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,
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
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.