Wisconsin Administrative Code › Department of Employee Trust Funds › Chapter ETF 20 - Wisconsin Retirement System › Section ETF 20.03 - Annuity computations

Current through June 24, 2024
(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.