LRBs0422/1
FFK:wlj
2017 - 2018 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 842
March 20, 2018 - Offered by Senators Hansen, Larson, Schachtner, Johnson,
Vinehout, Carpenter, Erpenbach, Risser, Ringhand, Miller, Shilling and
Bewley.
AB842-SSA1,1,4 1An Act to amend chapter 40 (title); and to create 15.165 (5), 20.515 (1) (k),
220.515 (2), 25.17 (1) (yu), 25.52 and subchapter X of chapter 40 [precedes 40.99]
3of the statutes; relating to: the creation of a private retirement security plan
4and making appropriations.
Analysis by the Legislative Reference Bureau
Under current law, the Employee Trust Fund Board (ETF board) administers
the Wisconsin Retirement System under which public employees who are covered
under the WRS and their employers pay contributions to the WRS and the WRS,
from those contributions and the earnings on those contributions, provides
retirement annuities to those public employees.
This substitute amendment creates a Wisconsin Private Retirement Security
Board (board) and requires the board to establish a private retirement security plan
(plan) to provide retirement benefits for residents of this state who choose to
participate in the plan. Specifically, the substitute amendment requires the board
to do all of the following:
1. Conduct a study to determine the feasibility of establishing a plan. The
feasibility study must estimate the potential population that is likely to choose to
participate in the plan and the potential cost of implementing the plan and must
recommend a design and structure for the plan that is most reasonable in light of that
potential population and cost.

2. Hold public hearings to receive testimony relating to the feasibility study
and the recommended design and structure of the plan. The board must hold not less
than five public hearings and must hold those hearings over a period of not more than
three months. The board may hold no more than one public hearing in Madison and
must ensure that at least one public hearing is held in each geographic area of the
state, including the southeastern part of the state, the western part of the state, the
northern part of the state, and the northeastern part of the state.
3. Based on the feasibility study, the recommended design and structure of the
plan, and the testimony received at the public hearings, design the plan. The board
must design the plan so that, to the greatest extent possible, the design and structure
of the plan are reasonably commensurate with the design and structure of the WRS.
In designing the plan, the board must provide for the State of Wisconsin Investment
Board to assist the board in managing and investing the assets of the fund and the
assets of the accounts of participants in the plan and must provide for the ETF board
to assist the board in administering the plan.
4. By no later than the first day of the 18th month beginning after the effective
date of the substitute amendment, submit a report to the legislature, the governor,
and the members of the Joint Committee on Finance summarizing the conclusions
of the feasibility study, the testimony received at the public hearings, and the design
of the plan. The report must also include an estimate of the cost of initial
establishment and administration of the plan, an estimate of the amount of time
necessary to make the plan viable, and a recommendation for any legislation that is
necessary to implement the plan. If no legislation is recommended, the board must
implement the plan.
In addition, the substitute amendment requires the Department of Employee
Trust Funds to 1) provide staff and other resources to assist the board in the
performance of the board's duties under the substitute amendment; and 2) submit
an estimate to JCF for supplemental funds from the general fund to be credited to
the general purpose revenue (GPR) appropriation of the board created under the
substitute amendment. The estimate must include the initial cost of establishing the
board, conducting the feasibility study, holding the public hearings, designing the
plan, and preparing and submitting the report. JCF must, from its GPR general
program supplementation appropriation, supplement the GPR appropriation of the
board in an amount equal to the estimate.
Finally, the substitute amendment permits the board to charge reasonable fees
to participants in the plan to cover the costs of administering the plan, to recover the
investment costs of the accounts of those participants, and to repay the general fund
for amounts provided to the board for the costs of conducting the feasibility study,
holding the public hearings, designing the plan, and preparing and submitting the
report and for the costs of the initial establishment and administration of the plan.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB842-SSA1,1
1Section 1. 15.165 (5) of the statutes is created to read:
AB842-SSA1,3,42 15.165 (5) Wisconsin private retirement security board. (a) There is created
3in the department of employee trust funds a Wisconsin private retirement security
4board consisting of the following members appointed for 5-year terms:
AB842-SSA1,3,55 1. One member appointed by the employee trust funds board.
AB842-SSA1,3,66 2. One member appointed by the investment board.
AB842-SSA1,3,87 3. One member appointed by the agricultural education and workforce
8development council.
