Employer Bulletin

State Agencies
Vol. 17, State D
July 14, 2000

Union Contracts Settled; Bulletin Clarifies Effective Dates and Part-time Wage Offsets for Income Continuation Insurance

State labor unions settled their contracts for two employe unions, the Wisconsin Professional Employee Council (WPEC) and the Wisconsin State Employes Union (WSEU). The settlements have an effect on Income Continuation Insurance (ICI) benefits paid and payable to certain ICI claimants covered under these contracts, and will require benefit adjustments. United Wisconsin Insurance Company (UWIC), the ICI program administrator, will identify the affected employes and contact employers to provide information to help you perform the following:

1. Determine if the ICI benefit amount is to be adjusted.
2. Recalculate the part-time wage offsets, requiring submittal of amended ICI Transaction Reports (ET-5901) containing new salary rates.

Employes disabled prior to the dates specified below for each contract are not eligible for a benefit adjustment. Employes received a lump sum payment as a result of the delay in the effective date of the 1999-2000 contract wage adjustment. However, these adjustments are not considered retroactive wage adjustments for ICI purposes.

Please direct questions concerning ICI claims to UWIC toll free at 1-800-452-4250.

WPEC Contract Settlement and ICI Reporting Changes

WPEC employes' hourly wage increases were effective April 9, 2000. WPEC employes that UWIC determined disabled on or after April 23, 2000 are eligible for an increased ICI benefit based on the new contracted salary amounts. However, WPEC employes that were determined disabled prior to April 23, 2000 are not eligible for a benefit increase as a result of the pay plan changes.

WPEC claimants who have part-time wages for work performed on or after April 9, 2000 will need to have their part-time wage offsets recalculated to reflect the higher wage rates. UWIC will request the employer provide an amended ICI Transaction Report (ET-5901) containing the new salary rate and will contact the affected claimants directly regarding the resulting benefit overpayments.

WSEU Contract Settlement and ICI Reporting Changes

WSEU employes' hourly wage increases were effective May 21, 2000. WSEU employes that UWIC determined disabled on or after June 4, 2000 are eligible for an increased ICI benefit based on the higher contracted salary amounts. However, WSEU employes that were determined disabled prior to June 4, 2000 are not eligible for a benefit increase as a result of the pay plan changes.

WSEU claimants who have part-time wages for work performed on or after May 21, 2000 will need to have their part-time wage offsets recalculated to reflect the higher wage rates. UWIC will request the employer provide an amended ICI Transaction Report (ET-5901) containing the new salary rate and will contact the affected claimants directly regarding the resulting benefit overpayments.