State Agencies and Local ICI Employers
Vol. 21, Local D
March 18, 2004
Board Changes Application of Paid Vacation, Holiday or
Compensatory Time for the State ICI Plan; Mandates ACH Payment of
LTDI and ICI Benefits
Earnings Offset from ICI Benefits
The Group Insurance Board (GIB) has approved a change to the state’s
Income Continuation Insurance (ICI) Plan. The change, effective
January 1, 2004, requires that vacation, holiday or compensatory
time earnings paid after the claimant’s elimination period
be treated as reportable earnings. Any earnings for vacation, holiday
or compensatory time paid after the elimination period but prior
to any return to work are to be offset from the ICI benefit at a
rate of 100%. This time is used at the claimant’s discretion
and its use is not required by the Plan. Previously, claimants who
were paid earnings for vacation, holiday or compensatory time after
the elimination period but prior to a return to employment, did
not have those earnings offset from the ICI benefit. The change
was put into place to recognize earnings paid and to cease concurrent
payment of ICI benefits and earnings payouts because the ICI benefit
is intended to be an earnings replacement benefit.
Statement (ET-5351) has been revised to include a box to report
the Last Day Paid. This box should be completed if the employee
is receiving any of the above earnings. If the employee elects to
receive the vacation, holiday or compensatory time, record the last
day for which those earnings will be paid. Refer to the instructions
on the reverse side of the form.
Continuation Insurance Transaction Report (ET-5901) has been
revised to report the earnings for vacation, holiday or compensatory
time paid out after the ICI benefit begin date but prior to the
claimant returning to your employment. If the claimant returns to
part-time employment, report any vacation, holiday or compensatory
time taken as part of the return to work earnings. Both forms can
be found on the ETF Internet site, go to http://etf.wi.gov/publications/employer.htm.
Mandatory ACH Payments
At its February 17, 2004 meeting, the GIB approved a mandate requiring
all Long-Term Disability Insurance (LTDI) and Income Continuation
Insurance (ICI) long-term benefits be paid through the Automated
Clearing House (ACH) process (also referred to as "direct deposit").
This requirement, effective March 1, 2004, will ensure benefit checks
are received in a timely manner and will also eliminate lost, stolen
or fraudulently cashed benefit checks.
All current claimants will receive a notice and ACH form from the
Department of Employee Trust Funds. The form must be completed and
returned to CORE no later than April 16, 2004. Failure to return
the completed form will result in temporary suspension of LTDI and/or
ICI benefits until receipt of the completed form.