AB842-SSA1,3,109 4. One member appointed by the Wisconsin Women's Business Initiative
10Corporation.
AB842-SSA1,3,1111 5. One member appointed by the senate majority leader.
AB842-SSA1,3,1212 6. One member appointed by the senate minority leader.
AB842-SSA1,3,1313 7. One member appointed by the speaker of the assembly.
AB842-SSA1,3,1414 8. One member appointed by the assembly minority leader.
AB842-SSA1,3,1515 9. One member appointed by the governor.
AB842-SSA1,3,2116 (b) Not less than 5 of the members appointed under par. (a) shall have at least
1710 years of experience in making investments, but any person having a financial
18interest in, or whose employer is primarily a dealer or broker in, securities or
19mortgage or real estate investments is not eligible for appointment, and any member
20who acquires such an interest or accepts such employment shall thereupon vacate
21his or her membership.
AB842-SSA1,2 22Section 2. 20.515 (1) (k) of the statutes is created to read:
AB842-SSA1,3,2523 20.515 (1) (k) Assistance to Wisconsin private retirement security board. All
24moneys transferred from the appropriation account under sub. (2) (a) for the
25activities of the department under s. 40.99 (3).
AB842-SSA1,3
1Section 3. 20.515 (2) of the statutes is created to read:
AB842-SSA1,4,82 20.515 (2) Private retirement security plan. (a) Initial costs. A sum sufficient
3to be transferred to the Wisconsin private retirement security plan administration
4trust fund and expended for the activities of the Wisconsin private retirement
5security board under s. 40.99 (2) (a) to (c) and for the initial establishment and
6administration of the Wisconsin private retirement security plan under s. 40.99 (2)
7(d) and to be transferred to the appropriation account under sub. (1) (k) and expended
8for the activities of the department under s. 40.99 (3).
AB842-SSA1,4,149 (q) Initial administrative expenses; Wisconsin private retirement security plan
10administration trust fund.
From the Wisconsin private retirement security plan
11administration trust fund, all moneys transferred to that fund under par. (a) for the
12activities of the Wisconsin private retirement security board under s. 40.99 (2) (a) to
13(c) and for the initial establishment and administration of the Wisconsin private
14retirement security plan under s. 40.99 (2) (d).
AB842-SSA1,4,2015 (r) Operating administrative expenses; Wisconsin private retirement security
16plan administration trust fund.
From the Wisconsin private retirement security
17plan administration trust fund, all moneys deposited in that fund under s. 40.99 (4)
18(b) for the administrative costs of the Wisconsin private retirement security plan
19under s. 40.99 (2) (d), for the investment costs of accounts under that plan, and for
20repayment of the amounts appropriated under par. (a).
AB842-SSA1,4 21Section 4. 25.17 (1) (yu) of the statutes is created to read:
AB842-SSA1,4,2322 25.17 (1) (yu) Wisconsin private retirement security plan administration trust
23fund (s. 25.52).
AB842-SSA1,5 24Section 5. 25.52 of the statutes is created to read:
AB842-SSA1,5,5
125.52 Wisconsin private retirement security plan administration trust
2fund.
There is established a separate nonlapsible trust fund designated as the
3Wisconsin private retirement security plan administration trust fund, to consist of
4all moneys transferred to that fund under s. 20.515 (2) (a) and all moneys deposited
5in that fund under s. 40.99 (4) (b).
AB842-SSA1,6 6Section 6. Chapter 40 (title) of the statutes is amended to read:
AB842-SSA1,5,77 CHAPTER 40
AB842-SSA1,5,108 public employee trust fund
9and private retirement
10 security plan
AB842-SSA1,7 11Section 7. Subchapter X of chapter 40 [precedes 40.99] of the statutes is
12created to read:
AB842-SSA1,5,1313 Chapter 40
AB842-SSA1,5,1514 Subchapter X
15 private retirement security plan
AB842-SSA1,5,16 1640.99 Private retirement security plan. (1) Definitions. In this section:
AB842-SSA1,5,1717 (a) “Board" means the Wisconsin private retirement security board.
AB842-SSA1,5,1918 (b) “Fund" means the Wisconsin private retirement security plan
19administration trust fund.
AB842-SSA1,5,2120 (c) “Plan" means the private retirement security plan established under this
21section.
AB842-SSA1,5,22 22(2) Duties of board. The board shall do all of the following:
Loading...
Loading...