40.05(4)(by)1.1. Employers shall pay contributions that are sufficient to pay for the present value of the present and future benefits authorized under
subch. IX for all employees eligible to receive the benefits under that subchapter, other than state employees who are eligible to receive the benefits as a result of layoff. Except as provided in
subd. 2., the board shall annually determine the contribution rate upon certification by the actuary of the department. The contribution rates determined under this paragraph shall become effective on January 1 of the calendar year in which they are applicable and shall remain in effect during that year.
40.05(4)(by)2.
2. Beginning on November 25, 1995, and ending on June 30, 1997, each employer shall pay contributions equal to the dollar value of the credits awarded to its retired employees under
subch. IX, as determined and directed by the department. The board, upon certification by the actuary, shall determine the contribution rate to be paid by employers for the period beginning on July 1, 1997, and ending on December 31, 1997. In determining the contribution rate for this period, the board shall consider any remaining unfunded present and future liability for any benefits arising under
subch. IX before July 1, 1997.
40.05(4)(c)
(c) The employer shall contribute toward the payment of premiums for the plan established under
s. 40.52 (3) the amount established under
s. 40.52 (3).
40.05(4)(d)
(d) For insurance premium withholding purposes, an insured employee on more than one payroll shall have a premium withheld only under the department or agency paying the greater portion of the employee's earnings.
40.05(4g)
(4g) Payment of health insurance premiums for state employees activated for military duty in the U.S. armed forces. 40.05(4g)(a)(a) In this subsection, "eligible employee" means a state employee to whom all of the following apply:
40.05(4g)(a)1.
1. On or after April 15, 1999, is activated to serve on military duty in the U.S. armed forces, other than for training purposes.
40.05(4g)(a)2.
2. On the date on which he or she is activated to serve on active duty in the U.S. armed forces, is insured and is receiving employer contributions for health insurance premiums under
sub. (4).
40.05(4g)(a)3.
3. On the date on which he or she is activated, is either a member of a national guard or a member of a reserve component of the U.S. armed forces or is recalled to active military duty from inactive reserve status.
40.05(4g)(a)4.
4. Has received a military leave of absence under
s. 230.32 (3) (a) or
230.35 (3), under a collective bargaining agreement under
subch. V of ch. 111 or under rules promulgated by the director of the office of state employment relations or is eligible for reemployment with the state under
s. 321.64 after completion of his or her service in the U.S. armed forces.
40.05(4g)(b)1.1. Notwithstanding
sub. (4) and
s. 40.51 (2), an eligible employee who is not insured after the date on which he or she is activated to serve on active duty in the U.S. armed forces may have his or her health insurance reinstated during the period in which he or she is serving on active duty in the U.S. armed forces without furnishing evidence of insurability satisfactory to the insurer and may receive employer contributions under
par. (c) if the eligible employee or the eligible employee's designated representative makes a written election to have his or her health insurance reinstated and to receive employer contributions under
par. (c) and pays any employee contributions that are required to be paid under
sub. (4) toward the premium payments.
40.05(4g)(b)2.
2. Notwithstanding
sub. (4), an eligible employee who is insured after the date on which he or she is activated to serve on active duty in the U.S. armed forces may receive employer contributions under
par. (c) during the period in which he or she is serving on active duty in the U.S. armed forces if the eligible employee or the eligible employee's designated representative makes a written election to receive employer contributions under
par. (c) and pays any employee contributions that are required to be paid under
sub. (4) toward the premium payments.
40.05(4g)(b)3.
3. An eligible employee or his or her designated representative shall make an election under
subd. 1. or
2. on a form provided by his or her employer not later than 60 days after the date on which the eligible employee begins to serve on active duty for the U.S. armed forces.
40.05(4g)(b)4.
4. The group insurance board shall include the period under
subd. 3. in any applicable enrollment period under the state health insurance plan for eligible employees who are not insured.
40.05(4g)(c)
(c) Notwithstanding
sub. (4) and
s. 40.51 (2), the employer of an eligible employee who makes or whose designated representative makes an election under
par. (b) shall pay employer contributions toward the premium payments of the eligible employee during the period in which the eligible employee is serving on active duty for the U.S. armed forces as follows:
40.05(4g)(c)1.
1. The amount of the employer contributions paid toward each premium payment shall be equal to the amount of the employer contributions under
sub. (4) that would have been paid toward the premium payment if the eligible employee had continued employment with the employer instead of serving on active duty for the U.S. armed forces.
40.05(4g)(c)2.
