2015 - 2016 LEGISLATURE
June 18, 2015 - Introduced by Representatives Thiesfeldt, Rohrkaste, Kitchens,
Hutton, Brandtjen, Bernier, T. Larson and Craig, cosponsored by Senators
Vukmir, Stroebel and Nass. Referred to Committee on Urban and Local
Affairs.
AB269,1,3 1An Act to amend 119.04 (1); and to create 38.12 (12m), 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, 2016, 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, based on an actuarial study
conducted at least once every four years or other method that complies with generally
accepted accounting principles. The bill also provides that, if a local government
dissolves a segregated account established for the purpose of providing such health
care benefits, the local government must provide for the equitable distribution of the
proceeds among the beneficiaries.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB269,1 4Section 1. 38.12 (12m) of the statutes is created to read:
AB269,2,7
138.12 (12m) Health care benefits for retirees. (a) If the district board
2provides any health care benefits for use upon retirement, including compensated
3absences but excluding the implicit rate subsidy, to an employee hired on or after
4January 1, 2016, the district board shall ensure that the cost of the benefits is fully
5funded in a segregated account, based on an actuarial study conducted at least once
6every 4 years or other method that complies with generally accepted accounting
7principles.
AB269,2,128 (b) If the district board dissolves a segregated account established under par.
9(a) or any portion of such a segregated account, the district board shall provide for
10the equitable distribution of the proceeds among the employees who are beneficiaries
11of the benefits funded from the segregated account or portion thereof that is
12dissolved.
AB269,2 13Section 2. 66.0138 of the statutes is created to read:
AB269,2,15 1466.0138 Health care benefits for retirees. (1) In this section, "political
15subdivision" means a city, village, town, or county.
AB269,2,21 16(2) (a) If a political subdivision provides any health care benefits for use upon
17retirement, including compensated absences but excluding the implicit rate subsidy,
18to an employee hired on or after January 1, 2016, the political subdivision shall
19ensure that the cost of the benefits is fully funded in a segregated account, based on
20an actuarial study conducted at least once every 4 years or other method that
21complies with generally accepted accounting principles.
AB269,3,222 (b) If the political subdivision dissolves a segregated account established under
23par. (a) or any portion of such a segregated account, the political subdivision shall
24provide for the equitable distribution of the proceeds among the employees who are

1beneficiaries of the benefits funded from the segregated account or portion thereof
2that is dissolved.
AB269,3 3Section 3. 119.04 (1) of the statutes is amended to read:
AB269,3,134 119.04 (1) Subchapters IV, V and VII of ch. 115, ch. 121 and ss. 66.0235 (3) (c),
566.0603 (1m) to (3), 115.01 (1) and (2), 115.28, 115.31, 115.33, 115.34, 115.343,
6115.345, 115.363, 115.365 (3), 115.38 (2), 115.415, 115.445, 118.001 to 118.04,
7118.045, 118.06, 118.07, 118.075, 118.076, 118.10, 118.12, 118.125 to 118.14, 118.145
8(4), 118.15, 118.153, 118.16, 118.162, 118.163, 118.164, 118.18, 118.19, 118.20,
9118.223, 118.225, 118.24 (1), (2) (c) to (f), (6), (8), and (10), 118.245, 118.255, 118.258,
10118.291, 118.292, 118.293, 118.30 to 118.43, 118.46, 118.51, 118.52, 118.53, 118.55,
11118.56, 120.12 (2m), (4m), (5), and (15) to (27) (28), 120.125, 120.13 (1), (2) (b) to (g),
12(3), (14), (17) to (19), (26), (34), (35), (37), (37m), and (38), 120.137, 120.14, 120.21 (3),
13and 120.25 are applicable to a 1st class city school district and board.
AB269,4 14Section 4. 120.12 (28) of the statutes is created to read:
AB269,3,2015 120.12 (28) Health care benefits for retirees. (a) If the school board provides
16any health care benefits for use upon retirement, including compensated absences
17but excluding the implicit rate subsidy, to an employee hired on or after January 1,
182016, ensure that the cost of the benefits is fully funded in a segregated account,
19based on an actuarial study conducted at least once every 4 years or other method
20that complies with generally accepted accounting principles.
AB269,3,2421 (b) If the school board dissolves a segregated account established under par. (a)
22or any portion of such a segregated account, the school board shall provide for the
23equitable distribution of the proceeds among the employees who are beneficiaries of
24the benefits funded from the segregated account or portion thereof that is dissolved.
AB269,3,2525 (End)
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