AB52: Bill Text

LRB-1015/1

RAC:jld:km

2001 - 2002 LEGISLATURE

2001 Assembly BILL 52

February 1, 2001 - Introduced by Representatives Rhoades, Gronemus, Pettis, Suder, Ainsworth, Huebsch, Jeskewitz, Stone, Freese, Krawczyk, Ryba, Walker, Ladwig, Nass, Plouff, Townsend, Lassa, Ott, Powers, Owens, Kreuser, Gunderson and Travis, cosponsored by Senators Breske, Harsdorf, Plache, Welch, S. Fitzgerald, Schultz, Rosenzweig, Roessler and Darling. Referred to Joint survey committee on Retirement Systems.

AB52,1,4 An Act to amend 40.05 (2) (b); and to create 40.02 (15) (d) and 40.05 (2) (bx) of the statutes; relating to: granting creditable service under the Wisconsin retirement system for service in the national guard or a reserve component of the U.S. armed forces.

Analysis by the Legislative Reference Bureau

Under current law, a participant in 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 that any participant in the WRS who has served 20 or more years in the national guard or a reserve component of the U.S. armed forces may receive one year of creditable military service at the time of retirement. The bill, however, does not affect the maximum number of years that may be credited for military 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:

AB52, s. 1 Section 1. 40.02 (15) (d) of the statutes is created to read:

AB52,2,8 40.02 (15) (d) Notwithstanding par. (a) (intro.) and sub. (17) (intro.), any participant who has served 20 or more years in the national guard or a reserve component of the U.S. armed forces may receive one year of creditable military service at the time of retirement. The creditable service granted under this paragraph shall be the same type of creditable service set forth in s. 40.23 (2m) (e) earned by the participant on the date that the participant terminates covered employment.

AB52, s. 2 Section 2. 40.05 (2) (b) of the statutes is amended to read:

AB52,3,2 40.05 (2) (b) Contributions shall be made by each participating employer for unfunded prior service liability in a percentage of the earnings of each participating employee. A separate percentage rate shall be determined for the employee occupational categories under s. 40.23 (2m) as of the employer's effective date of participation. The rates shall be sufficient to amortize as a level percent of payroll over a period of 40 years from the later of that date or January 1, 1986, the unfunded prior service liability for the categories of employees of each employer determined under s. 40.05 (2) (b), 1981 stats., increased to reflect any creditable prior service granted on or after January 1, 1986, increased to reflect the effect of 1983 Wisconsin Act 141, increased at the end of each calendar year after January 1, 1986, by interest at the assumed rate on the unpaid balance at the end of the year and adjusted under pars. (bu), (bv) and, (bw), and (bx).

AB52, s. 3 Section 3. 40.05 (2) (bx) of the statutes is created to read:

AB52,3,9 40.05 (2) (bx) The employer contribution rate determined under par. (b) for participating employees who served in the national guard or a reserve component of the U.S. armed forces shall be adjusted to reflect the cost of granting creditable military service for those participating employees under s. 40.02 (15) (d) and that rate shall be sufficient to amortize the unfunded prior service liability of the employers over the remainder of the 40-year amortization period under par. (b).

AB52, s. 4 Section 4. Initial applicability.

AB52,3,13 (1) This act first applies to the calculation of years of creditable service under the Wisconsin retirement system for a person who is a participating employee in the Wisconsin retirement system on the effective date of this subsection.

AB52,3,14 (End)