LRB-3849/1
RAC:skg:aj
1995 - 1996 LEGISLATURE
June 26, 1995 - Introduced by Representatives Baumgart, Grothman and Ott.
Referred to Joint survey committee on Retirement Systems.
AB453,1,3
1An Act to amend 40.02 (33) (a) 1.; and
to create 40.02 (33) (a) 3. of the statutes;
2relating to: the determination of final average earnings for the purpose of
3calculating certain benefits under the Wisconsin retirement system.
Analysis by the Legislative Reference Bureau
Under current law, when a participant in the Wisconsin retirement system
(WRS) terminates covered employment and becomes eligible for a retirement
annuity, the amount of the annuity is determined based on the participant's final
average earnings, the participant's number of years of creditable service and a
percentage multiplier. The final average earnings is a monthly rate of earnings that
is calculated based on the 3 annual earnings periods in which the participant's
earnings were highest.
This bill provides that the amount of total earnings in each of the 3 annual
earnings periods that may be considered for the purpose of calculating the amount
of the final average earnings may not exceed 110% of the amount of total earnings
in the immediately preceding annual earnings period.
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 this 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:
AB453, s. 1
4Section
1. 40.02 (33) (a) 1. of the statutes is amended to read:
AB453,2,35
40.02
(33) (a) 1.
The Subject to subd. 3., the participant's total earnings
6received or considered to be received under sub. (22) (e) or (em) and for which
1contributions are made under s. 40.05 (1) and (2) during the 3 annual earnings
2periods (excluding any period more than 3 years prior to the effective date for any
3participating employer) in which the earnings were the highest; by
AB453, s. 2
4Section
2. 40.02 (33) (a) 3. of the statutes is created to read:
AB453,2,85
40.02
(33) (a) 3. The amount of total earnings in each of the annual earnings
6periods that may be considered for the purpose of calculating the amount under subd.
71. may not exceed 110% of the amount of total earnings in the immediately preceding
8annual earnings period.
AB453,2,1610
(1)
Determination of final average earnings under the Wisconsin
11retirement system. This act first applies to the calculation of the final average
12earnings for a participating employe in the Wisconsin retirement system who
13becomes initially eligible to receive any benefit under chapter 40 of the statutes,
14which uses a participating employe's final average earnings to determine eligibility
15for or the amount of the benefit, on January 1, 1996, or on the first day of the 6th
16month beginning after publication, whichever is later.
