Wisconsin Administrative Code › Department of Employee Trust Funds › Chapter ETF 50 - Disability Benefits › Subchapter III - Long-Term Disability Insurance › Section ETF 50.52 - LTDI benefits

Current through June 24, 2024
(1) BASIC BENEFIT.
(a)
Benefit amount.
The
				basic LTDI benefit payable to recipients shall be a monthly payment of 40% of
				the recipient's final average salary or 50% of FAS for a recipient not
				personally covered under OASDHI. The basic benefit amount, once determined,
				shall subsequently be adjusted at the same time and by the same percentages as
				applicable to post-retirement annuity adjustments under s.
				40.27,
				Stats.
(b)
Reductions and
				offsets.
1. The department shall
				reduce the amount of a recipient's monthly LTDI benefits under par. (a) by the
				amounts in subds. 2. and 3. The amount by which any lump sum benefit or
				separation benefit under subd. 2. exceeds the basic monthly LTDI benefit
				otherwise payable shall be carried over to reduce basic LTDI benefits payable
				in future months until the amount of the lump sum or separation benefit has
				been completely offset.
2. LTDI
				benefits shall be offset by an amount equal to the portion of any retirement
				annuity or lump sum benefit or separation benefit under s.
				40.23,
				40.24 or
				40.25, Stats.,
				on which the recipient is subject to federal income tax. This subdivision
				applies to any retirement annuity or lump sum benefit or separation benefit
				which is paid to the recipient as a result of the recipient's application for
				the annuity or benefit, excluding any benefit funded by employee additional
				contributions. This subdivision does not apply to an annuity or lump sum
				benefit for which the recipient is eligible solely as a beneficiary, alternate
				payee or joint survivor of another participant.
3. LTDI benefits shall be offset by the
				amount of any normal form retirement annuity or lump sum retirement benefit
				under s.
				40.23 or
				40.25, Stats.,
				for which the recipient is eligible, including a separation benefit that the
				recipient is eligible to receive under s.
				40.23(2m)
				(er) or
				40.23(3)
				(b), Stats., excluding the portion of any
				annuity or lump sum benefit or separation benefit on which the recipient would
				not be subject to federal income tax, or a benefit funded by employee
				additional contributions. Except for a protective occupation recipient, this
				offset shall be computed as of the recipient's normal retirement age. This
				subdivision applies only after a recipient's normal retirement date as defined
				by s.
				40.02(42),
				Stats. For a protective occupation recipient, the offset shall be computed as
				of the recipient's 62nd birthday. This subdivision does not apply to an annuity
				for which the recipient is eligible solely as a beneficiary, alternate payee or
				joint survivor of another participant.
(c)
Proration.
Initial
				monthly LTDI benefits beginning on other than the first day of a month and
				final LTDI benefits ending on other than the last day of a month are prorated
				based on effective date and termination date as provided in s.
				ETF
				50.62.