Rehired Annuitants

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Policy Number:
UW-5009
Old Policy Number:
3.03
Responsible Office:
Office of Human Resources

University Policy

Rationale/​Purpose:

The purpose of this policy is to establish guidelines for the employment of Wisconsin Retirement System (WRS) annuitants who are employed with UW Madison while receiving a WRS annuity.

Rehired annuitant policies as they pertain to WRS and employee benefit plans are governed by Wis. Stat. § Chapter 40 and Wis. Admin. Code § Chapter ETF 10. Every WRS-covered employer is required to comply with these laws and regulations. This policy summarizes the guidelines set forth in Wisconsin statute and administrative code. These sources of authority have control over the information in this policy to the extent there are differences or conflicts.

Definitions:
Lump sum retirement benefit
A one-time single payment consisting of employee contributions, employer contributions, additional contributions (if applicable) and accumulated interest. This is an option that may be offered to retirees if they do not qualify for an annuity due to their account being too small for a monthly benefit.
Minimum break in service

Length of the separation of employment needed before a WRS annuitant may return to WRS-eligible employment.

Generally, annuitants must have a valid termination of employment and be separated from WRS employment for at least 75 calendar days before they can return to WRS-covered employment.

If an annuitant does not separate for at least 75 days, the retirement will be considered invalid.

  • A 75-day break in service is required when an annuitant returns to any work for the same employer they retired from.
  • A 75-day break in service is required when an annuitant goes to work for a different WRS employer, if the position is expected to meet the WRS eligibility criteria.
  • A 75-day break in service is not required when an annuitant goes to work for a different WRS employer, if the position is not expected to meet the WRS eligibility criteria.
  • A 75-day break in service is not required when an annuitant goes to work for an employer who does not participate in the WRS. The employer does not offer WRS benefits.
Rehired annuitant

An employee who:

  • Is receiving a monthly WRS annuity; and
  • Had a valid termination of employment; and
  • Served the minimum required break in employment between retirement and returning to work for a WRS-covered employer; and
  • Now works for an employer covered by the WRS.

Note: An employee who previously received a separation or lump sum retirement benefit from the WRS is not considered a rehired annuitant. Per Wis. Stat. § 40.23 (1) (a) 1 and 40.26 (5) and is defined in Wis. Admin. Code § ETF 10.08 (2) (c).

Separation benefit
A one-time, lump sum payment consisting only of employee contributions, additional contributions (if applicable) and accumulated interest.
Valid termination

An employee must:

  • Stop working for all WRS-covered employers (receive no pay for services rendered-date of final paycheck irrelevant); and
  • Officially resign per employer policy; and
  • Have no rights to future employment for pay at a WRS employer; and
  • Have no authority to act as an employee; and
  • Have been paid out all applicable leave benefits; and
  • Serve the required minimum break in employment.

Wis. Admin. Code § ETF 10.08 (2).

Policy:

UW Madison complies with the requirements provided for in Wisconsin State Statute and Wisconsin Administrative Code regarding the employment of rehired annuitants.

Annuitants are required to fulfill any required minimum break in employment and meet all conditions of a valid termination of employment before returning to work for a WRS employer. If these requirements are not met, the employee’s retirement will be invalid, and the employee will be required to repay any WRS benefits received.

  1. Recruitment of Rehired University Annuitants

    1. All recruitments must comply with UW Madison Recruitment, Assessment, and Selection (RAS) policy
        To address short-term needs, a rehired annuitant may be employed in a position similar to that from which the annuitant retired without an open recruitment. A rehired annuitant should not be hired for an ongoing appointment without an appropriate recruitment, even if the annuitant previously held the position or a similar position elsewhere in UW System.

    2. Contracts (verbal or written) to rehire individuals previously employed at any institution in the UW System are not to be discussed, negotiated, or entered into prior to or during the required minimum break in employment.

      Note: Principal investigators (PI) with ongoing grants: Employee Trust Fund (ETF) has determined that receipt of an ongoing grant from non-University sources does not constitute a contract for or right to future University employment. Thus, a Principal Investigator with two years left on a five-year grant may retire from the University, begin a WRS annuity, and then make an agreement with the University to return to work on the grant after the required break in service. The employee may not enter into the new employment contract until after the termination date, and the minimum break in service is required. The individual may not at any point be paid for the period of the break in service (including retroactively). Questions on PI status for retired employees should be handled within the division.

    3. Any appointment to rehire previously employed persons should be reviewed and approved by the school/college/division, by a senior official at UW Madison, to ensure uniform application of standards and full compliance.

  2. Option to Return to Active WRS Participation

    Rehired annuitants who meet the eligibility criteria for participation under WRS, may elect to return to active WRS participation or may be required to return to active WRS participation, depending on the annuitant’s WRS termination date and job attributes.


