chapter 41 - wisconsindocs.legis.wisconsin.gov/document/statutes/1975/41.pdf · 41.02 public...

806

PUBLIC EMPLOYEE RETIREMENT `(EXCEPT TEACHERS)

Section 41.12 shall control with respect to thevat Table annuity division„

History : 1971 c 21 4 .Note: Chapter 280, laws of 1975, provides in part: " The

Wisconsin retirement fund , the state teachers retirementsystem and the Milwaukee teachers retirement fund are mergedinto one public employe retirement sys tem to be known as theWisconsin retirement system . The employe trust funds board isdirected to prepare and submit to the legislature when itconvenes in Januar y 1977, a bill to reconcile the statutes withthe merger policy declared in this act " . .

41 .02 Definitions. I n this subchapter :(1) "Director" means director of the bureau

which is responsible for the administration of'theWisconsin retirement fund ., ;

(2) "Board" means the Wisconsin retirementfund board

(3) "Fund" means the Wisconsin retirementfund..

(4) "Employer means the state and any city,village, :Sown,, county, common school district,high school district, unified school district,county-city hospital established under s . 66 ..47,sewerage commission organized under s 144,07(4) or a metropolitan sewerage district or-ganized under ss 66,20 to 66 . .26, or any other unitof government, or any agency or, instrumentalityof 2 or more units of government now existing orhereafter created within the state .

(5) "Participating employer" means anyemployer included within the provisions of thisfund . .

(6) "Employe" means any person who:(a) Receives earnings as payment for

personal services rendered to or for the benefit ofany participating employer,.

41 .01 Wisconsin retirement fund. (1)PURPOSE. The purpose of this fund is to provideefor the payment of annuities and other benefits toemployer and to beneficiaries of employer of thestate of Wisconsin and other public employers inthe state,, thereby enabling such employer toprovide for themselves and their dependents incase of old age, disability and death, and therebyeffecting economy and efficiency . in the publicservice by furnishing an orderly means wherebyemployer who become aged or, otherwiseincapacitated may, without hardship orpi ejudice, be xetired from active service .

(2) CREATION OF FUND, A retirement andbenefit fund to be operated and maintained inaccordance with this subchapter is herebycreated. This fund shall be known as the"Wisconsin retirement fund" .. The fund shallwith respect to the accumulation of credits anddthe payment of annuities and benefits therefrom,be divided into 2 divisions to be known as thefixed annuity division and the variable annuitydivision . Each division shall be separately held,managed, administered, valued, invested,reinvested, distributed, accounted for andotherwise dealt with .. Except where it isotherwise specifically provided, or where thecontext otherwise requires, this subchapter shallapply equally to each division of the fund .,

41.01 PUBLIC EMPLOYES RETIREMENT (EXCEPT TEACHERS)

CHAPTER 41

SUBCHAP'IERIWISCONSIN RETIREMENT FUND

41 01 Wisconsin retirement fund41 02 ,. : Definitions,41 03 Wisconsin retirement fund board ,4L, 04 Powers and duties41 :. 08 Employers included and effective dates .41 . 07 Empioyes included; effective dates ; contributions by

employes, employers, state.41-08 Credits to employes ; c r edits for servicemen41 09 Creditable service41 . 10 Contributions by employers .41 105 Adjusted employer contributions .41 11 Compulsory retirement ; annuities41 . 12 . Variable annuities.41 13 Disability annuities :41 . 14 Death benefits.41 . 15 Beneficiary annuities .41 . 16 Separation benefits.

SUBCHAPTERI

WISCONSIN RETIREMENT FUND

41 17 Investment of assets:-41 . 18 Funds.41 . 19 Employer accumulation accounts .4120 Surpluses and reserves .4121 Autho r izations .4122 Assignments41 ' 23 Supplemental benefits .

SUBCHAPTER IICONSERVATION WARDENS PENSION FUND

414 .3 Termination and disposition of fund41 , 44 Employe and employer contr ibutions4145 Board abolished .41 . 46 . Benefits of retired members and survivors con-

tinued41 . . 4'7 Rights of active member s.

SUBCHAPTER IIIOLD STATE RETIREMENT SYSTEM

41 50 State employer' retirement system abolished ; rightspreserved .

Electronically scanned images of the published statutes.

807 PUBLIC EMPLOYES RETIREMENT (EXCEPT TEACHERS)' 41 .02

(b) Is employed by such employer in apositionn no rmally requiring actual performanceof duty during not less than 600 hours a year .

(d) It is hereby declared and determined thatthe offices of lieutenant governor, representativeto the assembly, - state senator , chief' clerk andsergeant at arms of the assembly, and chief clerkand sergeant at arms of thee senate , require theactual performance of duty for more than 600hours in each ,yea r .

(7) "Participating employe" means anempioye other thann an annuitant receiving aretirementt annuity or a disability annuity who iscurrently in the service of a participatingemployer, or an employe who is on a leave ofabsence, subject to the limitations in s . . 41 .07 (1)(b) .

(8). "Group A participant" means a partici-pantwhose creditable service determined pursu-ant to s . 41 . 09 for employment by a participatingemployer terminates prior to January 1, 1966 .

(9) "Group B participant " means a_partici -pant whose creditable current service deter-mined pursuant to s . 4 4, 09 for a parti cipatingemployer commences prior to January 1 , 1966 ,and terminates after December 31 , 1965,provided such pa rticipant -was : a participatingemploye on January 1 , 1966, or a Group Aparticipant whose creditable, service determinedpursuant to s . 41 .09 terminates prior to January1, 1966, but after' September 12, 1965 .

(10) "Group C participant" means ; aparticipant whose . creditable current servicedetermined pursuant to s 41 . 09 for a participat-ing employer commences on or after January 1 ,19.66, .or an annuitant ,or participant who, afterDecember 31, 1965, aga in becomes .a participat-ing employe of such employer,

(10m) "Group D: participant", means aparticipant whose creditable service under thefund terminates on or after March 31,1972 .

(11) (a) "Protective occupationparticipant" means any participant whoseprincipal duties involve active law enforcementtor , aactive fire suppression or prevention ; provideddsuch duties require frequent exposure to a highdegree of danger, or peril and also require a highdegree of physical conditioning .. This definitionis deemed to include any participantwhose nameis certified to the fund as provided in par .. (d) andwho is `a conservation warden; ; conservationpatrol boat captain , conservation patrol boatengineer, -conservation pilot, conservation pa-trolman , forest fire control assistant, member, ofthe state patrol, state motor, vehicle inspector (ifhired prior to January. 1 , 1968) ,, policeman ,;including the : chief and all, other officers,fireman,, including the chieff and all otherofficers, sheriff; , undersheriff, deputy sheriff,countytraffic policeman, state forest ranger, fire

(b) "Protective occupation participant" alsomeans any state correctional .- psychiatric offi cer,state investigator whose prima ry duti es consistof investigatkonal work in enforc ing compliancewith alcoholic beverage, gambling, prostitutionor cigarette laws or special agent in the divisionof criminal investigation of the department of,justice whose name is certif 'ied ' to the fund asprovided in par, (d) . A participating ' employeholding a position designated as a protectiveoccupation by this par agi aph ' on July 1, 1969 willbecome a protective occupation participant onsuch date, provided if he has attained the age of50 on or before such date he submits his writtenelection to be included under this paragraph tothe board not later than June 1,1969

(bb) "Protective _occupation participant"also means any assistant or deputy fire marshalwhose name is certified to the fund as provided inpar ,, (d) . Each employe pa r ticipating under thisparagraph shall be granted creditable service asa protective occupation participant determinedin accordance with s . 41 09 for all service as anassistant or, deputy fire mar shal prior to April 26,1972, and if' he has attained the age of " 50 on orbefore April 26, 1972, he shall be . grantedcreditable service only if he submits his wr ittenelection to be included under this pa ragraph tothe board not later than July 1, 1972 . Eachemploye participating under sthis paragraphshall be granted creditable service as a protectiveoccupation participant determined in ac-cot-dance with s . 41 09 for all service prior toApril 26, 1972 which was previously consideredprotective occupation employment, or which wasperformed in a position designated in thissubsection as 'a position in which an individualwould be a protective occupation participant or ,as an assistant or deputy fire marshal,

(c) Any participant holding a position whichpreviously qualified him as a protective occupa-tion participant but whose , position has beendeleted from this subsection by chapter 355, lawsof 1967, shall cease to be a protective occupationparticipant : effective June 30, 1969, but alllservice prior , to such date as a protectiveoccupation ., . participant shall be considereddcreditable,, service as a protective occupationparticipant .

(d) Each participating employer and eachstatee agency shall certify to the fund on July 1,1969, and quarterly thereafter, in the mannerprescribed .by the board, the names of allparticipating employes classified as protective

watchman employed by the Wisconsin veteranshome, or who is determined' by his participatingemployer (or by his department head i n the caseeof a state employe) to meet : the qualifications setforth in thisparagraph,


41 .02 PUBLIC EMPLOYES RETI REMENT (EXCEPT TEACHERS) 808

(f) Each -participating employe who is aprotective occupation participant on July 1,1969, or after July 1, 1969, if the participant wasemployed as a pr otective occupation participantfor the 12 months ' immediately precedingretirement and makes application for- a retire-ment annuity within 6 months after December23, 1975, shall be granted creditable service as ap r otective occupation participant, determined inaccordance with s. 4109, for all service prior toJuly 1, 1969, which was previously consideredprotective occupation employment or ' which wasperformed in a position designated in thissubsection as a position in which an individualwould be a protective occupation participant

(12) The definition of employe shall notinclude persons :

- (a) 'Who are engaged in teaching within themeaning of 's 42,20 (21) except that, notwith-standing s . 42,20 (10), effective July 4, 1977, allservice as a state constitutional officer shall beincluded under the retirement program providedby subch . I and not under ch , 42.

(b) Who are contributing to any policemen'sor' firemen's pension fund by virtue of' s 61,65 of62 ., 1 :3 (9) (9a) or (10) .

(d) Who are employed under a contractinvolving the furnishing by such persons of morethan their personal services . .

(e) Who are customarily engaged in anindependently established trade, business orprofession and whose services to a participatingemployer, are not compensated fox, on a payroll ofthat employer .

(g) Who are employed as sessional employesin the legislative reference bureau, but any suchemploye who has served 6 months or more insuch sessional position shall, ifappointed to apermanent position, become a participatingemploye as of' the date of such appointment .:

(i) Who before January 1, 1974, are electedto office by vote of the people unless any suchelected person requests the board in writing to beincluded within this fund , Any elected personincluded at his request shall be included duringany subsequent term or, part thereof which hemay servee in the same office or in any otherelective office while serving any participatingemployer . Persons so electing to participate shallbe considered employes on the effective date ofparticipation of the employer ; but only if suchelection is received by the board within 90 days ofsuch effective date and if' such person was in theservice of such employer- on such effective d ate .'In all other cases any person so electing toparticipate shall become an employe as of thefirst day of the month following the receipt by theboard of" notice of such election; , but creditableservice shall be granted for service as an officialelected by vote of the people which has not been

occupation participants determinedd in ac-cordance with t his subsection : An employe maycontest the certification because of its inclusionor omission of his name by filing an appeal to theboard. The board may investigate the relevantfacts and may, on request of either pariy, hold aheating . Upon completion of its investigationand. hearing, if any, the board shall make adetermination which it shall certify to theepat tici_pating " employer or the appropriate stateagency ., The board's .- determination of anemploye's status under this section shall remainin effect until receipt by the board of certifica-tions changing it, which may in turn be subject toappealhereunder .

(e) Each determination of the status of aparticipant under this subsection shall includeconsideration, where applicable, of the followingfactors:

1 A "policeman" is officer or, employe ofa police department,, except one whose principalduties are those of a telephone operator, clerk,stenographer, machinist, mechanic, or otherwiseand whose functions do not cleat ly fall within thescope of active law enforcement even thoughsuch an employe is subject to occasional call, or, isoccasionally calledd upon, to per-form dutieswithin the scope of active law enforcement, butnot excepting any person regularly employedand qualifying as a patrolman, or , equal or higherrank, irrespective of the duties to which he isassigned . .

2 A "f i reman" is any officer or employe of afire department, except 'one whose principalduties are those of a telephone operator, clerk,stenographer, machinist,, mechanic, or, otherwiseandd whose: functions do not clearly fall within thescope of active fire suppression or preventioneven : though , such an employe is subject tooccasional call, or is occasionally called upon, toperform duties within the scope of active firesuppression or prevention, but not excepting anyperson regularly employed and qualifying as afireman; lioseman, or equal or, higher rank,irrespective of the duties to which he is assigned ..

3 . A "deputy sheriff' or a "county trafficpoliceman" is any officer or employe of asheriff's office or, .county traffic department,except one whose principal duties are those of atelephone operator, cler k, stenographer, ma-chinist, mechanic, or otherwise and whosefunctions do not clearly fall within the scope ofactive law enforcement even though such anemploye is subject to occasionall call, or isoccasionally called upon, to perform dutieswithin the scope of active law enforcement, butnot excepting any person regularly employedand qualifying as a deputy sheriff or countytraffic policeman - irrespective of the duties towhich he is assigned ,


PUBLIC EMPLOYES RETIREMENT (EXCEPT TEACHERS) 41 .02809

under s . 41 ..07- (2) and providing he makes allfuture contributions to the fund pursuant to s .4107 (2) (a) 3 or (am) 2.

(15) " "Participant" means any person in-cluded within the provisions of this fund by virtueof'being or having been a participating employe .

(16) "Prior" service" means the periodbeginning on the first day upon-which anyparticipating employe first became an employeof the employer by which such employe`wasemployed on the effective date of participation ofsuch employer, and ending on such effectivedate; excluding all intervening periods duringwhich such employe was separated from theservice of'such employer following a resignation;dismissal, layoff or expiration of any term of'appointment or election as certified by thegoverning body of'such employer . For a personbecoming a participating employe,of" an em-ployer on~ or after January 1, 1966, creditableprior service for that employer shall bedetermined pursuant to s ..41 ..09 . .

(17) : "Current service" meanss the periodbeginning on the day for which the employe first.treceives credit as a participating employe andending on the day of the latest separation fromthe service of all participating employers,excludingg all intervening periods during whichsuch employe shall not receive, nor have a rightto receive, earnings from a . participatingemployer .. For service on or after January 1,1966, creditable current service shall be deter-minedpursuant to s 4109,

(18) "Earnings" means the total amount ofmoney earned by an employe of 'a participatingemployer for personal services rendered to or forsuch employer and the money value, asdetermined by the employer of any board,lodging, fuel, laundry and other allowancesprovided for such employe in lieu of money, butexcluding uniforms purchased directly by theemployer, and employer contributions forinsurance and retirement . For any participatingemployer earnings paid to a participant directlyby any other unit of government shall beexcluded for that employer, Any payment by aparticipating employer to an ' employe ofcompensation for accumulated vacation, sickleave, compensatory leave or any form ofseverance payment because of separation fromemployment is not earnings, as defined in thissubsection, for purposes of this subchapter .Note: The amendmen t by Chapter 3 19 , laws of 1975, is

effective January 1, 1977 .(19) "Rate of earnings" means the actual

rate upon which the earnings of any employe arecalculated at any time, as certified by thegoverning body of the employer in a writtennotice received by thee board, assuming that,unless otherwise specified, the following are

granted previously if the person , before July 1 ,1974, makes all required contributions which hewould have made had he been a participatingemploye in a position meeting the requirementsof sub, (6) during such service plus-thecompounded interest which would . have accruedon said contr ibutions at the effective rate if ' suchofficialhad been a participating employe duringsuchh service . The Wisconsin : retirement . . fundboard may accept the cer tification o f the 600-hourr requirementt for pr ior local electi ve serviceby ;a state senator or representative to theassembly upon his certification of 600 hours oflocal elective service for a maximum of, 8 years 'service .

(m) Are patients or inmates of hospitals ,homes: or institutions performing service therein .

(n) Who are members of a reti rement systemof a city of the 1 st class and who at e employes of avocational , technical and adult education districtc reated under ch , 38 on the date such dist rict iscreated .

(o) Who have been or will be appointed by theuniversity of Wisconsin system under s .. .36 . 19 asstudent assi stants or employes-in - t raining . .

(13) Any elected official of any participatingemployer other than the state who prior toJanuary 1 , 1965, had been , a participatingemploye of that employer , and who became anelected official of that employer prio r thereto,and who, notwithstanding the failure to make theelection .: requi red by sub . : (12) (i) , continuedduring - all. of said service as a participatingemploye and as an elected official to makenormal contributions , shalll be deemed to have soelected prior to his assumption of office if thewritten election required by sub . (12) (i) isreceived by the fund not later than August 31 ,1965 , and his rights and credits as a participatingemploye under said fund will thereupon beratified and confirmed .

