Wisconsin Administrative Code › Department of Employee Trust Funds › Chapter ETF 20 - Wisconsin Retirement System › Section ETF 20.04 - Optional forms of annuity

Current through June 24, 2024
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.