Section ETF 20.04 - Optional forms of annuity Pursuant to s. 40.24, Stats., a participant may elect one of the optional annuity forms prescribed in this section in lieu of an option prescribed under s. 40.24, Stats.:
(1) A joint and survivor annuity with payments reduced 25% effective either with the payment for the month in which the participant dies, or effective with the payment for the month after the month in which the named survivor who was designated by the participant in the original application for an annuity dies.(2)(a) A joint and survivor annuity payable for the life of the annuitant, with a guarantee period of at least 180 monthly payments, and after the death of the annuitant continued at 100% for the life of the named survivor who was designated by the participant as the named survivor in the original application for the annuity.(b) The participant may designate a beneficiary or beneficiaries as provided in s. 40.02(8) (a) 1, Stats., to receive the balance of payments due in the event of the death of both the participant and named survivor before 180 monthly payments have been made. The participant may change the designation of the beneficiary.(c) A named survivor or beneficiary receiving a deceased participant's annuity payments under this subsection, may designate a beneficiary or beneficiaries as provided in s. 40.02(8) (a) 1, Stats., and thereafter change his or her designation of the beneficiary of any remaining guaranteed monthly payments.(d) In the event of the death of the named survivor who is receiving continued benefits after the death of the participant, but prior to payment of 180 monthly benefits, the remainder of the 180 monthly payments shall continue to the named survivor's designated beneficiary, or in the absence of a designated beneficiary or the death of all the named survivor's designated beneficiaries prior to the death of the named survivor, payment shall be made under the named survivor's standard sequence as set forth in s. 40.02(8) (a) 2, Stats.(e) In the event of the death of the named survivor prior to the death of the participant, the remainder of the 180 monthly payments shall continue to the participant's designated beneficiary, or in the absence of a beneficiary designation or the death of all the designated beneficiaries prior to the death of the participant, payment shall be made under the participant's standard sequence as set forth in s. 40.02(8) (a) 2, Stats.(f) In the event of the death of the beneficiary after becoming entitled to receive monthly payments but before receipt of the remainder of the guaranteed 180 monthly payments, the then present value of the annuity shall be paid, in lieu of the continuation of monthly payments, pursuant to s. 40.73(2) (b) 3, Stats., as a death benefit to the beneficiary's designated beneficiary, or in the absence of a beneficiary designation or the death of all the beneficiary's designated beneficiaries prior to the death of the beneficiary, the then present value of the annuity shall be paid under the beneficiary's standard sequence as set forth in s. 40.02(8) (a) 2, Stats.(g) In the event of the death of both the named survivor and all the participant's designated beneficiaries prior to being entitled to receive benefits, the remaining monthly payments shall continue pursuant to the participant's standard sequence as set forth under s. 40.02(8) (a) 2, Stats., if the participant's death occurs before 180 monthly payments have been made. Note: The definition of "beneficiary" was affected by 2007 Wis. Act 131. The term "named survivor" was first used and defined by 1997 Act 110, and replaced the term "beneficiary" in some cases. In reviewing the existing administrative rules using the term, to make sure the usage remained logical, correct and consistent with the new definition, the department found three provisions that needed amendment, ss. ETF 10.70(4), 10.70(5) (b) 1. and 20.04(2). This rule (CR 09-057) amends the current rule describing the joint-and-surviving annuity option with 180-payment guarantee to use the term "beneficiary" correctly.
(3) An annuity payable under sub. (1) or (2) plus an accelerated payment annuity as determined under s. 40.24(1) (e), Stats. (4) A life annuity with a number of guaranteed payments equal to the number of full calendar months in the life expectancy of the annuitant as determined under the tables at 26 CFR 1.401(a) (9)- 9 as in effect on the date when the annuity begins.Wis. Admin. Code Department of Employee Trust Funds ETF 20.04
Cr. Register, November, 1982, No. 323, eff. 12-1-82; am. (intro.), renum. (2) to be (3) and am., cr. (2), Register, May, 1987, No. 377, eff. 11-1-87; cr. (4), Register, December, 1996, No. 492, eff. 1-1-97; CR 01-096: am. (1), (2) (a) to (e) and (g) and (3), Register December 2001 No. 552, eff. 1-1-02; CR 09-057: am. (2) (b) to (g) and (4) Register May 2010 No. 653, eff. 6-1-10; correction in (2) (c) made under s. 13.92(4) (b) 7, Stats., Register May 2010 No. 653.Amended by, CR 19-126: am. (4) Register May 2021 No. 785, eff.6/1/2021This rule (CR 09-057) concerns the optional forms of an annuity and updates the existing rule to better reflect ongoing changes in federal regulations and to more clearly state that the number of guaranteed payments is to equal the number of full calendar months in the annuitant's life expectancy.