Section ETF 20.19 - Treatment of purchased and other creditable service for percentage rates used to calculate retirement, disability and certain death benefits(1) PURPOSE. 1999 Wisconsin Act 11 provides a higher percentage rate under s. 40.23(2m) (e), Stats., for creditable service performed before January 1, 2000. The purpose of this section is to further clarify what percentage rate will apply to creditable service added to a participant's account through service purchases, creditable military service, creditable prior service, and any other service added to the participant's account as a result of a court decision, legislation, or any other means, and assumed creditable service used to calculate a disability benefit as provided in s. 40.63(8), Stats.(2) PURCHASED AND OTHER CREDITABLE SERVICE. For purposes of s. 40.23(2m) (e), Stats., all of the following shall apply:(a) For purposes of s. 40.23(2m) (em) 1 a., Stats., creditable service is forfeited on the date the participant's benefit approval date for a benefit paid under s. 40.25(2), Stats. Note: See s. ETF 10.01(1k).
(b) Purchased service credit under s. 40.285(2) (a), Stats., for service forfeited after January 1, 2000 shall be treated as post-1999 service, regardless of when the services were actually rendered. This same treatment applies to purchased service credit for service that was originally forfeited before January 1, 2000, then purchased under s. 40.285(2) (a), Stats., or s. 40.25(6), 1981-2001 stats., was subsequently forfeited after January 1, 2000, through a separation benefit paid under s. 40.25(2), Stats., then later purchased under s. 40.285(2) (a), Stats., or s. 40.25(6), 1999-2001 stats. Note: Section 40.25(6), Stats., was repealed by 2003 Wis. Act 33.
(c) Purchased service credit under s. 40.285(2) (a), Stats., for creditable service forfeited before January 1, 2000, will be treated as pre-2000 service if the creditable service in question was forfeited before January 1, 2000, regardless of when the service credit is purchased.(d) If for any reason a participant who is eligible to purchase service credit for both service that was forfeited before January 1, 2000 and service that was forfeited after January 1, 2000, purchases less than all of the available service credit, then the payment received shall first be applied to purchase credit for service treated as pre-2000 service. (dm) Purchased service credits under s. 40.285(2) (b), Stats., for other governmental service will be treated as pre-2000 or post-1999 service depending on when the actual services for which credit is purchased were rendered to the governmental entity described in s. ETF 20.17(1) (f).(e) A qualifying period of service purchased under s. 40.285(2) (d), Stats., shall be considered to be performed before January 1, 2000.(f) Executive service purchased under s. 40.285(2) (c), Stats., shall be considered to be performed before January 1, 2000.(g) Creditable service granted under s. 40.02(17) (gm), Stats., for services performed as an assistant district attorney shall be considered to be performed before January 1, 2000.(h) Teacher improvement leave purchased under s. 40.285(2) (e), Stats., shall be considered to be performed before January 1, 2000.(i) Junior teacher service purchased under s. 40.285(2) (f), Stats., shall be considered to be performed before January 1, 2000.(j) Service performed as a member or employee of the legislature or employee of a legislative service agency that is purchased under 1999 Wis. Act 11, section 27 (2), shall be considered to be performed before January 1, 2000.(k) Creditable prior service credited under s. 40.02(16), Stats., that was actually performed before January 1, 2000 shall be considered to be performed before January 1, 2000. Creditable prior service that was actually performed after December 31, 1999 shall be considered to be performed after that date. (l) Any other service actually performed before January 1, 2000 that is credited to the participant's account as a result of a court decision, legislation, or any other means shall be considered to be performed before January 1, 2000 for the purpose of determining the applicable percentage rate under s. 40.23(2m) (e), Stats.(3) CREDITABLE MILITARY SERVICE. For purposes of s. 40.23(2m) (em) 1 c., Stats.,the amount of creditable military service that is considered to be performed before January 1, 2000, is granted in proportion to the final amount of the participant's total creditable service, other than creditable military service, credited to the participant's account.(4) ASSUMED SERVICE FOR DISABILITY BENEFITS.(a) The assumed creditable service under s. 40.63(8), Stats., that is calculated through December 31, 1999 shall be considered to be performed before January 1, 2000, and the assumed creditable service calculated for any period after December 31, 1999 shall be considered to be performed after that date.(b) Any assumed creditable military service for which a participant is eligible based on actual and assumed creditable service that is calculated through December 31, 1999 shall be considered to be performed before January 1, 2000. Any assumed creditable military service for which a participant is eligible based on actual and assumed creditable service that is calculated for any period after December 31, 1999 shall be considered to be performed after that date.(5) CREDITABLE SERVICE FOR PERIODS OF TEMPORARY DISABILITY. Creditable service granted for any period of temporary disability through December 31, 1999 under s. 40.29, Stats., shall be considered to be performed before January 1, 2000. The creditable service granted for any period of temporary disability after December 31, 1999 shall be considered to be performed after that date.(6) TREATMENT OF CREDITABLE SERVICE AFTER A RETIREMENT ANNUITY IS TERMINATED AND THE ACCOUNT REESTABLISHED. When a participant's account is reestablished under s. 40.26(2), Stats., if the participant was not a participating employee after December 31, 1999 but before the effective date of the participant's retirement annuity that was terminated under s. 40.26(1), Stats., the percentage rates under s. 40.23(2m) (e), Stats., shall not apply to the creditable service considered to be performed before January 1, 2000 that was performed before the annuity effective date.(7) TREATMENT OF CREDITABLE SERVICE AFTER A DISABILITY ANNUITY IS TERMINATED AND THE ACCOUNT REESTABLISHED. (a) When a participant's account is reestablished under s. 40.63(10), Stats., if the participant is a participating employee after December 31, 1999, all creditable service that is considered to be performed before January 1, 2000 under this section and under s. 40.23(2m) (em), Stats., shall be considered to be performed before January 1, 2000, for any subsequent benefit calculations.(8) CREDITABLE SERVICE DIVIDED PER A QUALIFIED DOMESTIC RELATIONS ORDER. (a) The percentage of a participant's account that is awarded to an alternate payee in qualified domestic relations order under s. 40.08(1m), Stats., shall be applied equally to the creditable service considered to be performed both before January 1, 2000 and the service considered to be performed after December 31, 1999, which is credited or creditable to the participant's account as of the decree date.(b) The percentage of a participant's account that is awarded to an alternate payee in a qualified domestic relations order under s. 40.08(1m), Stats., shall be applied equally to the creditable military service considered to be performed both before January 1, 2000 and the creditable military service considered to be performed after December 31, 1999, date for which the participant would be eligible based on the years of service that are credited or creditable to the participant's account as of the decree date. Creditable service performed after the decree date does not increase the amount of creditable military service that is awarded to the alternate payee.Wis. Admin. Code Department of Employee Trust Funds ETF 20.19
CR 00-022: cr. Register July 2001, No. 547 eff. 8-1-01; corrections in (2) (e), (f), (h) and (i) made under s. 13.93(2m) (b) 7, Stats., Register January 2004 No. 577; CR 07-062: am. (2) (b), (d) and (3) (d) 2., r. and recr. (2) (c), cr. (2) (dm) Register June 2008 No. 630, eff. 7-1-08; CR 11-040: am. (3) (a), r. (3) (b) Register July 2012 No. 679, eff. 8-1-12; renum. (3) (a) to (3) under s. 13.92(4) (b) 1, Stats., Register July 2012 No. 679.Amended by, CR 19-126: renum. (6) (a) to (6) and am., r. (6) (b) Register May 2021 No. 785, eff.6/1/2021