(94) . Any participating employe whoo origi-nally obtained membership in the Wisconsinretirement fund under provisions of ' the statutesrelating to :supreme court justices, circuit judges,county judges, memberss of the state legislatureor state constitutional officers who later acceptsemployment : in a state position subject to thisssubchapter without the occurrence ofa break inservice, or, who accepted employment with theWisconsin state agencies bu ilding co rporationand reimburses the fund for the employe sharefor such period of employment , will continue tohave his retirement annuity computed inaccordance with s 41 . L1 .(6) (c) .3 . b, or s: 41 : 11(6) (d),3. b if eligible thereunder , providingsaidempioye: pays into the retirement fund a sumequal to the difference between the contributionsrequired under s : 41 , 07 (2) (a) 3 or (am) 2 andthe actual contributions said employe made


41.02 PUBLIC EMPLOYES RETIREMENT (EXCEPT TEACHERS) 810

(22) "Final excess OASDHI earnings"means, with respect to retirement annuitiescomputed pursuant tos : 41 :11 (6) (c) :

(a) The monthly rate of earnings obtained bydividing aJ the participant's total earnings forthe 5 calendar years, or such lesserr period,determined pursuant to sub . (21) (a), in excessof the amounts subject to contributions undersubch . VI of ch. 40, by b) the number of' monthsof service ` creditable for such years, but suchmonthly rate shall not exceed the amount bywhich the formula final rate of earnings of theparticipant exceeds $5 50 ;or

(b) If a participant has elected to have hisformula final rate of earn ings determined inaccordance with sub, (21) (b), final excessOASDHI earnings means, but only with respectto any retirement annuity computed pursuant tos . . 41 .11 (6) (c) .3 , b, the monthly rate ofearnings equal 'to the excess of a) the formulafinal rate of earnings over b) the greater of one-twelfth of the maximum annual amount ofearnings subject to contributions unde r `subchVI of ch . 40 during the month preceding the lastmonth in which a participant was a participatingemploye in a position or office specified in s . .4111 , (b) (c) 3 , b, or $550 .

(c) Final excess OASDHI earnings of anyparticipant not subject to subch , VI of ch , 40shall be determined as if he were subject tosubch . VI of ' ch. 40.

(23) "Normal retirement date" means theday on which a participant attains the age of a)60 years if he is or : was a protective occupationparticipant ; b) 62 years if he is or was a supremecourt . ,,justice, circuit judge, county judge,member of the legislature, state constitutionallofficer elected by vote of the people, or a Group Dparticipant who is or was a county of municipalofficer elected by vote of the people ; or c) 65years otherwise; but after June 30,1974, normalretirement date for each protective occupationparticipant means the day on which suchparticipant attains theage of 55 years, and afterJune .30 1969, for purposes of s, 41,11 (6),normal retirement date :: :- for• each protectiveoccupation participant means the day on whichsuch participant attains the age of 55 years : Thenormal retirement date of any participant shallbe determined by. the employment category ofthe participant and the applicable statutoryprovisions at the earlier of either the date it isnecessary to make any determination or to takeany action relative to such participant forpurposes of ' the fund, or the date of terminationof employment of the participant ; notwithstand-ing the fact that a participantmay have been inone or more different employment categories atanyy previous time. For purposes of comput ingthe formula annuity under s. 41 .11 (6) of a

equivalents: 2,000 Hours, 250 days, 50 weeks, 12months, one year:

(21) "Formula final rate of earnings"means :

(a) Except as provided in par. (b) or (c ) , themonthly rate of earnings obtained by :dividng 1)the pa r ticipant's total earnings received from. aparticipating employer, during the . 5 calendaryears (excluding any year more than 5 yearsprior to the effective date) in , which suchearnings, were the highest during the calendar,yeas preceding the January 1 following the dateof his latestt separat ion from the servicee of thatemployerby 2) the number of months of servicecreditable to hi m for such 5 years ; if a participanthas earnings for, Less than 5 such calendar year 'shis formula final rate of earnings is the rateobtained by ,.divid ing his total earnings for allsuch years by the total number of months of hiscreditable service therefor ; or

(b) If so elected by a participant, "formulafinal rate of earnings" means, but only withrespect to any annuity computed for a partici-pant for service as a supreme court justice,circuit judge, county judge, member of thelegislature or state constitutional office r electedby vote of the people, one-twelfth of the annualstatutory salary which would have been payableto such participant during the last completedmonth in which such participant was aparticipating employe in such a position if' he hadnot been prohibited by law from receiving anincrease in such salary during his term of office ;or

(c) Except as provided in par. (b), "formulaafinal rate of earnings" _ for a GroupD participanttmeans the monthly rate of earnings obtained bydividing 1) the participant's total earningsreceived from all participating employers duringthe 3 calendaryears (excluding any year more .ethan 3 `years prior to the effective date for anyparticipating employer) in which such earnings ,were the highest during the calendar yearspreceding the January 1 following the date of hislatest separation from the service of all suchemployers by 2) the number of months of servicecreditable tabim for such 3 years; if a participanthas earnings for less than 3 such calendar yearshis formula final rate of earnings is the rateobtained by dividing his total earnings for allsuch years by the total number of months of hiscreditable service therefor , The divisor in 2)shall not include more than one month for eachcalendar month in the divisor period . The boardmay -adj ust ' anyy computation hereunder asnecessary to preventt any inequity which mightotherwise exist if a participant has a combinationof full-time arid part-time service .


811 . PUBLIC EMPLOYEE RETIREMENT (EXCEPT TEACHERS) 41 .03

participant who has creditable service in 2 ormore of the categories specif i ed in s 41 . . 07 : (2)(a)' or (am), the normal retirement date foreach suchcategory shall be used to deter mine theamount of annuity to be paid with respect tocreditable service in each suchcategory.,

(24) "Annuitant" means a person receiving aretirement annuity, beneficiary annuity or adisability annuity from this fund, including aperson whose annuity has been suspended .

(26) "Annuity" means a series of monthlypayments payable at thee end of each calendarmonth during the life of the annuitant or dur ing aspecific period. Each such annuity shall accruefrom its beginning .. datee as specified in thissubchapter . The first instalment of each annuityyshall be due on the last day of the calendar monthin which the annuity was approved and shall bethe amount of ' annuity accrued through such duedate . . The last pa yment shall be made as of theend of the calendar month pr ior to the month inwhich the annuitant dies, except as otherwisespecifically provided in this subchapter .

(27) "Variable annuity" means any annuityprovided by credits segregated for a variableannuity pursuant to s, 41 .12 theamount of whichwill change in accordance with s . 41 .12 (10) : A"fixed annuity" is any other annuity .

(29) (a) "Governing body" means thecommon council in cities, the village board invillages, the town board in towns , the countyboard in counties, the school boardd in schooldistricts except as to schools in a city schooldistrict, or the board, commission or othergoverning body havingg the final authority forany other unit of government or for any agencyyor instrumentality of 2 or more units ofgovernment, or any agent duly appointed by anysuch body and designated in a written notice filedwith the board as being authorized to act f 'o r anysuch body in matters pertaining to the fund Forthe state thereshall be a governing body fo r eachconstitutional ;office, department and independ-ent` agency, the court administratorr and thelegislatu re which governing body shall, be thehead of such state unit Thee head of any suchstate unit inay, in a written designation filed withthe board, name an employs of the unit to act forhim in all matter s per twining to the fund :

(b) Notwithstanding par , (a), the directormay authorize the governing - body of aparticipating employer which is a city : operatinga city school : district to delegate to the schoolboardtheresponsibility for acting with respect toemployes under the control of theschool boa rd inall matters pertaining to the -fund, but any suchdelegation of responsibility shall not be con-strued to relieve the governing body of'f such

participating employer from any liability other-wise imposed on the participating employer- bythis subchapter .:

(30) "Effective date" means the date uponwhich the provisions of this fund becomeapplicable to any, participating employer asprovided ins, 41,05,

(31) "Effective rate of interest" means thesate determinedd by the :board from theexperience of the calendar year or part thereof'for the fixed annuity division which, aftermaking provision for the reserves authorized bys . 41 . .2.0 (2) and after providing for interestrequirements on the fixed annuity reserves, willdistribute the remaining investment incomefrom assets of the fixedd annuity division for theyear, less the . administrativee costss of thee fixedannuity division for the year, to the balances inthe accounts of the individuall employes in thefixed annuityy division and to the employeraccumulation accounts ..

(32) "Prescribed rate of interest" means thesate of interest to be used f'or, all calculations ofamounts of annuities and benefits, as determinedand certified by the board on the basis of theprobablee average effective rate of interestearnable on investments on a long-term basis ..

(33) "Calendar quarter year" means aperiod of 3 months beginning on January 1, April1, July. 1 of .October 1 of any year . Solely for thepurpose of determining the number of calendarrquarter years of completed service, a personentitled to curt ent or prior service credit for anypart of a calendar quarter, ,year shall be deemedto have completed service for such quarter year,

(34) "Accrued liability" meanss the presentvalue at any time of the future contributionspayable by a participating employer as deter-mined pursuant to s.. 41 ..10 (2) (a) of s 41 .105(1) (c)His to ry : 197'1 c 21'1 ; 1971 c. 214 ss, 20 to 34, 148 ; 1971 c .

256, 258 ; 1971 c .'2'70 s : 99; 1971 c : 307 . §s . 25, 26 ; 1973 c : 12 s..37 ;1973c 20,151,288 ;1973c , 333s 201 m ; 1975 c 137, 189,224,'319 .

Employes hired by the manager of the Madison transittsystem pursuant to a management contract between the cityand the manager are employes of the city for purposes ofretirem8nt, group insurance and social security 59 Atty . Gen .192.

the federal age discrimination in employment act of 1967,as amended ; does not invalidate (23) or 41 11 (1), mandator yretirement at reaching retirement age 63 Atty Gen 530 .

41 .03 Wisconsin retirement fund board.(:1) (a) The Wisconsin retirement fund shall beconstrued to be a trust and each member oftheWisconsin retirement fund board shall bedeemed a trustee..

(b) Any member of'the board shall cease to bea member of the board upon losing the statusupon which hisappointment was based

(2) (b)- The director shall be in, char ge of thetechnical administration of the fund and shall


41.03 PUBLIC EMPLOYES.RETIREMENT (EXCEPT TEACHERS)' 812

explanatory material to any other participantupon request.

(i) Keep a_ permanent record of all theproceedings of the board .

(j ) Employ - or : select such admin istrative,clerical, medical, legal and other, employes orindependent contractors as are required for theadministration of the fund' . The actuary oractuar ial firm retained under s . . 40 .. 02 shall be thetechnical advisor of the board and in addition togenetal advice he shall :

` 1 -. Make a general investigation immediatelyupon the establishment of the fund and at leastonce every 3 years thereafter of the experience ofthe fund as to mortality, disability, retirement,separation, interest and employe earnings ratesand to certify as a result of each suchinvestiigation, 'tHetables to be used for computingannuities and benefits and for determining the

premiums for disability purposes, and theprescribed r ate of interest .

1, Determine the proper rates of employercontributions under s . 41 10 .

3 .. Make an annual valuation of the liabilitiesand reserves required to pay both present andprospective benefits

4 . Compute and certify the actuarial figureson the annual financial statements of the board . .

5 Certify, when so requested, the amount ofany annuity or benefit granted by the board .

6 . Advise the board on any matters of anactuarial nature affecting the soundness of thefund or requiring any changes for moresatisfactory operation .

(2) The board may :(a) Compel witnesses to attend meetings and

to testify upon any necessary matter concerningthe fund and allow fees not in excess of thestatutory provisions .

(b) Request such information from anyparticipating employe or from any participatingemployer as is necessary for the proper operationof ''the fund.

(c) Determine the length of p i for service fromsuch information, as is . available. Any suchdetermination shal be coclusive as to any suchperiod of service `unless within 2 years of theissuance of the first individual statement to anyemploye the board reconsiders any such .caseandchanges thedetermination . Notwithstanding theforegoing provisions of this paragraph, in anycase where. the determinationn of prior " servicecredits has been made and such 2 yea rs haveexpired, the board may change such deter mina-tion provided the employer certifies that suchdetermination was the result of a purely clericalor typographical mistake and produces adequatesupporting information ..

(d) Accept any gift, giant or bequest of anymoney, or property of any kind, for the purposes

have such additional powers . and duties as areproperlydelegated by the board . .

(3) The department of justice shall furnishlegal counsel and shall prosecute or defend allactions brought by or against the boar d .

(4) The state treasurer shall be the treasurerof the fund and shall be responsible for the properhandling of all the assets of the fund inaccordance with this subchapter .' .History: 1973c 20

41:04 Powers and duties. (1) The boardshall :

(a) ' Mail notice of each meeting to eachtr ustee at least 5'days prior to the meeting . .

(b) Consider and pass on all applications for'annuities and benefits, authorize the paymentsof all annuities and benefits and terminate anysuch payment, all in accordance with thissubchapter' . . Separation benefits, death benefits,retirement annuities,, beneficiary annuities anddisability annuities which do not - involve anymedical uncertainty as to the existence of adisability may be processed and paid upon theinitial approval of 'the director , and the actuarywhen his certification has been requested, but nosuch annuity `shall be continued beyond the dateof the meeting of the board next following thefirst payment thereof unless the payment of theannuity is then authorizedd by the board „ Thedirector with the approval of the legal advisor,may suspend an annuity pending final action bythe board when in their judgment the annuitantis not eligible to receive such annuity ..

(c) Cer tify all normal employer , contributionrates ' and the prescribed rate of interest ascertified in writing by the actuary and notify allparticipating employers thereof.

(d) Approve the tables to be used forcomputing annuities and benefits after ', certifica-tion thereof in writ ng by the actuary .

(f) Submit an annual statement to " theegoverning body of each participating employer,and to any participating employe upon request ,as soon after the end of each calendar year aspossible „ Such statement shall include a balancesheet, showing the, financial and actuarialcondition of the fund as of the end of the calendaryear, a statement of receipts and disbursementsduring such year, a statement showing changesin the assets , . liability, ; reserve and surplus;accounts during such year, information as toinvestments,and, such additional statistics as aredeemed necessary for a proper interpretation ofthe condition of the fund:

(g) Submit once each year to each participantcurrently making contributionss a statement . ofhis account together with app ropriate explanato-ry material, and fu rnish such statement and


813 PUBLIC. EMPLOYES RETIREMENT (EXCEPT TEACHERS) 41:05

the fund prior to January 1, 1961, determine thatthe employer contribution rate for such countyfor the first year of participation shall not includethe component for prior service cost, and theemployer contribution rate for the 2nd year ofparticipation for such county shall include one-half ' the component for prior service:. . . Thedeficiencies for such countyy for these 2 yearsshall be financed over the balance of the 40- ,yearperiod under s. 41 . 10 (2) (a) .

(5) Election by an employer to be includedwithin the provisions of this fund shall be madeby a resolution adopted by a majority of all themembe rs of the governing body, which govern-ing body shall submit a certified notice of suchelection to the board Such notice must :_ (a) Be in writing ;(b) Indicate the date of ' sueh election;(d) Be officially certified by the employer .(6) If the effective date is prior to January 1,

1966, pri or service cr edit s shall be computedpursuant to s . . 41,08 (1) (a) 1, provided that inthe computation of such prior service credits : .

(a) No credit shall be given for state service asa teacher forwhich the state made a state depositunder subch. I of ch . 42 ,

(n) Each supreme court ,justice and circuitjudge who makes the election pursuant to s .41 .02 (12) (i) shall be given prior service creditas of January 1, 1952, in accordance with s .41 .08 (1) (a) .1 for service prior - thereto assupreme court justice, circuit judge or countyjudge, or as full-time judge of a court of record,municipal or inferior, at the rate of 2 times theemployer credit for cur r ent service . Prior servicecredit for service as county judge, or as full-timejudge of ' a court of' record, municipal or inferior;shall be based only upon his salary as such judge(excluding fees and salary as juvenile , judge)computed on the basis of the earnings for the last3 years of service as such judge (or less if ' thetotal be less), and such prior service credit shallbe reduced by an amount equal to theaccumulated prior service credit theretoforegranted to such participating employefor serviceas such judge and by an amount equal ' to theaccumulation of all normal and employermatching credits for service as such judge,including interest which has been credited . .

(r) Any elected state officer who was electedprior to August 30, 1957 , but who was noteligible to be included under the fund before saiddate, and who, after such date and having servedin such elective office continuousl y therefrom,files with the fund an election under s . 41 .02(12) (i) and within 60 days thereafter ' makes allnormal contributions from January 1, 1957, tothe first day of' the month following the date of'filing such election, shall be credited with priorservice credits as of January 1, 1957, for eligible

41 .05 Employers included. and effectivedates. (1) Any employer, except a city which onMarch 31, 19722 was a city of the lst class, acounty having a population of 500,000 or moreand the state, shall be included within andsubject.t to the provisions of this fund by soelecting, in accordance with this section . If theofficial notice of election to be included has beenreceived by the board on or before November 15the effective date of participation of suchemployer shall be the ensuing January 1 ;otherwise the effective date shall be the January1 after the ensuing January 1 The state is herebyincluded,, effective January 1, 1948 .. .A city orvillage which has not elected to participate butsome of whose employes will be included withinand subject to this fund on or after January 1,1948 shall be included within and subject to thisfund effective January 1, 1948, as though suchemployer had elected to participate herein, butuntil such employer doess actually so elect andsuch election becomes effective, its employesincluded within and subject to this fund shall beonly those specified by ss . 61 : .65 (6) and (7),62 1 .3 (9) (e), (9a), (10) (f) and (g)„

(2) Whenever any school district is created,the territory of which includes more than one-half' of the last assessed valuation of either aschool : district which was a participatingemployer at the time of such creation or a citywhich at the time of such creation was aparticipating employer and which operated acity school district, the school district so createdshall automatically be a participating employerfrom its inception, but no prior service creditsshall be provided for any personnell thereof .

(3) Any county which may elect to beincluded within thee provisions of this fundd may inthe resolution and in the certified notice ofelection submitted under' sub . . (5) if received by

designated by the grantor if such purpose isspecified as providing cash benefit 's to some or allof the ;participating employes or annuitants ofthis fund; or, if ' no such pu r poses are designated,then for the purpose of distribution to all of theparticipating employes at the end of the year inthe same proportion as the interest at theeffective rate is allocated for the year .;

,(e) Establish rules for the efficient adminis-tration of thee fund and make, amend or repealrules which change the time or period withinnwhich or , by :which or for which reports must bemade or other acts must be performed , :

(f) Carryon any reasonable activities deemednecessary to carry out the intent and purpose ofthis fund in accordance with this subchapter

(g) Delegate powers and duties as deemednecessary or desir able ,.

