LRB-0865/3
RAC:wlj&jlg:jf
1999 - 2000 LEGISLATURE
March 2, 1999 - Introduced by Representatives Black and Schneider, cosponsored
by Senator Risser. Referred to Joint survey committee on Retirement
Systems.
AB145,1,5 1An Act to amend 40.02 (15) (a) (intro.), 1. to 4. and 6., (b) and (c) (intro.) and 1.
2to 3. , 40.02 (17) (intro.), 40.02 (40), 40.02 (48m) (f), 40.05 (2) (b), 40.25 (7) (a)
3(intro.), 40.25 (7) (b), 40.30 (3) and 40.71 (1) (c); and to create 40.05 (2) (bx) of
4the statutes; relating to: granting creditable service under the Wisconsin
5retirement system for service in the federal public health service.
Analysis by the Legislative Reference Bureau
Under current law, a participating employe under the Wisconsin retirement
system (WRS) may receive one year of creditable service under WRS for each year
of military service, up to a maximum of four years of military service credit, at the
time of retirement in either of the following ways:
1. If the participant left employment covered under WRS to enter military
service and returned to the same employer within 180 days after being discharged,
the participant may receive one year of military service credit for each year of
military service (regardless of the amount of the participant's creditable service).
2. If the participant's military service was performed before 1974 and the
participant terminates employment covered under WRS on or after March 9, 1984,
the participant may receive up to one, two, three or four years of military service
credit if the participant has at least five, ten, fifteen or twenty years, respectively, of
creditable service (not counting previously granted military service credit).
This bill provides for similar granting of creditable service under WRS for
service in the federal public health service.

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:
AB145, s. 1 1Section 1. 40.02 (15) (a) (intro.), 1. to 4. and 6., (b) and (c) (intro.) and 1. to 3.
2of the statutes are amended to read:
AB145,2,63 40.02 (15) (a) (intro.) "Creditable military or the federal public health service"
4means active service in the U.S. armed forces or federal public health service, based
5on the total period of service in the U.S. armed forces or the federal public health
6service
, provided:
AB145,2,87 1. The participant enlisted or was ordered or inducted into active service in the
8U.S. armed forces or joined the federal public health service;
AB145,2,109 2. The participant left the employment of a participating employer to enter the
10U.S. armed forces or the federal public health service;
AB145,2,1611 3. The participant returns to the employment of the employer whose
12employment the participant left to enter the U.S. armed forces or the federal public
13health service
within 180 days of release or discharge from the armed forces or
14resignation from the federal public health service
, or within 180 days of release from
15hospitalization because of injury or sickness resulting from service in the armed
16forces or the federal public health service;
AB145,2,1817 4. The period of service in the U.S. armed forces or the federal public health
18service
is not more than 4 years, unless involuntarily extended for a longer period;
AB145,3,3
16. The participant upon return from service in the U.S. armed forces or the
2federal public health service
furnishes evidence required to establish the
3participant's rights under this chapter; and
AB145,3,64 (b) The creditable military or federal public health service under par. (a) shall
5be the same type, as set forth in s. 40.23 (2m) (e), as the participant was receiving
6prior to entry into the U.S. armed forces or the federal public health service.
AB145,3,127 (c) (intro.) Notwithstanding sub. (17) (intro.) and any other law, any person who
8is credited with 5, 10, 15 or 20 or more years of creditable service, not counting any
9previously granted creditable military or federal public health service, may receive
10creditable military or federal public health service at the time of retirement for not
11more than 1, 2, 3 or 4 years, respectively, of active service which meets the standards
12under par. (a) 5., if applicable, provided:
AB145,3,1413 1. This paragraph applies only to active military or federal public health service
14served prior to January 1, 1974.
AB145,3,1715 2. Any creditable military or federal public health service otherwise granted
16shall be included in determining the maximum years to be granted under this
17paragraph.
AB145,3,2218 3. Creditable military or federal public health service under this paragraph
19shall be allocated at the time of retirement in proportion to the amount of the
20participant's creditable service for each of the types of creditable service set forth in
21s. 40.23 (2m) (e) on the date the participant attains 5, 10, 15 or 20 years of creditable
22service.
AB145, s. 2 23Section 2. 40.02 (17) (intro.) of the statutes is amended to read:
AB145,4,1324 40.02 (17) (intro.) "Creditable service" means the creditable current and prior
25service, expressed in years and fractions of a year to the nearest one-hundredth, for

