Frequently Asked Questions
Retiring and Retired Participants
Thinking About Retiring?
Now That You're Retired
Health Insurance
Life Insurance
ETF Office Hours
When should I contact Your Department about
my retirement?
Contact us for retirement estimates 6 to 12 months before your
anticipated retirement date. We will provide estimates one year
in advance. Until then, you can use our Retirement Benefits Calculator
to project your future formula and money purchase retirement benefits,
or refer to the Calculating
Your Retirement Benefits brochure for more information.
When can I apply for retirement?
You can send your application form to us no earlier than 90 days
before your termination date.
Will I lose benefits if I don't apply for
retirement immediately?
No. If we receive your application within 90 days after your termination
date, we will include retroactive payments. However, if we receive
your retirement benefit application more than 90 days after you
terminate employment, you will lose some benefits since your annuity
cannot be backdated to your termination date.
When are the checks mailed? Can my checks
be sent to my bank or other financial institution?
The checks are sent to the U.S. Postal Service on the last business
day of each month with instructions to be delivered on the first
business day of the month. Direct
Deposit forms are available by request if you'd like us to transfer
the funds electronically each month. It's the fastest and safest
method to receive your payments.
When will I receive my first payment?
If you apply 45-90 days before your annuity effective date (normally
the day after your termination date), you should receive your first
payment about six weeks after your termination date. Your payment
will include payments retroactive to your annuity effective date.
The payment you receive on the first of each month is for the preceding
month.
What if I retire during a month rather
than on the first of the month? Will I be paid for the entire month?
No. You are paid retirement benefits only for the days you are
actually retired. Your first payment could be for a partial month
or for a full month plus a partial month. For example, if your last
day of work is May 20, your annuity effective date is May 21. This
means that we would add payment for May 21 through May 31 to the
payment for the month of June, which you would receive on the first
of July.
I am having my check sent to my home. What
if it doesn't arrive on the first?
If your check does not arrive in the mail, you must wait until
the 12th of the month before contacting us. (Most checks arrive
by the 12th, and if we have stopped payment on the original check
it can no longer be cashed.) If you know that your check was thrown
out by mistake, stolen or destroyed, you can contact us immediately.
We will stop payment on the missing check and have a replacement
check issued. You may want to consider having your check directly
deposited in your checking or savings account. This would avoid
any delays due to mail service.
How do I change my direct deposit for
my monthly annuity benefit to a different financial institution?
Each time you change your financial institution, you must complete
a new Direct Deposit Authorization
form (ET-7282). To request a copy, call ETF's toll-free Self-
Service line at 1-877-383-1888 or (608) 266-2323. If you are only
changing your account number at your financial institution, you
can telephone us with this change or complete and mail the ET-7282
form. Please note we can deposit your benefit only into an account
held in your name.
How long after I retire will my annuity
payments be based on the amounts from my annuity estimates?
If you are a recent retiree, it usually takes about three to six
months after you retire for us to do the final calculation of your
annuity. When the final calculation is done, we will send you a
final calculation notice that provides the total service, earnings
and account balance information on which your final calculation
was based. Any retroactive adjustments due will be made to your
subsequent payment(s).
Do I receive an "Annuity Information"
mailer every month?
No. An annuity information mailer is sent only when there is a
change in your annuity payment (including tax withholding and insurance
deduction changes).
Do my retirement checks increase after
I retire?
There may be an annuity increase (or decrease) applied to your
annuity payment each May 1, based on the previous year’s investment
results. The fixed annuity adjustment is applied to the fixed portion
of your annuity, and if you participate in the variable fund, a
variable adjustment is applied to the variable portion of your annuity.
(If you do not participate in the variable trust your entire annuity
is invested in the fixed fund, and the fixed adjustment will apply
to your entire annuity.)
This is not a cost-of-living increase; it is an adjustment based
on the investment results of the fixed investment trust. Your fixed
monthly annuity is guaranteed by law never to be less than the original
amount; however, there is no such guarantee for the variable portion
of your annuity (if applicable).