History: 1971 c , 123 ;1971 c 214ss 35,36,148 ; 1973 c 13 '7 . .


41 .05 PUBLIC EMPLOYES RETIREMENT (EXCEPT TEACHERS) 814

state shall reimburse that county f'or' the cost inexcess of such-1 50% .'

2. In determiningthe average county mill taxlevy for any calendar year for said fund thedirector of'the fund shall base such computationupon a certification by thee department` ofrevenue as to the total equalized valuation forgeneral property taxes in each county under saidfund collected in the calendar year for whichemployer contributions are paid . . Such averagecounty mill tax levy shall be computed bycomparing the aggregate employer 'contiibu-tions for such year to the aggregate equalizedvaluation of'suchcounties as above indicated andthe rate for- retirement purposes for each countyshall . be determined by dividing its employercontribution by the equalized valuation for-genet al property taxes of such county..

3., The director of said `fund shall annuallycertify to the department of'revenue for paymentto the counties out of'the appropriation providedby s. 20.855 (2) (a) such amounts as eachcounty is entitled to receive pursuant to thissubsection-for excess costs incurred for said fundcontributions in the preceding calendar year, butno county shall be entitled to reimbursement forany calendar year prior to 1962 .

4 Payments made by any participatingemployer, pursuant to s. 41;07 (2) (c) shall notbe considered employer contributions,

Histo r y: 1971 c . 214 ss 37, 38,148 ;1975 c . 189 .

41 .07 Employes included ; effective dates ;contributions by employes , employers,state . (1 ) EMPLOYES INCLUDED AND EFFECTIVEDATES, (a) All persons subject to thissubchapter shalll be included within ; and shall besubject to, the provisions of this fund, beginningupon the dates her einafter specified :

1 . All such persons who are employes of anyemployer on the ef'f'ective date of'participation ofsuch employer as provided ins 41 . .05, beginningupon such ef'f'ective date . .

2 . All such persons who become employee ofany participating employer after the effectivedate of participation of such employer, asprovided in s ; 41 .05 ; beginning upon the first dayon which any such per son has met all of'the otherqualifications f'or, becoming a participatingemploye .

4. All members of the state employee'retirement system who shall` be on a leave of'absence from the state service on January 1,1948 or who shall be contributing to said systemon December- 31;1947, except those who will beretired under said system effective January 1,1948, pursuant to s 42 71 (1) (c) [State . 1947]shall become participating employee hereundereffective January 1, 1948 and shall be governedby this subchapter,

.?:S, see 19,55 Stats., s . . 66 962 (5) ; (c), (d) and(e) ` repealed;, 1957 c. 60,: s. 13, but , rightscreated or , action taken prior to repealpreserved .]

(9) (a) 1 . Notwithstanding this section everycounty having a population of less than 500,000which has not hitherto elected to becomee aparticipating employer shall on January 1, 1962,be a participating employer,

2 , The sheriff of any such countyy shall, if heelects prior' to January 1, 1964, to be includedwithin the fund pursuant to s , 41 .02 (12) (i), becredited with prior service credits, as of the datehe becomes a participating employe, equal to theamount of prior service credits , he would havereceived had he become a: participating employeon . January 1 ;1962 .,

(:6) . 1 . If thee employer contributions paid byany county as a participating employer under theWisconsin retirement-. fund shall in any calendaryear exceed by more than 50% the average milltax levy imposed in such year by all countiesunder said fund for contr ibutions to said fundthe

state service prior, thereto at the rate of 2 timesthe employer credit for current service and withemployer credits from January 1, 1957, to thefirst day of the month following the date offilingof such election . Any such electionn made afterMarch 31, 1972 shall result in the crediting, as ofthe date:, of payment in compliance with thisparagraph, of creditable service for the per'iod oftime indicated in each case rather than in thecrediting of prior service credits or employer,credits .' (s) Each person who was a county judge onJanuary 1, 1962, in a county which became aparticipating employer on January 1, 1962, isentitled to prior service credits for all priorqualifying service for such county not heretoforecredited . Such prior service credit shall becomputed upon the basis of the ea rnings for thelast 3 years of such service (or, less if the total isless) and included in the obligation of thecounty.

(t) Each participant who was a participatingemploye of the state on January 1, 1966, shall begiven creditable service, as of such date, for allservice as a member of the legislature ' and allservice as a state constitutional officer elected byvote of the people, which has not previously beencredited under any other provision of law . Theamendment of this paragraph by chapter ' 581,laws of 1965 shall not affect any rights created oractioirtaken pursuant to this paragraph prior toJuly 8,1966 .

(7) If the effective date is after December .3 1,1965, creditable prior service shall be computedpursuant to s. 41 .09 .

(8) j(a) and (b) not pr inted; 1957. c. . 60, s .


PUBLIC . EMPLOYEE RETIREMENT (EXCEPT TEACHERS) 41.07815

5 . Thee effective date for supreme courtjustices and circuit judges shall be January 1,1952 . . Each supreme court justice and circuitjudge who files his official oath on or afterAugust 17, 1957 shall be included within thefund and be ` subject to this subchapter,notwithstanding s . 41 .02 (12) (i) .

6 .. In all counties under 500,000, every countyjudge whose official oath is filed on or afterJanuary 1, 1954 and every other full-time judgeof a court of record, municipal or inferior, whoseofficial oath: is filed on or after January 1, 1956,shall be included within the fund and be subjectto this subchapter notwithstanding s . 41,02 ( 12)(i) - except that in computing his normalcontributions, all fees and all salary as juvenilejudge shall be disregarded and no prior servicecredit shall be granted because of'such inclusion . .

(b) Every leave of absence : granted by aparticipating employer to a participating em-ploye except a military leave shall automaticallyterminate at the end of 2 year s f 'or the putposes ofthiss fund, if not previously terminated by theparticipating employer . No leave of absenceshall be deemed to -havee been ended orinterrupted by reason of resumption of activeduty until the , participating employe hasresumed active performance of duty for theparticipating employer which granted such leaveof absence for at least 18 working days within aperiod of30 consecutive calendar days: .

(d) Ef 'f 'ective on January 1, 1970, employes ofthe Minnesota-Wisconsin boundary area com-mission are state employes for purposes ofsubchs II and VI of ' ch . 40 and subch . I of ch 41,if such employes, as a result of any agreementapproved under s . . 14..82, are not eligible toreceive similar benefits from any other statecovering the same period .

(e) Employes of the Wisconsin hous ing 'finance authority, the Wisconsin health facilitiesauthority, and the Wisconsin solid wasterecycling ' authority are state employes forpurposes of subchs: II and VI of ch : 40; subch . Iof' ch . 41 ands: 16,30 (2) and (2m) .,

(2) CONTRIBUTIONS BY EMPLOYES, EM-PLOYERS, srnaE . Each participating employeshall make contributions to the fund as follows :

(a) Effective for participating earnings paidon of after January 1,196b ;

1 For each employe not otherwise specified,4 1/2% of such earnings which are sub ject tocontributions , ; under the federal OASDHIsystem, plus 7% of ' such earnings in excess of theamount subject to such contributions .

2 ..' For each participating employe whoperforms services in connection with an activitycarried on cooperatively by the federal govern-ment and a participating employer, : ,whichservices have been determined not to be subject

to the federal OASDHI system, the amounttwhich would be contributed under subd . 1 if suchservices were subject to the federal OASDHIsystem . .

3 For each supreme court justice, circuitjudge, county judge, member of the statelegislature and state constitutional officer, 5 %of such earnings which are subject to contribu-tions under the federal OASDHI system, plus7% of such earnings in excess of the amountsubject to such contributions .

4 . For each protective occupation participantcovered by the federal OASDHI system,5 1/2% of such earnings which are subject tocontributions under the federal OASDHIsystem, plus 8 % of ' such earnings in excess of theamount subject to such contributions .

5 , For each other, pprotective occupationparticipant, 7 1/2% of such earnings whichwould be subject to contributions under thefederal OASDHI system if such participant wasincluded in the federal OASDHI system, plus8 % of such earnings in excess of the amountwhich would be so subject to such contributions

7 . Additional contributions of ' such amount asar ereceived for any participating employe .

(am) Effectivee for earnings paid on or afterJanuary 1,1974 :

1 .. For each employe not otherwise specified,5 % of ' suchearnings .

2 . For eachh supreme court justice, circuitjudge, county judge or state, county or municipalofficer elected by vote of ' the people, 5-1/2 % ofsuch earnings. ,

3 . Forr each protective occupation participantcovered by the federal OASDHLsystem, 6 % ofsuch earnings

4 . For each, other protective occupationparticipant, 8 % of such earnings .

5 . Additional contributions of such amount asare received for any employe .

(b) Except as provided in par, (c) or (d) allnormal contributionss shall be deducted fromeach corresponding payment of earnings paid toeach participating employe and shall be due andbe deposited in thee office of the board by theemployer not later than the end of the month inwhich the ea rnings are paid . . The deductionsfrom earnings of participating employes of thestate and the duplicate monthly report ofearnings required by the fund shall be due and bedeposited in the office of' the board by therespective departments, boards or commissionsin which such employes are employed not laterthan the end of ' the month in which the earningsare paid .

(c) For participating employes other thanstate employes, in lieu of the contributionsr equired by par (a) or (am), all or part of suchcontributions may be paid by the employer ; but


41.07< PUBLIC EMPLOYEE RETIREMENT (EXCEPT TEACHERS) 816

employer on the effective date provided suchdate is prior to January 1 ; 1966, shall be credited,as of such date, with a prior service credit of anamount equal to 2 times the accumulated value,as of' such date, of' the contributions which wouldhave been made during the entire period of priorservice of such employe, assuming. the earnings .of such employe ' to have been uniform d 'ur ' ingsuch period of prior, service and equal to themonthly earnings obtained by dividing thee totalea rnings during the , period of the 3 calendaryears immediately preceding the effective date,by the number of months in such period for-which . . any earnings were received by suchemploye ; the rate of contribution to have been3% except that for policemen,, including thechiefand all other officers, county undersherif'fs,deputy ' sherif'f's and traffic policemen, the rate .shall be 5% and for firemen, including the chief "and other of 'f'icers, therate shall be 7 % unless onthe effective date Such employment is includedunder the fedeial old age, survivors, anddisability insurance system in which event therate shall be 5% ; the contributions to t eachcalendar : year to have been made at the end ofsuch year ; and the contributions to haveaccumulated with interest at the rate of 3% perannumcompoundedannually

2. For current service, each participatingemploye sha ll be credited with the followingamounts as of the dates specified :

a . Additional credits of amounts equal to eachpayment of additional con tr ibutions receivedfrom such employe, as of the date thecor r esponding payment of earnings is payable tothe employer

b , NoimaLcredits of amounts equal to eachpayment of normal contribut ions received fromsuch . empioye, as of' the date the correspondingpayment of ear Wings is payable to the employer

c Employe r credits of amounts equal to eachnormal credit of,.eaeh employer as of the date _of 'each corresponding normal creditt in respect toearnings payable to the employe pr ior to January1,1966 . . : r.

3 : Upon termination > of an annuity inaccordance with s : 41 , 11 (12) or 41 13 ` (2) (e) ;each participant whose annuity is so terminatedshall be credited, as of the date such annuity isterminated, with additional, normal,' employerand 'p t ior service credits of amounts equal to thethen present value of the portion of thete i ininated annuity which was originally pro-vided by the: corresponding typeof credit Uponreceipt; trp tfie fund of reimbursement under s .41 23 ' (4) of disab Iity annuity payments paid toany participant, such ` participant shall becredited, : as of the date af`f such receipt, withadditional, normal,

.employerand prior service

all such payments shall ' be reported to the boardas though contributed, by ' participatingg em-ployes, and all such payments shall be availablefor all retirement fund benefit purposes to thesame extent as normal contributions which werededucted from the earnings of such participatingemployes , Action to assume employe contribu-tions as provided herein shall be taken at : suchtime and in such form as is determined by thegoverning body of the participating employer .

(d) Effective for earnings "received I after June30, ` 1967, by each participating employe of " thestate, an amount equal to 2% of each payment ofearnings shall be paid by the state, in, lieu of anequal Amount ofthe contributions required to bemade by par . (a) or (am) : The amount to `bepaid by the state under this paragraph shall beincreased on July l,' 1969, to 2-1/2%, onJanuary 1, 1970, to 3%, and on July 1, 1970, to4% of each payment of earnings . . Such paymentsby the state shall be credited to the account ofeach participating employe and shall be availa-ble for all retirement fund benefit purposes to thesame extent as normal contributions which werededucted from the earnings of such participatingemployer,For purposes of computing retirementfund contributions and benefits and maintainingaccounts, all earnings of state employer earnedbut not paid, prior to July 1, 1967, shall bedeemed to have been paid prior- to -, July 1, 1967,

(3) JUDGES AND COURT" REPORTERS UNDER .STATE RETIREMENT PLAN . County judges andcounty court r eporters, except in counties havinga population of 500,000 or more, shall beincluded under retirement; group insurance andsocial security pursuant to suticfi ; I of ch 41 andsubchs II and VI of ch 40, r espectively, for-salaries, paid to county judges pursuant to s . .20.923 and for salaries paid to county courtrepor ter s pursuant to s . 20 .923 (7) upon thesame basis as state officers and employer, withthe employer cost `tfiereurider being paid by thestate Circuit cou 'r 't reporters shall be includedunder subcH T of `ch 41 for all salaries paid tosuch reporters, , and may be included foradditional compensation paid pursuant to s ..252 '.. 19 .

History : 19 71 c 42, 125 ; 1971 c. . 214 ss 39 to 46, 148; 1971c : 307 ;1973 c,208 ; 192 3 c .243s ' 82 ; 1473 a 386s ; 79; 1975.c1:26,. 224

41.08 lCredits to empioyes ; credits for .servicemen . (1) CREDITS TO E mrLaYES ., (a)For the purpose of determining the amount ofany annuity: or benefit to which an employe or

ybeneficiary shall be entitled, each partic i patingemploye shall be cred ited with the followingamounts, as of" the dates specified :

1_ : For ~prior,: service,- each ': pacticipatiugempIoye who is an <ernptoye of a participating



credits of the same amounts as were accumulat-ed in his accounts on the date of commencementof such annuity..

4 . When any person who was a member of thestate employes ' retirement system on December31,1947, becomes a participating employe underthe Wisconsin retirement fund, the board shallcertify such fact to the investment board whichshall forthwith certify to the Wisconsin retire-ment fund board the total sum to the c redit ofsuch person in said former system , including anequitable amount of interest from July 1, 1947,which shall be determined by the investmentboard and by it credited to the respectiveaccounts , indicating the amount attributable toregular contributions and interest , and theamount attributable to additional contributionsand interest which Wisconsin retirement fundboard shall thereupon credit' the amountattributable to regular contributions and interestand the amount attributable to additionalcontributions and interest, as an additionalcredit to an account which shall be establishedforthwith for such participating employe in theWisconsin retirement fund . The portion of suchadditional credit which is attributable to regular,contributions and interest under the stateemployes ' retirement system shall be treated asnormal credits except that no correspondingemployer credit therefor shall be given pursuantto subd . 2 ;,' Whenever the investment boardmakes such ' a certification, it shall forthwithtransfer, by cash payment or sale or assignmentof securities from the state employes' retirementfund to the Wisconsin retirement fund, assetsequal in value to the total of the amounts socertified,' The investment board may make acorrectional or, supplementary certification andcorresponding transfer of 'Assets atAnytime,

7 . Notwithstanding any other provision of thissection, any participating employerr other , thanthe state may grant creditable prior service toany participating employe ' who has beenemployed bysuch participating employer for notless than 15 years, whether " befo re or after theeffective date for such participating employer,but who was not an employe of such par` ticipat=ing '% employer <on the effective date , if suchparticipating employe returned to thee employ-ment of such participating employer within 4years following `such effective ' date: Whenparticipating employer, desires to grant any suchcreditable prior service ; the governing body ofthe parxicipatng emplo yer shall so certify to thefund and shall furnish all information necessaryto make a determination of the' amount of suchcreditable prior, service . The present value of the -ec r editable prior '`service thus granted shall bepaid by the participating employee wh ich giantssuch service within ' 30 'cIays " after , the date of

notification by the board of the amount due, butsuch amount shall not be considered an employercontribution for purposes of s . 41 . .05 (9) (b),

8 . Theprior service credits of every -participat-ing employe of each employer on January 1,1960, shall be redetermined where necessary toinclude in his total earnings during the 3calendar ' years immediately preceding theeffective date under ' subd . I all earnings in excessof $4,200 per, year as an employe of thatparticipating employer, as of the effect ive date ofparticipation of that participating employer' . .Any increase in the prior service credits of theemploye of an employer 'under this subdivisionshall be added to its obligation under s . . 41,19 (1`(a )9 .. The prior service credits of everyparticipat-

ing employe of each employer on January 1,1960, shall be redetermined as of such datewhere necessary to include credit f 'or' each year ofhis service for that participating employersubsequent to its effective date of participation,and prior to January 1, 1958, in an amount equalto the product ofthe normal contribution rate forsuch participating employe for such yearmultiplied by the amount of the earnings paid tohim in such , year, but not . considered asparticipating earnings due to a limitation then ineffect under 's' 41.02 (18) on the monthly orannual amount of earnings, without interest . .Any increase in the prior service credits of theemployesbf an employer under this subdivisionshall be added to its obligation under s .. 43 19 (1 j '(b) to be paid under s, 41 .10 (2) (b)

14 rEach person who is a county court reporteron the first Monday in January, 1962 and who onDecember 31, 1961, occupied a county positionqualifying under s . 41,02 (6) but who was not aparticipating employe shall as of' January 1,1962 receive prio r service credit for all servicefor such county subject to s . . 41,02 (6), as anobligation of the state.

