2015 - 2016 LEGISLATURE
October 13, 2015 - Introduced by Representatives Sanfelippo, Brandtjen, R.
Brooks, Craig, Gannon, Horlacher, Hutton, Knodl, Kremer, Kuglitsch
and Rohrkaste, cosponsored by Senators Stroebel,
LeMahieu and Kapenga.
Referred to Committee on State Affairs and Government Operations.
Referred to Joint Survey Committee on Retirement Systems.
1An Act to amend
40.23 (1) (a) (intro.), 40.23 (1) (am) 2., 40.23 (1) (bm), 40.24 (1) 2
(f), 40.25 (2), 40.63 (4) and 40.63 (7) of the statutes; relating to: increasing the
3minimum retirement age under the Wisconsin Retirement System.
Analysis by the Legislative Reference Bureau
Currently, under the Wisconsin Retirement System (WRS), a participant may
retire as early as age 55 and a protective occupation participant may retire as early
as age 50. This bill increases the minimum retirement age by two years, with the
result that a WRS participant must be at least age 57 and a WRS protective
occupation participant must be at least age 52 in order to qualify for an immediate
retirement annuity under the WRS. This change in the minimum retirement age
first applies to individuals who are under the age of 40 on the bill's effective date and
who terminate WRS-covered employment on the bill's effective date.
Because this bill relates to public employee retirement or pensions, it may be
referred to the Joint Survey Committee on Retirement Systems for a report to be
printed as an appendix to the 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:
40.23 (1) (a) (intro.) of the statutes is amended to read:
(a) (intro.) Except as provided in par. (am), any participant who has 3
attained age 55 57
, and any protective occupation participant who has attained age 450 52
, on or before the annuity effective date shall be entitled to a retirement annuity 5
in accordance with the actuarial tables in effect on the effective date of the annuity 6
if the participant submits an application for a retirement annuity on a form 7
furnished by the department and all of the following apply:
40.23 (1) (am) 2. of the statutes is amended to read:
(am) 2. Any participant who has attained age 55 57
and who is a 10
participant because of employment other than part-time service as an elected official 11
and who is also a participating employee because of part-time service as an elected 12
official may, after termination of all covered employment other than service as a 13
part-time elected official, waive further participation under the fund for his or her 14
current, and any future, part-time service as an elected official. Any election under 15
this paragraph is irrevocable and is effective beginning the day after the date of 16
election. Notwithstanding par. (a), any participant who elects under this paragraph 17
may receive a retirement annuity for all service under the fund credited to the 18
participant to the date he or she elects. The date a participant elects under this 19
paragraph is deemed to be the date of separation from the last participating 20
employer by which that participant was employed.
40.23 (1) (bm) of the statutes is amended to read:
(bm) If an application by a participant age 55 57
or over, or by a 23
protective occupation participant age 50 52
or over, for long-term disability 24
insurance benefits is disapproved under rules promulgated by the department, the 25
date which would have been the effective date for the insurance benefits shall be the
retirement annuity effective date if requested by the applicant within 60 days of the 2
disapproval or, if the disapproval is appealed, within 60 days of the final disposition 3
of the appeal.
40.24 (1) (f) of the statutes is amended to read:
(f) From accumulated additional contributions made under s. 40.05 6
(1) (a) 5. only, an annuity certain payable for and terminating after the number of 7
months specified by the applicant, regardless of whether the applicant dies before or 8
after the number of months specified, provided that the monthly amount of the 9
annuity certain is at least equal to the minimum amount established under s. 40.25 10
(1) (a). Subject to the period of distribution required under s. 40.23 (4) (b) 2., the 11
number of months specified shall not exceed 180 and shall not be less than 24. If the 12
death of the annuitant occurs prior to the expiration of the certain period, the 13
remaining payments shall be made in accordance with s. 40.73 (2) without regard to 14
any other annuity payments payable to the beneficiary. An annuity under this 15
paragraph may be initiated prior to any other annuity amount provided under this 16
subchapter and prior to age 55 57
if all other qualifications for receiving an annuity 17
payment are met.
40.25 (2) of the statutes is amended to read:
Subject to sub. (2t), if all requirements for payment of a retirement 20
annuity are met except attainment of age 55 57
or age 50 52
for protective occupation 21
participants, a separation benefit may be paid, if the participant's written 22
application for a separation benefit is received by the department prior to the 23
participant's 55th 57th
birthday or 50th 52nd
birthday for protective occupation 24
participants, in an amount equal to the additional and employee required
contribution accumulations of the participant on the date the application for a 2
separation benefit is approved.
40.63 (4) of the statutes is amended to read:
Notwithstanding sub. (1) (b), a protective occupation participant is 5
not disqualified from receiving a disability annuity if the participant has 6
accumulated 15 or more years of creditable service and would attain age 55 57
in 60 7
months or less after the occurrence of disability and the medical evidence, as 8
provided in sub. (1), establishes a disability to the extent that the participant can no 9
longer efficiently and safely perform the duties required by the participant's position, 10
and that the condition is likely to be permanent.
40.63 (7) of the statutes is amended to read:
If an application, by a participant age
or over, or by a protective 13
occupation participant age 50 52
or over, for any disability annuity is disapproved, 14
the date which would have been the disability annuity effective date shall be the 15
retirement annuity effective date if so requested by the applicant within 60 days of 16
the disapproval or, if the disapproval is appealed, within 60 days of final disposition 17
of the appeal.
(1) This act first applies to individuals who are under the age of 40 on the 20
effective date of this subsection and who terminate covered employment under the 21
Wisconsin Retirement System on the effective date of this subsection.