variable retirement investment trust or both with those funds, subject to rules under
sub. (2) (q). Each retirement system shall pay as provided in
s. 40.04 (2) for the costs of investing and administering any of its funds sent or delivered to the department.
40.03(1)(p)
(p) May, upon the recommendation of the actuary, transfer in whole or in part the assets and reserves held in any account described in
s. 40.04 (9) to a different account described in
s. 40.04 (9), for the purpose of providing any group insurance benefit offered by the group insurance board.
40.03(2)(a)
(a) Shall be in charge of the administration of the department and exercise, as head of the department, all powers and duties specified in
ss. 15.04 and
15.05.
40.03(2)(b)
(b) Shall employ and select administrative, clerical or other employees as required for the administration of this chapter and establish the internal organization of the department, but the department shall always maintain an office in Milwaukee.
40.03(2)(c)
(c) Shall process all applications for annuities and benefits and may initiate payment based on estimated amounts, when the applicant is determined to be eligible, subject to correction upon final determination of the amount of the annuity or benefit.
40.03(2)(d)
(d) May suspend an annuity pending final action by the board, or a disability annuity pending final action by the Wisconsin retirement board or the teachers retirement board, when, in the secretary's judgment, the annuitant is not eligible to receive the annuity.
40.03(2)(e)
(e) Shall submit to each employer and, upon request, to each individual participating in any of the benefit plans administered by the department the report required under
s. 15.04 (1) (d) or a summary of the report. The report shall be in lieu of any reports required by
ss. 15.07 (6) and
15.09 (7) or any other law and shall include financial and actuarial balance sheets which reflect changes in the asset, liability and reserve accounts and additional statistics which the secretary determines to be necessary or desirable for a full understanding of the status of the fund and the benefit plans.
40.03(2)(f)
(f) May delegate to other departmental employees any power or duty of the secretary.
40.03(2)(g)
(g) Shall submit once each year to each participant currently making contributions, and to any other participant upon request or as in the secretary's judgment is desirable, a statement of the participant's account together with appropriate explanatory material.
40.03(2)(h)
(h) May request any information from any participating employee or from any participating employer as is necessary for the proper operation of the fund.
40.03(2)(i)
(i) Shall promulgate, with the approval of the board, all rules, except rules promulgated under
par. (ig) or
(ir), that are required for the efficient administration of the fund or of any of the benefit plans established by this chapter. In addition to being approved by the board, rules promulgated under this paragraph relating to teachers must be approved by the teachers retirement board and rules promulgated under this paragraph relating to participants other than teachers must be approved by the Wisconsin retirement board, except rules promulgated under
s. 40.30.
40.03(2)(ig)
(ig) Shall promulgate, with the approval of the group insurance board, all rules required for the administration of the group health, long-term care, income continuation or life insurance plans established under
subchs. IV to
VI.
40.03(2)(ir)
(ir) Shall promulgate, with the approval of the deferred compensation board, all rules required for the administration of deferred compensation plans established under
subch. VII.
40.03(2)(it)
(it) Shall promulgate, with the approval of the private employer health care coverage board, all rules required for the administration of the private employer health care coverage program established under
subch. X.
40.03(2)(j)
(j) May authorize any governing body in a written designation filed by the governing body with the department to have an agent or agents to act for the governing body in all matters pertaining to the fund.
40.03(2)(k)
(k) May determine an amount, and the procedure for establishing the amount, of OASDHI benefits for any person using any information the department has available in its records and any assumptions as to data not in the department's records as deemed appropriate for estimating the benefits unless the person establishes, through a certification of the person's social security earnings record or actual benefit amount, a different amount payable. In the case of any participant whose earnings are not subject to Titles II and XVIII of the federal social security act by reason of eligibility for a choice provided by statute, it is conclusively assumed in making the estimate, regardless of the person's actual federal social security earnings record, that 50% of those earnings are and were subject to Titles II and XVIII of the federal social security act. The secretary may require the person to provide the department with a certification of the person's social security earnings record or benefit amount as a condition for receiving benefits under this chapter. If a participant does not receive the OASDHI benefit for which the person is or will be eligible by reason of failure to apply for the benefit or by virtue of the suspension of the benefit the participant will nevertheless be deemed to have received the OASDHI benefit amount for purposes of any benefit computation under this chapter.
