40.285 Purchase of creditable service.
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/wi/chapter-40/40-285A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
40.285 Purchase of creditable service.
(1)General requirements.
(a)Deadline for purchase of creditable service. An application to purchase creditable service must be received by the department, on a form provided by the department, from an applicant who is a participating employee on the day that the department receives the application.
(b)Calculation of creditable service. Creditable service purchased under this section shall be calculated in an amount equal to the year and fractions of a year to the nearest one-hundredth of a year.
(c)Use of creditable service. Credit for service purchased under this section is added to a participant’s total creditable service, but may not be treated as service for a particular annual earnings period and does not confer any other rights or benefits.
(d)Applicability of Internal Revenue Code. The crediting of service under this section is subject to any applicable limit or requirement under the Internal Revenue Code.
(2)Conditions for the purchase of different types of creditable service.
(a)Forfeited service.
1. A participating employee may purchase creditable service forfeited in the manner specified in subd. 2. , subject to all of the following:
a. The participating employee must have at least 3 continuous years of creditable service at the time of application to purchase the creditable service.
b. The number of years that may be purchased may not be greater than the accumulated current creditable service of the participating employee at the date of application, excluding all creditable service purchased under this section or s. 40.02
(b), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02
(e), 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02
(i), 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02
(k), 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.25
(6), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., or s. 40.25
(7), 1991, 1993, 1995, 1997, 1999, and 2001 stats., less the number of years of creditable service previously purchased under this paragraph or s. 40.25
(6), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats.
c. The participating employee pays to the fund an amount equal to the employee’s statutory contribution on earnings under s. 40.05
(a)for each year of forfeited service to be purchased, based upon the participating employee’s final average earnings, determined as if the employee had retired on the first day of the annual earnings period during which the department receives the application. The amount payable shall be paid in a lump sum payment, except as provided in sub.
(b), and no employer may pay any amount payable on behalf of a participating employee.
d. Upon receipt by the fund of the total payment required under this subdivision, the creditable service meeting the conditions and requirements of this paragraph shall be credited to the account of the participating employee making the payment.