LRB-3784/1
RAC:kmg:kaf
1995 - 1996 LEGISLATURE
August 7, 1995 - Introduced by Representatives Wirch, Kreuser, Grobschmidt,
Gronemus, Lorge, Meyer and Baldwin, cosponsored by Senators Andrea,
Risser, Moen, Wineke and George. Referred to Joint survey committee on
Retirement Systems.
AB501,1,4
1An Act to amend 40.23 (2m) (fm) of the statutes;
relating to: changing the
2qualifications for converting a partial year of creditable service to a full year of
3creditable service under the Wisconsin retirement system for the purpose of
4determining an annuity reduction.
Analysis by the Legislative Reference Bureau
Under current law, a participant, other than a teacher, in the Wisconsin
retirement system (WRS) who has at least 0.75 of a year of creditable service in any
annual earnings period may treat that 0.75 of a year as one year of creditable service
for the purpose of determining the amount of annuity reduction that the participant
will incur if he or she terminates covered employment in the WRS before the normal
retirement date. To qualify for this treatment, this participant must have earned
only a partial year of creditable service in at least 5 of the 10 annual earnings periods
immediately preceding the annual earnings period in which the participant
terminated covered employment in the WRS.
This bill eliminates this qualification for the treatment of such partial years of
creditable service for determining the annuity reduction.
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:
AB501, s. 1
5Section
1. 40.23 (2m) (fm) of the statutes is amended to read:
AB501,2,13
140.23
(2m) (fm) Notwithstanding s. 40.02 (17) (intro.), for purposes of
2determining creditable service under par. (f) 2., participants with at least 0.75 of a
3year of creditable service in any annual earnings period shall be treated as having
4one year of creditable service for that annual earnings period. To be eligible for the
5treatment provided by this paragraph, the participant must
have earned only a
6partial year of creditable service in at least 5 of the 10 annual earnings periods
7immediately preceding the annual earnings period in which the participant
8terminated covered employment, and the participant must notify the department of
9the applicability of this paragraph to the participant's service. The participant is not
10eligible for the treatment provided by this paragraph if such notification is provided
11by the participant later than 60 days after the participant's annuity effective date.
12This paragraph does not apply to service credited under s. 40.02 (15) or to creditable
13service as a teacher.
AB501,2,16
15(1) This act first applies to a participant in the Wisconsin retirement system
16who terminates covered employment on the effective date of this subsection.
