Pursuant to s.
40.24, Stats., a
participant may elect one of the optional annuity forms prescribed in this
section in lieu of an option prescribed under s.
40.24,
Stats.:
(1) A joint and survivor
annuity with payments reduced 25% effective either with the payment for the
month in which the participant dies, or effective with the payment for the
month after the month in which the named survivor who was designated by the
participant in the original application for an annuity dies.
(2)
(a) A
joint and survivor annuity payable for the life of the annuitant, with a
guarantee period of at least 180 monthly payments, and after the death of the
annuitant continued at 100% for the life of the named survivor who was
designated by the participant as the named survivor in the original application
for the annuity.
(b) The
participant may designate a beneficiary or beneficiaries as provided in s.
40.02(8) (a) 1, Stats., to receive the balance of payments
due in the event of the death of both the participant and named survivor before
180 monthly payments have been made. The participant may change the designation
of the beneficiary.
(c) A named
survivor or beneficiary receiving a deceased participant's annuity payments
under this subsection, may designate a beneficiary or beneficiaries as provided
in s.
40.02(8) (a) 1, Stats., and thereafter change his or her
designation of the beneficiary of any remaining guaranteed monthly
payments.
(d) In the event of the
death of the named survivor who is receiving continued benefits after the death
of the participant, but prior to payment of 180 monthly benefits, the remainder
of the 180 monthly payments shall continue to the named survivor's designated
beneficiary, or in the absence of a designated beneficiary or the death of all
the named survivor's designated beneficiaries prior to the death of the named
survivor, payment shall be made under the named survivor's standard sequence as
set forth in s.
40.02(8) (a) 2, Stats.
(e) In the event of the death of the named
survivor prior to the death of the participant, the remainder of the 180
monthly payments shall continue to the participant's designated beneficiary, or
in the absence of a beneficiary designation or the death of all the designated
beneficiaries prior to the death of the participant, payment shall be made
under the participant's standard sequence as set forth in s.
40.02(8) (a) 2, Stats.
(f) In the event of the death of the
beneficiary after becoming entitled to receive monthly payments but before
receipt of the remainder of the guaranteed 180 monthly payments, the then
present value of the annuity shall be paid, in lieu of the continuation of
monthly payments, pursuant to s.
40.73(2) (b) 3, Stats., as a death benefit to the
beneficiary's designated beneficiary, or in the absence of a beneficiary
designation or the death of all the beneficiary's designated beneficiaries
prior to the death of the beneficiary, the then present value of the annuity
shall be paid under the beneficiary's standard sequence as set forth in s.
40.02(8) (a) 2, Stats.
(g) In the event of the death of both the
named survivor and all the participant's designated beneficiaries prior to
being entitled to receive benefits, the remaining monthly payments shall
continue pursuant to the participant's standard sequence as set forth under s.
40.02(8) (a) 2, Stats., if the participant's death occurs
before 180 monthly payments have been made.
Note: The definition of "beneficiary" was affected
by 2007 Wis. Act 131. The term "named survivor" was first used and defined by
1997 Act 110, and replaced the term "beneficiary" in some cases. In reviewing
the existing administrative rules using the term, to make sure the usage
remained logical, correct and consistent with the new definition, the
department found three provisions that needed amendment, ss.
ETF 10.70(4), 10.70(5) (b) 1. and 20.04(2). This rule (CR 09-057) amends the current rule describing the
joint-and-surviving annuity option with 180-payment guarantee to use the term
"beneficiary" correctly.
(3) An annuity payable under sub. (1) or (2)
plus an accelerated payment annuity as determined under s.
40.24(1) (e), Stats.
(4) A life annuity with a number of
guaranteed payments equal to the number of full calendar months in the life
expectancy of the annuitant as determined under the tables at 26 CFR 1.401(a)
(9)- 9 as in effect on the date when the annuity begins.
This rule (CR 09-057) concerns the optional forms of an
annuity and updates the existing rule to better reflect ongoing changes in
federal regulations and to more clearly state that the number of guaranteed
payments is to equal the number of full calendar months in the annuitant's life
expectancy.
