All WRS Employers
Vol. 22, No. 18
November 18, 2005
Reminder on Non-Reportable Earnings for Wisconsin Retirement
The Department of Employee Trust Funds (ETF) discovered during
a review of Employer Statements (ET-5607) used for disability benefits
that some employers may be incorrectly reporting Wisconsin Retirement
System (WRS) earnings. The following information will assist you
in determining whether disability-related payments are considered
earnings reported for WRS purposes.
Non-Reportable Earnings: Disability Insurance Plan Payments
Made in Lieu of Sick Leave
Disability insurance benefit payments, made to participants from
an insurance program, are not earnings for WRS purposes and must
not be reported to ETF as such. Some employers have incorrectly
considered these insurance benefit payments to be WRS earnings.
Subchapter 406 C of the WRS Administration Manual provides examples
of earnings not reportable for WRS.
Payments made in lieu of sick leave that have been incorrectly
reported as WRS earnings must be removed from the employee’s
WRS earnings; the employee's WRS earnings history must be corrected.
See the WRS Administration Manual, Chapter
8, to make current year earnings adjustments and/or Chapter
10 for prior year adjustments.
Reportable Earnings: Periods of Temporary Worker’s
Employers are required to report hours and earnings for any employee
receiving temporary Worker’s Compensation benefits under Wis.
Stat. § 102.43, regardless if the disability is partial or
total. The hours and earnings must be reported at the same pay rate
the employee would have received had the employee remained working.
In the event an employee receiving temporary Worker’s Compensation
would have received a pay adjustment had the employee remained working,
the adjusted pay rate is also reportable for WRS purposes. Subchapter
404 of the WRS Administration Manual, in addition to Wis. Stat.
§ 40.29, provides information on reporting Temporary Worker’s
In addition to reporting the hours and earnings during a period
an employee is receiving temporary Worker’s Compensation payments,
the employer must pay all employee and employer required contributions
on those earnings reported on behalf of the employee. The reporting
of the service and earnings stops once the temporary disability
payments cease or the employee terminates employment.
Periods of temporary Worker’s Compensation where service
and earnings were not reported, or were reported incorrectly, must
be corrected. See WRS Administration Manual, Chapter 8, to make
current year earnings adjustments and/or chapter 10 for prior year
If you have questions or need assistance to properly report these
earnings or correct previously reported amounts, please contact
the Employer Communication Center at 608-264-7900.