Wisconsin Administrative Code Department of Employee Trust Funds
The Wisconsin Administrative Code (WAC) provides rules and regulations related to various state agencies, and the Department of Employee Trust Funds (ETF) is responsible for managing retirement benefits, health benefits, and other benefit programs for state employees, local government employees, teachers, and certain other public employees in Wisconsin.
The Department of Employee Trust Funds oversees the administration of pension systems like the Wisconsin Retirement System (WRS), health insurance plans, disability benefits, and more. The related administrative code contains rules that govern the benefits and services provided to Wisconsin public employees and retirees.
Below is an overview of the Wisconsin Administrative Code as it pertains to the Department of Employee Trust Funds and the key functions it covers:
Key Areas in the Wisconsin Administrative Code for ETF (Department of Employee Trust Funds)
The ETF rules and regulations are codified under Chapter ETF of the Wisconsin Administrative Code. Here are some of the main components:
1. Wisconsin Retirement System (WRS)
The Wisconsin Retirement System (WRS) is one of the largest public pension systems in the U.S. and covers most public employees in Wisconsin.
WRS Eligibility (ETF 10.01):
This rule outlines the eligibility requirements for public employees to participate in the Wisconsin Retirement System (WRS). To be eligible, employees must meet specific service requirements, be part of an eligible employer, and meet age-related criteria.
ETF 10.01 also explains how membership in the WRS begins and how it is affected by changes in employment status.
WRS Contributions (ETF 20.01):
Both employees and employers contribute to the WRS, and ETF 20.01 provides detailed guidance on contribution rates, the method of contributions, and how they are allocated to retirement accounts.
The contributions are based on employee wages and are adjusted according to the type of employment.
Retirement Benefits (ETF 40.01):
This section outlines the specific formulas for determining the amount of retirement benefits a member is entitled to receive upon retirement.
The formula generally takes into account factors like final average earnings, years of service, and age at retirement.
2. Health Insurance for Public Employees
The ETF administers health benefits programs for employees, retirees, and their dependents. It offers several health insurance options, including a state-managed health plan and private plans.
Health Insurance Plan Participation (ETF 10.05):
This rule discusses eligibility for participating in health insurance plans offered by ETF, including enrollment procedures, open enrollment periods, and special enrollment events such as changes in marital status or dependent status.
Health Insurance Premiums (ETF 40.10):
ETF sets out rules for the payment and adjustment of health insurance premiums, both for active employees and retirees.
Premiums are generally shared between the employee and the employer, with rules about how these premiums are deducted from employees' salaries.
3. Disability Benefits
The disability benefits provided by ETF are designed to support public employees who are unable to work due to illness or injury. These benefits can be either short-term or long-term depending on the severity and duration of the disability.
Disability Retirement Benefits (ETF 50.01):
Employees who are permanently disabled may be eligible for disability retirement benefits under the Wisconsin Retirement System (WRS).
ETF 50.01 establishes the criteria for qualifying for disability retirement benefits, which are typically available after a certain number of service years, and also outlines the process for applying for such benefits.
Short-term Disability Benefits (ETF 50.02):
Some public employers may offer short-term disability benefits for employees who are temporarily disabled but plan to return to work.
ETF 50.02 provides the guidelines for these benefits, including the eligibility requirements and the length of time for which benefits may be provided.
4. Life Insurance Benefits
Life insurance coverage is often offered as a benefit through ETF, either as a supplemental program or as a core part of an employee’s benefits package.
Life Insurance Coverage (ETF 60.01):
This section sets the rules for life insurance benefits for employees, retirees, and their dependents, explaining the types of coverage, eligibility, and how benefits are paid out to beneficiaries.
5. Post-Retirement Benefits
Post-retirement benefits are crucial for retirees who rely on their pension and health benefits in their later years. ETF ensures the continued provision of these benefits, including health insurance and any supplementary income programs.
Post-Retirement Health Insurance (ETF 80.01):
Retirees may continue participating in health insurance plans offered by the state under post-retirement provisions. ETF 80.01 provides details about the continuation of health benefits and how premiums are calculated for retirees.
Survivor Benefits (ETF 90.01):
If a retiree passes away, surviving spouses or dependent children may be eligible for survivor benefits, which are outlined under ETF 90.01. This regulation explains eligibility and how survivors can apply for benefits after the death of an employee or retiree.
6. Employer Reporting Requirements
Employers who participate in the ETF-administered benefits plans have certain reporting requirements to ensure that employees' benefits are properly administered.
Employer Reporting (ETF 20.05):
ETF 20.05 establishes reporting requirements for employers to submit data on employee wages, hours worked, contributions, and other relevant information. These reports are crucial for calculating the appropriate retirement contributions and benefits.
Employers are also responsible for ensuring that health insurance premiums and life insurance premiums are properly deducted and transmitted to ETF.
7. Fund Administration and Investments
ETF manages the Wisconsin Retirement System (WRS) trust funds, which are invested to generate returns that help fund future pension obligations.
Investment of Funds (ETF 60.01):
ETF 60.01 discusses the management and investment strategies for the WRS funds, ensuring that the funds are properly invested to meet the long-term pension obligations of the system.
This rule also outlines the oversight responsibilities of ETF in ensuring the ethical and efficient management of these funds.
8. Administrative Penalties for Non-Compliance
ETF has the authority to enforce compliance with its regulations and levy penalties for violations of rules related to employee benefits, employer reporting, and other responsibilities.
Penalties (ETF 70.01):
Employers or participants who fail to comply with reporting or contribution requirements may be subject to penalties under ETF 70.01. These penalties are meant to ensure that the system remains financially sound and that all participants receive the benefits to which they are entitled.
Conclusion
The Wisconsin Administrative Code - Department of Employee Trust Funds (Chapter ETF) plays a crucial role in managing benefits for Wisconsin’s public employees, retirees, and their families. It ensures the proper administration of retirement, health insurance, disability, and other essential benefits. The code includes comprehensive rules for eligibility, contributions, reporting, and penalties, all of which help maintain the integrity and sustainability of public employee benefit programs.
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