1which a participating employe receives or is considered to receive earnings under
2sub. (22) (e) or (em) and for which contributions have been made as required by s.
340.05 (1) and (2) and creditable military or federal public health service, service
4credited under s. 40.25 (7) and service credited under s. 40.29, expressed in years and
5fractions of years to the nearest one-hundredth. How much service in any annual
6earnings period is the full-time equivalent of one year of creditable service shall be
7determined by rule by the department and the rules may provide for differing
8equivalents for different types of employment. Except as provided under pars. (i) and
9(k), the amount of creditable service for periods prior to January 1, 1982, shall be the
10amount for which the participant was eligible under the applicable laws and rules
11in effect prior to January 1, 1982. No more than one year of creditable service shall
12be granted for any annual earnings period. Creditable service is determined in the
13following manner for the following persons:
AB145, s. 3 14Section 3. 40.02 (40) of the statutes is amended to read:
AB145,5,415 40.02 (40) "Leave of absence" means any period during which an employe has
16ceased to render services for a participating employer and receive earnings and there
17has been no formal termination of the employer-employe relationship. For purposes
18of the fund every leave of absence, except a military or federal public health service
19leave or union service leave, shall terminate 3 years after it begins or, if earlier, upon
20the date specified by the employer in a notification to the department that the
21employer-employe relationship has terminated. A leave of absence is not deemed
22ended or interrupted by reason of resumption of active duty until the employe has
23resumed active performance of duty for 30 consecutive calendar days for at least 50%
24of what is considered that employe's normal work time with that employer. For the
25purpose of group health insurance coverage, every leave of absence due to employe

1layoff which has not been terminated before 3 years have elapsed shall continue for
2affected insured employes until an additional 2 years elapse or until sick leave
3credits used to pay health insurance premiums are exhausted, whichever occurs
4first.
AB145, s. 4 5Section 4. 40.02 (48m) (f) of the statutes is amended to read:
AB145,5,86 40.02 (48m) (f) The judgment, decree or order requires the participant to
7certify, in a form prescribed by the department, all of the participant's active military
8or federal public health service, as described in sub. (15) (a).
AB145, s. 5 9Section 5. 40.05 (2) (b) of the statutes is amended to read:
AB145,5,2110 40.05 (2) (b) Contributions shall be made by each participating employer for
11unfunded prior service liability in a percentage of the earnings of each participating
12employe. A separate percentage rate shall be determined for the employe
13occupational categories under s. 40.23 (2m) as of the employer's effective date of
14participation. The rates shall be sufficient to amortize as a level percent of payroll
15over a period of 40 years from the later of that date or January 1, 1986, the unfunded
16prior service liability for the categories of employes of each employer determined
17under s. 40.05 (2) (b), 1981 stats., increased to reflect any creditable prior service
18granted on or after January 1, 1986, increased to reflect the effect of 1983 Wisconsin
19Act 141
, increased at the end of each calendar year after January 1, 1986, by interest
20at the assumed rate on the unpaid balance at the end of the year and adjusted under
21pars. (bu), (bv) and, (bw) and (bx).
AB145, s. 6 22Section 6. 40.05 (2) (bx) of the statutes is created to read:
AB145,6,323 40.05 (2) (bx) The employer contribution rate determined under par. (b) for
24participating employes who served in the federal public health service shall be
25adjusted to reflect the cost of granting creditable service for those participating

1employes under s. 40.02 (15) and that rate shall be sufficient to amortize the
2unfunded prior service liability of the employers over the remainder of the 40-year
3amortization period under par. (b).
AB145, s. 7 4Section 7. 40.25 (7) (a) (intro.) of the statutes is amended to read:
AB145,6,145 40.25 (7) (a) (intro.) Each participating employe whose creditable service
6terminates on or after May 1, 1992, and who has performed service, other than
7military service or federal public health service, as an employe of the federal
8government or a state or local governmental entity in the United States, other than
9a participating employer, that is located within or outside of this state, or each
10participating employe whose creditable service terminates on or after May 4, 1994,
11and who has performed service as an employe for an employer who was not at the
12time a participating employer but who subsequently became a participating
13employer, may receive creditable service for such service if all of the following
14conditions are met:
AB145, s. 8 15Section 8. 40.25 (7) (b) of the statutes is amended to read:
AB145,6,2416 40.25 (7) (b) Creditable service granted under par. (a) shall be calculated in an
17amount equal to the year and fractions of a year to the nearest one-hundredth of a
18year for service, other than military service or federal public health service,
19performed for the governmental entity, as determined by evidence of such service
20furnished under par. (a) 4. Creditable service granted under par. (a) shall be the
21same type of creditable service as the type that is granted to participants who are not
22executive participating employes, elected officials or protective occupation
23participants. A participating employe may apply to receive part or all of the
24creditable service that he or she is eligible to receive under par. (a).
AB145, s. 9 25Section 9. 40.30 (3) of the statutes is amended to read:
AB145,7,6
140.30 (3) The sum of all service credited to the individual under each
2retirement system specified in sub. (2) shall be used in determining whether the
3individual has met any vesting period required for retirement benefit eligibility
4during any subsequent employment covered by any retirement system specified in
5sub. (2), but shall not be used in determining the amount of the benefit nor in
6determining credit for military service or federal public health service.
AB145, s. 10 7Section 10. 40.71 (1) (c) of the statutes is amended to read:
AB145,7,128 40.71 (1) (c) If the death of a participating employe on leave of absence, other
9than a leave for purposes of military service or federal public health service, arises
10from employment by any employer other than a participating employer, employment
11is deemed to have terminated and the participant shall not be considered a
12participating employe on the date of his or her death.
AB145, s. 11 13Section 11. Effective dates. This act takes effect on the day after publication,
14except as follows:
AB145,7,1615 (1) The treatment of section 40.05 (2) (b) and (bx) of the statutes takes effect
16on the January 1 after publication.
AB145,7,1717 (End)
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