15 . Any state participating employ 'e who hasnot received prior service credit" who had at leastI S continuous years of eligible state service priorto Janua ry 1, 1950, and who has been aparticipating employe continuously for S , yearsor more between January 1 ; 1950, and <January1, 1961, shall receive prior serv i ce credit as ofJanua ry 1 , 1950, for all eligible state serviceprior thereto Such prior service credits shall, begranted only if' any such employe within 60 dysof January 14 1966 conti ibutes . to the fund as anormal contribution any amounts previouslywithdrawn from the f'or 'mer state employes''retirement system, together with interest com-pounded annually at the effectiv e rate of interestfrom January . I ; 1950, to the date of 'suchcontribution ; and the arriount ' bf prior, ser vicecredited 'asprovided her ein' shall be reduced by


41.08 PUBLIC EMPLOYEE RETIREMENT (EXCEPT TEACHERS) 818

shall thereupon be terminated and no furtherright to such credits shall exist other than theright to such annuity or benefit so granted exceptas pi ovided by s. 41 . 14 ,

5 .. As of December 31, 1965, credits grantedpursuant to s . 66 .904 (1) (a) 2 d [Stats 1963]shall be deleted horn the account of eachparticipant, but such deletion shall not destroyany benefit right arising from such c r edits forannuitants or persons - with annuity applicationspending on such date .

(d) In computing the prior service credit of aperson who was an employe on the effective datethere shall be includedd all previous service forsuch employer,including service as an elective orappointive official or as an employe, if suchservice or employment conformed to the

.requirements of s, 41.02 (.6)(e) As of December 31, 1965, the accounts in

the fixed annuity division and the variableannuity division of" each participant whoseaccounts include accumulated additional creditsattributable to r egular contributions and interestunder the former state employes retirement fundshall be adjusted by such transfers within suchaccounts as are required to includee in hisaccumulated normal credits the amount of' suchaccumulated: additional credits not in excess ofthe amount of his accumulated prior servicecredits and to include the remainder of any ofsuch accumulated additional credits in hisadditional credits within the meaning of ' s . 41 . 07(2) (a) 7; and to decrease his accumulated priorservice credits and increase his accumulatedemployer credits by the amount so included in hisaccumulated normal credits : Transfers of creditswithin the accounts of any participant asprovided herein shall not affect the total amounttof his accumulated credits in the fixed annuitydivisionn or in the va r iable annuity division, thetotal amount of his accumulated credits at-tributable to his own contributions, or the totalamount , of his accumulated prior service andemployer credits .

(2)PRIOR SERVICE CREDITS FOR SERVICEMEN .(a) Prior service credits pursuant to sub.. (1) (a)1 shall be granted for periods of service in thearmed forces of the United States during WorldWar II, which shall; include such servicesubsequent to September 16, 1940, to any personwho was an employe on the effective date ofparticipation by such employer, and who left theservice of such employer to enter such armedforces .. Such credit shall be granted as of the datethe employe resumes - or resumed employmentwith the employer : pu r suant to s . 16 26 or 45. 50prior to January 1, 1948 ,, .Credit shall also begranted for service during World War I to anyperson who was employed by the employer at thetime of his entrance into the armed forces of the

the total amount of such contributions andinterest . . No interest income shall be credited toany prior service credits granted under thissubdivision for any period prior to 1966 .

16. Any state participating employe who hasnot received prior service credit, who had at least5 continuous years of eligible state service priorto January, 1, 1948, including any period ofmilitary service by such a participating employewho left the service of the state to enter thearmed forces and who returned to state servicenot more than 90 days after his release frommilitary service, and who has been a participat-ing employe continuously for 5 years or moreimmediately prior to March 31, 1972, shall begranted creditable service for such eligible stateservice and military service prior to 1950 as ofsaid effective date . Such creditable service shallbe grantedd onlyy if any such participatingemploye within 60 days of March 31, 1972contributes to the fund as a normal contributionany amounts previouslyy withdrawn from theformer state employes' retirement system,together with interest on such amount com-pounded annually at the effective rate of interestfrom January 1 ,, 1948, ; to the date of suchcontribution. -

(b) The credits of each individual pa r ticipantshall : be accumulated in a separate account foreach type of credit , and interest shall be creditedthereon as follows :

1 . All balancess at the beginning of each yea rremaining in such accounts at the end of the yearshall be improved with interest, at the end of eachyear, at the effective rate of interest for the year .

2 . All amounts credited to participants duringthe year in accordance with par . . (a) 3 remainingin such accounts at the end of the year shall beimproved with interest at the end of such ,year, foreach full month elapsing between the date ofcr edit and the end of the year , at one-twelfth ofthe effective rate of interest for theyear .3 . All balances at the beginning of any year ,

and all amounts credited to participants duringthe year nin accordance with par ; (a) 3, notremaining in such,. accounts at the end of the yearbecause of the granting of annuities or deathbenefits during the year, shall be improved withinterest, on thee first day of the month in whichthefirst annuity or death benefit payment is due,for each full month elapsing between the firstday of the year or the date of credit, as the casemay be, and the first day of the month in whichsuch first annuity or death benefit payment isdue, at one-twelfth of the prescribed ratee ofinterest

4 Upon the granting of a retirement annuity,a disabilityy annuity, a • death benefit or aseparation benefit, all of ' the accumulated creditsand the creditable service of such participant


PUBLIC EMPLOYES RETIREMENT (EXCEPT TEACHERS), 41.09819

(c) Thiss subsection shall be effective, as toany employer now or hereafter included in thisfund, as of the date of participation of each suchemployer .

History: 1971 c . 214 ss . 47 to 52,148 ;19'71 c 2'70 s . 104 .

41.09 ; Creditable service. (1) Thecreditable service of each participant at any timeprior.to January 1, 1966, shall be the sum of hisperiods of prior service and current service as aparticipating employe as determined pursuant tothe applicable statutes and rules,, The period ofcreditable service of a participant after . 1965shall be the number of years and completedmonths of service for whichh he receives earningsuntill his employment is terminated, includingany period covered by a payment which could beconsidered earnings if the participant was aliveduring such period . The board shall fix anddetermine by, proper rules how much service inany year is equivalent to one year of creditableservice.

(2) A participant shall be considered as aseparate participant with respect to servicewithin each of" the classes of participatingemployesdescribed in s 4 .1 . . 07 (2) .

(3) Cred i table service for ' active service in theU.:S , armed forces after December 31, 1965,shall be granted as provided in s . 40.80,determined andcredited as follows:

(a) Creditable prior service shall be grantedonly to a participant who is otherwise eligibleand who was an employe on the effective date ofparticipation of his employer . Such creditableprior service shall be credited as of the date ofreturn to employment in accordance with s40 .80(1) (c) . .- (b) Creditablee current service shall becredited as of the date ofreturnto employment inaccordance with s : 40 :. 80 (1) (c) . .'

(c) Notwithstanding any other provision ofthis subchapter any .y participant who hascreditable service for not less - than 20 years,exclusive of any period of active service in theUS, aimed forces and any period ofcivilian wardepartment service previously credited, shall begranted creditable service, but not to exceed 4years, for the actual per rod of active service in theU , S ., armed forces as defined in s . 40 . . 80 (2)which meets the standards under s , 40 . 80. (1)(e) . Such creditable service shall be allocated inproportion to the amount of creditableservice foreach of the types of creditable sex vice set forth ins „ 41 . 11 (6) (d) 3 a , b , c andd d. For purposes of'This paragraph, each year of' the prescribed termof' office of any state official elected byvote of' thepeople - is equivalent to one year of creditableservice, This paragraph shall not apply withrespect to any active service which occurs afterDecember 31; 197 .3 :

United States, if such employment was resumedwithin 90 days after discharge from thee armedforces andd continued until thee effective date ofparticipation of the employer with total interrup-tions thereafter- of not to exceed 2 years .

(b) In each such case the earnings computedunder sub (1) (a) 1 shall be adjusted to reflectany salary increase or salary adjustment whichwould have altered thee rate of earnings duringthe period of the 3 calendar years immediatelypreceding the effective date if such employmenthad not beenn interrupted by service in the armedforces . Whenever because of service in the armedforces an employe shall have no earnings ascomputed under, sub . (1) (a) 1, then the rate ofearnings shall be computed by dividing theearnings during the last 12 calendar months ofemployment by 12 , and such rate of earningsshall be adjusted as provided in this. paragraph .

(c) This subsection shall be effective , as toany employer now or hereafter included in thisfund ;: as of the date ofparticipation of each suchemployer .

(3) CURRENT SERVICE CREDITS FOR SERVICE-

MEN . (a) Current service credit shall be grantedfor that period of service spent in the armedforces of the United States, between the effectivedate of participation by the employer and thedate when the employe resumed employmentwith the employer pursuant to s . 16 .26 or 45 .50,such credit to be given as of such latter' date , butsuch credit shall be granted only to a person whowas an employe on the effective date ofparticipation by such employer, who left theservice of such employer to enter such armedforces and who entered such armed forces priortoJanuary 1, 1948,

(b) The participating employer shall grantsuch current service credit ' by making for suchparticipating employe the employer contribu-tions which it would have made for such employehad he continued in the service of such employerduring such period.. In each such case theassumed ' earnings of such employe, upon whichsuch employer contributions must be based , shallbe computed in the manner provided forcomputing earnings under' sub . (2) (b) ..

(bb) Current service credit shall be grantedfor that period of service spent in the armedforces of the United : States between thebeginning of such service or June 25, 1950,whichever is later, and the date when theemploye completes such service, if the employeresumes employment with the participatingemployer in conformity with s . 45,50 (1), butsuch credit shall be granted only to a person wholeft the service of the participating emplo yer toenterr such armed forces . Such credit shall begranted pursuant to par.. (b) as of the date theemployment is resumed .



(4) Notwithstanding any other provision ofthis section, any participating employer mayprovide by resolution for the inclusion in thecreditable prior service of its participatingemployes of periods of employment by anotheremployer from whose area or any part thereof 'the area governed by the participating employerwas created, or by another employer all or part ofwhose area is included within the area governedby such participating employer. The presentvalue of" the creditable service thus granted shallbe paid' by the participating employer whichgrants such service within 30 days after the dateof notification by the board of the amount due ,but such amount shall not be considered anemployer contribution for purposes of s : 41 . 05(9 ) (b ) •

(5) The computation of the creditable priorservice of a person who was an employe on theeffective date shall include all previous servicefor such municipality, including service as anelective or appointive official or as an employe, ifsuch service or employment conformed to therequirements of s .. 41 .02'(6 ) .

(6) Any participating employer other thanthe state may provide by r esolution, adopted b y amajority of the members of the governing bodythereof, that each employe of such emplo yer whois a participating employe of such participatingemployer, on January 27, 1968, shall be granted ,as of the date payment is made as requiredherein, creditable service for, all service for suchparticipating employer which was not creditedpreviously because payment for such service wasin the form of fees; but within 90 days followingJanuary 27, 1968, each participating employewho is granted creditable service pursuant to thisssubsection shall pay to the fund as normalcontributions an amount equal to the totalnormal contributions which they would havemade if the fees such employee received duringsuch periods of creditable service had beenconsidered earnings .

(7) -: Eachh employe of the state who is aparticipating employe on July 1, 1972, shall begranted as of such date creditable service for allservice as a member of the legislature which hasnot been credited under any other provision oflaw if, prior to such date, the member makes allrequired contributions which he would havemade as a participating employe during suchservice ;after January 1, 1957, and prior to thefirst day of the month in whichh he became aparticipating employe .

(8) Each employe of the state who is aparticipating employe on October 17, 1971 shallbe granted as of such date creditable service forall service in Wisconsin as a national guardtechnician which has not been credited unde rany other provision of this subchapter .. .

41 . 10 Contributions by employers . : (1)Except as provided in sub (8), each participat-ing employer shall make contributions to thefund as follows :

(a) Employer contributions of thepercentages, as specified in this section, of eachpayment of earnings made to each participatingemploye. Such contributions shall be made bythe state from the respective funds from whichthe salaries are paidd to the employe for whomsuch contributions are being made ; the heads ofthe respective state departments and agencieswhich make the salary deductions in accoi dancewith s, 41 .07 (2) (b) shall, at the time that saidsalary deductions are sent to the board, byapplying the employer contribution rate of thestate to the appropriate portion of the earnings of

(9) The creditable service of every supremecourt justice and circuit or county judge shallinclude all periods of service as a supreme courtjustice, circuit ;judge or county judge, or as full-time judge of a court of record, municipal orinferior, or as a member of the legislature, or as astate .constitutional of 'f ice t elected by vote of thepeople, but excluding any suchh period of' servicefor which credit has been granted under anyother public retirement system in this stateexcept as provided in s . 41 . . 05 . : (6) (n) . Thecreditable service of each c ircuit ,judge: .. andcounty judge who has received any supplementalsalary pu r suant to s . 252 .071 or 253 . 07 (2) shallalso include, for thee county which paid suchsalary, a period equal to the total period of "service as a circuit judge or county judge in suchcounty.

(11) Each'employe of the legislature, otherthan a member of the legislature, who is aparticipating employe on February 18, 1972shall be granted, as of such date, creditableservice for all service as an employe of thelegislature after' December 31, 1960, which metthe requirements of' s. 41 .02 (6), and which hasnot been credited under any provision of law, if ',p r ior to March 1, 1972, the employe makes allrequired contributions which he would havemadee had he been a participating employeduring such service after December 31, 1960,assuming for purposes of this subsection that hisearnings during such service would have beensubject to required contributions, together withinterest on such contributions compounded atthe effective rate to the date of payment .

(12) Any former employe of the Wisconsinstate agencies building corporation whoreimburses the fund as provided in s . 41 ..02. (14)shall receive creditable service for the period ofemployment covered by such reimbursement .

History : 1971 c. 91, 1 7 6 ; 1971 c . 214 ss 53 to 57, 148 ; 1971c 228,258,336 ;1973c . 294 ;1975c 170


821 PUBLIC EMPLOYES RETIREMENT (EXCEPT TEACHERS) 41.10

the respective employes of that department oragency, determine the amount of the cor-responding employer contribution to be made bythe proper fund of the state and shall indicate theamount of such contribution on the monthlypayroll report submitted in duplicate to thefund .The.e fund shall transmit one copy of suchmonthly .payroll report to the department ofadministration together with a voucher forpayment to the Wisconsin retirement fund , fromthe appropriate state funds, of the amountspayable thereto as indicated by the copy of thepayroll reports soo submitted . Thereupon thedepartment of administration shall promptlyapprove such voucher for payment and the statetreasurer shall forthwith issue his check therefor,to the Wisconsin retirement fund.

(b) Advance contributions of such amountsas are determined by any participating employerfor the purpose of reducing any existingobligation of such employer ,

(2) Each such percentage shall be the ratecomputed as necessary , to provide, as of thebeginning of such year, the total .ofthe following:

(a) The uniform annual amount required,after allowance for anticipated employe separa-tions, at the prescribed rate of interest : .

1 . To amortize, over :thee remainder of theperiod : of 40 years "following the effective date,the amount of the obligation as of December, :31 ,1965, for prior service credits granted to theemployes of the employer; and ,

2. To amortize over the remainder of theperiod ,of 40 years following December 31, 1965,or the effective date,, if later,, the amount bywhich the then present value of alll futurebenefits of the then participants of the employer ,other than benefits financedd by employecontributions and benefits financed pursuant topar. (c) exceeds the sum of the then presentvalues of.

a : All, future "contributions pursuant to subd..

b . All future contributions by the employerwith respect to such participants pursuant to par .(b):;and :

c The then balance > of the employer'saccumulation account :'

(b) The uniform percentage of the earnings ofeach participating employe which if contributedthroughout the period of his creditable servicewould have the same present value as of the dateof its :commencement as the amount :' of hisretirement .' annuity not provided by, his owncontributions .

(c) The amount of the one-year termpremium required to provide the excess, if any, ofthe present _ value of the disability ' benefitsexpected to be granted during such year to theemployer of such employer, over the present

value of the annuities to which such employeswould be entitled under s. 41 , : 11 in the absence ofthe minimum agee and amount requirementsthereof, adjusted for any su rplus or deficiencypursuant to s . 41.20 (1) (b).

(d): The amount of the one-year termpremium required to provide the excess, if any, ofthe present value of the special disability benefitsunder s . 41 .13 (3) expected to be granted duringsuch year to the employes of such employer , overthe available accumulated credits of suchemployes .

(3) : (a) Each contribution rate computedunder sub. (2) shall be based on the informationavailable. at the time such computation is madeand on such assumptions as the actuaryrecommends and the board approves from timeto time.

(b) Such rates shall become effective, aftercertification by the board, as of thee beginning ofthe calendar year to which they are applicableand _ shall remain in effect during such year,except that the director upon the writtenrecommendaxion of the actuary may change anysuch rate during any calendar year for thepurpose : of reflecting in such rate any reducedobligation which results from any payment ofadvance contributions .

