Section ETF 52.16 - Reductions in monthly duty disability benefits(1) IN GENERAL. (a)Income guarantee. The duty disability benefit for eligible protective occupation participants shall be administered as an income guarantee program. The amount equal to the percentage of monthly salary guaranteed under s. 40.65(5) (a), Stats., or under s. ETF 52.14 for state employees to whom s. 40.65(5) (a), Stats., does not apply, and adjusted under s. ETF 52.12(3), is both the guaranteed monthly income amount and the maximum amount payable as monthly duty disability benefits. If the combined income from all sources listed in s. 40.65(5) (b) 1 to 6., Stats., does not equal or exceed the guaranteed amount, then the difference will be made up by duty disability benefits. To determine the monthly amount of duty disability benefits payable to an eligible person, the department shall determine the dollar amount of the guaranteed percentage of monthly salary then subtract all earnings and OASDHI, unemployment compensation, worker's compensation, disability and retirement benefits as provided in s. 40.65(5) (b) 1 to 6., Stats., and this section.(b)Receipt assumed. The department may assume that any benefit or amount listed s. 40.65(5) (b) 1 to 6., Stats., is payable to a participant until it is determined to the department's satisfaction that the participant is ineligible to receive the benefit or amount.(c)No carryover. All amounts described in s. 40.65(5) (b) 1 to 6., Stats., received by a person entitled to duty disability benefits after that person's effective date shall apply to reduce the person's maximum monthly duty disability benefit in the month in which received without any carryover to other months, except that lump sum payments of worker's compensation benefits shall reduce duty disability benefits as provided in s. 40.65(5) (b) 3, Stats., and sub. (4) and lump sum payments of disability or retirement benefits under s. 40.65(5) (b) 4, Stats., shall reduce duty disability benefits as provided in that subdivision.(d)Limit on reductions. Duty disability benefits for a particular month may not be reduced below zero.(2) OASDHI BENEFITS. The reduction of monthly duty disability benefits for OASDHI benefits received shall be affected by annual increases in monthly OASDHI benefits. If OASDHI benefits are increased for a month during which the recipient is also entitled to duty disability benefits and the department is administratively unable to immediately adjust the person's monthly duty disability benefits, then any excess duty disability benefits paid for that month as a result shall be treated as an overpayment of duty disability benefits as provided in s. ETF 52.20.(3) UNEMPLOYMENT COMPENSATION. Maximum duty disability benefits shall be reduced by the amount of unemployment compensation benefit paid to the participant for that month regardless of who employed the participant or the nature or period of employment which is the basis for the benefit.(4) WORKER'S COMPENSATION. (a) Withholding requirement. Until the worker's compensation permanent disability benefits payable to the participant are paid or otherwise determined, the department shall withhold from each monthly payment of duty disability benefits an amount equal to 5% of the maximum monthly duty disability benefits, except as otherwise provided by s. ETF 52.14.(b) If a person subject to 5% withholding under par. (a) subsequently receives a lump sum payment of worker's compensation benefits, including a lump sum payment made pursuant to a compromise settlement under s. 102.16(1), Stats., the department shall do one of the following: 1. If the participant receives a lump sum worker's compensation payment or compromise settlement, only the portion of the lump sum which exceeds the accumulated total of the amounts then withheld under this subsection shall be treated as a lump sum under s. 40.65(5) (b) 3, Stats., for purposes of reducing the participant's monthly duty disability benefits.2. If the accumulated total of the amounts withheld under this subsection exceeds the participant's lump sum worker's compensation payment or compromise settlement, then the difference between the duty disability benefit that was paid and the benefit that would have been paid had the 5% not been withheld shall be refunded to the participant when the participant's worker's compensation benefits have been determined and the lump sum payment shall not otherwise reduce monthly duty disability benefits.(c) Payable to the participant. Worker's compensation benefits payable to the participant, within the meaning of s. 40.65(5) (b) 3, Stats., are all worker's compensation benefits other than amounts expressly identified in the worker's compensation order, or order approving a compromise settlement, as being paid as attorney fees, as medical expenses or as reimbursement for other costs, or any amounts awarded under s. 102.18(1) (bp) or 102.22(1), Stats.(d) All worker's compensation benefits apply; no carryover except for lump sum payments. Worker's compensation benefits paid to a participant receiving duty disability benefits after the effective date shall reduce the participant's maximum monthly duty disability benefits for the month in which paid, without regard for the nature or date of the injury or the time period covered by the benefits. Any lump sum worker's compensation benefit shall reduce the participant's maximum monthly duty disability benefits as provided in s. 40.65(5) (b) 3, Stats.(5) DISABILITY AND RETIREMENT BENEFITS. (a)Lump sum payments. The treatment under s. 40.65(5) (b) 4, Stats., of the full amount received as a lump sum benefit applies only to lump sum benefits received under s. 40.25, Stats. Lump sum payments received from any other retirement system shall reduce duty disability benefits for the month in which received only.(b)Disability annuity alternatives. Monthly duty disability benefits shall be reduced by benefits received under s. ETF 50.52(1). Notwithstanding s. 40.65(5) (c), Stats., if the employee trust funds board determines that some or all of a disability annuity benefit provided from the Wisconsin retirement system shall instead be provided through group insurance plans established by the group insurance board, then benefits received under the insurance plan shall reduce monthly duty disability benefits as did the disability annuity benefits.(c)Benefits payable to non-vested participants. Monthly duty disability benefits shall be reduced by benefits payable to a non-vested participant under s. 40.25(2), Stats., at age 50.(6) EARNINGS; INCOME FROM THERAPY OR REHABILITATION. The department may elect not to reduce a participant's benefit because of income related to therapy or rehabilitation, following written request by the participant.Wis. Admin. Code Department of Employee Trust Funds ETF 52.16
Cr. Register, September, 1998, No. 513, eff. 10-1-98; CR 13-029: renum. (4) (a) (intro.) to (4) (a) and am., r. (4) (a) 1., 2., am. (4) (c) Register November 2013 No. 695, eff. 12-1-13.Amended by, CR 14-055: cr. (5) (c) Register May 2015 No. 713, eff.6/1/2015Amended by, CR 19-097: am. (4) (b) 2. Register May 2021 No. 785, eff. 6/1/2021