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Employers

Employer Bulletin

Local ICI Employers
Vol. 21, Local A
January 23, 2004

Update on Income Continuation Insurance (ICI) Premiums

Update ICI Premiums on March Report

Local Employers offering Income Continuation Insurance (ICI) must update payroll records and calculate new monthly ICI premiums, which will be effective March 1, 2004. The new premium rates are based on your insured employees' 2003 average monthly earnings and their selected elimination period. An employee's average monthly earnings are defined as the total 2003 Wisconsin Retirement System (WRS) earnings rounded to the next higher thousand and divided by 12.

The updated premiums must be reported on your March 2004 Income Continuation Report (ET-1629), due at the Department of Employee Trust Funds on or before Friday, February 20, 2004. Please write "Annual Review and Update Completed" on the bottom of your March 2004 report to indicate that you have completed this process.

Note: If you have previously submitted your March 2004 ICI report without making the premium adjustment, please make the necessary adjustments based on 2003 earnings on your April 2004 premium report due March 22, 2004. You will also need to make a correcting entry for the March report.

Use the following instructions to complete your review of ICI premiums. You may also refer to Subchapter 608 of the Wisconsin Public Employers ICI Administration Manual (ET-1145).

  1. Determine each insured employee's WRS earnings for 2003. If an employee was newly hired or had an interruption in earnings of three consecutive months or more, the WRS earnings for 12 months will be an estimate.

  2. Verify that you are reporting employees by the correct elimination period.

  3. Use the guidelines listed in the Wisconsin Public Employers ICI Administration Manual to calculate the amount of the monthly premium for each employee (Chapter 4) and the employer contribution (Chapter 5). The premium rates are unchanged from last year and are attached to this Bulletin.

  4. The resulting total premiums will be the amount paid and reported beginning February 20, 2004 (for March 2004 coverage) and ending January 20, 2005 (for February 2005 coverage).

Note: When an employee has a permanent change in the percentage of appointment, such as a change from part-time to full-time employment, premiums must be adjusted at the time the change occurs. If an adjustment was not made at the time the change in appointment occurred, payment of the additional premiums-or refund of overpaid premiums-should be made from the month of the change to the end of the calendar year on the report due February 20.

For more information, please contact the Employer Communication Center at (608) 264-7900

 

 

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