2003 - 2004 LEGISLATURE
October 16, 2003 - Introduced by Representatives Gottlieb, LeMahieu, Gielow,
Lothian, Stone, Owens, McCormick, Ainsworth, Nischke, Grothman, Hahn,
Vukmir, Honadel, Kerkman and J. Wood, cosponsored by Senators Brown,
Lazich, Darling, Reynolds, Leibham and A. Lasee. Referred to Committee on
1An Act to repeal and recreate
40.05 (1) (b) of the statutes; relating to:
2payment of employee required contributions under the Wisconsin Retirement
Analysis by the Legislative Reference Bureau
Under current law, required employer and employee contributions under the
Wisconsin Retirement System (WRS), and the earnings on these contributions, fund
the cost of providing retirement annuities to public employees who are covered under
the WRS. Current law permits the employer, on behalf of its employees, to pay all
or part of the employee required contributions.
This bill provides that a participating employer in the WRS who is covered by
the Municipal Employment Relations Act (MERA) may not pay, on behalf of any
employee, the first three percent of earnings that the participating employee is
required to pay as employee required contributions under the WRS if that employee
first becomes a participating employee in the WRS on or after the bill's effective date.
Employers covered by MERA generally include any city, county, village, town,
metropolitan sewerage district, school district, family care district, or any other
political subdivision of the state, or instrumentality of one or more political
subdivisions of the state.
This bill will be referred to the Joint Survey Committee on Retirement Systems
for a detailed analysis, which will be printed as an appendix to this bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
(b) 1. Subject to subd. 2., in lieu of employee payment, the employer 4
may pay all or part of the contributions required by par. (a), but all of the payments 5
shall be available for benefit purposes to the same extent as required contributions 6
deducted from earnings of the participating employees. Action to assume employee 7
contributions as provided under this paragraph shall be taken at the time and in the 8
form determined by the governing body of the participating employer. The state shall 9
pay under this paragraph for employees who are covered by a collective bargaining 10
agreement under subch. V of ch. 111 and for employees whose fringe benefits are 11
determined under s. 230.12 an amount equal to 4 percent of the earnings paid by the 12
state unless otherwise provided in a collective bargaining agreement under subch. 13
V of ch. 111 or unless otherwise determined under s. 230.12. The University of 14
Wisconsin Hospitals and Clinics Authority shall pay under this paragraph for 15
employees who are covered by a collective bargaining agreement under subch. I of 16
ch. 111 and for employees whose fringe benefits are determined under s. 233.10 an 17
amount equal to 4 percent of the earnings paid by the authority unless otherwise 18
provided in a collective bargaining agreement under subch. I of ch. 111 or unless 19
otherwise determined under s. 233.10. The state shall pay under this paragraph for 20
employees who are not covered by a collective bargaining agreement under subch. 21
V of ch. 111 and for employees whose fringe benefits are not determined under s.
230.12 an amount equal to 4 percent of the earnings paid by the state unless a 2
different amount is recommended by the director of the office of employment 3
relations and approved by the joint committee on employment relations in the 4
manner provided for approval of changes in the compensation plan under s. 230.12 5
(3). The University of Wisconsin Hospitals and Clinics Authority shall pay under 6
this paragraph for its employees who are not covered by a collective bargaining 7
agreement under subch. I of ch. 111 an amount equal to 4 percent of the earnings paid 8
by the authority unless a different amount is established by the board of directors 9
of the authority under s. 233.10.
2. A participating employer that is a municipal employer, as defined in s. 111.70 11
(1) (j), may not pay, on behalf of a participating employee, the first 3 percent of 12
earnings that a participating employee is required to pay as contributions under par. 13
(a) if that employee first becomes a participating employee on or after the effective 14
date of this subdivision .... [revisor inserts date].
(1) This act first applies to participating employees in the Wisconsin retirement 17
system who are covered by a collective bargaining agreement under subchapter IV 18
of chapter 111 of the statutes that contains provisions inconsistent with this act on 19
the day on which the agreement expires or is extended, modified, or renewed, 20
whichever occurs first.