LRB-4115/1
RAC:jld&bjk:rs
2007 - 2008 LEGISLATURE
February 21, 2008 - Introduced by Representatives Van Roy, Musser, Boyle,
Kaufert, A. Ott, Kerkman, Montgomery, Nygren, Gunderson, Mursau, Hahn

and Hintz, cosponsored by Senators Wirch, Lehman, Lassa, Robson, Roessler
and Schultz. Referred to Committee on State Affairs.
AB851,1,4 1An Act to renumber 40.08 (2); and to create 40.02 (48g), 40.05 (4r), 40.08 (2)
2(b) and 40.80 (2t) of the statutes; relating to: payment of premiums for health
3or long-term care insurance coverage from annuities under the Wisconsin
4Retirement System and distributions from deferred compensation accounts.
Analysis by the Legislative Reference Bureau
Currently, under the Wisconsin Retirement System (WRS), annuitants may
have insurance premiums for health care coverage paid directly from their WRS
annuities. This program, however, only applies to health insurance plans offered
under a program established by the Group Insurance Board (GIB). Similarly, state
annuitants may currently have insurance premiums for long-term care coverage
paid directly from their retirement annuities. Again, this option only applies to
long-term care insurance plans offered under a program established by GIB. This
bill permits annuitants who are public safety officers to have premiums for any
health care coverage or long-term care coverage plan deducted from their annuities,
even if the plan is not offered under the program established by GIB. Under the bill,
"public safety officer" has the meaning given under a specific federal law and
includes any individual serving in a public agency in an official capacity, with or
without compensation, as a law enforcement officer, as a fire fighter, as a chaplain,
or as a member of a rescue squad or ambulance crew.
The Deferred Compensation Board (board), attached to the Department of
Employee Trust Funds, currently selects and contracts with plan providers that are
used by state agencies for providing deferred compensation plans to state employees.

These plans are also made available to public employers other than the state for their
employees. This bill provides that the board may require a deferred compensation
plan, upon election by a participant who is a public safety officer, to allow for the
deduction of insurance premiums for health or long-term care insurance coverage
for public safety officers from an amount distributed from a participant's account and
for the payment of the premiums directly to an insurer.
Because this bill relates to public employee retirement or pensions, it may be
referred to the Joint Survey Committee on Retirement Systems for a report to be
printed as an appendix to the 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:
AB851, s. 1 1Section 1. 40.02 (48g) of the statutes is created to read:
AB851,2,32 40.02 (48g) "Public safety officer" has the meaning given in 26 USC 402 (I) (4)
3(C).
AB851, s. 2 4Section 2. 40.05 (4r) of the statutes is created to read:
AB851,2,155 40.05 (4r) Payment of certain insurance premiums. If an annuitant is a public
6safety officer and receives health care coverage or long-term care coverage under a
7plan other than one offered under subch. IV, and if the annuitant so elects by
8providing written notice to the department, the premium shall be paid as a deduction
9under s. 40.06 (1) (a) from the annuitant's annuity. If the annuitant receives an
10annuity that is not sufficient to cover premium payments, the annuitant shall make
11premium payments directly to the insurer. The department shall establish
12procedures to permit an annuitant who is a public safety officer to elect to have his
13or her premium paid as a deduction under s. 40.06 (1) (a) from his or her annuity.
14The annuitant shall provide the department with all necessary information to
15permit the department to make the payment in a timely manner.
AB851, s. 3 16Section 3. 40.08 (2) of the statutes is renumbered 40.08 (2) (a).
AB851, s. 4
1Section 4. 40.08 (2) (b) of the statutes is created to read:
AB851,3,52 40.08 (2) (b) If permitted under a deferred compensation plan established
3under subch. VII, insurance premiums for health or long-term care insurance
4coverage for a public safety officer may be deducted from an amount distributed
5under a deferred compensation plan and paid directly to an insurer.
AB851, s. 5 6Section 5. 40.80 (2t) of the statutes is created to read:
AB851,3,117 40.80 (2t) The deferred compensation board may require a deferred
8compensation plan under this subchapter, upon election by a participant who is a
9public safety officer, to allow for the deduction of insurance premiums for health or
10long-term care insurance coverage from an amount distributed from a participant's
11account and for the payment of the premiums directly to an insurer.
AB851,3,1212 (End)
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