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Employer Bulletin

State Agencies
Vol. 19, State E
August 14, 2002

Change to ETF Retirement Payments Regarding Sick Leave and Supplemental Health Insurance Conversion Credits

The State Legislature, in 2001 Wisconsin Act 109, has temporarily suspended payment of contributions to Employee Trust Funds (ETF) for the Accumulated Sick Leave Conversion Credits (ASLCC) and Supplemental Health Insurance Conversion Credit (SHICC) programs. The suspension of these programs is in effect from July 30, 2002 through June 30, 2003.

The combined required contribution rates for these programs are 2.7% of payroll during 2002 and 2.8% of payroll during 2003. Contributions for the Wisconsin Retirement System (WRS) current and prior service, sick-leave conversion credits, and duty disability benefits are combined into a single percentage. Contributions are reported to ETF on the WRS Monthly Retirement Remittance Report (ET-1515). Actual payment of contributions to ETF is made with a WiSMART payment voucher.

Enclosed are the new ET-1515 forms. The contribution rates printed on these forms are for other required contributions only. They do not include ASLCC/SHICC contribution rates. These forms should be used to report required contributions for the months that contributions for sick-leave credit programs are suspended. Act 109 went into effect too late in July to allow agencies to withhold the ASLCC and SHICC contributions from their reports and payments for July. These payments will be held by ETF pending legal determination of whether the funds may be returned to the agencies.

The State Controller's Office has published WiSMART Bulletin #279 providing guidance for processing the suspension of ASLCC and SHICC contributions. They have identified that required contributions for payroll 14C were calculated (including ASLCC/SHICC contributions) for Central Payroll agencies. Required contributions for payroll 15A has been calculated excluding the ASLCC/SHICC contributions.

Central payroll agencies should file two Monthly Retirement Remittance Reports for July earnings and contributions. Earnings and contributions for payroll 14C should be reported on the ET-1515 using the contribution rates that include sick leave credit contribution rates. Earnings and contributions for payroll 15A should be reported on the ET-1515 using the contribution rates that exclude ASLCC and SHICC contributions. The ET-1515 that excludes ASLCC/SHICC contribution rates should be used for reports filed in September and months following during the period payments are suspended.

Non-Central Payroll processors (UW, Legislature, etc.) should use the ET-1515 that excludes ASLCC/SHICC contribution rates for all July earnings and contributions reported in August 2002. Non-Central payroll agencies whose payroll processing limitations require they report sick leave credit contributions in part or all of their August earnings and contributions must contact Ron Diehl (608) 266-2737 prior to submitting the report.

While Act 109 has temporarily suspended payment of ASLCC/SHICC contributions, it has not eliminated the obligation of agencies to make the actuarially required contributions to these programs. ETF will be providing future guidance on how required contributions for the period that payments have been suspended will be recovered.

Questions about WiSMART Bulletin #279, and WiSMART processing for payroll and required contributions should be directed to Bob Halverson at (608) 266-2240. Questions about this Employer Bulletin and WRS Monthly Remittance reporting should be directed to Ron Diehl at (608) 266-2737.



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