LRB-0621/1
PG&EVM:kjf:rs
2013 - 2014 LEGISLATURE
February 15, 2013 - Introduced by Representatives Thiesfeldt, Nass, LeMahieu,
Kapenga, Kooyenga, T. Larson, Stroebel, Craig, Bernier, Strachota, Stone,
Kleefisch and Sanfelippo, cosponsored by Senators Vukmir, Grothman,
Harris and Petrowski. Referred to Committee on Urban and Local Affairs.
AB23,1,3 1An Act to amend 119.04 (1); and to create 38.12 (12), 66.0138 and 120.12 (28)
2of the statutes; relating to: funding postretirement health care benefits of local
3government employees.
Analysis by the Legislative Reference Bureau
Currently, cities, villages, towns, counties, school districts, and technical
college districts (local governments) provide health care benefits for their employees.
Some also provide postretirement health care benefits for their employees.
This bill prohibits a local government from providing health care benefits to any
employee hired on or after January 1, 2014, for use upon the employee's retirement,
including compensated absences but excluding the implicit rate subsidy, unless the
cost of the benefit is fully funded in a segregated account on an actuarial basis or
other method that complies with generally accepted accounting principles.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB23, s. 1 4Section 1. 38.12 (12) of the statutes is created to read:
AB23,2,45 38.12 (12) Health care benefits for retirees. If the district board provides
6any health care benefits for use upon retirement, including compensated absences

1but excluding the implicit rate subsidy, to an employee hired on or after January 1,
22014, the district board shall ensure that the cost of the benefits is fully funded in
3a segregated account on an actuarial basis or other method that complies with
4generally accepted accounting principles.
AB23, s. 2 5Section 2. 66.0138 of the statutes is created to read:
AB23,2,7 666.0138 Health care benefits for retirees. (1) In this section, "political
7subdivision" means a city, village, town, or county.
AB23,2,13 8(2) If a political subdivision provides any health care benefits for use upon
9retirement, including compensated absences but excluding the implicit rate subsidy,
10to an employee hired on or after January 1, 2014, the political subdivision shall
11ensure that the cost of the benefits is fully funded in a segregated account on an
12actuarial basis or other method that complies with generally accepted accounting
13principles.
AB23, s. 3 14Section 3. 119.04 (1) of the statutes is amended to read:
AB23,2,2415 119.04 (1) Subchapters IV, V and VII of ch. 115, ch. 121 and ss. 66.0235 (3) (c),
1666.0603 (1m) to (3), 115.01 (1) and (2), 115.28, 115.31, 115.33, 115.34, 115.343,
17115.345, 115.363, 115.365 (3), 115.38 (2), 115.415, 115.445, 118.001 to 118.04,
18118.045, 118.06, 118.07, 118.075, 118.076, 118.10, 118.12, 118.125 to 118.14, 118.145
19(4), 118.15, 118.153, 118.16, 118.162, 118.163, 118.164, 118.18, 118.19, 118.20,
20118.223, 118.225, 118.24 (1), (2) (c) to (f), (6), (8), and (10), 118.245, 118.255, 118.258,
21118.291, 118.292, 118.293, 118.30 to 118.43, 118.46, 118.51, 118.52, 118.55, 120.12
22(2m), (4m), (5), and (15) to (27) (28), 120.125, 120.13 (1), (2) (b) to (g), (3), (14), (17)
23to (19), (26), (34), (35), (37), (37m), and (38), 120.14, 120.21 (3), and 120.25 are
24applicable to a 1st class city school district and board.
AB23, s. 4 25Section 4. 120.12 (28) of the statutes is created to read:
AB23,3,6
1120.12 (28) Health care benefits for retirees. If the school board provides
2any health care benefits for use upon retirement, including compensated absences
3but excluding the implicit rate subsidy, to an employee hired on or after January 1,
42014, ensure that the cost of the benefits is fully funded in a segregated account on
5an actuarial basis or other method that complies with generally accepted accounting
6principles.
AB23,3,77 (End)
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