(1) For purposes of annuity computations, an
applicant's age shall be determined to the nearest month.
(2) For purposes of determining maximum
benefits under s. 40.23 (2),
Stats., and accelerated benefits under s.
40.24 (4),
Stats., except as provided to the contrary in s.
ETF 20.35 (4)
(c), the estimated OASDHI benefit shall be
based on the following:
Note: 2007 Wis. Act 131 revised s.
40.24 (1) (e),
Stats., for annuities effective after July 1, 2008 to remove the alternative
provision terminating the temporary annuity portion of the benefit at death and
thereby made the temporary annuity an annuity certain payable until the
annuitant would have reached age 62. Once called "Social Security Integrated"
or "integrated" annuities, these two-part annuity options are now known as
accelerated annuity options. This rule (CR 09-057) updates the last remaining
reference in the administrative rules to an "integrated" annuity
benefit.
(a) It shall be assumed that
the employee has been in a position covered under OASDHI from the year in which
age 30 was attained to the year of retirement or death, except that years in
which earnings are reported under s.
40.05 (1) (a) 4, Stats., shall not be counted.
(b) It shall be assumed that covered earnings
increased from the year in which age 30 was attained to the year of retirement
or death at a rate determined by the actuary to reflect changes in the OASDHI
wage base and approximate average changes in earnings during that
time.
(bm) With respect to
accelerated annuity options under s.
40.24 (1) (e),
Stats., or s.
ETF 20.04 (3), that become effective on or after July
1, 2008, the temporary annuity portion is payable in all cases until the
annuitant reaches, or would have reached, age 62, without regard for an earlier
date of death. The actuary shall make all tables, other assumptions and
calculations relevant to the accelerated annuity benefit accordingly.
Note: 2007 Wis. Act 131 revised s.
40.24 (1) (e),
Stats., for annuities effective after July 1, 2008 to remove the alternative
provision terminating the temporary annuity portion of the benefit at death and
thereby made the temporary annuity an annuity certain payable until the
annuitant would have reached age 62. This rule (CR 09-057) requires the
actuary's assumptions, tables and calculations to take into account that the
temporary portion of future accelerated annuity benefits will be an annuity
certain.
(c) The delayed
retirement credit under federal social security regulations shall be applied to
each year after age 65 and up to age 72.
(d) Based upon the assumptions in pars. (a)
to (c) and in accordance with the provisions of the federal social security
act, the actuary shall prepare a table correlating the employee's age and final
average earnings with a primary OASDHI benefit, adjusting the table as
necessary to prevent, in most cases, assumed OASDHI benefits from exceeding
actual OASDHI benefits.
(e)
Notwithstanding pars. (a) to (d), if the applicant furnishes the official
social security award certificate or a letter from the social security
administration which shows that the retirement or disability benefit that is
first payable from the participant's OASDHI account at the time of application
for Wisconsin retirement system benefits is or will be in a different amount,
the amount certified by the social security administration shall be used in the
benefit computation.
(3)
The actuarial factors used in computing annuities for beneficiaries shall be
the same as the factors used in computing retirement annuities. For purposes of
computing a beneficiary accelerated payment annuity the beneficiary's estimated
OASDHI benefit shall be the primary OASDHI benefit amount determined for the
deceased participant pursuant to sub. (2).
(4)
(a)
When the earnings of a state elected official whose final average earnings are
subject to s. 40.02 (33) (b) 1 or 2., Stats., are paid on a payroll
schedule other than monthly, the final average earnings used to calculate
benefits under ss. 40.23,
40.63 and
40.73 (1) (c),
Stats., shall be calculated by multiplying the participant's hourly rate of pay
at the time of termination of employment from state elected official service by
2,080, then dividing the result by 12.
(b) The final average earnings calculated
under par. (a) shall not be used to calculate benefits based on creditable
service granted in any category of employment other than that as a state
elected official.
This rule (CR 09-057) codifies the department's long-standing
practice for calculating the final average earnings for state elected officials
and ensures the practice is consistent for calculating retirement annuities,
disability annuities, and death
benefits.
