LRB-3198/1
RAC:kmg:pg
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
Labor.
AB599,1,3 1An Act to repeal and recreate 40.05 (1) (b) of the statutes; relating to:
2payment of employee required contributions under the Wisconsin Retirement
3System.
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:
AB599, s. 1 1Section 1. 40.05 (1) (b) of the statutes, as affected by 2003 Wisconsin Act 33,
2is repealed and recreated to read:
AB599,3,93 40.05 (1) (b) 1. Subject to subd. 2., in lieu of employee payment, the employer
4may pay all or part of the contributions required by par. (a), but all of the payments
5shall be available for benefit purposes to the same extent as required contributions
6deducted from earnings of the participating employees. Action to assume employee
7contributions as provided under this paragraph shall be taken at the time and in the
8form determined by the governing body of the participating employer. The state shall
9pay under this paragraph for employees who are covered by a collective bargaining
10agreement under subch. V of ch. 111 and for employees whose fringe benefits are
11determined under s. 230.12 an amount equal to 4 percent of the earnings paid by the
12state unless otherwise provided in a collective bargaining agreement under subch.
13V of ch. 111 or unless otherwise determined under s. 230.12. The University of
14Wisconsin Hospitals and Clinics Authority shall pay under this paragraph for
15employees who are covered by a collective bargaining agreement under subch. I of
16ch. 111 and for employees whose fringe benefits are determined under s. 233.10 an
17amount equal to 4 percent of the earnings paid by the authority unless otherwise
18provided in a collective bargaining agreement under subch. I of ch. 111 or unless
19otherwise determined under s. 233.10. The state shall pay under this paragraph for
20employees who are not covered by a collective bargaining agreement under subch.
21V of ch. 111 and for employees whose fringe benefits are not determined under s.

1230.12 an amount equal to 4 percent of the earnings paid by the state unless a
2different amount is recommended by the director of the office of employment
3relations and approved by the joint committee on employment relations in the
4manner 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
6this paragraph for its employees who are not covered by a collective bargaining
7agreement under subch. I of ch. 111 an amount equal to 4 percent of the earnings paid
8by the authority unless a different amount is established by the board of directors
9of the authority under s. 233.10.
AB599,3,14 102. 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
12earnings 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
14date of this subdivision .... [revisor inserts date].
AB599, s. 2 15Section 2. Initial applicability.
AB599,3,2016 (1) This act first applies to participating employees in the Wisconsin retirement
17system who are covered by a collective bargaining agreement under subchapter IV
18of chapter 111 of the statutes that contains provisions inconsistent with this act on
19the day on which the agreement expires or is extended, modified, or renewed,
20whichever occurs first.
AB599,3,2121 (End)
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