Employer Bulletin

State Agencies
Vol. 22, State J
October 26, 2005

Contract Settlements Affect Income Continuation Insurance Benefits and Offsets

The Wisconsin State Employees Union (WSEU) contract, effective July 24, 2005, adjusted represented employee salaries. Non-represented employee salaries also received adjustments effective July 24, 2005.

Contract settlements and salary adjustments affect Income Continuation Insurance (ICI) benefits paid and payable to certain ICI claimants. Broadspire, the ICI plan third-party administrator for the Department of Employee Trust Funds (ETF), is required to adjust benefits and earnings offsets based on these salary adjustments. In the coming weeks, Broadspire will provide employers with a list of ICI claimants whose first date of disability is August 7, 2005, or later. For claimants with a first date of disability of August 7, 2005, or later, employers must:

• Determine if the claimant received a salary adjustment and if so, complete and submit an amended ICI Employer Statement (ET-5351) to ETF. The ICI Employer Statement should indicate “amended due to contract settlement.” (See ICI Administration Manual, section 801.)
• Determine if the claimant received a lump sum payment under the provisions of the union contract or the non-represented compensation plan. If so, complete and submit an ICI Report of Employment and Earnings (ET-5901) reporting the lump sum earnings payment. These earnings will be used to offset the ICI benefit at 75%. (See ICI Administration Manual, sections 900 and 901.)

Claimants with a first date of disability prior to August 7, 2005, are not eligible for an ICI benefit adjustment, as the hourly rate increase was not retroactive. The lump sum payment resulted from a delay in contract settlement and is not related to a retroactive salary increase.

Note for University of Wisconsin Faculty Plan: Benefits for ICI claimants under the UW Faculty plan have no benefit adjustment. Earnings are offset at 75%, based on check date.

Please direct questions concerning ICI claims to BROADSPIRE, INC., at 1-800-960-0052 or e-mail ICILTDI@choosebroadspire.com.