(c) The contribution rate for the state shall becomputed so as to permit a determination of therates which would be applicable if separate rateswere to be applied to each of the employmentcategories set forth in s. 41,11 (6) (c) 3, basedon the actual cost of the retirement program foreach such category of state participants .

(d) A separate state contribution rate shall beapplied: as provided in this section to the earningsof all ;state protective occupation participants,and a separate state contribution shall be appliedas provided in this section to the earnings of allother state participants .

(4) The amount of each employer contribu-tion shall be determined ,by applying the properpercentage rate of contribution to the total of allearnings paid to employes of the employer oneach pay day, and all such amounts shall be dueand be deposited in the office of ' the board by theemployer not later than the end of thee month inwhich the earnings are paid .

(5) Notwithstanding any other ' provisions ofthis section, each participating employer whichhas ' - no participatingemployer as of thebeginning of the year shall make contributions tothe fund 4 'times during the year, in addition toany contribution under sub . (1) (b) , Suchcontributions shall be due and bedeposited in theoffice of the fund by .the employer not later thanFebruary 15, May 15, August 15 and November15 of the year . - The amount of each suchemployer contribution shall be one-fourth of the



amount required for the year under sub . (2) (a)and (b) assuming that the employer will have noparticipating employes during the year..

(6) Whenever the existence of any participat-ing employer is terminated because of consolida-tion or for, any other' reason, the employee whothereafter, has responsibility for the governmen-tal functions of such previous employer, shall beliable for all contributions payable to the fund bysuch previous employer, If the territory of suchprevious employer is attached to 2 or moreemployers, the total accumulation account ofsuch previous employer shall be allocated to suchemployers in proportion to the equalizedvaluation of each area so attached . The amountof such allocations to the respective employersshall be certified by the board to each suchemployer . . If the employer to whom such anallocation is made is or becomes a participatingemployer the allocation so certified shall beadded to the accumulation account of suchemployer. If the employer who becomes respon-sible for any part of the territory of the previousemployer ' is not a participating employer thecontribution required to liquidate the allocatedaccumulation account shall be made by thesuccessor employer as an annual payment notlater than May 1 in each year following acertification which shall be made by the board inconformity with sub . (2) (a) . Whenever suchobligation is discharged pursuant to law, theboard shall refund any overpayment .

(8) Notwithstanding any other provision, thecost of all prior servicecredits and employer,current service credits granted on and afterJanuary 1, 1954, to county judges and on andafter January 1, 1956, to full-time judges ofcourts of record, municipal or inferior -(other,than a county court)) for such service shall bepaid by the states Effective January 1, 1962, thestate shall make employer current servicecontributions only on salaries of judges' andreporters who are paid pursuant to ss 253,07 (1)and 253 . :35 (3) in counties of less than 500,000population .

History: 1911c 214ss 61,148 ..,

41 .105 Adjusted employer contributions .(1) Effective for earnings paid after December31, 1973, each participating employer shallmake contfibutions to the fund as follows :

(a) For, current service, the percentage ofeach payment of earnings made to eachparticipating empioye determined as provided insub. (2),

(b) For-disability, the percentage of eachpayment of earnings made to each participatingemploye determined as provided in sub, (2), asrequired to provide the excess, if any, of thepresent value of the, disability benefits expected

to be granted du r ing such year over the presentvalue of the annuities which would be payableunder- s . 4 in the absence of the minimum ageand amount requirements thereof ', adjusted- for 'any surplus or deficiency pursuant to s . 41 .20(1)(b)'

(c) The uniform ' annual amount required,after allowance for anticipated employe separa-tions, at the prescribed rate of interest, toamortize over the period of 40 years followingDecember, .31, 1973, or the effective date if later,the amount by which the then present value of allfuture benef its ofthe then participants of theemployer; other, than benefits financed byemploye contributions and benefits financedpursuant to par . : (b), exceeds the then presentvalues of :

1 . All future contributions by the employerwith respect to such par ticipants pursuant to par ..(a)and

2 . The then balance of the employer'saccumulation account,

(d) Advance contributions of such amountsas are determined by any participating employerfor the purpose of reducing any existing liabilityunder par . (c) ..

(2) The contributions required under sub . .(1) (a) and (b) shall be expressed as apercentage of the earnings of each participatingemployer and shall be determined as though allemployes of all participating employers areemployes of a single : employer :: Such determina-tions shall also be made in such a manner , as torequire thee use of ` one percentage rate withrespect to the earnings of all protectiveoccupation participants and a separatepercentage rate with. respect to the earnings of allother participants . Such rates shall be deter-mined on the basis of the information availableat the time such determinations are made, and onsuch assumptions as the actuary recommendsfrom time to time and the board approves . Thepercentage under sub ., (1) (a) for 1974 andsubsequent , years shall , be computed by thefrozen initial liability valuation method-.

(3) The amounts and percentage . ratesdetermined hereunder sha1L become effective,after' certification by the :board, as of thebeginning of the calendar year to which they areapplicablee and shall ,remain in effect during suchyear ; except that the director upon the writtencertification of the actuary may changee anyamount determined under sub . (1) (c) : duiingany calendar, year, for the purpose of reflecting insuch amount any reduced obligation : whichresults from any payment of advance contribu-tions

(4) The amount of each employer contribu-tion shall be the sum ofone-twelfth of the annualamount determined under sub (L) (c), plus the


823 PUBLIC. EMPLOYES RETIREMENT '(EXCEPT TEACHERS) 41 .11

amount determined by applyingg the properpercentage rate as determined in accordancewith sub . . (2) to the total of all earnings paid toemployes on each pay day, and all such amountsshall be due and be deposited in the office of theboardd by the employer not later, than the end ofthe, month in which-ear•nngs are paid. Suchcontributions shall be made by the state from therespective funds from which the salaries are paidto the employe for whom such contributions arebeing made; the heads of the respective statedepartments and agencies which make the salarydeductions in accordance with s . : 41 .07 (2) (b)shall at the time that said salary deductions aresent to the board, determine the amount of theecorresponding : employer contribution and shallindicate the amount of such contribution on themonthly report submitted in duplicate to thefund : : The fund shall transmit one copy of suchmonthly report to the department of administra-tion together with a .voucher for payment toxheretirement fund from-the appropriate state fundsof the amounts payable thereto as indicated bythe reports so• submitted . Thereupon thedepartment .t of administration shall promptlyapprove such voucher for payment and the statetreasurer shall forthwith issue his check thereforto the retirement fund,.

(5) The provisions of s . 41 .10 (5), (6) and(8) shall continue in effect after December .3 1,1473; but may be adjusted by the board asnecessary to carry out the purpose of this-section,

History : 1971 c 214 ss ; 62,1'48 .

41 . 11 Compulsory retirement; annuities.(1) COMPULSORY RETIREMENT, Any participat-ing employe, except an officer elected by the voteof the people, who has reached his normalretirement date on the effective date for hisemployer shall be retired at the end of his firstcalendar quarter year as a,participatng employeand any participating employe, except an officer,elected by the vote of the people, who reaches hisnormal retirement date shall be retired at the endof the calendar quarter year in which such dateoccurs, unless, in either case, his employment iscontinued by his employer or appointingauthority.

(2) JUSTICES AND CIRCU IT JUDGES. Eachsupreme court justice and circuit judge whoattains age 70 shall be,retired not later than theJuly 31 following the date on which he attains theage,of .70. This subsection shall supersede theprovisions of sub,, ( 1) for supreme court justicesand circuit judges..

(3) COUNTY JUDGES, Each county judgeincluded under this fund shall cease to hold officeand shall be retired on July 31 following the date .on which he attains the age of 70r years ., This

provision shall supersede the provisions of sub.(1 ) .for- county judges .

(6) RETIREMENT ANNUITIES, (a) The follow-ing described persons shall be entitled toretirement annuities, beginning on the dateshereinafter specified ; determ ined as provided inthis subsection and in accordance with theprescribed rate of interest and the actuarialtables in effect on the date of initial approval asprovided in s , . 41 ,:04 (1 ) (b) :L Any participant who has attained age 55

and who; regardless. of cause, is separated andcontinues to be Separated until such annuity isinitially approved pursuant to s. 41 .04 ( I ) (b),from all service for every participating employerfor which he has been a participating employepr ior to becoming an annuitant and for whichsuch participating employe received compensa-tion.` Until the annuity i s initi ally ' approvedemployment for any other participating ' em-ployer"shall be limited to that for which thecompensation would not be subject to normalcontributions under, any circumstance .:

2 . Such annuities shall begin on the datespecified by the participant in the ` writtenapplication therefor , provided such date is , notprior to the date of separation from the lastparticipating employer, by which such partici •-pant was employed, and provided such date is notmore than 60 days prior to the date of rece ipt ofsuch application by the board ; and provided thecredits of the participant are sufficient as of suchdate' to provide an annuity of at least $10beginning immediately ; and provided thee par-ticipant has attained the age of 55 . Noapplication shall be filed with the board unlessthe date therein specified on which an annuity isto begin is not later than 90 .days after the date ofreceipt of such application bytheboard .

3 . Whenever,; it is determined that an annuitywas approved „ prematurely because the finaltermination of employment was subsequentt tothat originally reported, it shall not be necessaryto cancel the annuity, but instead the beginningdate of the annuity shall be corrected . .

4. For purposes of determining the beginningdate of a retirement annuity, a participant isdeemed to have Separated from the service of anemployer at the end of the day on which theparticipant last performedd services for theemployer ,

(b) Subject to pat s: (c) and, (d) , the initialamount .of any retirement annuity in the normalform shall be the sum of the following :

1 . The annuity which can be provided from theaccumulated additional and normal credits ofthe participant, and

2. The annuity which can be provided from theaccumulated prior - service credits and from



employer .r credits, in an amount equal to theaccumulated normal credits of the participant .

(c) Notwithstanding par . (b) , the initialamount of retirement annuity in the normal formof a Group B or Group C participant shall not beless than the sum of the following :

1 . The annuity which can be, provided from theaccumulatedd additional credits of the partici-pant;,

2 . The annuity which can be provided from asum equal to 200% of the excess accruing afterDecember 31 , 1965, of a) . .hiss accumulatednormall credits reserved for a variable annuityover, b) the amount to which such credits wouldhave accumulated if not so reserved , but if itema) is less - than item b) , the annuity shall bereduced by the amount which could be providedby a sum equal to 200 % of the deficiency; and

3. An annuity computed on the basis of theearningss and creditable service o f the partici-pant, if the annuity begins on or after the normalretirement date ofthe participant (or , if theannuity begins prior to the normal retirementdate of the participant the annuity computed asprovided in this subdivision but reduced asrecommended by the actuaryy and approvedd bythe boardd by a percentage of the amount thereoffor each month or major portion thereof betweenthe beginning date of his annuity and his normalretirement date) , determined by multiplying thenumber of years of his creditable service by thefollowing amount :

a . For each participant for creditable serviceof a type not otherwise specified ' in thissubdivision, six-sevenths of one per cent of hisformula final rate of earnings plus three-sevenths of one pet, cent of his final excessOASDHI earnings, if any;

b . For each participant for creditable serviceas a supreme court justice, circuit judge, countyjudge, member of the legislature - or stateconstitutional officer elected by vote of thepeople, 1 115 of one per centof his formula finalrate of earnings, plus three-fifths of onee per centof his final excess OASDHI earnings, if any ;

c . For each participant subject to subch .. VI ofch . 40, for creditable service as a protectiveoccupationparticipant, 1-1 / 3 of one per cent ofhis formula final rate of earnings, plus - one-sixthof one per, cent of his final excess ` OASDHIearnings, if any, but for any annuity initiallyapproved after June 30,1969, such amount shallbet-3/5 of one per, cent of his formula final rateof earnings, plus one-fifth of one per cent of " hisfinal excess OASDHI earnings, if any ;

d . For each participant not subject to subch .VI of ch , 40, for creditable service as a protectiveoccupation participant, 1-3 /4 of one per, cent ofhis formula final rate of earnings, less one-fourthof one per cent of his final excess OASDHI

earnings, if' any, _ but for any annuity initiallyapproved after June 30, 1969, such amount shallbe 2-1 / 10 of one percent of his formula final rateof earnings, less three-tenths of one per cent ofhisfinal excess OASDHI earnings, if any.

4 The initial amount of any annuitydetermined under :subd.. 3 in the normal formshall not exceed the amount which, when addeddo the primary or disability insurance benefitforwhich he is eligible or for which he will be eligibleupon attaining the lowest age at which old-agebenefits are payable under the OASDHIprogram, equals ' 75% of the participant'sformula final rate of earnings . . If ' a participantdoes .' not receive such OASDHI amount byreason of his failure to apply therefor or by virtueof the suspension thereof; he will notwithstand-ing such fact be deemed to receive such amount . .Lf:, a participant fails to establish the amount of,or, his eligibility for, such OASDHI benefit,determination thereof ' shall be made by theboard on such basis as the board, by rule,establishes .

(d) Notwithstanding pans , (b) and (c), theinitial amount of retirement annuity in thenormal form of a Group D participant shall notbe less than the sum of"the following :

1 .. The annuity which can be provided from theaccumulated additional credits of the partici-pant ; ,

2. The annuity which can be provided from asum equall to 200% of the excess accruing afterDecember' 31, 1965, of a) his accumulatednormal credits reserved for a variable annuityover b) the amount to which such credits wouldhave accumulated if not so reserved, but if itema) is less than item b), the annuity shall bereduced by the amount which could be providedby a sum equal to 200 :% of the deficiency ; and

3. An annuity computed on the basis of theearnings and creditable service of the partici-pant, if the annuity begins on or after the normalretirement date of a pa rticipant (or, if theannuity begins prio r to the normal retirementdate of the participant the annuity computed asprovided in this subdivision but ' reduced asrecommended by the actuary and approved bythe board by a percentage of the amount thereoffor each month or major portion thereof 'betweenthe beginning date of his annuity and his normalreti rement date), determined by multiplying thenumber ' of years of his creditable service by thefollowing amount :

a . For each participant for creditable serviceof a type not otherwise specified in thissubdivision, 1 . .3% of his formula f inal rate ofearnings;

b . . For, each participant for cr editable serviceas a supreme court justice, circuit judge, county

,judge, or state, county or municipal officer


825 PUBLIC :EMPLOYES RETIREMENT (EXCEPT TEACHERS) 41 .11

elected by vote of the people, 1. 8 % of his formulafinal rate of earnings ;

c . For each participant subject to subch . VI ofch„ 40 for creditable service as a protectiveoccupation participant, 1,8%% of his formulafinal rate of earnings;,

d For each participant not subject to subch.VI of ch . 40 for creditable service as a protectiveoccupationn participant, . 2 . 3% of his formula

final rate ofearnings,4 The initial amount of any annuity

determined under subd ,. .3 in the normal formshall not exceed the amount which, whenn addedto the primary or disabilityy insurance benefit forwhich he is eligible odor which he will be eligibleupon attaining the lowest age at which old-agebenefits are payable under the OASDHIprogram, equals 80% of the participant'sformula final rate of earnings . If a participantdoes not receive such OASDHI amount byreason of his failure to apply therefor or, by virtueof the suspension thereof, he will notwithstand-ing such fact be deemed to receive such amount . .

< If a participant fails to establish the amount of;or, his eligibility for, such OASDHI benefit,determination thereof shall be made by theboard on such basis as the board , by rule,establishes . If any participant is eligible for anannuity based on service for more than oneparticipating employer, his formula finalrate ofear pings for, purposes of this subdivision shall bethe sum of his formula final rate of earnings forall participating employers,

(f) The normal form of retirement annuity isan annuity : payable monthly for the life of theannuitant with a guarantee of 60 monthlypayments.

(m) Notwithstanding par . (a) 1, whenever aparticipating employe is subject to compulsoryretirement in the absence of action pursuant tosub , . (1) permitting continuance such personshall not be barred from applying for aretirement annuity based upon service whichh hasterminated .

(7) OPTIONAL RETIREMENT ANNUITIES, Anyparticipant who is eligible to receive a retirementannuity in the normal form as provided in sub . :(6) may elect to receive the actuarial equivalentthereof in one of the following optional annuityforms, or in any optional form : provided by ruleadopted by the board, but any such optional formshall be based on actuarial equivalent valueswith dueregard to selection against the fund :

(a) As a straight-life annuity terminating atthe death of the annuitant .

(b) As a retirement annuity payable monthlyfor the life of the annuitant with a guarantee of180 monthly payments.

(c) As an annuity payable monthly for the lifeof 'the annuitant , and after the death of the

annuitant, monthly payments of 75% of theamount of the annuity paid to the annuitant to becontinued to such one beneficiary during life asthe participant shall have designated in hisoriginal application for an annuity .

(d) As a reduced annuity payable monthly forthe life of the annuitant, . ' plus a temporaryannuity payable monthly but terminating withthe payment for the month in which theannuitantt attains age b2 It is the intent of thisoption that so far as is practicable the aforesaidlife annuity and temporary annuity shall bedetermined in such relative amounts that theannuitant's total anticipated benefits from thefund and from his prirnary, OASDHI benefit willbe the same each month both before and afterattainment of age 62; assuming that theannuitant has no fur'ther' wages credited to hisaccount under' the federal OASDHI system afterceasing to be a participating' employe . Anannuity grantedd under this paragraph shallinclude a guarantee of 60 monthly payments, buteach monthly payment due after the death of theannuitant shall be in the same amount as theannuity which would have been paid in suchmonth to the annuitant if living,

(8) RETIREMENT ANNUITY PAID IN SINGLEsum, If the retirement annuity in the normalform which could be provided under sub . . (6)from all available credits is less than $10monthly, such retirement annuity shall not bepaid, but in lieu thereof the then present value ofsuch retirement annuity shall be paid in a singlesum .

