LRB-3783/1
RAC:kmg:km
1995 - 1996 LEGISLATURE
August 30, 1995 - Introduced by Senators Andrea, Rude, Wineke and Clausing,
cosponsored by Representatives
Wirch, Kreuser, R. Young, Musser,
Gronemus, Black, Grobschmidt, Notestein, Baldus, Ryba, Bock, Boyle and
Baldwin. Referred to Joint survey committee on Retirement Systems.
SB314,1,2
1An Act to amend 40.73 (1) (c) of the statutes;
relating to: the pay out of a death
2benefit for participating employes under the Wisconsin retirement system.
Analysis by the Legislative Reference Bureau
Under current law, the death benefit for a participant in the Wisconsin
retirement system (WRS), other than an annuitant, is generally equal to the sum of
the employe additional and employe required contribution accumulations. But if a
participating employe has attained the age of 60, or age 55 if the participating
employe is a protective occupation participant, and if the beneficiary is a dependent
of the participating employe, the death benefit is generally equal to the present value
of the life annuity that that beneficiary would have received had the participant been
eligible to receive an annuity and had elected to receive the annuity in the form of
a joint and survivor annuity.
The bill eliminates the requirement that the beneficiary be a dependent in
order to receive the death benefit that equals the present value of a life annuity in
the form of a joint and survivor annuity.
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:
SB314, s. 1
3Section
1. 40.73 (1) (c) of the statutes is amended to read:
SB314,2,184
40.73
(1) (c) In lieu of the benefit payable under par. (a) or (b), upon the death
5of a participating employe who has attained the age of 60 years, or age 55 if a
1protective occupation participant,
if the beneficiary to whom a death benefit is
2payable is a dependent of the participating employe, or a trust in which such a
3beneficiary has a beneficial interest, the present value on the day following the date
4of death of the life annuity to the beneficiary which would have been payable if the
5participating employe had been eligible to receive a retirement annuity, computed
6under s. 40.23 or 40.26, beginning on the date of death and had elected to receive the
7annuity in the form of a joint and survivor annuity providing the same amount of
8annuity to the surviving beneficiary as the reduced amount payable during the
9participant's lifetime. If there is more than one beneficiary the amount of the
10annuity and its present value will be determined as if the oldest of the beneficiaries
11were the sole beneficiary. If the death benefit payable to the beneficiary under this
12paragraph would be less than the amount determined under par. (a) or (b) the death
13benefit shall be payable under par. (a) or (b) and this paragraph shall not be
14applicable to the beneficiary. An annuitant receiving an annuity only under s. 40.24
15(1) (f), which annuity was an immediate annuity, shall be deemed a participating
16employe for purposes of this paragraph only, but the amount payable under s. 40.24
17(1) (f) shall not be changed.
There is no requirement under this paragraph that the
18beneficiary be a dependent of the participating employe.