40.03(2)(L)
(L) Shall determine each calendar year's effective rate.
40.03(2)(m)
(m) Shall have all other powers necessary to carry out the purposes and provisions of this chapter, except as otherwise specifically provided by this chapter.
40.03(2)(n)
(n) Shall have any additional powers and duties as are delegated by the board.
40.03(2)(p)
(p) Shall establish procedures for and conduct the elections of board members required under
ss. 15.16 (1) (d) and
15.165 (3) (a) 1.,
2.,
6. and
7. The procedures shall include the establishment of a nominating process and shall provide for the distribution of ballots to all participating employees and annuitants eligible to vote in the election.
40.03(2)(q)
(q) Shall promulgate rules governing the times when separate retirement systems may send or deliver funds under
sub. (1) (n) or withdraw those funds, the amounts of money that may be sent, delivered or withdrawn, the valuation of money that has been sent, delivered or withdrawn, and the distribution of investment income among the retirement systems. These rules may modify the accounting and valuation bases and the investment earnings distribution procedures of the Wisconsin retirement system to the extent necessary to achieve equity among the various retirement systems.
40.03(2)(r)
(r) Shall promulgate rules governing the times for making lump sum payments that are authorized under this chapter to be made to or from the Wisconsin retirement system and governing the valuation of money that has been sent, delivered or withdrawn, and the distribution of investment income to be credited on those amounts. The rules may modify the accounting and valuation bases and the investment earnings distribution procedures of the Wisconsin retirement system to the extent necessary to achieve equity among the various types of payments and contributions to, and payments from, the Wisconsin retirement system.
40.03(2)(t)
(t) Shall ensure that the Wisconsin retirement system complies with the internal revenue code as a qualified plan for income tax purposes and shall ensure that each benefit plan is administered in a manner consistent with all internal revenue code provisions that authorize and regulate the benefit plan.
40.03(2)(u)
(u) Shall ensure that the department include on all publications that are printed beginning on October 14, 1997, and that are intended for distribution to participants the toll-free telephone number of the department, if the department has such a telephone number.
40.03(2)(v)
(v) May settle any dispute in an appeal of a determination made by the department that is subject to review under
sub. (1) (j),
(6) (i),
(7) (f), or
(8) (f), or
s. 40.80 (2g), but only with the approval of the board having the authority to accept the appeal. In deciding whether to settle such a dispute, the secretary shall consider the cost of litigation, the likelihood of success on the merits, the cost of delay in resolving the dispute, the actuarial impact on the trust fund, and any other relevant factor the secretary considers appropriate. Any moneys paid by the department to settle a dispute under this paragraph shall be paid from the appropriation account under
s. 20.515 (1) (r).
40.03(2)(w)
(w) If the secretary determines that an otherwise eligible participant has unintentionally forfeited or otherwise involuntarily ceased to be eligible for any benefit provided under this chapter principally because of an error in administration by the department, may order the correction of the error to prevent inequity. A decision under this paragraph is not subject to review. The secretary shall submit a quarterly report to the employee trust funds board on decisions made under this paragraph.
40.03(3)
(3) Department of justice. The department of justice shall furnish legal counsel and shall prosecute or defend all actions brought by or against the board, department, group insurance board or any employee of the department as a result of the performance of the department employee's duties.
40.03(4)
(4) State treasurer. The state treasurer shall be the treasurer of the fund.
40.03(5)
(5) Actuary. The actuary or actuarial firm retained under
sub. (1) (d):
40.03(5)(a)
(a) Shall be the technical adviser of the board, the secretary and the group insurance board on any matters of an actuarial nature affecting the soundness of the fund or requiring any changes for more satisfactory operation.