2. If the eligible employee has been insured during the period beginning on the date on which the eligible employee left employment with the employer to serve on active duty for the U.S. armed forces and ending on the date on which the eligible employee or the eligible employee's designated representative makes the election under
par. (b) but the eligible employee did not receive employer contributions under
sub. (4) toward any of the premium payments during that period, the employer shall pay to the eligible employee in a lump sum an amount equal to the employer contributions that would have been paid toward those premium payments under
sub. (4) if the eligible employee had continued employment with the employer during that period instead of serving on active duty for the U.S. armed forces.
40.05(4m)
(4m) Long-term care insurance premiums. For any long-term care insurance policies provided under
s. 40.55, the entire premium shall be paid as a deduction under
s. 40.06 (1) (a) from an employee's earnings or a state annuitant's annuity, except that if an eligible employee is not on a state payroll or receives earnings that are insufficient to cover premium payments or a state annuitant receives an annuity that is not sufficient to cover premium payments, the eligible employee or state annuitant shall make premium payments directly to the insurer. There shall be no employer contributions.
40.05(4r)
(4r) Payment of certain insurance premiums. If an annuitant is an eligible retired public safety officer and receives health care coverage or long-term care coverage under a plan other than one offered under
subch. IV, and if the annuitant so elects by providing written notice to the department, the premium shall be paid as a deduction under
s. 40.06 (1) (a) from the annuitant's annuity. If the annuitant receives an annuity that is not sufficient to cover premium payments, the annuitant shall make premium payments directly to the insurer. The department shall establish procedures to permit an annuitant who is an eligible retired public safety officer to elect to have his or her premium paid as a deduction under
s. 40.06 (1) (a) from his or her annuity. The annuitant shall provide the department with all necessary information to permit the department to make the payment in a timely manner.
40.05(5)
(5) Income continuation insurance premiums. For the income continuation insurance provided under
subch. V the employee shall pay the amount remaining after the employer has contributed the following or, if different, the amount determined under a collective bargaining agreement under
subch. V of ch. 111 or
s. 230.12 or
233.10:
40.05(5)(a)
(a) For teachers in the unclassified service of the state employed by the board of regents of the university, no contribution if the teacher has less than one year of state creditable service and an amount equal to the gross premium for coverage subject to a 130-day waiting period if the teacher has one year or more of state creditable service.
40.05(5)(b)
(b) Except as provided in
par. (a), for all insured employees:
40.05(5)(b)1.
1. Sixty-seven percent of the gross premium for any insured employee who accumulates 10 days of sick leave or more each year, 77% of the gross premium for any insured employee who has accumulated at least 65 days of sick leave, 85% of the gross premium if an insured employee has accumulated at least 91 days of sick leave and 100% of the gross premium if an insured employee has accumulated over 130 days of sick leave.
40.05(5)(b)3.
3. Any insured employee for whom an employer contribution of 77% or more of the premium was paid under
subd. 1. shall continue to be eligible for an employer contribution of that same percentage of the premiums until the employee is eligible for a higher level even if, as a result of disability or illness, the accumulation is subsequently reduced.
40.05(6)
(6) Life insurance premiums. For the life insurance coverage provided under
subch. VI:
40.05(6)(a)
(a) Except as otherwise provided in accordance with a collective bargaining agreement under
subch. V of ch. 111 or
s. 230.12 or
233.10, each insured employee under the age of 70 and annuitant under the age of 65 shall pay for group life insurance coverage a sum, approved by the group insurance board, which shall not exceed 60 cents monthly for each $1,000 of group life insurance, based upon the last amount of insurance in force during the month for which earnings are paid. The equivalent premium may be fixed by the group insurance board if the annual compensation is paid in other than 12 monthly installments.
40.05(6)(b)
(b) Beginning with the month in which an insured employee attains age 70 or an annuitant attains the age of 65, no withholdings from the employee's earnings or annuity may be made under this subsection.
40.05(6)(c)
(c) Beginning with the month in which an insured employee is retired on a disability annuity, and continuing as long as the annuity is not terminated, no further premium shall be required under this subsection for the retired insured employee. No premium is required under this subsection for an insured employee during a period of disability during which premiums are waived under the insurance contract.
40.05(6)(d)
(d) Except as provided under
par. (c), the premium payment for any insured employee whose eligibility for continued coverage is based on
s. 40.72 (4) shall be deducted from the appropriate annuity payroll as authorized by
s. 40.08 (2), if the annuity is sufficient, or the employee may make direct payments to continue insurance coverage or the employee's employer may pay, on behalf of the employee, the premium payment according to procedures established by the department.
