LRB-0598/1
RAC:jrd:kaf
1995 - 1996 LEGISLATURE
January 26, 1995 - Introduced by Representative Baumgart. Referred to Joint
survey committee on Retirement Systems.
AB48,1,4
1An Act to amend 40.02 (33) (a) 1. and 2. and 40.23 (2m) (e) 1. to 4. of the statutes;
2relating to: the determination of final average earnings and increasing the
3formula multiplier for the amount of an annuity for a participant in the
4Wisconsin 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 the 3 annual earnings periods
in which the participant's earnings were highest. For an elected official, executive
participating employe, or a protective occupation participant who is covered by social
security, the percentage multiplier is 2%. For a protective occupation participant
who is not covered by social security, the percentage multiplier is 2.5% For all other
participants in the WRS, the percentage multiplier is 1.6%
This bill changes the determination of final averages earnings from the 3
annual earnings periods in which the participant's earnings are the highest to the
5 annual earnings periods in which these earnings are the highest. Also, the bill
increases the percentage multiplier for all classes of participants in the WRS by
0.1%.
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:
AB48, s. 1
1Section
1. 40.02 (33) (a) 1. and 2. of the statutes are amended to read:
AB48,2,62
40.02
(33) (a) 1. The participant's total earnings received or considered to be
3received under sub. (22) (e) or (em) and for which contributions are made under s.
440.05 (1) and (2) during the
3 5 annual earnings periods (excluding any period more
5than
3 5 years prior to the effective date for any participating employer) in which the
6earnings were the highest; by
AB48,2,77
2. Twelve times the total amount of creditable service for the
3 5 periods.
AB48, s. 2
8Section
2. 40.23 (2m) (e) 1. to 4. of the statutes are amended to read:
AB48,2,109
40.23
(2m) (e) 1. For each participant for creditable service of a type not
10otherwise specified in this paragraph,
1.6% 1.7%.
AB48,2,1211
2. For each participant for creditable service as an elected official or as an
12executive participating employe,
2% 2.1%.
AB48,2,1413
3. For each participant subject to titles II and XVIII of the federal social
14security act, for service as a protective occupation participant,
2% 2.1%.
AB48,2,1615
4. For each participant not subject to titles II and XVIII of the federal social
16security act, for service as a protective occupation participant,
2.5% 2.6%.
AB48,2,19
18(1)
This act takes effect on January 1, 1996, or on the first day of the 6th month
19beginning after publication, whichever is later.
