LRB-0769/1
FFK&KRP:amn&jld
2017 - 2018 LEGISLATURE
June 21, 2017 - Introduced by Representatives Genrich, Crowley, Anderson,
Berceau, Billings, Brostoff, Considine, Doyle, Goyke, Hebl, Hintz, Kolste,
Pope, Riemer, Sargent, Shankland, Spreitzer, Subeck, C. Taylor, Vruwink,
Wachs, Zamarripa and Zepnick, cosponsored by Senators Hansen, Ringhand,
Carpenter, Erpenbach, Johnson, Larson, Miller, Shilling, Vinehout and
Wirch. Referred to Committee on State Affairs.
AB403,1,4 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 bill 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 bill 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 bill, 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 bill 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 bill; 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 bill. 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 bill 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.
For further information see the state 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:
AB403,1 1Section 1. 15.165 (5) of the statutes is created to read:
AB403,3,3
115.165 (5) Wisconsin private retirement security board. (a) There is created
2in the department of employee trust funds a Wisconsin private retirement security
3board consisting of the following members appointed for 5-year terms:
AB403,3,44 1. One member appointed by the employee trust funds board.
AB403,3,55 2. One member appointed by the investment board.
AB403,3,76 3. One member appointed by the agricultural education and workforce
7development council.
AB403,3,98 4. One member appointed by the Wisconsin Women's Business Initiative
9Corporation.
AB403,3,1010 5. One member appointed by the senate majority leader.
AB403,3,1111 6. One member appointed by the senate minority leader.
AB403,3,1212 7. One member appointed by the speaker of the assembly.
AB403,3,1313 8. One member appointed by the assembly minority leader.
AB403,3,1414 9. One member appointed by the governor.
AB403,3,2015 (b) Not less than 5 of the members appointed under par. (a) shall have at least
1610 years of experience in making investments, but any person having a financial
17interest in, or whose employer is primarily a dealer or broker in, securities or
18mortgage or real estate investments is not eligible for appointment, and any member
19who acquires such an interest or accepts such employment shall thereupon vacate
20his or her membership.
AB403,2 21Section 2. 20.515 (1) (k) of the statutes is created to read:
AB403,3,2422 20.515 (1) (k) Assistance to Wisconsin private retirement security board. All
23moneys transferred from the appropriation account under sub. (2) (a) for the
24activities of the department under s. 40.99 (3).
AB403,3 25Section 3. 20.515 (2) of the statutes is created to read:
AB403,4,7
120.515 (2) Private retirement security plan. (a) Initial costs. A sum sufficient
2to be transferred to the Wisconsin private retirement security plan administration
3trust fund and expended for the activities of the Wisconsin private retirement
4security board under s. 40.99 (2) (a) to (c) and for the initial establishment and
5administration of the Wisconsin private retirement security plan under s. 40.99 (2)
6(d) and to be transferred to the appropriation account under sub. (1) (k) and expended
7for the activities of the department under s. 40.99 (3).
AB403,4,138 (q) Initial administrative expenses; Wisconsin private retirement security plan
9administration trust fund.
From the Wisconsin private retirement security plan
10administration trust fund, all moneys transferred to that fund under par. (a) for the
11activities of the Wisconsin private retirement security board under s. 40.99 (2) (a) to
12(c) and for the initial establishment and administration of the Wisconsin private
13retirement security plan under s. 40.99 (2) (d).
AB403,4,1914 (r) Operating administrative expenses; Wisconsin private retirement security
15plan administration trust fund.
From the Wisconsin private retirement security
16plan administration trust fund, all moneys deposited in that fund under s. 40.99 (4)
17(b) for the administrative costs of the Wisconsin private retirement security plan
18under s. 40.99 (2) (d), for the investment costs of accounts under that plan, and for
19repayment of the amounts appropriated under par. (a).
AB403,4 20Section 4. 25.17 (1) (yu) of the statutes is created to read:
AB403,4,2221 25.17 (1) (yu) Wisconsin private retirement security plan administration trust
22fund (s. 25.52).
AB403,5 23Section 5. 25.52 of the statutes is created to read:
AB403,5,3 2425.52 Wisconsin private retirement security plan administration trust
25fund.
There is established a separate nonlapsible trust fund designated as the

1Wisconsin private retirement security plan administration trust fund, to consist of
2all moneys transferred to that fund under s. 20.515 (2) (a) and all moneys deposited
3in that fund under s. 40.99 (4) (b).
AB403,6 4Section 6. Chapter 40 (title) of the statutes is amended to read:
AB403,5,55 CHAPTER 40
AB403,5,86 public employee trust fund
7and private retirement
8 security plan
AB403,7 9Section 7. Subchapter X of chapter 40 [precedes 40.99] of the statutes is
10created to read:
AB403,5,1111 Chapter 40
AB403,5,1312 Subchapter X
13 private retirement security plan
AB403,5,14 1440.99 Private retirement security plan. (1) Definitions. In this section:
AB403,5,1515 (a) “Board" means the Wisconsin private retirement security board.
AB403,5,1716 (b) “Fund" means the Wisconsin private retirement security plan
17administration trust fund.
AB403,5,1918 (c) “Plan" means the private retirement security plan established under this
19section.
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