40.05(6)(e)
(e) Each employer shall contribute toward the payment of premiums under this section an amount which, together with the employee's contribution, will equal the gross monthly premium determined by the group insurance board for the employee's insurance and any employer may pay for all employees any part or all of the premium required to be paid by employees under
par. (a). If an employer elects to pay the entire premium for all of its employees for one or more of the types of insurance coverage established under
s. 40.03 (6) (b) or
40.70 (3), a resolution shall be filed with the department. Applications shall be filed and premiums paid for any eligible employees, including those not previously insured under coverage selected by the employer, effective the first day of the month following receipt of the resolution or the effective date of the election, whichever is later, and full payment of premiums for the employees shall be due the department pursuant to the contractual requirements between the group insurance board and the insurer. If an employer elects to pay the entire premium for a portion of its employees, notice is not required and previously filed cancellations are not revoked.
40.05(7)
(7) Other insurance plans premiums. For any group insurance plans provided under
s. 40.03 (6) (b) the entire premium shall be paid by employee contributions and there shall be no employer contributions unless the employer specifically provides otherwise.
40.05(8)
(8) Employee-funded reimbursement account plan fee. For the administration and implementation of employee-funded reimbursement account plans authorized under
subch. VIII, each state agency with employees eligible to participate in an employee-funded reimbursement account plan shall contribute the fee charged under
s. 40.875 (1) (a).
40.05 History
History: 1981 c. 96,
274,
278,
386;
1983 a. 9 s.
6;
1983 a. 27,
30;
1983 a. 46 ss.
2 to
4,
7;
1983 a. 140;
1983 a. 141 ss.
7 to
12,
20;
1983 a. 290,
504,
538;
1985 a. 29,
119,
135,
225;
1987 a. 27,
83,
107,
309,
356,
363;
1987 a. 403 s.
256;
1989 a. 13,
14,
31,
119,
122,
166,
182,
189,
230,
336,
355,
359;
1991 a. 32,
39,
107,
113,
141,
152,
189,
269;
1995 a. 27,
81,
88,
89,
240,
302;
1997 a. 35,
58,
149;
1999 a. 9,
11,
13,
104;
2001 a. 16;
2003 a. 33 ss.
1004 to
1015,
9160;
2003 a. 69,
117;
2005 a. 22,
153;
2007 a. 20,
131,
200,
226;
2009 a. 15,
28;
2011 a. 10,
32;
2013 a. 20,
166.
40.05 Annotation
A union request that the county make pension contributions for jailers, equal in amount to those for its "protective occupation participants" under s. 40.02 (48) did not require reclassification of the jailers as "POPS," is allowed under sub. (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).
40.06
40.06
Reports and payments. 40.06(1)(a)(a) Except as otherwise provided by rule or statute, the employee contributions and premium payments specified in
s. 40.05 shall be deducted from the earnings of each employee and from the annuity, if sufficient, of each insured retired employee and transmitted to the department, or an agent specified by the department, in the manner and within the time limit fixed by the department together with the required employer contributions and premium payments and reports in the form specified by the department. Notwithstanding any other law, rule or regulation, the payment of earnings less the required deductions shall be a complete discharge of all claims for service rendered during the period covered by the payment.
40.06(1)(b)
(b) Each employer shall withhold the amounts specified from any payment of earnings to an employee whose status as a participating or insured employee has not yet been determined under
s. 40.22 (1) and shall refund the amount withheld directly to the employee if it is subsequently determined that the employee does not qualify as a participating or insured employee.
40.06(1)(c)
(c) For state agencies, contributions paid by employers shall be made from the respective funds from which the salaries are paid to the employee for whom the contributions are being made. The heads of the respective state agencies shall, at the time that salary deductions in accordance with
par. (a) are sent to the department, determine the amount of the corresponding employer contributions, indicate the amount of the contribution on the report submitted to the department and provide for payment to the department, by any method approved by the department, from the appropriate state funds of the amounts payable. If payment is by voucher, the department shall transmit the voucher to the department of administration. The department of administration shall approve vouchers for payment of contributions due under
s. 40.05 within 5 working days,
s. 16.53 (10) notwithstanding, and the state treasurer shall immediately issue a check, share draft or other draft to the department of employee trust funds for the amount of the voucher.
40.06(1)(d)
(d) Each participating employer and, subject to
par. (dm), each state agency shall notify the department in the manner and at the time prescribed by the department, of the names of all participating employees classified as protective occupation participants determined in accordance with
s. 40.02 (48) or classified as teacher participants in accordance with
s. 40.02 (55) or other classification as specified by the department.
