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