2011 - 2012 LEGISLATURE
February 28, 2012 - Offered by Representative Roys.
AB539-ASA1,1,3 1An Act to repeal 40.23 (2m) (er), 40.23 (3) (b) and 49.825 (5) (e); and to
2renumber and amend
40.23 (3) (a) of the statutes; relating to: vesting
3requirements under the Wisconsin Retirement System.
Analysis by the Legislative Reference Bureau
Under current law, a participating employee in the Wisconsin Retirement
System (WRS) who terminates covered employment on or after July 1, 2011, must
have had at least five years of creditable service under the WRS in order to vest in
employer required contributions and that part of a WRS annuity funded with
employer required contributions. This substitute amendment eliminates the
five-year vesting requirement, resulting in participants vesting immediately in all
employer required contributions under the WRS.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB539-ASA1, s. 1 4Section 1. 40.23 (2m) (er) of the statutes, as created by 2011 Wisconsin Act 32,
5is repealed.
AB539-ASA1, s. 2
1Section 2. 40.23 (3) (a) of the statutes, as affected by 2011 Wisconsin Act 32,
2is renumbered 40.23 (3) and amended to read:
AB539-ASA1,2,113 40.23 (3) Except as provided in par. (b), the The initial monthly amount of any
4retirement annuity in the normal form shall not be less than the money purchase
5annuity which can be provided by applying the sum of the participant's accumulated
6additional and required contributions, including interest credited to the
7accumulations, plus an amount from the employer accumulation reserve equal to the
8participant's accumulated required contributions, less any accumulated
9contributions to purchase other governmental service under s. 40.25 (7), 2001 stats.,
10or s. 40.285 (2) (b) to fund the annuity in accordance with the actuarial tables in effect
11on the annuity effective date.
AB539-ASA1, s. 3 12Section 3. 40.23 (3) (b) of the statutes, as created by 2011 Wisconsin Act 32,
13is repealed.
AB539-ASA1, s. 4 14Section 4. 49.825 (5) (e) of the statutes, as created by 2011 Wisconsin Act 32,
15is repealed.
AB539-ASA1, s. 5 16Section 5. Initial applicability.
AB539-ASA1,2,1917 (1) This act first applies to participating employees under the Wisconsin
18Retirement System who terminate covered employment under the Wisconsin
19Retirement System on the effective date of this subsection.