40.06(1)(dm)
(dm) Each determination by a department head regarding the classification of a state employee as a protective occupation participant shall be reviewed by the office of state employment relations. A state employee's name may not be certified to the fund as a protective occupation participant under
par. (d) until the office of state employment relations approves the determination.
40.06(1)(e)1.1. An employee may appeal a determination under
par. (d), including a determination that the employee is not a participating employee, to the board by filing a written appeal with the board. An appeal under this paragraph does not apply to any service rendered more than 7 years prior to the date on which the appeal is received by the board. The board shall consider the appeal and mail a report of its decision to the employee and the participating employer or state agency.
40.06(1)(e)3.
3. A determination of an employee's status under
par. (d) made after an appeal is decided under this paragraph shall remain in effect until receipt by the department of a notification indicating a classification for the employee different from the determination. The employee may appeal that subsequent determination by filing an appeal as required under this paragraph.
40.06(1)(em)
(em) The department may review any determination by a participating employer to classify an employee who is not a state employee as a protective occupation participant and may appeal the determination to the board by filing a written notice of appeal with the board. The determination by the employer shall remain in effect until the department receives a written notification from the board indicating a classification for the employee that is different from the employer's determination.
40.06(2)(a)(a) If any employer fails to transmit to the department any report required by law or by rule before the end of the calendar month following the date when the report is due, the department shall prepare the report and submit to the employer a statement of the expenses incurred in securing the report, including the value of the personal services rendered in its preparation. The department shall file duplicates of the statement with the department of administration.
40.06(2)(b)
(b) Within 30 days after the receipt of the statement under
par. (a) by the employer the statement shall be audited as other claims against the employer are audited and shall be paid into the state treasury and credited to the appropriation under
s. 20.515 (1) (w).
40.06(2)(c)
(c) If the employer defaults on payment of the amount specified in the statement under
par. (a), the amount shall become a special charge against the employer and shall be included in the next certification of state taxes and charges and shall be collected, with interest as provided in
sub. (3) from the date the statement was submitted to the employer, as other charges are certified and collected, or collected as provided under
sub. (4). When the amount and the interest are collected, they shall be credited to the appropriation under
s. 20.515 (1) (w).
40.06(3)
(3) Interest shall be charged on accounts receivable from any employer if the remittance and any corresponding report are not received by the department in the manner and within the time limit fixed by rule or statute at the rate of 0.04% for each day, from the due date to the date received by the department with a minimum charge of $3, and the interest or minimum charge shall be paid immediately to the department. If the amount is not paid within 30 days after it is payable, the amount shall be collected as provided under
sub. (4).
40.06(4)(a)(a) Whenever any employer, other than the state, fails to pay to the department any amount due, the department shall certify the amount or the estimated amount to the department of administration which shall withhold the amount or the estimated amount from the next apportionment of state aids or taxes of any kind payable to the employer or, if so directed by the department, collect the amount as provided in
sub. (2) (c) and shall pay the amount so withheld or collected to the department. When the exact amount due is determined and the department receives a sum in excess of the exact amount, the department shall pay the excess amount to the employer from whose aid the excess was withheld.
40.06(4)(b)
(b) Whenever any amount is payable by a department or agency of the state, the department shall certify the amount payable with an explanation of the charge, together with a voucher in payment for the amount to the department of administration which shall immediately approve the voucher and within no more than 5 days, notwithstanding
s. 16.53 (10), make payment from the appropriation of the department or agency which failed to transmit the payment on time.
40.06(5)
(5) Whenever it is determined that contributions and premiums were not paid in the year when due, the amount to be paid shall be determined at the employee and employer contribution or premium rates in effect when the payment should have been made and increased by interest at the effective rate which would have been credited if the amount had been paid and deposited in the accumulation reserves of the core annuity division under
s. 40.04 (4) and
(5) at the time the contributions or premiums were due. The employer shall collect from the employee the amount which the employee would have paid if the amounts had been paid when due, plus the corresponding interest, and shall transmit the amount collected to the department together with the balance of the amount to be paid, or the employer may elect to pay part or all of the employee amounts.
40.06(6)
(6) Notwithstanding
ss. 16.52 (2) and
40.02 (22) (a), fiscal year coding adjustments may be made for contributions received after August 1 for earnings paid for services rendered in the previous fiscal year, so that the amount of the contributions received and earnings paid are substantially reflected in the annual earnings period to which they apply.
40.06(7)
(7) Within 30 days after receipt of a qualified domestic relations order or of a written request from the department pursuant to a qualified domestic relations order, a participating employer shall submit to the department a report, in the form specified by the department, of the earnings, service and contributions of the participant named in the order. The report shall include all earnings paid to and all service and contributions of the participant through the day before the decree date that have not previously been reported to the department.
