The Employees' Retirement System of the County of Milwaukee (the 'Retirement System') was created to encourage qualified personnel to enter and remain in the service of the County of Milwaukee (the 'County') by providing for a system of retirement, disability and death benefits for its employees. The Retirement System was created by Section 201.24 of the General Ordinances (the 'Ordinance') of the County. The authority to manage and control the Retirement System is vested in the Pension Board. The Pension Board consists of nine members - three members appointed by the County Executive (subject to confirmation by the County Board of Supervisors), two members appointed by county board chairman (subject to confirmation by the County Board of Supervisors), three employee members elected by the employee participants and one employee member elected by retired participants. The following discussion is a brief synopsis of the various regulations. Please keep in mind that this is a technical area which is regulated by Federal and State laws, Milwaukee County Ordinances and labor contracts. If you need further clarification, please contact the Retirement Division.
Eligibility and Enrollment
All Milwaukee County employees who have a regularly scheduled work week of twenty hours or more and are Regular Appointments, Temporary Appointments or Exempt Appointments are automatically members of the System by Ordinance. (Some hourly employees may be eligible to participate per their union contract.) You will be asked to complete a membership form and to designate a beneficiary within thirty (30) days of your eligibility to enroll.
Some employees are excluded from membership: for example, employees who do not have a regularly scheduled work week or who are scheduled for less than 20 hours per week. Some employees are 'optional', that is, they can choose to join the pension system and have social security deducted but they must pay the annual 6% contribution. These 'optional' employees are generally Emergency Appointments and Seasonal or Temporary employees such as Lifeguard, Park Attendants, or Interns. Optional employees who do not elect to join the Pension System will be requested to enroll in the OBRA 1990 Retirement System. The benefits earned in the OBRA system are discussed below.
Contributions
The Retirement System is substantially noncontributory. However, participants meeting certain criteria are required to contribute to membership accounts. In addition, the County contributes to membership accounts of employee participants enrolled prior to 1971. If you were hired after January 1, 1971 and are mandatory covered by the pension plan, the County will make all contributions on your behalf. Contributions payable by the County to the Retirement System consist of amounts sufficient to fund the annual normal cost and interest on and amortization of the unfunded prior service cost. A substantial portion of the County's current year's contribution is payable to the Retirement System during the following year.
Employee Benefits
The normal retirement benefit is a monthly pension for the life of the participant. For deputy sheriff participants with less than 30 years of service, the normal retirement age is 57. For all other participants the normal retirement age is 60, although several labor agreements additionally require at least 5 years creditable service. Active participants are also eligible to retire when their age added to their years of service equals 75. Early retirement with reduced benefits can be attained at age 55 with fifteen (15) years of service. The amount of normal retirement benefit payable for a participant whose continuous membership began prior to January 1, 1982, is equal to 2.5% for deputy sheriffs and elected officials, and 2% for all other participants, of the participant's highest three-year consecutive average salary, as defined in the Ordinance and labor agreements, multiplied by the number of years of credited service. The amount of normal retirement benefit payable for a participant whose continuous membership began after January 1, 1982, is equal to 2% for deputy sheriffs and elected officials, and 1.5% for all other participants, of the participant's highest consecutive five-year final average salary, as defined in the Ordinance and labor agreements, multiplied by the number of years of credited service. Each year after retirement, the amount of monthly benefit is increased by an amount equal to 2% of the benefit paid for the first full month of retirement. The maximum benefit, excluding any post-retirement increases, payable to a retiree cannot exceed the sum of 80% of the participant's final average salary. Optional forms of retirement payments, including survivor pension payments, may be elected which are the actuarial equivalent to the participant's retirement benefit.
A participant who meets the requirements for an accidental or ordinary disability benefit is entitled to an amount equal to the normal retirement benefit, but not less than 60% of a participant's final average salary for accidental disability. Fifteen years of credited service is required to apply for ordinary disability.
A participant who is 55 years of age and has 15 years of credited service may elect early reduced retirement benefits. The retiree would be entitled to a benefit equal to the normal retirement benefit with a lifetime reduction of 5% for each year prior to age 60.
A participant whose continuous membership began prior to January 1, 1982 and who terminates employment after 6 years of credited service, is eligible for a deferred vested pension beginning as of age 60. A participant whose continuous membership began after January 1, 1982, who terminates employment after 10 years of credited service, is eligible for a deferred vested pension beginning the month following the member's attainment of age 60.
Survivor's Benefits
Upon the death of a member and usually after one year of service, which varies by labor agreement, a dependent spouse with one dependent child, as defined in the Ordinance, will receive 40% of the deceased participant's salary, offset by an amount equal to Social Security benefits payable to the spouse. An additional 10% of salary, offset by Social Security, is paid for each dependent child. The total benefit, if there are more than five eligible children, generally cannot exceed 90% of salary, including Social Security benefits. Upon attaining age 60, the dependent spouse will receive 50% of the normal retirement benefit considering projected service to the time the deceased employee would have been 60 years of age. If there is no dependent spouse or child, the death benefit payable to a designated beneficiary is equal to 50% of the deceased participant's final average salary, but not to exceed $2,000. Deputy sheriffs are covered by special provisions if their death occurs as a result of an accident in actual performance of duty. In order to receive lump sum benefits, you will be requested to complete a designation of beneficiary form at the time you enroll. It is very important that you keep this beneficiary designation current.
Military Service Credit
You can earn additional creditable service for pension purposes for time served in the U.S. Armed Forces between January 1st, 1938 and December 31st, 1974.
The maximum number of military service years or fractions thereof, that you can credit is 4, based on your total County retirement service credit as follows:
| Eligible County Service Credit |
Maximum Military Years Authorized |
| 0 to under 5 |
0 |
| 5 to under 10 |
1 |
| 10 to under 15 |
2 |
| 15 to under 20 |
3 |
| 20 or more |
4 (Maximum) |
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