(10) LUMP SUM PAYMENT IN LIEU OF ANNUI-rY,: Notwithstanding any other provision of thissubchapter, any participant who is eligible toreceive an annuity in the normal form ofless than$25 per month under sub . (6) may elect, in lieuof such annuity, to receive the thenn present valueof such retirement annuity in a single sum .

(11) PAYMENT 'S- TO BENEFICIARY UPONDEATH OF ANNUITANT, (a) Upon the death of anannuitant receiving a retirement annuity whichprovides a guaranteed number of monthlypayments, monthly payments shall be continuedto one beneficiary, or, -be divided as specified bythe annuitant, ., and equally if not specified,between 2 or more beneficiaries designated bysuch annuitant, until payments have been madefor the guaranteed number, of months .,

(b) In lieu of the continuation of monthlypayments under par' . . (a), the then present valueof such payments shall be paid as a death benefitunder s., 41,14 if.

1. The estate of the `annuitant is hisbeneficiary ;

2. No beneficiary of the annuitant survives;3. ; The death of the beneficiary occurs after he

has become entitled to receive payments


41.11 PUBLIC EMPLOYEE RETIREMENT (EXCEPT, TEACHERS) 826

hereunder, but prior to the end of the periodguaranteed ;

4. Theamount ofthe monthlypayments to thebeneficiary is lessthan$25; of

5 .At thedeath of the annuitant the remainderof the period for, which payments are guaranteedis less than 12 months .

(c) Any beneficiary entitled to receivemonthly payments of less than $25 as of March31, 1972, may elect at . . an,y time to receive thethenn present value of the remainder of hisannuity.

(12) ` REENTRY INTO SERVICE , (a) Notwith-standing the fact that any . annuity is payable for-life,. if any `participant under age 60 receiving aretirement annuity enters or is in the service ofany participating employer by which he wasemployed prior to the beginning date of theannuity, the annuity payable to such annuitantat that time shall be terminated as of the end ofthe month prior to the date upon which suchperson received total earnings in all such servicesin excess of $1 ,200 in any calendar year If anannuitant who has : attained ' 60 is in theemployment of a participating employer bywhich last employed" prior to the approval of theannuity and receives total earnings therefrom inanyyear in excess of the greater of $1 , 200 or one-half of his annual final rate of earnings theannuityy shall be terminated as of the end of themonth prior to the receipt of such ;excess .Earnings under, this subsection shall be con-strued to include also any payment received fromany employer for personal services, includingservices perfo rmed ona contractual basis

(b) Upon subsequent retirement, the annuityof a former annuitant shall be computed in thesame manner and the annuitant shall be requiredto accept the same optional form of annuity asthat under which he initially retired, and if suchannuity is an optional annuity provided undersub: (7) (c) the same beneficiary must bedesignated, but this ' sentenee shall not apply ifthe creditable service of the participant foremployment after : his- reentry - into serviceexceeds his creditable service for , previousemployment . The amount determined undersub. (6) (c) 3 or (d) 3 upon any subsequentretirement; shall be reduced .d by the amount ofannuity that can be provided, on the earlier of thesubsequent , retirement date or the normalretirement date of the participant, by the sum ofthe aggregate annuity payments as determinedunder; sub. (6) (c) 3 or (d) 3 made to theparticipant prior to his normal retirement date .

(c) If any par ticipant receiving a retirementannuity which was approved after March 31 ;1972:, receives from any participating employerearnings for personal services, including servicesperformed on a contractual basis, his .s annuity

shad' be terminated as of the end of the monthprior to the date on which the total of suchearnings received in any calendar year exceeds 6t imes- his formula final rate of earnings, Forpurposes of this subsection, earnings areconsidered received as of the date on which suchearningswould normally be paid,

(13) NOTICE OF EMPLOYMENT . Wheneverany participating employer employs any personwho is entitled t o receive a retirement annuityfrom the fund the employer shall give wr ittennotice of such employment to the fund within 15days of the date of such employment spec ifyingin such notice the name of the employe, his birthdate and the date when his new employmentbegan . ,

History: 1971 c 125; 197 1 c ,2 1 4 ss 63 to 74m,14'1, 148 ;1975c 319,42I:

Payment for unused sick leave, vacationn and compensatorytime extends :the date of termination of employment and thelast day for which earnings were paid for Wisconsin retirementfund purposes by the period of time represented by thepayment .: 60'Atty Gen . . 352

See note to 41 02; citing 63 Atty - Gen 530,

41.12 Variable annuities . ; :. (1) (a) Anyparticipat ing employe . may by written notice tothe board elect to provide for a variable annuitythrough a segregation of credits in his account tobe accumulated from future contributions Suchnotice of segregation is ef 'f 'ective as of thebeginning of the calendar quarter year followingits receipt by the board, except that a noticereceived by the board during : the first calendarquarter year of employment shall be effective asof the beginning date of such employment

(b) Such segregation shall continue in effectas long , as the person filing the notice ofseg regation continues to be a participant anddmay ziot be reduced

- {c) .Any:segregation maybe increased in themanner provided under par . (a) and whenincreased shall be subject to par .,(b).

(d) The total amount segregated under thissubsection shall not exceed one-half ' of thenormal contribution ..

(2) _ A portion of the employer credit forcurrent service provided by s .,41,08 (1) (a) 2 . c,or , in the case of, segregations made afterDecember 31, 1965, a portion of the employeraccumulation account, which is equal to theamount of the normal contribution segregatedby a par ticipating employe for a variable annuitypursuant to sub. (; 1) shall also be segregated fora variable annuity . ..

(3) ;In the case of any participating employecurrently contributing toward a variable annuityany subsequentt additional contribution madepursuant to s ,. 41 ..07 (2) (a) 7 shall be segregatedfor a variable annuity . . .

(4) (a) Any part icipating employe who hasacted pursuant to sub : (1) may by written notice


827 PUBLIC EMPLOYEE RETIREMENT (EXCEPT TEACHERS) 41.12

to the board elect that one-half of the creditsaccumulated - in accounts in his name as ofDecember 31 prior to the effective date of theelection under sub . . (1) be segregated for avariable annuity. The aggregate amount sosegregated shall be made in 5 equal annualinstalments except that if such annual instal-ments would be less than $1 , 000 the annualinstalment shall be the lesser of $1,000 or theamount required to complete the transfers. Noelection may be made underthis subsection afterDecember ' 31,1992 .

(b) Such election shall be effective on theJanuary 1 following receipt by the fund of thewritten notice, provided that any transferpursuant to a notice received prior to January 1,1970, shall be made in accordance with s .,66 .9065 (4), 1967 state. The amount deter-mined to be eligible for transfer pursuant to anotice received pr 'ior' to January 1, 1970, less theamount of any transfers made in accordancewith s .. 66 .9065 (4), 1967 state :, shall be theamountt eligible for subsequent transfers underthis section .;. < (c) In effecting such segregation the accumu-lation of ' additional credits as of the beginning ofthe calendar year shall first be segregated untilexhausted. Then equal amounts of the accumu-lation of normal credits and employer creditsshall : be segregated until such accumulations asof the beginningg of the calendar year have beenexhausted , Finally, accumulated prior servicecredits shall: be segregated to the extent required,provided that after December 31, 1965, all suchsegregations of employer and prior servicecredits shall be made within the employeraccumulation account ..

(5) The board shall, except as specificallyprovided herein, have sole discretion to establishrules governing the amount of segregations for avariable annuity, which without limitationbecause of enumeration shall include the form,time and procedure for filing the notices, theminimum, maximum and unit amounts whichmay be segregated, both from current contribu-tions and accumulated credits, the increasing ofthe amounts segregated; and other appropriateregulations: '. Such aules, among other thingsshall fix procedures governing the operation ofthe variable annuity division, the frequency- with.which '' variable annuity payments are to bevaried, and the mechanics ' of allocating theresults of investment experience to the accountsof individuals ' having credits in the variableannuity division . . The present value-of-anyvariable annuity at any time shall be determinedin conformity with the ac t uarial tables in effectat such time .

(6) (a) Within the accounts maintained -:foreach, -individual ' participant- there shall be

maintained a record of the amount of each typeof credit segregated for a variable annuity . .Credits so segregated shall not be credited withinterest as provided in s : :41 . 08 (1) (b) 1 and 2,but in lieu thereof net gains or losses shall becredited or debited as the case may be as follows :

1 . All balances so segregated at the beginningof " each year remaining so segregated at the endof the year shall then be credited or debited at therate of net gain or loss for the year .

2 . All amounts so segregated during the yearpursuant to sub. (4), or because of reestablish-ment of credit after cancellation of an annuity ,remaining so segregated at the end of the yearshah then be credited of debited at one - twelfth ofthe rate of net gain or loss for the year for- eachfull month from the date so segregated to the endof the year.

(b) C redits segregated for a variable annuityat the beginning of each year and all amounts sosegregated within the year pursuant to sub . (4),or because of reestablishment of credit aftercancellation of an annuity, not remaining in suchaccounts : at the end of the year because of thegranting of ' annuities ordeath benefits during theyear shall be credited with interest, on, the firstday of the month in whichthe first annuity ordeath benefit payment is due, for each full monthelapsing between the first day of the year or thedate of credit, as the case may be , and the firstday of the month in which such first annuity ordeath benefit payment is due ; at one-twelfth ofthe prescribed rate of inter est .

(c) Fractions less than one-tenth per cent inthe rate of net gain to be credited to any accountpursuant to this subsection shall be disregarded ..

(6a) Within - the accumulation accountmaintained for each participating employerpursuant to s . 41 . 19 , there shall be established asof January 1, 1966, a segregated reserve forvariable annuities equal to the sum of theaccumulated employer and prior' service creditsof all of its participants , segregated f 'or, variableannuities. Such reserve shall be credited ordebited with net gain or net loss as the case maybe at the same times and at the same rates of eachnet gain or net loss as are credited or debited tothe accounts of individual participants pursuantto sub.. (6) (a) or (b) .. The segregated reservesmaintained pursuant to this subsection shall beincluded in the variable annuity division .

(7) The rate of net gain or loss for any periodshall-be determined by° dividing the amountreceived from the distribution under s . 40 .06 (3)(b) by the average of the amounts of the assets ofthe variable annuity division at the beginning ofeach month in the period . Any net gain or loss ofthe variable annuity division not credited ordebited to participants' accounts pursuant tosub. (6) (a) ' or (b), to employer segregated


41.12 PUBLIC EMPLOYEE RETIREMENT (EXCEPT TEACHERS) 828

1 , . Any protective occupation participant whois a participating employe who has not attainedage 55, any Group D participant who is aparticipating employe in a position specified in s .41 . 11 (6) (d) 3 , b who has not attained age 62,and any other participating employe who hass notattained age 65 and is totally disabled, eithermentally or physically, by a disability which islikely to be permanent. A person shall not bedeemed to be disqualified solely because he isablee to performm the duties of " any position forwhich the compensation does not exceed $2,000in any calendar ,year, "Totally disabled " meansinability to engage in any substantial gainfulactivity by reason of any medically determinablephysical or mental impairment which ' can beexpected to result in death or to be of" permanentduration.. The :e participating employer shallcertify to the board ,that the participatingemploye , is unable to continue in employmentbecause of a total disability of ' such anature as toreasonably prevent performance of the duties ofany positionand as a consequencee is not entitledto any earnings from such employer-, For thepurposes of this subsectian : a participant shall ,within the limitations of s 41,07 (1) (b) , beconsidered to be a participating employe on leaveof absence, notwithstanding the fact that noformal leave of absence is in effect, if' no otheremployment has intervened since service for theparticipating employer and i.f' the termination ofactive service for the participating employer wasdue to such disability , For the purposes of thissubsection a parti cipant who is an official electeddby the voters shall be considered as a participat -ing employe for 30 days after' thee cessation of hisearnings as an elected official .

2 : Except , for a disability a rising out ofemployment for a participating employer, no

granted account and all variable , annuitypayments shall be charged to that account .

(b) The balance at the beginning of any yearin the reserve for variable annuities, grantedaccount, as adjusted by transfers thereto andpayments therefrom, shall not be credited .d withinterest as provided by s . 41 , 20 (2) (a) but shallbe credited or debited, as the case may be, at theendd of the year with net gainn or loss at the rate ofnet gain or loss of the variable annuity divisionfor the year :

(10) (a) Periodically the amount payablewith respect to all variable annuities previouslygranted shall be redetermined so as to : reflect thenet gain or loss of the reserve for variableannuities. . granted as determined .:d by rule inaccordance with actuarial procedures approvedby the board of trustees on a basis which it deemsappropriate from time ,to time and withoutlimitation: as to the nature of the procedures thatmay be adopted. The board of trustees may for aslong . as it deems desirable provide that the

reservess pursuant : to sub . (6a), or to the reservefor variable annuities granted account pursuantto sub . (9) at thee end of .any period shall beconsidered in the determination of the rate of netgain or loss for the ensuing period.

(8) (a). Any annuity provided pursuant to s .41 . 11, .41' .13 or 41 .15 to a participant or thebeneficiary of a participant whose. .. :accountsinclude credits segregated for a variable annuitypursuant to sub . (3 ) or (4) shall consist of afixed annuity and a variable annuity , The initialamount, of the variable annuity shall be theamount which can be provided on the basis of theactuarial tables in effect on the date off approvalof ; such; annuity by the -following amounts, ifotherwise available ::

1 . ..The °amount ; ofthe accumulated additionalcredits reserved for a variable annuity as of thedate the annuity begins;

2 . The amount equal to 200 % of accumulatednormal credits reserved for a variable annuity asof the date the annuity begins; and

3 . The amount equal, as of the date theannuity begins,, to the accumulated prior servicecredits reserved for a variablee annuity as ofDecember 31, 19.65, or thereafter transferred tothe segregated reservess within the employeraccumulationn account, together with the netgain or loss credited to such accumulations aftersuch date .

(b) The initial amount of thee fixed annuityshall be the excess of the total annuityy payablepursuant to s. 41 . 11, 41 .13 or 41 .15, overr thevariable . annuity.

(9) (a:) All accumulated credits applied toprovide variable annuities, including transfersfrom. employer, accumulation accounts, shall becredited to the - reserve for' variable annuities

variation in the amounts payable underr variableannuities shall not be affected b y the fluctuationsin the . mortality experience under variableannuities granted .

(b) In conformity with the rules the rates ofincrease or decrease- in the variable annuitiespreviously approved" shall be certified to thedepartment of administration, and thee depart-ment of administration shall make paymentsaccordingly until a new certification is made .

` (11) In addition to the changes madepursuant to sub . . (10) var iable annuities grantedunder ss. 41.11'(7) and 41 .. 1 '3 shall be changed inconformity with the subsection under whichgranted.

History-1971c . 214 ss .' 15, 75m; 76,147,148 ; 2973 c.. 13. 1 :

41 .13 Disability annuities . (2) ELIGIBILITY(a) The following described persons shall beentitled to disability annuities, beginning on thedates her einafter specified :



of a protective occupation participant who is notsubject to subch . VI of ch . 40, multiplied by thenumber of years of creditable service, includingin the latter assumed service between the datethe disability occurred and the date on which theapplicant will attain the age applicable to himunder pat' . (a) 1 . The number of' such years shallbe determinedd to the nearest full year

(cc) If' a person who has received a separationbenefit subsequently becomes a participant, hisservicee prior to the paymentt of such separationbenefit shall be disregarded for purposes ofdetermining his eligibility for, or the amount of,any benefit under, this section .(d) The , board may require that any

annuitant receiving a disability annuity shall beexamined by at least one licensed and practicingphysician appointed by the board during anyperiod such annuitant shall receive such annuityand prior to the date on which the annuitantattains the age applicable to him under par . (a)1 . A written report of such examination, whichshall indicate whether or not the annuitant is stilltotally , and permanently disabled, shall be filedwith the board by each such physician

(e) If' the report of any such physicianindicates that the annuitant has recovered f romdisability and is able to perform the duties of anyregular position for which the annual compensa-tion exceeds $2,000, or if the annuitant refuses tosubmit to such examination, the disabilityannuity shall terminate as of the end of themonth previous to the date of determination bythe board of such recoveryor refusal

(f) If any annuitant receiving a disabilityannuity receives earnings from any sourcewhatsoever for personal services,, includingservices performed on a ' contractual basis , hisdisability annuity shall be suspended as of theend of the month'prioi to the date on which thetotal of such earnings received in any calendaryear, exceeds $2 : ,000 . . Any disability annuity sosuspended shall be reinstated on January 1followingg the date of suspension, or, if earlier, onthe first day of the month following the date oftermination of such personal services , Anannuity which is reinstated in any calendar yearon a date other than January ' 1 thereof shall besuspended ' again for any subsequent monththereof in which the disability annuitant receivesany amount of such earnings for personalservices. For purposes of this paragraph earningsare considered received as of the date on whichsuch earnings would normally be paid ,

(3) LAW ENFORCEMENT AND FIRE-FIGHTINGPERSONNEL. (a) Employes included. . Each par-ticipating employe who is a protective occupa-tion participant shall be entitled to the specialdisability benefits provided by this subsection ifhe meets the requirements set forth herein ..-

participating employe shall be eligible for adisability annuity until he has completed at least20 calendar quarter years of service as aparticipating employe for a participating em-ployer or-employers in a positionfor which hereceived either current service or prior servicecredit within the . 28 calendar quarter, y earspreceding thedate that the disability annuitybegins.., Service for anyy predecessor employershall be included in determining the completionof the 20 calendar quarter years ,

2a , A participant who becomes an employe ofthe state of Wisconsin pursuant to chapter 90,laws of': 1973, section 546 , as affected b y chapter333; laws of 1973, section 189b, may consider 'service as a member of the employes' retirementsystem of the county of Milwaukee as service fora predecessor employer ' for purposes of subd . 2 .