40.03(5)(b)
(b) Shall make a general investigation at least once every 3 years of the experience of the Wisconsin retirement system relating to mortality, disability, retirement, separation, interest, employee earnings rates and of any other factors deemed pertinent and to certify, as a result of each investigation, the actuarial assumptions to be used for computing employer contribution rates, the assumed rate and the tables to be used for computing annuities and benefits, provided the tables shall not provide different benefits on the basis of sex for participants or beneficiaries similarly situated. If the assumed rate changes, the actuary shall at the same time adjust the assumptions for future changes in employee earnings rates to be consistent with the new assumed rate. The recommended actuarial assumptions shall be based on the system's own experience as identified in the general investigations unless lack of adequate information or unusual circumstances are specifically identified and fully described which require use of other groups' experience and such other experience is not inconsistent with the system's own experience. When considering or implementing new or changed benefit provisions and areas of risk, the assumptions may be based solely on the experience of other groups until 5 years of the system's own experience is available for use as long as such other experience is not inconsistent with the system's own experience.
40.03(5)(c)
(c) Shall determine the proper rates of premiums and contributions required, or advise as to the appropriateness of premium rates proposed by independent insurers, for each of the benefit plans provided for by this chapter.
40.03(5)(d)
(d) Shall make an annual valuation of the liabilities and reserves required to pay both present and prospective benefits.
40.03(5)(e)
(e) Shall certify the actuarial figures on the annual financial statements required under
sub. (2) (e).
40.03(6)
(6) Group insurance board. The group insurance board:
40.03(6)(a)1.1. Shall, on behalf of the state, enter into a contract or contracts with one or more insurers authorized to transact insurance business in this state for the purpose of providing the group insurance plans provided for by this chapter; or
40.03(6)(a)2.
2. May, wholly or partially in lieu of
subd. 1., on behalf of the state, provide any group insurance plan on a self-insured basis in which case the group insurance board shall approve a written description setting forth the terms and conditions of the plan, and may contract directly with providers of hospital, medical or ancillary services to provide insured employees with the benefits provided under this chapter.
40.03(6)(b)
(b) May provide other group insurance plans for employees and their dependents and for annuitants and their dependents in addition to the group insurance plans specifically provided under this chapter. The terms of the group insurance under this paragraph shall be determined by contract, and shall provide that the employer is not liable for any obligations accruing from the operation of any group insurance plan under this paragraph except as agreed to by the employer.
40.03(6)(c)
(c) Shall not enter into any agreements to modify or expand group insurance coverage in a manner which conflicts with this chapter or rules of the department or materially affects the level of premiums required to be paid by the state or its employees, or the level of benefits to be provided, under any group insurance coverage. This restriction shall not be construed to prevent modifications required by law, prohibit the group insurance board from modifying the standard plan to establish a more cost effective benefit plan design or providing optional insurance coverages as alternatives to the standard insurance coverage when any excess of required premium over the premium for the standard coverage is paid by the employee or prohibit the group insurance board from providing other plans as authorized under
par. (b).
40.03(6)(d)
(d) May take any action as trustees which is deemed advisable and not specifically prohibited or delegated to some other governmental agency, to carry out the purpose and intent of the group insurance plans provided under this chapter, including, but not limited to, provisions in the appropriate contracts relating to:
40.03(6)(d)1.
1. Eligibility of active and retired employees to participate, or providing the employee the opportunity to decline participation or to withdraw.
40.03(6)(d)3.
3. Enrollment periods and the time group insurance coverage shall be effective.
40.03(6)(d)4.
4. The time that changes in coverage and premium payments shall take effect.
40.03(6)(d)5.
5. The terms and conditions of the insurance contract or contracts, including the amount of premium.
40.03(6)(d)6.
6. The date group insurance contracts shall be effective.
40.03(6)(e)
(e) Shall apportion all excess moneys becoming available to it through operation of the group insurance plans to reduce premium payments in following contract years or to establish reserves to stabilize costs in subsequent years. If it is determined that the excess became available due to favorable experience of specific groups of employers or specific employee groups, the apportionment may be made in a manner designated to benefit the specific employers or employee groups only, or to a greater extent than other employers and employee groups.
40.03(6)(f)
(f) Shall take prompt action to liquidate any actuarial or cash deficit which occurs in the accounts and reserves maintained in the fund for any group insurance benefit plan.
40.03(6)(g)
(g) Shall determine the amount of insurance and extent of coverage provided and amount of premiums required during a union service leave. The amount of insurance and extent of coverage shall be not less than that in effect immediately preceding the commencement of the union service leave.
40.03(6)(h)
(h) Shall, on behalf of the state, offer as provided in
s. 40.55 long-term care insurance policies, subject to the following conditions:
