Wisconsin Administrative Code
Department of Employee Trust Funds
Chapter ETF 20 - Wisconsin Retirement System
Section ETF 20.045 - Changes to optional form of payment

Universal Citation: WI Admin Code ยง ETF 20.045

Current through August 26, 2024

(1) Changing the form of payment from a lump sum payment under s. 40.25(1) or (4), or 40.73(1) (a), Stats., to an annuity under s. 40.24(1) or 40.73(3), Stats., or from an annuity to a lump sum payment, is subject to the option change deadline specified in s. 40.24(4), Stats.

(2)

(a) If a participant, alternate payee or beneficiary has made a timely request under sub. (1) to change from a lump sum payment to a monthly annuity, the effective date of the annuity shall be determined based on the original date on which the department received the original application for benefits.

(b) If the department receives a timely payment option change request after the lump sum payment has already been issued, or receives it too late to prevent the payment from being issued, the applicant must return the payment in full within 30 calendar days after the date on which the department received the option change request. If the lump sum payment is not returned within the 30-day period, the option change request is null and void.

(c) The department shall not commence making annuity payments before the department has received the returned lump sum payment.

(3) If a participant, alternate payee or beneficiary has made a timely request under sub. (1) to change from a monthly annuity to a lump sum payment after one or more monthly payments have been issued, or if the department receives the option change request too late to prevent a monthly payment from being issued, the amount of the annuity payments that would have been paid under the terminated annuity if the annuity had been a straight life annuity shall be deducted from the lump sum payment that would otherwise have been payable.

Note: This rule (CR 09-057) codifies the department interpretation that the deadline for making a change to an optional form of payment is 60 days after the date on which the first annuity check is issued or funds are otherwise transferred. If the request for a payment option change is received by the department too late to prevent the lump sum payment, the applicant has 30 calendar days from the date of the request to return the payment in full.

If the request is received too late to prevent issuance of one or more monthly payments, the value of the payments issued shall be deducted from the lump sum payment.

(4) Subject to the restrictions in s. 40.24(7) (a), Stats., a participant's request to change the designation of a named survivor to a different named survivor shall be subject to the deadline specified in s. 40.24(4), Stats., for changing the optional form of payment selected.

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