3 . . Such annuities shall begin on the date suchdisability occurred , unless written appl icationfor' such benefits is not received by the boardwithin 60 days of such date, in which case,benefits shall begin to accrue on the day 60 daysprior to the receipt of such application, or unlessall earnings have not ceased to be payable to suchemploye on such date , in which , case, benefitsshall begin on the day following the day for -which the last payment of earnings to suchemploye is made by anyemployer ,

(b) A participating,employe shall be consid-ered totally and permanently disabled only afterthe board has r eceived written certification by atleast 2 licensed and practicing physiciansapproved or appointed by the board, that theemploye is totally and likely to be permanentlydisabled, for performance of the duties of anyposition .

(c) The amount of any disability annuityshall be . the greater of the following, determinedas provided in this paragraph and in accordancewith the prescribed rate of interest and theactuarial tables in effect on the date of initialapproval as provided ins . 41 .04 (1) (b) or, on thedate of approval by the board if initial approval isnot granted pursuant to s . 41 . 04 (1) (b) :

1 , The amount of the annuity to which aparticipating employe would be entitled under s .41,11 (6) or to which he would be entitledexcept for the age requirement of s ., 41 , 11 (6)(a)

2. The amount of the annuity that can beprovided from the accumulation of additionalcredits, plus the lesser of the following amounts :50 % of the participant's formula final rate ' ofearnings, or 1 .3 % of such formula final rate ofearnings, but 1 .8% of such formula final rate ofearnings of a participant whose normal retire-ment age is 62 or of a protective occupationparticipant who is subject to subch : VI of ch . 40,but 233 % of such formula final rate of earnings



(b) Eligibility. To be eligible therefor suchperson shall:

1 . Have attained age 55 , but have not attainedage 60, but after June 30, 1969, have attainedage 50, but have not attained age 55 ; and havebeen a participating employe for not less than 15years ; and

2 . Have established by medical evidence thathe has become physically or mentally disabled,after the attainment of the applicable minimumage specified in subd . 1, to such an extent that hecan no longer efficiently . and safel y perform theduties required by his position , and that suchcondition is likely to be permanent . .

(c) Benefit. Any participan t who qualifiesunder this subsection shall receive a specialdisability benefit determined as provided in sub .( 2 ) (c)„

(d) Application for benefits; reports. Aperson who claims to be disabled as providedherein , may make wr itten application to theboard for benefits hereunder . The boardd shallmake an investigation including examination ofmedical reports, and shall make a prelimina ryreport as to whether or not a special disabilitybenefit shall be granted . A copy of the reportshall be served by mail on the applicant and onthe employer employing him , .

(e) Finality ofrepor~t. If neither the applicantnor his employer appeals to the board from itspreliminary report within 20 days, the , reportsha ll be final .

(f) Review,* final determination Either the :eemploye or the employer may request a review ofthe preliminary report by the board . Such arequest for review shall be filed in writing within20 days following receipt of thee reportt by theemploye . or employer . The board shall thereuponbe authorized to proceed pursuant to s., 20 . 901 touse the services of staff members of thedepartment of industry , ' labor ; and humanrelations, including an examinerr andd reporterr toprovide for a hearing to be conducted by suchexaminer. .: on behalf of the board. Such hearingshall be conducted pursuant to ss 227 .07 to227.13, and the examiner shall submit to theboard a written reportt of his findings togetherwith the summary of the evidence The employer .shall be considered a party to the proceeding .Thereupon the board shall make a finaldetermination. :Such, determination shall besubject to review under , ch ,~ 227 '

(g) Such disability annuity shall begin asprovided in sub . ( 2) (a),3,,

(h) No payments shall be made under, thissubsection for any period as to which paymentsare beingmade;under .sub. . : (2);, Payments underthis subsection shall be suspended: for any periodduring which the annuitant is employed in a law

41.14 ' Death benefits . (1) The followingdescribed persons shall be entitled to deathbenefits, in the form and at the times hereafterspecified :

(a) The beneficiary determined under s .40 ; 50 of any participant or of any annuitant onthe date of death of the participant or annuitant . .

(b) Any death benefit may be paid as abeneficiary annuity, subject to s . 4 1 . 155 (1), or asa single cash sum, as specified by the participantor annuitant in the last written notice received bythe board prior to his death or, in thee absence ofsuch written notice, as specified by thebeneficiary in the application ,for the deathbenefit , .

. (c )- Whenever any death benefit is payable ina , single cash sum, it shall be paid . to thebeneficiary as soon as practicable after r eceiptby the board , of : 1 _ A certified copy of the deathcer tificate of the part ici pant or annuitant ; 2 , awiitterr application of the beneficiary for suchh

enforcement or, fire fighting capacity in this stateby anyemployer asdefined in s . 41 . 02 (4) .

(4) ' ELECTION OF `]BENEFITS:;' WAIVER, Anyperson entitled to payments under this sectionwho may otherwise be entitled - to paymentsunder ' s , 66 . 191 may file with the board and thedepartment of industry;" labor and humanrelations a w ritten election to waive paymentsdue unde r this section and accept in lieu thereofsuch payments as may be payable under s .66 . 191, but no person shall receive paymentsunder both s . 66 191 and this section However,any person otherwise entitled to payments underthis section may receive such payments, withoutwaiver of any rights under s . 66 .. 1 ' 91, during suchperiod as may be required for a determination ofsuch person's rights - under s. 66` . 191 . Upon thefinal adjudication of such person's rights under s .66.191, if waiver is filed under this section, suchperson ' shall immediately cease to be entitled topayments under this section and the fund shall bereimbursed for all payments made under thissection, from the award made under s . 66 191, 'inaccordance with such rules as are prescribed bythe board and the department of industry, laborand human relations,

(5) DISAPPROVAL ; REAPPLICATION . If anapplication for `any disability annuity is disap=proved, the filing date of ' such application may beused as the filing date of a ' subsequentapplication for a retirement annuity or for aseparation benef i t , but only if the use of suchdate would prevent the direct loss of benefits orundue delay into the payment of a benefit basedon the subsequent application .

History: 1971 c. 214 ss 77 to 84, 148 ; 1973 c 333 ; 19 7 5 c .414s 28


PUBLIC EMPLOYEE RETIREMENT (EXCEPT TEACHERS) 41 .148311

as the the, summ of the accumulated normal andadditional credits of the participant on the date

benefit , and 3 . such additional evidenceboard deems . necessary or desirable .

(d) For purposes of this section : of his death . .(c) Upon the death of a disability annuitant,

the excess of the sum of the accumulatedadditional and normal credits of such annuitantwhich were used at the time the annuity began toprovide the disability annuity, over the sum of allannuity payments to which the annuitant hadbecome entitled prior to death; but if thebeneficiary to whom a death benefit is payable isa spouse or minor ' child (including stepchild or 'legally adopted child), or, a trust in which suchbeneficiary has a beneficial interest, the deathbenefit shall be as follows, if greater- :

1 . If suchh death occurs prior to the normalretirementt date of the annuitant, the single cashsum which, at the date of death of the annuitant,is actuarially equivalent to a beneficiary annuity(terminating in the case of a minor ' child at theend of the month in which such child attains age21) of the monthly amount to which suchbeneficiary would have become entitled if thedeath of the participant had occurred . on the dayprio r to the date on which the disability annuitycommenced, and if ' the death of any beneficiarywho failed to survive the annuitant had occurredpr for to said date; or

2. If such death occurs on or after the normalretirement date of the annuitant and prior to the5th anniversary of such date, the single cash sumwhich, at the date of death of the annuitant, isactuarially equivalent to an annuity of ' the samemonthly amount as would be payable to theannuitant but terminating as of the end of themonth in which occurs the 5th anniversary of thenormal retirement date of the ' annuitant, butt if'the beneficiary is a minor , child such date oftermination shall not be later than the end of themonth in which such child attains age 21 .

(f) Upon the death ' of a participating employeafter credits have been reestablished in hisaccount pursuant to s . 41.08 (1) (a) 3, theamount determined in accordance with par.. (a),(b) or (g), but the amount so determinedshallbe reduced ' by the sum of all disability or,retirement annuity payments received by suchemployer but the amount so deter mined shall notbe lessthan the accumulations from the normaland additional contributions made by theparticipant after the date of the most recenttermination of his annuity;

(g) Upon the death, after December 31, 1965,of a participating employe who has attained theage of 60 years, or upon the death after June 30,1969, of a protective occupation participant whohas attained age 55, if the beneficiary to whom adeath benefit is payable is a spouse, child under-age 21 or child age 21 or older if handicapped(including a ; legally. . : adopted child or a

1,. A participant is deemed a participatingemploye on the date of his death i f he is then anapplicant for, a retirement annuity whoseapplication was received by the board within 30days after' he ceased to be a participatingemploye, and who would have been entitled tosuch annuity had he lived

2 ., A participant is deemed a participatingemploye on leave of absence, subject to thelimitations of' s „ 41,07 (1) (b), if the participat-ing employer for which he last performedservices as a participating employe has not filednotice of the termination of his employment,notwithstanding the fact that no formal leave ofabsence is in effect ,.

3 . If the death of a participating employe onleave of absence, other than a leave for, purposesof" military service, a rises from employment byany -employer- other - than a participating em-ployer his employment shall be deemed to haveterminated and he shall not be considered aparticipating employe on the date of his death .

4. Every participant is deemed to become anannuitant immediately upon the approval of hisapplication for a retirement or disability annuityif he diving at the time of such approval

(2) The amount of the death benefit shall be :(a) Upon the death of a participant,, the

amount equal to the accumulated normal andadditional credits of such participant on the dateof his death, plus the sum of , the accumulatedprior service credits and employer credits in hisaccount at December 31, 1965, compounded tothe first day of the month ,in which such deathoccurs at the effective - rates : of interest asdetermined : from year to year, or in the case ofamounts segregated in the variable annuitydivision, at the rates of net gain or loss credited ordebited to individual accounts in the variableannuity division. No benefit shall be payableunder- this paragraph unless the participant atthe date of his death was :

1 .. A participating employer2. A participant who was receiving a benefit

under s;; 66 ' 191, but who was not an annuitant ;3 , A .participant, other than an annuitant, who

has some creditable service in each of not lessthan 15 calendar year s; or

4. A participant who was currently contribut-ing to a teachers retirement fund or system underch .. 42, or, who would have been contributing tosuch a fund or, system except forthe attainmentof age 70

(b) Upon the death of a participant, otherthan an annuitant or a participant whosebeneficiary is entitled to receive a death benefitunder par, (a), (f) or (g) the amount equal to



stepchild) , or other dependent of such par-ticipating employe as determined by the board,or a trust in which such beneficiary has abeneficial interest, the present value at the da yfollowing the date of such death of the lifeannuity ` to the beneficiary which would havebeen payable, in the absence of the $10 minimumannuity provision of s 41 .11 (6) (a) 2, if theparticipating" employe had been eligible toreceive a retirement annuity beginning on thedate of.his death and had elected to receive' suchannuity in the form of a -,joint and survivorannuity providing the same amount of annuity tothe surviving beneficiary as the reduced amountpayable duringhis lifetime, but if there is morethan one such beneficiary the amount of suchannuity and its present value will be determinedas if the oldest of such beneficiaries were the solebeneficiary . Payment hereunder shall be com-pletely in lieu of any payment to such beneficiaryunder par. (a) , but if the death benefit payableto such beneficiary under this paragraph wouldbe less than the amount determined under par '. .(a) the death benefit shall be payable under par ..(a) and this paragraph shall not be applicable tosuch beneficiary .

History:1971 c 214 ;.1973c .20; '1975c . 94,189..Recovery by a fi r eman's widow under 66 191 and 41 14 is

not precluded, Appleton v.. ILHR Dept . 67 W (2d) 162, 226NW (2d) 497

Discussion of, validity of marriage performed beforedivorce decree was final in relation to death benefit under. (2)60 Atfy Gen 59 .

41.15 Beneficiary annuities. (1) (a) Adeath benefit may be paid as a benefi ciaryannuity , if:

1 .. The amount of the death benefit issufficient to provide a beneficiary annuity in thenormal form of at least $25 monthly ; and

2 . The beneficiary or the participant haselected to have the death benefit paid as abeneficiary annu ity.

(b) The normal form of beneficiary annui ty isan annuity payable monthly for the, life of thebeneficiary, with a guarantee of " 60 monthlypayments. All of those provisions of s . 41 , 11 (11)relating to an annuitant shall also apply to abeneficiary annuitant .

(2) Whenever anydeath, benefit is payable inthe form of an annuity,: such annuity shall beginon the day following the date of death of thepart icipant or annui tant p;ovided the board hasreceived.

(a), A certified copy of the death certif icate oftheparticipant or annuitant, and

(b) A written application af ' the beneficiaryfor such benefi t..

(3) The amount of any beneficiary annui tyshall be that which can be provided from Ahedeath benefit, determined in accor dance with the

prescribed rate of interest and the actuarialtables in effect on the date of 'approyal of suchannuity as provided ins . 41 . 04 (1) (b) .

(4) Any beneficiary who is eligible to receivea beneficiary annuity in the normal form asprovided in sub . . (1) may elect to receive theactuarial equivalent thereof in one of thefollowing optional annuity f or ins :

(a) As a straight-life annuity „(b) As an annuity payable monthly for the life

of the annuitant with a guarantee of 180 monthlypayments ,

(c) If the beneficiary is the surviving spouseof a participant, as a reduced annuity payablemonthly for the life of the annuitant ,, plus atemporaryy annuity payable monthly butterminating with the payment for the month inwhich the annuitant attains age 62 . . It is theintent- of this option that so far as is practicablethe aforesaid life annuityy and temporary annuityshall be determined in such r elative : amounts that ,the annuitant's total anticipated benefits fromthe fund and from the federal OASDHI systemwill be the same throughout the annuitant'slifetime. An annuity granted under thisparagraph shall include a guarantee of 60monthly payments,, but each monthly paymentdue after,, the death of the annuitant shall be inthe same amount as the annuity which wouldhave been paid in such month to the annuitant ifliving.

(d) Any beneficiary, or the legal or naturalguardian of a minor beneficiary may, in lieu of' alife annuity, elect that such beneficiary receivethe death benefit in the form of a temporaryannuity - of such amount as is approved,beginning on the day following the date of deathof the partici pant or annuitant and ending withthe monthly payment immediately prior to thebeneficiary's 21st ,birthday, and a final payment,payable one month after the termination of thetemporary annuity, of such amount as can beprovided from the death benefit, after providingforr the temporary annuity, on the basis of theprescribed rate of interest and thee actuar i altables in-effect on the date of initial approval ofsuch annuity as provided in' s . 41 . 04 (i ') (b), buta beneficiary, prior to the final payment, may, if 'the amount ofsuch final payment is suffic ient toprovide an immediate beneficiary annuity in thenormal form off at least $25 , monthly, elect torece ive in lieu of such final payment an annuitycommencing on ' the day following the date oftermination. of the temporary annuity, deter-mined on the basis of the prescribedd rate. ofinterest and the actuar ial tables in effect On thedate of initial approval of such annuity Asprovided in s .4t ,04 (t ) (b) .

" History:. 19'71 c . 214;1975c '94 s, 91 '(5); 1 915c.'1 89 ; 199 ,:


833 PUBLIC EMPLOYES RETIREMENT (EXCEPT TEACHERS) 41 .19

41.19 Employer accumulation accounts .(1) For the purposes of establishing reserves forthe future payment of benefits to participants, aseparate accumulation account in the name ofeach participating employer, except as providedin sub . (5), shall be createdd as of January 1,1966, and maintained as hereinafter described . .Each accumulation account shall be :

(a) Credited as of . January 1, 1966, with theaggregate accumulations of prior service, em-ployer, including additional employer, andmilitary service credits in the accounts of allparticipants of thee employer on December 31,1965 . .

(b) Debited as of January 1, 1966, with theaggregate amount of thee debit balance in theobligation accounts of the employer on Decem-ber 31, 1965 . . If any suchh obligation account onDecember 31, 1965, has a credit balance theamount thereof' shall be credited to theaccumulation account . . -

(c) Credited as of the date due with the sameproportion of each contribution for anyy calendaryear paid by the employer pursuant to s . 4 1 10(1) (a) which the aggregate of the percentagesapplicable for such year to s . 4110 (2) (a), (b)and (d) bears to the total percentage deter minedunder ' s 41 10 (2) for such year . . The proportionsof such contributions applicable to s, 41,10 (2)(c) shall not be credited to any employer .raccumulation account

(d) Credited as: of' the date of":receipt with theamount of any payment received from theemployer pursuant to s 41 : 10 (1 ) { b) and (5 ) .

(e) Debited as of the last day of each month inwhich anyy benefits are granted on account ofparticipants of the employer with the aggregateexcess of 1) the amount of each single - sumbenefit or in thee case of an annuity the presentvalue thereof at the date it begins, over 2) theamount equal to the accumulated additional andnormal credits of the participant, plus, in thecase of a disability annuity, the amount financedpursuant to s 41 10 (2) (c)

(f) Credited as of the date of termination of `any annuity pursuant to s 41,11 (12) (a) or41,13 (2) ` (e) with the excess of the then presentvalue of the terminated annuity over theaggregate amount of credits reestablished in theaccounts of the participant , .

