Employer Bulletin
State Agencies and Local ICI Employers
Vol. 21, Local I
September 10, 2004
Wisconsin Act 162, Military Leave and Income Continuation
Insurance
The Wisconsin Group Insurance Board (GIB) took action at its August
24, 2004, meeting to implement the provisions of Wisconsin Act 162
(military leave) in the State and Local Income Continuation Insurance
(ICI) plans.
Wisconsin Act 162, published March 30, 2004, applies to State employees
activated for military service on or after January 1, 2003. This
law allows state employees on military leave to receive benefits
and state salary (less military pay and allowances), as well as
accumulate sick leave and vacation, as though no interruption of
state service had occurred.
ICI plan provisions address coverage and benefits for individuals
on unpaid leaves of absence. With the enactment of Wisconsin Act
162, State employees activated to serve military duty are no longer
considered on unpaid leaves of absence as long as the employee did
not terminate employment. Although the law only addresses state
employees at this time, these provisions adopted by the GIB are
also applicable to the Local Government ICI plan.
The GIB passed a plan amendment to address the following with regard
to military leaves of absence under Wisconsin Act 162.
Coverage
- Initial Coverage
An employee may meet the six months eligibility criteria for
ICI coverage while on military leave. Employers will follow
standard enrollment processes and deduct premiums for employees
who meet this criteria while on military leave and who file
an ICI application with the employer prior to the military leave.
Persons empowered through an employee’s Power of Attorney
may sign the ICI application for the employee on military leave
and premium deductions and coverage will begin.
Employees who meet the six month eligibility criteria while
on military leave, but fail to apply for coverage, have 30 days
from the date they return to work from active military leave
to apply. The employer must receive the employee’s completed
Income Continuation Insurance Application (ET-2307) within 30
days of the return to work. Coverage is effective the first
of the month following the receipt of the completed application
by the employer.
- Coverage Under Deferred Enrollment Opportunity
Wisconsin Act 162 provides that State employees will continue
to accumulate sick leave while on active military leave. An
employee on military leave who accumulates sufficient sick leave
to be eligible to file for ICI coverage under the deferred enrollment
opportunity may submit an ICI application (ET-2307) for coverage
to the employer within 30 days of the return to work. The employer
must receive the employee’s completed Income Continuation
Insurance Application (ET-2307) within 30 days of the return
to work. Coverage is effective the first of the month following
the receipt of the completed application by the employer.
- Lapsed Coverage
Employees with ICI coverage who allow that coverage to lapse
while on military leave, can reinstate coverage within 30 days
of the return to work by filing a completed ICI application
(ET-2307). The employer must receive the employee’s completed
Income Continuation Insurance Application (ET-2307) within 30
days of the return to work. Premiums resume at the same amount
as prior to the leave unless an interim annual premium or salary
adjustment occurred (reported to the WRS). If the State employee’s
military salary is greater than the state employment salary,
the employer only reports the earnings that the employee would
have earned under state employment.
- Cancelled Coverage
An employee who completed an ICI application (ET-2307) canceling
coverage due to military leave is eligible to re-enroll for
coverage within 30 days of returning to work after military
leave without being subject to evidence of insurability. The
employer must receive the employee’s completed Income
Continuation Insurance Application (ET-2307) within 30 days
of the return to work. Coverage is effective the first of the
month following the receipt of the completed application by
the employer.
Note: A state employee, returned from military leave and
seeking ICI coverage, who fails to submit a completed ICI application
to the employer (ET-2307) within 30 days of returning to work must
apply through Evidence of Insurability (ET-2308) or when they next
reach a deferred enrollment level.
Retroactivity
- Wisconsin Act 162 applies to employees activated on or after
January 1, 2003. For ICI purposes, these employees will be considered
to have been on paid leave regardless of whether their military
salary exceeded their WRS earnings.
The GIB has determined that there will be a limited opportunity
to reinstate ICI coverage for individuals activated on or after
January 1, 2003 and returned to work before the GIB amended
the ICI plan (August 24, 2004):
a) If ICI coverage was in place at the time of the military
leave, there should be no break in coverage and any back premiums
must be collected.
b) An ICI application (ET-2307) must be received by the employer
no later than September 30, 2004 from employees without coverage
who have already returned from military leave and who have met
initial or deferred enrollment eligibility requirements while
on military leave.
Benefits
- ICI benefits are not payable for disabilities caused by acts
of war (direct or indirect). However, an employee may have or
develop a medical condition unrelated to war service that may
qualify the employee for ICI benefits.
Employer Completion of the ET-2307 under Military Leave
Provisions
When completing the ET-2307 for an employee returning from military
leave, the employer must complete the Reason for Eligibility section
and check the box marked Other (specify) and indicate “Military
Leave – Returned to Work MM/DD/CCYY.”
Questions concerning the impact of Wisconsin Act 162 on ICI eligibility
can be directed to the Employer Communication Center at 608-264-7900.
A copy of the ICI plan amendment will be made available on ETF’s
Internet site at etf.wi.gov.
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