AB158: Bill Text

LRB-2692/1

RAC:skg:kaf

1995 - 1996 LEGISLATURE

1995 Assembly BILL 158

February 24, 1995 - Introduced by Representatives Grobschmidt, Meyer, R. Young, Bock, Boyle, Plombon, Hanson, Notestein and L. Young, cosponsored by Senators Wineke and Andrea. Referred to Joint survey committee on Retirement Systems.

AB158,1,4 An Act to repeal 40.02 (17) (j), 40.23 (1) (a) 3. and 40.25 (2m); and to amend 40.02 (45), 40.04 (4) (a) 2m., 40.22 (3m), 40.23 (1) (am) 2., 40.25 (3), 40.25 (6) (b) 1. and 40.63 (1) (intro.) of the statutes; relating to: the 5-year vesting requirement to receive an annuity under the Wisconsin retirement system.

Analysis by the Legislative Reference Bureau

Under current law, a participant in the Wisconsin retirement system who is initially employed on or after January 1, 1990, must have earned 5 years of creditable service before he or she gains the right to receive a retirement annuity. This bill eliminates the 5-year annuity vesting period for participants employed on or after January 1, 1990.

This bill will be referred to the joint survey committee on retirement systems for a detailed analysis, which will 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:

AB158, s. 1 Section 1. 40.02 (17) (j) of the statutes is repealed.

AB158, s. 2 Section 2. 40.02 (45) of the statutes is amended to read:

AB158,1,9 40.02 (45) "Participant" means any person included within the provisions of the Wisconsin retirement system by virtue of being or having been a participating employe whose account has not been closed under s. 40.25 (1), or (2) or (2m).

AB158, s. 3 Section 3. 40.04 (4) (a) 2m. of the statutes is amended to read:

AB158,2,6 40.04 (4) (a) 2m. Debited, if a participant terminates covered employment on or after January 1, 1990, and applies for a benefit under s. 40.25 (2) or (2m), with an amount equal to the amount by which the fixed annuity division interest credited on or after January 1, 1990, to employe required contributions, exceeds the interest crediting at an annual rate of 3% on each prior year's closing balance.

AB158, s. 4 Section 4. 40.22 (3m) of the statutes is amended to read:

AB158,2,13 40.22 (3m) Any employe who becomes a participating employe shall continue to be a participating employe notwithstanding sub. (2) (a) or (b) for periods of subsequent employment with that state agency or other participating employer unless the employment with the state agency or other participating employer is terminated for 12 or more consecutive calendar months or unless the employe receives a benefit under s. 40.23, 40.25 (1), or (2) or (2m) or 40.63.

AB158, s. 5 Section 5. 40.23 (1) (a) 3. of the statutes is repealed.

AB158, s. 6 Section 6. 40.23 (1) (am) 2. of the statutes is amended to read:

AB158,3,6 40.23 (1) (am) 2. Any participant who has attained age 55 and who is a participant because of employment other than part-time service as an elected official and who is also a participating employe because of part-time service as an elected official may, after termination of all covered employment other than service as a part-time elected official, waive further participation under the fund for his or her current, and any future, part-time service as an elected official. Any election under this paragraph is irrevocable and is effective beginning the day after the date of election. Notwithstanding par. (a), any participant initially employed before January 1, 1990, who elects under this paragraph may receive a retirement annuity for all service under the fund credited to the participant to the date he or she elects. Notwithstanding par. (a), any participant initially employed on or after January 1, 1990, who elects under this paragraph may receive a retirement annuity for all service under the fund credited to the participant to the date he or she elects only if the participant has creditable service in at least 5 calendar years. The date a participant elects under this paragraph is deemed to be the date of separation from the last participating employer by which that participant was employed.

AB158, s. 7 Section 7. 40.25 (2m) of the statutes is repealed.

AB158, s. 8 Section 8. 40.25 (3) of the statutes is amended to read:

AB158,3,17 40.25 (3) Upon administrative approval of payment of an amount under either sub. (1), or (2) or (2m), the participant's account shall be closed and there shall be no further right, interest or claim on the part of the former participant to any benefit from the Wisconsin retirement system except as provided by subs. (5) and (6). Any former participant who is subsequently employed by any participating employer shall be treated as a new participating employe for all purposes of this chapter. New accumulations of contributions and credits and the computation of any future benefits shall bear no relationship to any accumulations and credits paid as single sums under sub. (1), or (2) or (2m).

AB158, s. 9 Section 9. 40.25 (6) (b) 1. of the statutes is amended to read:

AB158,3,20 40.25 (6) (b) 1. Forfeited because of payment of an amount under sub. (2) or (2m); or

AB158, s. 10 Section 10. 40.63 (1) (intro.) of the statutes is amended to read:

AB158,4,2 40.63 (1) (intro.) Notwithstanding the requirement for creditable service in at least 5 calendar years for retirement annuities under s. 40.23 (1) (a) and (am), any Any participating employe is entitled to a disability annuity from the Wisconsin retirement system, beginning on the date determined under sub. (8) if, prior to attaining his or her normal retirement date, all of the following apply:

AB158,4,3 (End)