40.06 Annotation
The statute of limitations under sub. (1) (e) 1. cannot be applied to extinguish pension rights established prior to its enactment without providing the plan participant with fair notice of the change and fair opportunity to preserve the claim. Dicks v. Employee Trust Funds Board,
202 Wis. 2d 703,
551 N.W.2d 845 (Ct. App. 1996),
95-1661.
40.07(1)(1) Notwithstanding any other statutory provision, individual personal information in the records of the department is not a public record and shall not be disclosed except as provided in this section.
40.07(1m)
(1m) Individual personal information, other than medical records, may only be disclosed by the department under any of the following circumstances:
40.07(1m)(a)
(a) The information is requested by the person whose record contains the information or by the duly authorized representative of the person;
40.07(1m)(b)
(b) The information is requested by a public employee for use in the discharge of the employee's official duties;
40.07(1m)(c)
(c) The information is required to be disclosed under a court order duly obtained upon a showing to the court that the information is relevant to a pending court action; or
40.07(1m)(d)
(d) The information is required to be disclosed for the proper administration of the department or to assist in locating participants or beneficiaries the department is otherwise unable to contact.
40.07(1r)
(1r) Upon request of the department of revenue, the department may disclose information, including social security numbers, to the department of revenue concerning an annuity only for the following purposes:
40.07(1r)(am)
(am) To aid in collecting debts owed to the department of revenue.
40.07(1r)(b)
(b) To locate participants, or the assets of participants, who have failed to file tax returns, underreported their taxable income, or who are delinquent debtors.
40.07(1r)(c)
(c) To identify fraudulent tax returns and credit claims.
40.07(1r)(d)
(d) To provide information for tax-related prosecutions.
40.07(2)
(2) Medical records may be disclosed by the department only under any of the following circumstances:
40.07(2)(a)
(a) When a disability application or health insurance claim denial is appealed.
40.07(2)(b)
(b) Under a court order, or order of a hearing examiner, that is duly obtained upon prior notice to the department and a showing to the court or administrative tribunal that the information is relevant to a pending court or administrative action.
40.07(2)(c)
(c) Upon a written authorization that specifically identifies the medical records that may be disclosed, but only to the person who is the subject of the medical records or to the person's designee, except that this paragraph shall not apply to any medical records to which the person's access is otherwise prohibited by law.
40.07(2m)
(2m) Medical information gathered for any one of the benefit plans established under this chapter may be used by any other benefit plan established under this chapter.
40.07(3)
(3) The department shall not furnish lists of participants, annuitants or beneficiaries to any person or organization except as required for the proper administration of the department.
40.08
40.08
Benefit assignments and corrections. 40.08(1)(1)
Exemptions. The benefits payable to, or other rights and interests of, any member, beneficiary or distributee of any estate under any of the benefit plans administered by the department, including insurance payments, shall be exempt from any tax levied by the state or any subdivision of the state and shall not be assignable, either in law or equity, or be subject to execution, levy, attachment, garnishment or other legal process except as specifically provided in this section. The exemption from taxation under this section shall not apply with respect to any tax on income.
40.08(1c)
(1c) Withholding of annuity payments. Notwithstanding
sub. (1), any monthly annuity paid under
s. 40.23,
40.24,
40.25 (1) or
(2), or
40.63 is subject to
s. 767.75. The board and any member or agent thereof and the department and any employee or agent thereof are immune from civil liability for any act or omission while performing official duties relating to withholding any annuity payment pursuant to
s. 767.57.
40.08(1g)
(1g) Withholding of lump sum payments. Notwithstanding
sub. (1), any lump sum payment made under
s. 40.23,
40.24,
40.25 (1) or
(2), or
40.63 is subject to
s. 49.852. The board and any member or agent thereof and the department and any employee or agent thereof are immune from civil liability for any act or omission while performing official duties relating to withholding any lump sum payment pursuant to
s. 49.852.
40.08(1m)(a)(a) Notwithstanding
sub. (1), a participant's accumulated rights and benefits under the Wisconsin retirement system shall be divided pursuant to a qualified domestic relations order only if the order provides for a division as specified in this subsection.
40.08(1m)(b)
(b) The creditable service and the value of the participant's account that are subject to division on the decree date shall be equal to one of the following:
40.08(1m)(b)1.
1. The creditable service and the dollar amounts credited to all parts of the participant's account through the day before the decree date, if the participant is not an annuitant on the decree date.
40.08(1m)(b)2.
2. The present value of the annuity being paid if the participant is an annuitant.
