LRB-5244/1
FFK:jld/emw/ahe
2017 - 2018 LEGISLATURE
January 16, 2018 - Introduced by Law Revision Committee. Referred to Committee
on Rules.
AB842,1,7 1An Act to repeal 40.23 (1) (c); and to amend 40.05 (5) (a), 40.22 (2) (am), 40.22
2(2r) (intro.), 40.23 (1) (am) 2., 40.23 (1) (d) and 40.70 (8) of the statutes; relating
3to:
various changes to the Wisconsin Retirement System, cancelling coverage
4under the Wisconsin Public Employers Group Life Insurance Program, and
5income continuation insurance premiums for certain teachers employed by the
6University of Wisconsin System (suggested as remedial legislation by the
7Department of Employee Trust Funds).
Analysis by the Legislative Reference Bureau
This bill clarifies that an employee who was not participating in the Wisconsin
Retirement System before July 1, 2011, and who is not expected to work at least
two-thirds of full-time employment generally may not participate in WRS. Under
current law, the standard that applies is whether the employee was initially
employed on that date by an employer that participates in WRS.
The bill eliminates the prohibition against the Department of Employee Trust
Funds accepting an application for a retirement annuity that specifies an annuity
effective date that is more than 60 days after the date on which the application is
received.
The bill allows a protective occupation participant in WRS who is at least 50
years of age, which is the minimum retirement age for a protective occupation

participant, and who is also a part-time elected official to waive further participation
in WRS for his or her current and future service as a part-time elected official, after
he or she terminates all of his or her other covered employment. The waiver allows
the protective occupation participant to receive a retirement benefit while he or she
is serving as a part-time elected official. Under current law, a WRS participant who
is at least 55 years of age, which is the minimum retirement age for a participant who
is not a protective occupation participant, and who is also a part-time elected official
is allowed to waive participation in WRS for his or her current and future service as
a part-time elected official after he or she terminates all of his or her other covered
employment.
The bill eliminates the requirement that a form to cancel coverage under the
Wisconsin Public Employers Group Life Insurance Program takes effect at the end
of the calendar month that begins after the form is received from an insured
employee.
Under current law, the Board of Regents of the University of Wisconsin System
pays the gross premium for income continuation insurance coverage for teachers
employed by UW System who have more than one year of state service, subject to a
130-day waiting period. This bill changes the waiting period from 130 days to 180
days.
For further information, see the Notes provided by the Law Revision
Committee of the Joint Legislative Council.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
Law Revision Committee prefatory note: This bill is a remedial legislation
proposal, requested by the Department of Employee Trust Funds and introduced by the
Law Revision Committee under s. 13.83 (1) (c) 4. and 5., stats. After careful consideration
of the various provisions of the bill, the Law Revision Committee has determined that this
bill makes minor substantive changes in the statutes, and that these changes are
desirable as a matter of public policy.
AB842,1 1Section 1. 40.05 (5) (a) of the statutes is amended to read:
AB842,2,52 40.05 (5) (a) For teachers employed by the board of regents of the university,
3no contribution if the teacher has less than one year of state creditable service and
4an amount equal to the gross premium for coverage subject to a 130-day 180-day
5waiting period if the teacher has one year or more of state creditable service.
Note: This Section changes the waiting period from 130 days to 180 days before
the Board of Regents pays the gross premium for income continuation insurance coverage
for teachers it employs who have more than one year of state service.
AB842,2 6Section 2 . 40.22 (2) (am) of the statutes is amended to read:
AB842,3,4
140.22 (2) (am) Except as provided in sub. (2r), the employee was initially
2employed by
not a participating employer on or after employee before July 1, 2011,
3and is not expected to work at least two-thirds of what is considered full-time
4employment by the department, as determined by rule.
AB842,3 5Section 3 . 40.22 (2r) (intro.) of the statutes is amended to read:
AB842,3,126 40.22 (2r) (intro.) An employee who was initially employed by not a
7participating employer on or after employee before July 1, 2011, who is not expected
8to work at least two-thirds of what is considered full-time employment by the
9department, as determined by rule, and who is not otherwise excluded under sub. (2)
10from becoming a participating employee shall become a participating employee if he
11or she is subsequently employed by the state agency or other participating employer
12for either of the following periods:
Note: Sections 2 and 3 clarify that, with certain exceptions, an employee may not
participate in the Wisconsin Retirement System (WRS) if he or she was not a
participating employee in the WRS before July 1, 2011, and is not expected to work at
least two-thirds of what is considered full-time employment.
AB842,4 13Section 4. 40.23 (1) (am) 2. of the statutes is amended to read:
AB842,4,414 40.23 (1) (am) 2. Any participant who has attained age 55 and who is a
15participant because of employment other than part-time service as an elected official
16and who is also a participating employee because of part-time service as an elected
17official and any protective occupation participant who has attained age 50 and who
18is also a participating employee because of part-time service as an elected official

19may, after termination of all covered employment other than service as a part-time
20elected official, waive further participation under the fund for his or her current, and
21any future, part-time service as an elected official. Any election under this
22paragraph is irrevocable and is effective beginning the day after the date of election.
23Notwithstanding par. (a), any participant who elects under this paragraph may

1receive a retirement annuity for all service under the fund credited to the participant
2to the date he or she elects. The date a participant elects under this paragraph is
3deemed to be the date of separation from the last participating employer by which
4that participant was employed.
Note: Under current law, the minimum retirement age for a Wisconsin Retirement
System participant is 55 years of age, except that the minimum retirement age for a
protective occupation participant is 50 years of age. Current law allows a WRS
participant who is at least 55 years old to receive a retirement benefit while serving as
a part-time elected official. This Section allows a protective occupation participant who
is at least 50 years old to receive a retirement benefit while serving as a part-time elected
official.
AB842,5 5Section 5 . 40.23 (1) (c) of the statutes is repealed.
AB842,6 6Section 6 . 40.23 (1) (d) of the statutes is amended to read:
AB842,4,117 40.23 (1) (d) Notwithstanding par. (c), an An application for an annuity to be
8effective on the day following termination of employment may be filed prior to the
9employee's anticipated termination date. The participant shall state the anticipated
10termination date shall be stated in the application and the department shall not
11make an annuity payment until the employee has terminated.
Note: Sections 5 and 6 eliminate the general prohibition against the Department
of Employee Trust Funds accepting an application for a retirement annuity that specifies
an effective date more than 60 days after the application is received by the department.
AB842,7 12Section 7. 40.70 (8) of the statutes is amended to read:
AB842,4,1813 40.70 (8) An insured employee may at any time cancel one or more of the types
14of life insurance coverage provided under this subchapter by filing a cancellation
15form with the employing office his or her employer. The cancellation form shall be
16transmitted immediately to the department. The cancellation shall be effective and
17the insurance shall cease at the end of the calendar month which begins after the
18cancellation form is received by the appropriate office.
Note: This Section eliminates the requirement that a form to cancel an insured
employee's coverage under the Wisconsin Public Employers Group Life Insurance

Program takes effect at the end of the calendar month that begins after the form is
received.
AB842,8 1Section 8. Initial applicability.
AB842,5,42 (1) Life insurance coverage cancellations. The treatment of section 40.70 (8)
3of the statutes first applies to cancellation forms received on the first day of the first
4month beginning after the effective date of this subsection.
AB842,5,55 (End)
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