Annuity adjustments are a percentage increase or decrease in your
monthly annuity. The fixed annuity adjustment paid on May 1 during
the first year after you retire is prorated based on the number
of months you were retired during the previous calendar year; you
receive the full fixed annuity adjustment in subsequent years. If
you participate in the variable fund, you receive the full variable
adjustment to the variable portion of your annuity in the first
year after you retire.
If a fixed annuity adjustment would be less than 0.5%, and/or
the variable adjustment would be less than 2%, by law no adjustment
is made. Instead, the gains or losses are held over until the following
year and included in that year's adjustment.
I am in the "variable" trust
fund. Do I receive adjustments? Can I transfer to the "fixed"
trust fund after retirement?
Every May 1 we apply an adjustment to the variable portion of your
monthly annuity, based on the investment results of the variable
trust fund. The variable portion of your annuity can increase or
decrease each May 1. You may transfer to the fixed trust fund by
submitting a completed Election
to Cancel Variable Participation (ET-2313) form to this Department.
It becomes effective on the January 1 after it is received by the
Department.
How do I change my mailing address on
file with the Department?
You should notify the Department of Employee Trust Funds (ETF)
when your home address changes. Telephone or write us if you receive
your monthly annuity benefit by direct deposit. If you receive your
benefit by paper check, you must write to us – we need your
signature to authorize this change. It is important to keep your
home address current with ETF even if your monthly benefit is directly
deposited into your account at your financial institution. Important
materials such as benefit change notices, 1099-R tax statements,
and Trust Fund News are sent to your home address. Please allow
up to 30 days for a change of address to be completed
Can I change my withholding for taxes
after I retire?
Yes. Change your federal or Wisconsin state income tax withholding
over the telephone by calling our toll-free Self-Service Line at
1-877-383-1888 or (608) 266-2323 (local Madison). You can also access
the Income Tax Withholding
Election Form (ET-4310) on-line. Mail the completed form to
the Department. Please allow up to 30 days after we receive the
completed form for the change to be reflected in your monthly annuity
benefit.
Will I receive a statement for income
tax purposes after I retire?
Yes. Every year prior to January 31 we will send a 1099-R form
to you for the previous year. This form provides important tax information
necessary to file your income tax return.
What is printed on the 1099-R form?
The year's gross and taxable annuity payments, federal and state
tax withholding, health and life insurance premiums and your original
investment in contract (amount of contributions actually paid by
you) are printed on the 1099-R form.
I selected or am thinking of selecting
an accelerated payment option. How does this affect any payments
when I retire, and what happens when I reach age 62?
The accelerated payment options may be available if your WRS annuity
begins before you reach age 62. They provide a higher annuity than
the regular options before you reach age 62, at which time you can
apply for your Social Security pension. You can apply for your Social
Security benefit three months before you want it to start and you
can apply online at https://secure.ssa.gov/apps6z/ISBA/main.htm.
Under these options, when you reach age 62 your WRS annuity decreases
by the approximate amount of your projected Social Security benefits.
The intent is that your before-age-62 annuity from the WRS alone
is approximately the same as your combined income from the WRS and
Social Security after you reach age 62. The last annuity check
to include the temporary portion of your annuity will be the one
issued the first of the month following your 62nd birthday.
For example, suppose you turn 62 on February 2. Your last
annuity check to include the temporary portion will be the one issued
on March 1 (representing payment for the month of February).
Remember, when the temporary portion of your annuity terminates,
this includes all of the accrued adjustments applied to that portion
of your benefit.
When I approach age 62, does your Department
contact Social Security about starting my benefit under their program?
No. It is your responsibility to contact the Social Security Administration (SSA) about starting
your benefit, normally about three months before you reach age 62.
You can call SSA at 1-800-772-1213 for information or file your
application online at: https://secure.ssa.gov/apps6z/ISBA/main.htm.
I selected an accelerated payment option
and often receive two annuity information mailers. Why do I receive
two mailers for my annuity? Why are taxes normally listed on only
one 1099-R form or annuity information mailer?
