Options for ALRA/Sabbatical Account Balances at Retirement

• You may use the account balance to extend your time on payroll.  Your salary will be reported as Wisconsin Retirement System (WRS) earnings; taxes, as well as insurance and other benefit deductions will be taken as normal; and you will continue to earn paid leave benefits.
• You can elect a lump sum payment of the balance.  The payment will not be reported as WRS earnings; however, it will be considered taxable income. You can lower your tax liability by contributing a portion of the payment to a Tax Sheltered Annuities (TSA) or Wisconsin Deferred Compensation (WDC) account on a pre-tax basis.  Your contributions may not exceed the annual maximums for that calendar year.

You can elect one option or a combination of both, but you must provide notice of your intent in advance of the applicable payroll calculation dates. For further details please contact the UW-Madison Office of Human Resources and your department payroll and benefits coordinator.