Section ETF 10.55 - Joint instrumentalities; reporting participating employees, service and earnings(1) Scope. This section applies to reporting and contributions with respect to employment by joint instrumentalities created by 2 or more units of government, when all of the following apply: (a) At least one of the units of government creating the joint instrumentality is, or subsequently becomes, a participating employer in the Wisconsin retirement system.(b) The joint instrumentality is not a separate and independent employer within the meaning of s. 40.02(28), Stats., as determined by the department. A joint instrumentality which has not established itself as a separate unit of government for OASDHI purposes is not a separate and independent employer under this paragraph. Example: A joint library district is not a separate and independent employer.
(c) There are persons employed by the joint instrumentality. This section does not apply with respect to employees of a unit of government loaned or assigned to perform services for a joint instrumentality. Those individuals remain the employees of their employing unit of government which is subject to the usual reporting and contribution requirements. Example: If a joint library district's library board hired a librarian but the library was located on the premises of one of the units of government establishing the joint library district, which assigned one of its janitors to the library, then this section would apply with respect to the librarian but not the janitor.
(2) Purpose. With respect to the employees of joint instrumentalities subject to this section: (a) Each participating employer forming a joint instrumentality covered by this section shall be responsible for its share of the retirement benefits of the instrumentality's employees who meet the qualifications for participating employees as both the share and qualifications are determined under this section.(b) Nothing in this section prevents the units of government forming a joint instrumentality subject to this section from providing for their share of responsibility for the retirement benefits of the employees of the joint instrumentality in the agreement establishing the joint instrumentality. If they fail to expressly address the issue then the share of each participating employer shall be determined as provided in this section.(c) Whether an employee of a joint instrumentality covered by this section is a participating employee under s. 40.22, Stats., is not affected by the number of units of government which form the joint instrumentality.(3) Participating employees. (a) An employee of a joint instrumentality subject to this section is a participating employee for Wisconsin retirement system purposes if any of the units of government forming the joint instrumentality is a participating employer under s. 40.21, Stats., unless the employee is excluded under s. 40.22(2), Stats.(b) In making determinations concerning the work expected of or services rendered by an employee of a joint instrumentality, including determining whether an employee is expected to work at least one-third of what is considered full time employment by s. ETF 20.015, the employee's work for the joint instrumentality shall be considered as a whole, without regard for the number of separate units of government which created the joint instrumentality or any agreement among them apportioning responsibility for expenses or for retirement contributions. Example: A librarian working 900 hours per year for a joint library district created by six towns and villages, at least one of which is a participating employer, would not be barred from being a participating employee under the WRS by s. 40.22(2) (a), Stats.
(4) Reporting requirements. (a)Report participating employee. Among the units of government which formed the joint instrumentality, each unit which is a participating employer under s. 40.21, Stats., shall report each employee of the joint instrumentality who qualifies as a participating employee under sub. (3) to the department as its own participating employee.(b)Reported earnings. Earnings shall be reported by each participating employer, in the same manner and subject to the same requirements as for its other participating employees, with respect to each employee of the joint instrumentality required to be reported as a participating employee under sub. (3). The amount of earnings to be reported shall be determined by prorating the gross amount paid to the employee for services rendered to the joint instrumentality which would qualify as "earnings" under s. 40.02(22), Stats., if the joint instrumentality were itself the employer among the units of government which created the joint instrumentality. If the proration is not specified by the agreement that establishes the joint instrumentality, proration shall be made as are expenses for the joint instrumentality. If no proration of expenses is provided in the agreement, each participating employer shall report the total amount of earnings divided by the number of units of government forming the joint instrumentality during that annual earnings period. If a unit of government joins or leaves a joint instrumentality during an annual earnings period, reported shares of earnings shall be adjusted as of the date of that event.(c)Contributions. Each participating employer shall transmit as required contributions to the department the same percentages of the employee's reportable earnings determined under par. (a) as is required, and in the same manner as, contributions on earnings for its other participating employees in the same employment category.(d)Service. The employee's hours of service for creditable service purposes shall be prorated in the same manner as earnings under par. (a) and reported to the department by each participating employer in the same manner as is required for its other employees. Example: If a librarian qualifying as a participating employee worked 1,800 hours annually and was paid $20,000 per year by a joint library district created by a town and a village, both of which are participating employers, and they had agreed to split the expenses, with the town paying 80% and the village 20%, and the agreement was silent on allocating responsibility for the employees, then the town would report 1,440 hours of service and $16,000 in earnings, while the village reported 360 hours of service and $4,000 in earnings, with each making the associated contributions. If the village in this example was not a participating employer, it would have no obligation whatsoever while the town's responsibilities would remain exactly as stated.
(5) Non-participating employers. Nothing in this section shall be construed to require any employer which does not participate in the Wisconsin retirement system to make any report to the department or to pay any contributions to the public employee trust fund.Wis. Admin. Code Department of Employee Trust Funds ETF 10.55
Cr. Register, June, 2000, No. 534, eff. 7-1-00.