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
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.