Opinion ID: 2151564
Heading Depth: 2
Heading Rank: 1

Heading: Benefit Improvements

Text: ถ 40. The formula multiplier or percentage multiplier described in ถถ 29-30 varies according to employee classification. [111] For a protective occupation participant covered by social security, an elected official, and an executive participating employee, the formula multiplier is 2 percent. [112] For a protective occupation participant not covered by social security, the formula multiplier is 2.5 percent. [113] For all other participants in the WRS, the formula multiplier is 1.6 percent. [114] ถ 41. Act 11 increases the formula multipliers for all classes of participating employees in the WRS for creditable service performed before January 1, 2000 as follows: [115] 1) Protective occupation participants not covered by social security, from 2.5 percent to 2.665 percent. [116] 2) Protective occupation participants covered by social security, from 2 percent to 2.165 percent. [117] 3) Elected officials and executive participating employees, from 2 percent to 2.165 percent. [118] 4) Other participants, from 1.6 percent to 1.765 percent. [119] The Act provides that creditable service performed after January 1, 2000 shall be calculated according to the prior multipliers. [120] ถ 42. The Act also applies the increased multiplier for past service only to individuals who are participating employees in the Wisconsin retirement system on January 1, 2000. [121] ถ 43. Act 11 also raises the benefit cap, namely, the maximum amount of initial retirement annuity guaranteed by the state, for most employees. [122] Under the law in place before Act 11, the maximum amount of an initial annuity for a participant in the WRS was 65 percent of the participant's final average earnings. [123] The one exception to this rule was for a protective occupation participant not covered by social security whose initial annuity was capped at 85 percent of the participant's final average earnings. [124] Act 11 raises to 70 percent the cap for all participating employees who are capped at 65 percent, except for protectives covered by social security, whose initial annuities will continue to be capped at 65 percent. [125] It also maintains the 85 percent cap for protectives not covered by social security. [126] For these protectives, the maximum initial annuity cap will stay at 85 percent of final average earnings. ถ 44. The benefit cap hike applies only to active participating employees in the Wisconsin retirement system on January 1, 2000. [127] Thus, by the terms of the Act, the 103,000 inactive participants in the WRS โ that is, the former participating employees who have not yet become annuitants โ are not eligible for either the increase in the multiplier for creditable service performed before January 1, 2000 or the benefit cap increase made available for two categories of employees. Active participating employees who begin work after January 1, 2000, are ineligible for the increase in the multiplier.