Wis. Admin. Code Department of Employee Trust Funds ETF 52.12 - Monthly salary and subsequent adjustments

(1) INITIALLY DETERMINED BY EMPLOYER. A participant's monthly salary shall be initially determined by the employer in whose service the disability occurred by adding together the regular monthly earnings, prorated cash payments, and regular and dependable overtime pay as determined pursuant to the following paragraphs:

(a) Regular monthly earnings. The participant's monthly earnings, as defined by s. 40.02(22), Stats., as of the qualifying date, except as provided in subds. 1. and 2.

1. `Exclusions.' "Regular monthly earnings" for the purposes of this section do not include:

a. Overtime pay.

b. Any payments excluded from earnings by s. 40.02(22) (b), Stats.

c. Any periodic payments made during any month which covered other periods of time, such as a lump sum longevity award.

d. Amounts which are not earnings reportable to the Wisconsin retirement system.

2. `Temporary disability compensation; effect.' If the participant is receiving temporary disability compensation under s. 102.43, Stats., as of the qualifying date, and the qualifying date is prior to the termination of employment with the participating employer in whose employment the disabling injury occurred or the occupational disease was contracted, then the participant's regular monthly earnings are the amount of earnings the employee would have received under s. 40.29(1) (b), Stats., if the disability had not occurred, subject to the exclusions in subd. 1.

(b) Prorated cash payments. A prorated amount reflecting the monthly equivalent of periodic cash payments which are includable in the participant's annual Wisconsin retirement system earnings. This includes lump sum payments for accumulated leave that are made at least once per calendar year to all employees, within a bargaining unit, specific employment category, classification or those whose job description contains the same primary job duties, regardless of whether an employee terminates employment during that year. This includes any unused compensatory time that is converted to pay in a lump sum payment if not due to termination of employment. Such payments are divided by 12 and the result is added to the participant's regular monthly earnings. Lump sum payments may only be included as prorated cash payments if, as of the participant's duty disability qualifying date:

1. The participant would have been in a position that was eligible for the pro-rated lump sum payment regardless of if or when paid; and

2. The participant would have received the lump sum payment in the calendar year of the participant's duty disability qualifying date.

(c) Regular and dependable overtime pay. For the purposes of this chapter, regular and dependable overtime pay means hours that are worked or for which an employee is required to be on call or standby by the employer, above the normal work hours. For the purposes of this paragraph, normal work hours are 80 hours in a biweekly pay period unless otherwise specifically designated by union contract. As set forth in this paragraph, this amount shall be calculated by taking the number of overtime hours for which the participant was paid in the 5 calendar years preceding the calendar year of the qualifying date, dividing by 60, and multiplying the result by the hourly overtime rate to which the participant was entitled as of the qualifying date. If the participant has been employed by the employer for less than the preceding 5 years, the monthly average of all overtime hours paid shall be multiplied by the hourly overtime rate as of the qualifying date. If the participant was in a position not eligible for overtime pay on the qualifying date then no overtime pay may be included in the calculation of monthly salary. No form of compensatory time off, even if converted to pay, is overtime pay under this paragraph.

(2) REVIEW BY DEPARTMENT. The employer's calculation of a participant's monthly salary will be reviewed by the department. The department shall notify the participant of the department's determination of the monthly salary amount and shall also notify the employer if the determination made by the department differs from the amount provided by the employer.

(3) SALARY INDEX ADJUSTMENT. The monthly salary of a participant receiving duty disability benefits shall be adjusted as of each January 1 after the participant's qualifying date, using the salary index for the previous calendar year, in the manner provided by s. 40.65(6), Stats.

Notes

Wis. Admin. Code Department of Employee Trust Funds ETF 52.12

Cr. Register, September, 1998, No. 513, eff. 10-1-98; CR 13-029: renum. (1) (a) 1. to (1) (a) 1. (intro.), a. to d. and am., renum. (1) (b) to (1) (b) (intro.), cr. (1) (b) 1., 2., renum. (1) (c) (intro.), 1., 2. to (1) (c) and am. Register November 2013 No. 695, eff. 12-1-13.