Based on the improved financial position and strong investment results, the Income Continuation Insurance (ICI) Program premium rates for 2022 will decrease by 50%. See the premium rate charts in the ICI employer section of the ETF website.
| ICI | Completion Date | Effective Date | Report Date |
|---|---|---|---|
| Annual Premium Update | January | February 1 | February report due February 24, 2022 |
| Deferred Enrollment with ICI Application (ET-2307) | Application received by March 1 | April 1 | April report due April 25, 2022 |
| Annual Supplemental ICI Enrollment period - Use ICI Application (ET-2307) | Application received by March 1 | April 1 | April report due April 25, 2022 |
Report due dates are the 24th of the month. When the 24th falls on a weekend or holiday, the due date is the next business day.
Annual ICI Premium Review and Update
Please remember to complete the annual ICI premium updates in January (effective February 1, 2022). New premium rates are based on employee 2021 average monthly Wisconsin Retirement System earnings (total 2021 WRS-reportable earnings rounded to the next higher thousand and divided by 12) and accumulated sick leave (or elimination period for UW faculty and academic staff).
Premium categories are based on the employee’s accumulated sick leave hours as of the prior year’s last complete payroll period. For 2021, this is pay period 26C (December 5, 2021 through December 18, 2021).
For newly hired employees or employees whose permanent percentage of appointment changed since the last annual review, their estimated earnings should continue to be used for premium purposes until a full calendar year of WRS earnings is available.
Example:
Employee starts WRS employment in July 2021 – use estimated salary
- January 2022 Annual Adjustment – continue to use estimated salary
- January 2023 Annual Adjustment – use previous calendar year (2022) WRS earnings
Similarly, if an employee had an authorized leave during the prior calendar year, premiums should be calculated using the same earnings amount and premium category in effect prior to the leave, until a full calendar year of WRS earnings is available.
Enrollment Period Ends March 1, 2022
Deferred Coverage
Deferred coverage gives employees an opportunity to enroll in ICI based on accumulated sick leave. The employee does not have to provide evidence of insurability. The following conditions apply:
- Employee qualifies for Premium Category 3, 4, or 5 for the first time
- Category 3 is available to part-time employees on a prorated basis
- Any year employee qualifies for Premium Category 6
Employers should notify eligible employees of the deferred ICI enrollment opportunity and direct interested employees to contact the appropriate human resources or payroll/benefits personnel for an Income Continuation Insurance Application (ET-2307). Coverage would be effective April 1, 2022. The application must be returned to the employer by the close of business on March 1, 2022.
Eligible employees on leaves of absence during the open enrollment period have 60 days from the date they return to work to apply for coverage. Coverage will be effective the first day of the month that first occurs during their 60-day enrollment period, but no earlier than April 1, 2022.
Supplemental Coverage
Supplemental ICI provides coverage for annual earnings between $64,000 and $120,000. (Standard ICI only covers annual earnings up to $64,000.) Enrollment in the supplemental ICI coverage is voluntary. Employees electing supplemental coverage must insure their entire salary above $64,000 up to a maximum of $120,000. There is no partial supplemental coverage. Coverage elected during the 2022 enrollment period is effective April 1, 2022.
Employers should notify eligible employees of the supplemental ICI enrollment opportunity and direct interested employees to contact the appropriate human resources or payroll/benefits personnel for an Income Continuation Insurance Application (ET-2307). The application must be returned to the employer by close of business on March 1, 2022.
Eligible employees on leaves of absence during the open enrollment period have 60 days from the date they return to work to apply for supplemental ICI coverage. Employees currently receiving ICI benefits may enroll when they return to work and are no longer receiving ICI benefits. Their supplemental coverage will be effective the first day of the month that first occurs during their 60-day enrollment period, but no earlier than April 1, 2022.
Who is eligible for supplemental ICI coverage during the annual supplemental coverage enrollment period?
- Employees applying for ICI coverage during annual deferred enrollment with annual earnings exceeding $64,000 may apply for supplemental ICI at the same time they apply for standard ICI coverage.
- Employees who currently have standard ICI coverage and whose annual earnings exceeded $64,000 in 2021.
Who pays the premium?
The employee pays the entire premium for the supplemental ICI coverage; there is no employer share. Employers cannot contribute any portion of the supplemental ICI premium.
How does supplemental coverage affect the potential benefit level?
Employees with supplemental ICI coverage are eligible for a maximum benefit of $7,500 per month (75% of maximum monthly earnings of $10,000).
Employees with annual earnings greater than $64,000 who are not enrolled in supplemental ICI coverage are limited to a maximum benefit of $4,000 per month.
Premiums for Deferred and Supplemental Coverage
Determine premiums using the same criteria as the annual process. Coverage is effective April 1, 2022.
ICI Enrollment Application Reminder
This is a reminder to all employers that a new enrollment is not always needed upon return from a leave of absence (LOA). If an employee's ICI coverage did not lapse while on LOA (i.e. they paid the premiums while on leave or their premiums were waived while they were receiving ICI benefits) they do not need to reapply for ICI coverage upon return to work. However, premium deductions from the employee's paychecks will need to be started again.
For more information, see the Income Continuation Insurance Administration Manual State (ET-1119) chapters 2 and 8 on eligibility criteria (relating to returning employee eligibility and leave of absence ) and claim processing (regarding the ICI premium waiver).
Additionally, ETF will provide a live ICI training during its quarterly meeting with employers at ETF Update (formerly known as Payroll Council) on December 14, 2021 at 1:00 p.m. If you would like to attend the ETF Update, please contact Tricia Sieg at tricia.sieg@etf.wi.gov.