Employer Bulletin

All WRS Employers
Vol. 20, No. 3
February 5, 2003

Department Completes LTDI Administrative Rule Process Regarding Medical Determinations

The Department of Employee Trust Funds (ETF) has completed the Administrative Rule process revising the Long-Term Disability Insurance (LTDI) Employer Disability Certification. This revision should remove the problems and barriers of the current disability plan design that delay receipt of disability benefits to those who are eligible.

Effective December 1, 2002, ETF §50.48(3), Wis. Admin. Code no longer requires employers to make a medical determination that the employee has ceased employment due to an apparent disability. The LTDI Employer Statement (ET-5315, revised 11/2002) formerly known as the LTDI Employer Disability Certification, has been modified, allowing employers to report the termination date, and hours and earnings not previously reported directly on the form. A separate Employee Transaction Report (ET-2533) is no longer required. Employers using electronic media reporting should use the same form to expedite their employee's receipt of disability benefits. ETF will internally review the earnings reported on any subsequent tape and make any necessary adjustments.

A sample of the revised Employer Statement is attached to this Bulletin. Instructions for completing the earnings information on the form are found in Chapter 8, Employee Transaction Reporting, of the WRS Administration Manual, ET-1127 (revised 5/99). Chapter 14 of the manual provides information for determining the termination date.

When a participant files a LTDI claim, via telephone or on paper (ET-5313) with CORE, INC., CORE will send the Employer Statement to the WRS Agent. To expedite the process, CORE will e-mail the Employer Statement to the WRS Agent. Employers without an e-mail address, or who have not provided one to ETF or CORE, will have the form sent via US mail. Employers: Return this form to ETF; do not return it to CORE.

The WRS Agent must complete the Employer Statement including the following information:

• Last day worked
• Last day paid
• Termination date
• Hours and earnings

In addition, the employer must indicate whether the employee is expected to resume active service. An employer may contest the employee's application for disability benefits. However, the reason(s) for this action must be indicated on the form. IF an employer contests an employee's disability, the employee's disability will be denied. The employee then has the right to appeal the denied application and the employer will be responsible for presenting its case at an evidentiary hearing.

Upon receipt of the Employer Statement from the employer, ETF updates the employee's WRS account with the last day paid, termination date, and hours and earnings as indicated by the employer. If the final earnings and hours have been reported to the WRS, but the last day paid and/or termination date has not, ETF will update the employee's retirement account based on the dates entered on the Employer Statement.

Please direct your questions to the Employer Communication Center at (608) 264-7900.