LRB-1103/1
RAC:jld:pg
2005 - 2006 LEGISLATURE
March 28, 2005 - Introduced by Representative Schneider. Referred to Joint
Survey Committee on Retirement Systems.
AB276,1,3 1An Act to amend 40.04 (7) (a) (intro.) of the statutes; relating to: the crediting
2of required and additional contributions to the variable annuity division under
3the Wisconsin Retirement System.
Analysis by the Legislative Reference Bureau
Under current rules promulgated by the Department of Employee Trust Funds
(DETF), if a participant in the Wisconsin Retirement System elects to have 50
percent of his or her required and additional contributions credited to the variable
annuity division, the election becomes effective for future contributions beginning on
the January 1 after the participant makes the election. This bill provides that the
election is immediately effective for future contributions and not delayed to the
January 1 after the participant makes the election. The bill also specifies that the
election must be made on a form provided by DETF.
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 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:
AB276, s. 1 4Section 1. 40.04 (7) (a) (intro.) of the statutes is amended to read:
AB276,2,24
140.04 (7) (a) (intro.) As otherwise elected by a participant prior to April 30,
21980, or on or after January 1, 2001. Any participant who was a participant prior
3to April 30, 1980, and whose accounts on January 1, 1982, include credits segregated
4for a variable annuity shall have his or her required and additional contributions
5made on or after January 1, 1982, credited to the variable annuity division in a
6manner consistent with the participant's election prior to April 30, 1980, unless prior
7to January 1, 1982, the participant terminated such election under s. 40.85, 1979
8stats. Any participant who elects or has elected to have any of his or her credits
9segregated for a variable annuity on or after January 1, 2001, shall have 50% of his
10or her required and additional contributions made on or after the date of election
11credited to the variable annuity division. The election shall be made on a form
12provided by the department and the election shall be immediately effective on the
13date that the department receives the form
. The department shall by rule provide
14that any participant who elects or has elected variable participation prior to April
1530, 1980, or on or after January 1, 2001, may elect to cancel that variable
16participation as to future contributions. The department's rules shall permit a
17participant who elects or has elected to cancel variable participation as to future
18contributions, or an annuitant, to elect to transfer previous variable contribution
19accumulations to the fixed annuity division. A transfer of variable contribution
20accumulations under this paragraph shall result in the participant receiving the
21accrued gain or loss from the participant's variable participation. A participant may
22specify that election to cancel participation in the variable annuity division is
23conditional. If the participant so specifies the election is effective on the first date
24on which it may take effect on which the participant:
AB276, s. 2 25Section 2. Initial applicability.
AB276,3,3
1(1) This act first applies to elections to participate in the variable annuity
2division of the Wisconsin Retirement System that are made on the effective date of
3this subsection.
AB276,3,44 (End)
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