    Table 1
    WRS Termination Date Was Prior to July 2, 2013
    Eligibility for WRS Employee Benefits Employment Category Requirements
    Not Eligible to Participate in WRS University Staff (General) Position(s) are not expected to require 600 hours and last at least one year.
    FA/AS/LI (Teacher) Position(s) are not expected to require 440 hours and last at least one year.
    Rehired Annuitant's Choice to Participate in WRS University Staff (General) Position(s) are not expected to require 600 hours and last at least one year.
    FA/AS/LI (Teacher) Position(s) are expected to require at least 440 hours and last at least one year.
    WRS Termination Date Was On or After July 2, 2013
    Eligibility for WRS Employee Benefits Employment Category Requirements
    Not Eligible to Participate in WRS University Staff (General) Position(s) are not expected to require 600 hours and last at least one year.
    FA/AS/LI (Teacher) Position(s) are not expected to require 440 hours and last at least one year.
    Rehired Annuitant's Choice to Participate in WRS University Staff (General) Position(s) are expected to require at least 600 hours but are not expected to require 1,200 hours and last at least one year.
    FA/AS/LI (Teacher) Position(s) are expected to require at least 440 hours but are not expected to require 880 hours and last at least one year.
    Must Participate in WRS and Suspend Annuity University Staff (General) Position(s) are expected to require at least 1,200 hours and last at least one year.
    FA/AS/LI (Teacher) Position(s) are expected to require at least 880 hours and last at least one year.

    If an employee is paid on a lump sum basis, WRS creditable hours need to be determined. Per Information for Rehired Annuitants (ET 4105).

  3. Leave Benefits

    A rehired annuitant may be eligible for paid leave benefits. A rehired annuitant must meet the same paid leave eligibility requirements as active employees (see Sick Leave Policy for eligibility requirements). Only time worked as a rehired annuitant is used to determine your paid leave eligibility. WRS coverage is not required to earn paid leave benefits.

    If you qualify for paid leave as a rehired annuitant, the following leave provisions apply to you:

      Vacation:
    • Faculty, Academic Staff & Limited Appointees: 176 hours per fiscal year (prorated if part-time)
    • University Staff employees Vacation based on years of continuous service (prorated if part time) service prior to retirement is included if the individual returns to work within 5 years of their retirement
    • The rules for vacation carryover, leave eligibility for continuous service, ability to bank vacation into banked leave, and vacation payouts at termination apply to rehired annuitants just as they apply to active employees.
      Sick Leave:
    • Faculty, Academic Staff & Limited Appointees: 96 hours per fiscal year (prorated if part-time); not eligible for sick leave Initial Entitlement
    • University Staff employees: 130 hours per year (prorated if part-time)
    • Sick leave converted at retirement to pay for health insurance will be saved by the Department of Employee Trust Funds and will not be available for use during employment.
    • If an individual elects not to participate in the WRS, any sick leave hours earned will not be credited to their retiree sick leave credit account upon re-retirement.
    • If an individual elects to go back to participating in the WRS and then later re-retires, any sick leave earned as a rehired annuitant will be converted and added to their saved sick leave credits. The employee should contact Madison Benefits Services if this occurs at benefits@ohr.wisc.edu.
      Personal Holiday:
    • Faculty, Academic Staff, Limited Appointees, and University Staff: 36 hours per year (prorated if part-time)
    • The rules for personal holiday apply to rehired annuitants just as they apply to active employees.

  4. Insurance Benefits

    Rehired annuitants, whether or not covered by the WRS, are eligible for the following benefits:

    • UW 403(b) Supplemental Retirement Program (SRP)
    • Wisconsin Deferred Compensation 457 Program
    • Flexible Spending Accounts (FSA)
      • University Staff Temporary employees (TE) are not eligible.
    • Pre-Tax Transportation and Commuter Benefits
      • University Staff Temporary employees (TE) are not eligible.
    • If an individual elects not to participate in the WRS, any sick leave hours earned will not be credited to their retiree sick leave credit account upon re-retirement

    If an individual is covered by the WRS, they are eligible for the following benefits:

    All benefits offered to active employees in the same position (except University Insurance Association (UIA).

Related UW-Madison Policies:
Related UW–Madison Documents, Web Pages, or Other Resources:
External References:

Policy Administration

Approval Authority:
Vice Chancellor for Finance and Administration
Policy Manager:
Associate Vice Chancellor/Chief Human Resources Officer
Contact:
Employment Relations Director -- Megan Dzyuba, wr@ohr.wisc.edu, (608) 890-3663
Effective Date:
06-24-2015
Revised Dates:

04-05-2019, 04-15-2024

Retrieved:
04-19-2024 19:39:26