Vol. 18, No. 8
June 22, 2001
Bulletin Provides Further Details
on Act 11 Employer Credit
1999 Wisconsin Act 11 provides for a $200 million employer credit.
The credit is intended to give employers a holiday from making prior
service payments, or in the event that an employer has no unfunded
liability balance, a holiday from making an employer required payment.
This employer credit was prorated among employers based on their
1998 WRS reported earnings. Your portion of the employer credit
is stated on the accompanying invoice.
The employer contribution rates on your 2001 Monthly Remittance
Reports will not change. You will receive employer credit invoices
based on the credit you have earned which may be offset from future
contributions payable to the WRS. The employer credit invoices will
be issued in three phases.
Phase 1 - The accompanying invoice represents credits earned
for calendar year 2000. If your total credit account has not been
exhausted, you will receive a Phase 2 employer invoice credit.
Phase 2 - Approximately August 10, 2001, you will receive an
employer invoice credit representing the year to date calendar
2001 credit. (For most employers this will be January through
June 2001) If your total credit account has not been exhausted,
you will begin receiving Phase 3 employer invoices.
Phase 3 - Approximately the 10th of each month you will receive
another employer invoice credit based on the credit earned in
the previous month until your total credit account has been exhausted.
Employers may begin using their employer invoice credit as soon
as desired. You may begin using it immediately, or may delay use of
your credit. Your credit will not be forfeited if you don't
begin using it immediately. The typical employer is expected to
use all or most of their credit by the end of calendar year
To use your credit, you must complete the upper portion
of your Monthly Remittance Report, as usual.Please
fill in the earnings, compute the contributions, and enter the amount
owed for the appropriate employment category. Enter amounts on line
1 for over or under/interest due and line 2 for additional contributions,
if appropriate. Enter the applicable invoice number and amount of
invoice for any other invoices owed as well as the invoice number
for the employer credit you are using in the invoice detail section
and carry the total of all invoices to Line 3.
The accompanying invoice credit may be larger than the
amount due on your report.Please compute the credit you
wish to use. Line 5, Grand Total of all lines above, may be zero.
However, do not attempt to use a credit that is larger than the
total monthly remittance amount you owe. If you cannot use the full
amount of the invoice credit in one month, you will receive a statement
showing the remaining credit balance available on each invoice.
On subsequent reports, reference the employer invoice number again
and use the remainder of the invoice until exhausted.
Invoice numbers will be different on each invoice credit
you receive.Simply reference the appropriate invoice number
and corresponding amount in the invoice detail section. You may
use a combination of invoice credits and invoice numbers on the
The invoice credit may be used to offset both the required
contributions due to the WRS and voluntary payments made to reduce
the employer unfunded liability balance.You may apply the
entire credit or a portion of your credit to the unfunded liability
balance as desired. To apply the credit as an unfunded liability
payment, reference the credit on Line 3 and then enter the amount
of payment as a positive amount on Line 4, Other Payments. Please
indicate that you are making an unfunded liability (prior service)
You may take your credit on the first available reports
and make a lump sum prior service payment later.Interest
on the unfunded liability balance is assessed annually. The interest
rate is currently 8%. Payments made on the December report, due
January 31, 2002, will be subtracted before interest is assessed.
Please keep this bulletin for reference in completing your
Monthly Remittance Reports (ET-1515). If you
have further questions, please contact Nancy Kittleson at (608)