(g) Credited as of each December 31 withinterest at the effective rate on the mean balancefor the year then ending of the accumulationaccount not segregated for variable annuitiespu r suant to s . 41 : 12 (6a) The mean balance forany year of an accumulation account shall bedetermined as one'half of thesum ofthe balanceat the beginning of ' sueh year plus the balance atthe end of such year, but prior to cred itinginterest pursuant to this paragraph,

41.18 Funds . (1) All money received by theboard shall be deposited with the state treasurerfor the account of the fund . All disbursementsshall be made pursuant to authorization by theboard except that investments shall be made asprovided in s . 40 . 06 ..

(3) The assets of " the fund shall be mingled inone fund, and no particular person or employershall have any right in any specific item of cash,investment or other property other than anundivided interest in the whole as provided bythis subchapter .

(4) The fund may refund any money paid inerror into the fund . . To effect such a refund thename of each person or employer entitled to arefund and the amount thereof shall be certifiedto the department of administration.. Thereuponand notwithstanding s . 20 . 913; the departmentof administration shall draw its warrant for theamount and in favor of ' the person or employer socertified, and the state treasurer shall pay thesame and charge it to the appropriation made bys 20 „515(1)(w) .

History: 1971 c 214 s 148 ;1913 c 137

41 . 16 Separation benefits. The followingdescribed persons shall be entitled to separationbenefits at the times hereinafter specified :

(1) Any participant who is not employed as aparticipating employe and who at the time ofapplication therefor would not be entitled toeither a retirement or, disability annuity begin-ning immediately. Subsequent employment as aparticipating employe prior' to the initialapproval of the separation benefit shall cancelthe application ..

(2) Each separation benefit shall be paid inthe form of a single cash sum as soon aspracticable after receipt by the board of both awritten application by the participant and awritten notice from the last employer certifyingthat such participant has ceasedd to be aparticipating emplo,ye . The amount of anyseparation benefit shall : be the sum of theaccumulated additional credits and normalcredits of the participant, including any amountpaid by an employer in accordance with s . 41,07(2) (c) or (d) and including all interest and netgains or losses credited to the first day of the yearin which the separation benefit application isfiled .

History: l9'71c .214 ;d973c .20.

41 .17 Investment of assets. The assets ofthe fund, in excess of'the amount of cash requiredfor the current operations as determined by theboard, shall'' be invested and reinvested asprovided by ss . 25 17 and 40 .06 ..

History : 1971c.214 ;1973c 137 .


83441 .19 PUBLIC EMPLOYES RETIREMENT (EXCEPT TEACHERS)

41 .20 Surpluses and reserves. (1) Thesurpluses arising out of the operations of thisfund shall be classified and determined asfollows :

(a) :The annuity payment surplus shall bedetermined as of the endd of each year as theamountt by which the reserve for annuitiespreviously granted exceeds the actuariallydetermined liability with respect to suchannuities Whenever such surplus exceeds 25 %or there is a deficiency exceeding 15% of suchreserve, the tables used for- the determination ofannuities shall be revised in such manner as theboard deems equitable. The board may order andmake such distribution of said annuity paymentsurplus as it deems equitable .

(b) The disability benefit surplus shall bedetermined as of the end of each year as theamount by which 1) accumulated contributionspursuant to s 41 .10 (2) (c) or 41. . .105 (1) (b),of all employers for all prior years .and thecurrent year, exceeds 2) the amounts required toprovide, when added to the present values of'theannuities to which the employes would be

41 .21 Authorizations. (1) Each participat-ing employer shall be :

(h) Interest shall be credited at the end of theyear, at the effective rate from the date ofreceipt, on all contributions received in ac-cordance with s . 41 10 (1) (b); but all suchcontributions, for the year in which they arereceived, shall be excluded from the computationof the mean balance required to be determinedpursuant to par (g) .

(3) Separate accountss shall be maintainedfor each participant and, except as provided insub. (5), ;for each -participating employer .Transactions affecting the employes of anyemployer shall not affect the accounts of anyother employer except as otherwise specificallyprovided in this subchapter . .

(4) Whenever any sum which is due to thefund from any participant cannot be recoveredfrom such participant, the last participatingemployer by which the participant was employedshalll be charged with said sum if such sumbecame due as the result of incorrect orincomplete reporting by such paY3icipatingemployer .

(5) Effective Januar y 1, 1974, there iscreated a joint employer accumulation accountconsisting of the aggregate debits and creditspreviously determined in accordance with thissection . After such date all cr edits and debits asprovided in this section shall be made within thejoint employer accumulation account withoutregard to the identity of the employer, and allreferences in sub ., ( I ) to s , 41 . 10 shall be deemedto include reference to the appropriate or

gcorresponding provision of s . 41 . 105 ,History: 1971 c . 214 ss , 99,100,148; 1975 c: 1899

entitled under s 41 11 (6), the present value ofall benefits to participating employes granteddisability annuities pursuant to s, 41 .13 as of thedate of commencementt of such disabilityannuities . . Amounts required to provide disabili-ty annuities terminated pursuant to s . 41 .13 (4)shall be excluded from the determination of ' thedisability surplus . Whenever the disabil i tybenefit surpluss or deficiency exceeds 100 % ofthe aver age annual requirements under 2)during the 3 preceding calendar years, thecontribution ratess for disability benefits shall berevised in such manner as the board deemsnecessary to reduce such surplus or deficiency

(2) Reserves shall be established for thepurposes and in the mannerdescribedbelow :

(a) Separate reserves for annuities grantedequal to the present value as of the date ofcommencement of all retirement, disability andbeneficia ry annuities previously granted; plusinterest on the mean amount of such reserveduring each calendar year ; computed at not lessthan the prescribed rate; reduced by theaggregate amount of annuity payments anddeath benefits paid with respect to suchannuities ; and reduced by the present value atthe date of termination of all annuitiesterminated in accordance with s . 41 .. 1 . 1 (12) (a)or 41 .13 (2) (e); and reduced by the amount bywhich the present value as of the date ofcommencement of all disability annuiti es whichwere terminated in accordance with s, 41,13 (4)exceeds the amount reimbursed . As of anyJanuary 1 on which the surplus with respect todisability annuities granted exceeds 5 % of thereserve for, such annuities, such excess shall beadded to the disability benef it surplus anddeducted from the reserve for disability annui-tiesgranted . . ,

(c) The board may transfer the balance in thedeath surplus account which was eliminated bychapter 55, laws of 1955, to any fund accountnow existing or hereafter created . The boardmay create such reserves as it deems advisable

(d) On July 31, 1975 the appropriate reserveunderr par. (a) shall be increased by an amountequal to the value of each monthly annuitypayable under s . 41 .: 50 on July 31, 1975 Suchamount shall be transf'er'red to the appropriatereserve as provided under this paragraph fromthe surplus interest account of the fi xed annuitydivision of' the fund

History: 1971 a~ 214ss 101, 148 ; . 149 ; 1973 c . 137; 19 75 c39 .

Surpluses in the annuity reserve fund may be distributed toannuitants as dividends without conflicting with Art IV, sec26, Wis Const . 58 Atty Gen . 43


835 PUBLIC EMPLOYES RETIREMENT (EXCEPT . TEACHERS) 41 .23

(a) Authorized and directed to deduct allnormal and additional contributions from eachpayment of earnings payable to each participat-ing employe who is entitled to any earnings fromthe employer. All such contributions shall be dueand be deposited in the office of the board notlater than the end of the month in which theearnings are paid

(b) Authorized and directed to pay to theboard concurrently with each remittance ofemploye contributions deducted from earnings,the corresponding employer contribution out ofthe general fund or any special fund from whichthe- earnings were, paid, except as provided in s .41 .10(8) .

(2) Each participating employe shall, byvirtue of the payment of any contributions to thisfund, receive,a vested interest in the annuitiesand. benefits, provided in this subchapter andeach such employe in consideration of suchvested interest in this fund shall be deemed tohave agreed and authorized the deduction of allcontributions payable to this fund in accordancewith this .subchapter. ; from the payments ofearnings by the employer .

1, 1 (3) Payment of earnings less the amounts ofcontributions provided in this subchapter shallbe 'a full and complete discharge of all claims forpayment for services rendered by any employeduring the period covered by any such payment . .History: 1971 . c .. 214 s . 148 ; .19 75, c 189 . .

41 .22 Assignments. (1) (a) None of themoneys in, the fund shall be assignable, either inlaw or equity, or be subject to execution, levy,attachment, garnishment or other legal process .Insurance premiums for those annuitants insured under subch . II of ch . 40, however, shall bededucted from the .annuity, if the annuity issufficient, and paid to the credit of s . 20.515 (1)(win) and the annuitant may also direct, in suchform as the board determines, that premiums bededucted for supplementary medical coverageunderr federal social security and such moneyspaid to the social security administration .

(b) The board may retain out of any annuityor benefit such amount as the board in'itsdiscretion may determine, for the purpose ofreimbursing the fund for any money paid to anyannuitant, beneficiary or participant throughmisrepresentation, fraud or error . Upon therequest of the board any employer shall withholdfrom any sum payable by such employer to anannuitant, beneficiary or participant and remitto the board any amount which the board paid tosuch annuitant, beneficiary or participantthrough misrepresentation, fraud or error .

(3); Any action, decision or determination ofthe board shall be reviewable only by a writ ofcertiorari, and any party to such certiorari

41 .23 Supplemental benefits. (1) Anyperson who receives an annuity for the month ofSeptember 1974, from the Wisconsin retirementfund created under this chaptei'shall, subject to acontinuation 'of the appropriation made by s..20.515 ( 1) (a), be eligible to receive thefollowing :

(a) The monthly annuities which the personwas eligible for and received, for the month ofSeptember 1974 ; plus

(b) An amount which is equal to 4% timesthe number of full calendar years since theannuity began to January` 1, 1974, times thesmaller of $250 or the initial monthly annuity,excluding amounts provided from additionaldeposits . Benefits under this paragraph shall bepayable to the surviving beneficiary, whoreceives an annuity ; of eligible persons . If theform of annuity,elected provided for one monthlyamount initially and a different amount at some

proceedings shall have the right of appeal fiomthe decision of ' the reviewingcourt.

(4) The board and the fund sha ll be held freefrom any liability for any money retained or paidin accordance with this section and the employeshall be assumed to have assented and agreed toany such disposition of money due.. ;

(5) Whenever any annuitant shall receiveany annuity payment while in the service of anyemployer contrary to s . 41 . 11 (12) or 41 13 (2)(f), itt shall be the duty of such employer towithhold and remit to the board a sum equal tothe annuity paid erroneously to the extent of anysums payable by such employer, and any amountnot recovered by the fund from the employermay be procured by the fund pu rsuant to sub .(1) (b) or, by action brought against suchannuitant or his estate.

(6) Any person entitled to an annuity maydecline to accept all or any part of ' such annuityby a waiver signed and filed with the board whichirrevocably abandons all claims or rights to thesums waived as of a specified date.. Such waivermay be revoked in writing filed with the board atany time, to be effective as of the beginning of themonth following the receipt by the board, butsuch revocation of the waiver shall not reinstateany right to the sums waived ,

(8) If the fund is unable to contact anyannuitant or beneficiary for a period in excesss of7 years, the board may determine that forpurposes of this subchapter the annuitant orbeneficiary is deceased, as of a date determinedby the board, and the applicable provisions of s,4 or 41.14 shall be invoked for the purpose ofpaying any annuity continuance or death benefitprovided therein,,

History : 1971 c . 125 ; 19'71 c. 214 ss. 102, 103, 148; 197 5 c.39 s . 7 .34;1975 c , 94 s, 91 (3) ; 1975 c , 189



CONSERVATION WARDENS PENSIONFUND

41.43 . . Termination and disposition offund. (1) At the close of business on December-31, 1973, the conservation wardens pension fundshall cease to exist, whereupon the assetsandliabilities of such fund shall be transfers ed to theWisconsin retirement fund . Such transfer shallbe .reflected on the accounts of the Wisconsinretirement fund as follows :

(a) An amount equal to the accumulatedcontributions of each conservation warden whobecomes a participating employe pursuant to s . .4147 shall be credited to the individual accountof each such conservation warden as employenormal contributions .

(b) An amount equal to the reserve for futurebenefits for members of the conservationwardens pension fund who retired prior toJanuary 1, 1974, and for their survivors, shall betransferred to the Wisconsin retirement fund forcredit to the appropriate reserve under s . . 4120(2) (a)

(c) An amount equal to the excess of theamounts determined under pans . (a) and (b)over the aggregate amount of the assets of theconservation : wardens pension fund shalll betransferred as a debit to the accumulationaccount of the state of Wisconsin as createdunder : s . 41 19 (i ) . .

(2) Thee amount of each transfer or otheraction under sub . (1) shall be as determined by

41 .45 Board abolished. Effective December31, 1973, the conservation wardens pensionboard is abolished and all powers and duties ofsaid board shall thereafter be exercised by theWisconsin retirement fund board . .

History: 1973 c 151 -

41 .46 Benefits of retired members andsurvivors continued. Each benefit which isbeing paid in accordance with this subchapter onDecember 31, 1973, shall be continued in fullforce and effect, but after such date shall be paidby the Wisconsin retirement fund to each person

time in the future, for purposes of thisparagraph, the initial monthly amount shall bedetermined for each month as the amountpayable in that month pursuant to the initialcomputation for thee form of"annuity elected .

(2) Any benefit payable by virtue of thissection in excess of the amounts payable underother provisions of this chapter shall be paidfrom and be subject: to a continuation of theappropriation made by s : 20 :515 (1) (a) .

(3) Determinations of eligibility and theamount of%any payment to be made under thissection shall be made by the department, andshall be certified by the department for paymentin the manner' specified in s. 41 .04 for, paymentsfrom the Wisconsin retirement fund .

(4) No payment shall be made under thissection, nor shall any right accrue underr thissection, for or after any month for which themember receives compensation which is subjecttto s 41 .;07 (2) (am) .

History: 1973 c 33'7;1975c 39s 734

SUBCHAPTER II

the actuary and approved by the Wisconsinretirement fund board .

History: 1973 c; 151 .

41 .44 Emplaye and employer contribu -tions. (1) Effective for participating earningspaid on or after January 1, 1974, each personwho becomes a participating employe under theWisconsin retirement fund pursuant to s . 4147(1) shall make contributions as provided in s41 .07 (2) (am), but subject to s . 4107 (2-) (d) .

(2) Effective for participating earnings paidon or after January 1, 1974, the department ofnatural resources shall pay to the Wisconsinretirement fund monthly the following amounts :

(a) For each person who becomes aparticipating employe under the Wisconsinretirement fund pursuant to s 41 .47 (1), thepercentage of earnings determined under s .41 .105 (2) which is applicable to the employ-ment category of each such participatingemployer and

(b) In each of'the 480 months next followingDecember, 1973, such amount as is determinedby the actuary and approved by the Wisconsinretirement fund board. Such amount shall bedetermined so that the present value of suchrequired payments as'of' December 31, 1973, isequal to the amount by which the present valueof benefits expected to become' payable to allformer member's and beneficiaries of'the former'conservation wardens pension fund exceeds theamount of'' the assets transferred to theWisconsin retirement fund pursuant to s . 41 ..43,plus the present value of future contributionswith respect to such former members as requiredunder par. (a) The present value of any or all ofsuch monthly payments may be made in advanceat such-time or times as may be determined bythe department of natural resources

(3) The computations required under s ..41105 (1) (c) which are made after December31, 1973 shall be adjusted by the actuary asnecessary to recognize those liabilities for whichpayment is made pursuant to sub . (2) (b) .

"History: 1973 c 151


837 PUBLIC EMPLOYES RETIREMENT (EXCEPT TEACHERS) 41 .50 '

entitled thereto, or to a survivor's benefit based Wisconsin retirement fund board no later thanthereon, under, ss.41.30to41.42,1971 stats,. December 31, 1973, electing that his benefit

History: 1973 c . 151 rights under ss . 41 .30 to 4142, 1971 stats , becontinued., Any benefit payable to any such

41 .47 Rights of active members . (1) conservation warden or his survivors shalll beEffective January 1, 1974, each active member paid by the Wisconsin retirement fund but shallof the conservation wardens pension fund shall be determined and paid entirely in accordancebecome a participating employe subject to all with ss. 4130 to 4142, 1971 stats . Any suchprovisions of the Wisconsin retirement fund, conservation warden who files such writtenwhereupon all rights and privileges as a member notice of election shall not be required to retireof the conservation wardens pension fund shall until he has reached 62 years of age, but he shallcease . . Each such member shall receive make contributions as pr ovided in s . 4144 (1)creditable service as a protective occupationparticipant under, the Wisconsin retirement fund History: 19 73 c i 51equal to his service as a member of theconservation wardens pension fund, and shall be SUBCHAPTER IIIcredited with employe normal contributions asprovided ins 4143 (1) (a),

(2) Upon the termination of employment, OLD STATE RETIREMENT SYSTEMdeath., disability or retirement of any person whobecame a participating employe under the

41 .50 State employes ' retirement systemWisconsin retirement fund pursuant to sub . . (1), abolished; rights preserved. After July 31,the benefit to be paid to suchh member or hisbeneficiary shall be determined and .d paid in 1975 each monthly annuity payable under SS .accordance with subch I Any benefit so 42 65 to 42 .71, 1957 stats., and 41 .50, 1973determined and paid is in lieu of any benefit or stats, shall be paid from the Wisconsinother right which existed under this subchapter retirement fund . All rightss of each personbefore January 1,1974. entitled to such a monthly annuity shall be

(3) Any conservation warden subject to this preserved in full .,section may file written notice with the History : i97sc 39


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