You often receive two mailers because our computer treats your
monthly benefit as two separate annuities; a temporary annuity paid
until you reach age 62 and an annuity paid for your lifetime in
the option you selected.
We combine the taxable amount from both portions of your annuity
before determining the amount of taxes to be withheld. Since one
portion of your annuity ends when you reach age 62 or upon your
death, whichever comes first, we usually deduct the taxes from the
other (permanent) annuity record. Taxes withheld from accelerated
payment options are normally shown on only one of the 1099-R tax
forms, but do cover both portions of the annuity.
When can I return to work for a WRS employer
after I retire?
You must remain terminated from all employment that meets participation
standards with a WRS employer for at least 30 days after your termination
date, 30 days after the date you file your application, or until
your annuity effective date, whichever is latest. If you return
to the same WRS employer from which you retired, the 30-day requirement
applies to all employment whether it is covered or not.
What happens if I return to work?
Work not covered under the WRS has no impact on your retirement
benefit. If you return to work for any WRS employer in a qualifying
position, you have two choices:
- You can continue to receive your WRS annuity and continue working,
but you would not be covered under the WRS or earn additional
service credits. Neither you nor your employer would make contributions
to the WRS based on that employment.
- You can elect to become covered under the WRS and have your
WRS annuity stopped. Contributions would be paid on your earnings,
and you would begin to accrue additional creditable service. When
you retire again your new WRS annuity would be based on your total
creditable service, including the service you earned before your
original retirement. Depending on your age when you were receiving
payments, your new annuity may be offset by the value of part
or all of the payments from your original annuity.
Special rules apply on disability benefits. If you are receiving
a disability benefit, please contact the Department if you would
like further information about how earnings can affect your disability
benefit.
If my employer participates in the group
life insurance benefits offered through Employee Trust Funds, do
I have to contact the insurance company for further information
on continuing my coverage?
No. Our office will review your file for life insurance coverage
and will advise you of continuation provisions when we provide retirement
information. In most cases we will automatically deduct premiums
from your annuity until age 65 with no further action on your part.
This information is included in your retirement packet.
I am not a state employee, but my employer
participates in the group health insurance plan through Employee
Trust Funds. How do I continue this health insurance when I retire?
Our office will include information about continuing your coverage
in your retirement packet. If your former employer does not pay
the premiums, they are automatically deducted from your pension
if it is large enough. If your annuity is not large enough to cover
the premiums, you will be billed directly by your plan.
I am a state employee and have sick leave
credits. How does this affect my health insurance premiums when
I retire?
If you have comparable insurance, you may escrow your sick leave
credits indefinitely. Otherwise your sick leave credits will automatically
be used to pay the premiums for your health insurance. When your
sick leave credits are exhausted, your premiums will automatically
be deducted from your annuity. If your annuity is not large enough
to cover your premiums, you will be billed directly by the insurance
company.
What happens to my health insurance when
I or my spouse reach age 65? Are we required to enroll in Medicare?
Will I be notified?
When each of you reach age 65, each must enroll for Medicare (both
parts A & B) to continue state or local health insurance. We
will automatically mail you a reminder before your 65th birthday.
Your premiums decrease when either of you become enrolled in Medicare
(both parts A & B).
Do you have a toll-free telephone number?
What are your office hours?
Call our toll-free telephone number at 1-877-533-5020 to speak
with a benefits specialist. You may also call our Telephone Message
Center and Self Service Line toll-free. See Contact
Us for phone numbers and office hours.
Can I change my annuity option selection
after I apply for my retirement benefit?
You can change your annuity option within 60 days after the date
of your first monthly payment. The Department must receive your
written request to change options no later than 60 days after the
date on which your first annuity payment is issued. After the 60-day
deadline you cannot change your annuity option.
For additional information, watch these and many other ETF online
recordings:
- Annual Retirement Annuity Adjustments
- Calculating Your Retirement Benefits Online
- How to Complete a Retirement Application
- Now That You're Retired: What You Need to Know
- WRS Payment Options
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