ETF 20.17(4)(c)7.e. e. The services were not performed for a hospital, home or institution while the person was a patient or inmate.

ETF 20.17(4)(c)7.f. f. The employer was not a private or non-profit entity under a contract to provide services to or on behalf of a governmental entity.

ETF 20.17(4)(c)8. 8. If the participating employee is applying to receive creditable service for service in the U.S. armed forces or national guard, evidence that the employee was discharged from the U.S. armed forces or national guard under honorable or general conditions.

ETF 20.17(4)(d) (d) Cost to purchase other governmental service.

ETF 20.17(4)(d)1. 1. The cost to purchase other governmental service is intended to fully fund the anticipated benefit increase provided by the purchased service credit, based on the laws then in effect.

ETF 20.17(4)(d)2. 2. The actuary shall devise the method for calculating the cost to purchase other governmental service. The actuary’s calculation shall use the same economic and actuarial assumptions used in the actuary’s valuations of the Wisconsin retirement system. The actuary shall establish the factors necessary to determine the actuarial value to each applicant of the purchased service credit. Those factors may include, without limitation:

ETF 20.17(4)(d)2.a. a. The participant’s current employment category as determined under s. 40.23 (2m) (e), Stats. If the participant is employed in 2 or more categories on the date of application, the computation shall be based on the current employment category in which the participant has accrued the most creditable service.

ETF 20.17(4)(d)2.b. b. The participant’s earnings for the last completed annual earnings period, as of January 1 preceding the date of application.

ETF 20.17(4)(d)2.c. c. The number of years, in hundredths of a year, of service credit the participant requests to purchase.

ETF 20.17(4)(d)2.d. d. The participant’s date of birth.

ETF 20.17(4)(d)2.e. e. The participant’s accumulated employee required contributions, including interest, as of the January 1 preceding the date of application.

ETF 20.17(4)(d)2.f. f. Twelve times the participant’s final average earnings determined as of January 1 preceding the date of application.

ETF 20.17(4)(d)2.g. g. The participant’s years of creditable service, including all previously purchased service credit, by employment category and by pre-2000 and post-1999 service.

ETF 20.17 Note Note: This amendment (CR 09-057) to the existing rule provides clarification that the actuary may include the eight factors specified in the rule when determining the actuarial value of the purchased service credit along with other relevant factors. In addition, the rule corrects a typo by adding the word “service” to the applicable section.

ETF 20.17(4)(d)2.h. h. The participant’s variable excess or deficiency balance under s. 40.23 (2m) (c), Stats., as of January 1 preceding the date of application.

ETF 20.17(4)(d)3. 3. The actuary may, at any time, change the method of calculating the cost of other governmental service credits if warranted by changes in the benefit laws or valuation assumptions of the Wisconsin retirement system or by other factors the actuary determines to be actuarially significant. The actuary’s new method of calculation shall be applied as soon as possible unless a delayed effective date is recommended by the actuary. The department may complete pending transactions and honor cost estimates produced before the new method of calculation went into effect.

ETF 20.17(4)(e) (e) Creditable service based on purchase of other governmental service; limitations.

ETF 20.17(4)(e)1. 1. The amount of other governmental service purchased through all purchases made under this section may not exceed the amount of the participant’s creditable service earned under the Wisconsin retirement system and credited as of the date of the last application to purchase other governmental service, excluding any service previously purchased by the participant.

ETF 20.17(4)(e)2. 2. Other governmental service shall be credited in the general employment category regardless of the employee’s current employment category or the nature of the service, and benefits based on the purchased service shall be calculated under s. 40.23 (2m) (e) 1., Stats.

ETF 20.17(4)(e)3. 3. Service, including teaching service, shall be granted in hundredths of a year, at the rate of one year for 1,904 hours or more worked in one calendar year. If the participant worked less than 1,904 hours in a calendar year, the partial year of other governmental service shall be calculated by dividing the number of hours worked by 1,904.

ETF 20.17(4)(e)4. 4. A participant’s total creditable service in any annual earnings period from all sources may not exceed one year.

ETF 20.17(4)(e)5. 5. Creditable service purchased under this section shall be used solely to calculate a formula annuity benefit amount based upon years of creditable service, as under ss. 40.23 (2) (b) or (2m) (e), 40.25 (1), 40.63 (8), and 40.73 (1) (c), Stats. The department may not consider purchased other governmental service for any other purpose, including but not limited to determining:

ETF 20.17(4)(e)5.b. b. Whether the participant has met the service requirements for disability benefits under s. 40.63 (1) (a) or (4), Stats.

ETF 20.17(4)(e)5.c. c. Whether the participant has met the service requirements to continue insurance after termination of employment under s. 40.02 (25) (b) 6. a., 6e., 6m. b., 6r., or 40.72 (4) (b), Stats.

ETF 20.17(4)(e)5.d. d. The amount of creditable service which the participant is eligible to reestablish under s. 40.285 (2) (a), Stats., or to purchase under this subsection.

ETF 20.17(4)(e)5.e. e. The amount of creditable military service for which the participant is eligible under s. 40.02 (15) (c), Stats.

ETF 20.17(4)(e)5.f. f. Notwithstanding sub. (1) (g) 1., if any service for a Wisconsin employer which has been credited under this section is subsequently recognized as creditable prior service under s. 40.21 (6), Stats., the participant’s creditable service for other governmental service shall be reduced accordingly and the associated contributions plus the interest credited to those contributions shall be transferred to the employee’s additional account and shall be available to the employee in the same manner as other contributions under s. 40.05 (1) (a) 5., Stats. No other refund to the employee may be made.

ETF 20.17(4)(f) (f) Payments received to purchase other governmental service; limitations on benefits. The department shall account for amounts received to purchase other governmental service, and the interest credited to such in a manner that permits identifying and subtracting such funds from amounts to be increased by a matching amount from the employer reserve when computing a money purchase annuity or a death benefit, as provided by ss. 40.23 (3) and 40.73 (1) (am), Stats., and for purposes of calculating the hypothetical annuity under s. 40.73 (1) (c), Stats.

ETF 20.17(4)(g) (g) Payment shortfall. If the participant does not withdraw the application or pay the balance due on a payment shortfall within 30 days after notice is sent to the participant, the department shall complete the purchase, either by deducting the amount due from the participant’s annuity, if any, as provided in sub. (1) (h) or by reducing the amount of service credit purchased to the credit that can be purchased by the payment actually received.