2013 - 2014 LEGISLATURE
March 10, 2014 - Introduced by Senators Grothman and Carpenter, cosponsored
by Representatives Schraa and Stroebel. Referred to Committee on
Judiciary and Labor.
SB657,1,9 1An Act to renumber and amend 40.65 (3); to amend 40.65 (4) (intro.), 40.65
2(4) (a) and 40.65 (4) (b); to repeal and recreate 40.65 (4) (c); and to create
340.65 (3) (b), 40.65 (3) (c), 40.65 (4d), 111.70 (4) (mc) 1. and 111.91 (2) (hm) of the
4statutes; relating to: the duty disability benefit program under the Wisconsin
5Retirement System, prohibited subjects of collective bargaining under the
6Municipal Employment Relations Act and the State Employment Labor
7Relations Act, and requiring the Legislative Audit Bureau to conduct a program
8evaluation audit of certain disability and survivor benefit programs of public
9employee retirement systems in this state.
Analysis by the Legislative Reference Bureau
Under the current duty disability program under the Wisconsin Retirement
System (WRS), a protective occupation participant may receive a duty disability
benefit, equal to 75 percent of his or her monthly salary, if all of the following occur:
the employee is injured while performing his or her duty or contracts a disease due
to his or her occupation; the disability is likely to be permanent; and the disability
causes the employee to retire from his or her job, the employee's pay or position is
reduced or he or she is assigned to light duty, or the employee's promotional
opportunities are generally adversely affected because of the disability.

This bill eliminates the conditions that relate to whether the employee's pay or
position is reduced or he or she is assigned to light duty or the employee's promotional
opportunities are generally adversely affected because of the disability and, instead,
provides that, if an employer offers an employee who qualifies for a duty disability
benefit another position and the employee does not accept the offer, the employee
may not receive a duty disability benefit. If an employee accepts such an offer of
employment, the amount of the employee's monthly benefit is reduced by all earnings
payable to the employee from the employer.
The bill also requires that an employee receiving a duty disability must be
reexamined by at least one licensed and practicing physician, designated or
approved by the Wisconsin Retirement Board, every five years to determine whether
the employee's disability is likely to be permanent. Under the bill, the duty disability
benefit for an employee is terminated if the employee refuses to undergo the
examination or if the examination reveals that the disability is no longer permanent.
In addition, the bill requires the Legislative Audit Bureau (LAB) to conduct a
program evaluation audit of the duty disability and survivor benefits program under
the WRS and any comparable program under a retirement system of a county having
a population of 500,000 or more and a retirement system of a 1st class city. Under
the bill, LAB must examine the history and purpose of the programs; the costs and
benefits of the programs to state and local governments; any inequities, abuse, or
other problems of the programs; and the similarities and differences between the
programs and those of similar programs in other states. The bill also requires LAB
to consider and propose changes to the design and implementation of the duty
disability and survivor benefits programs.
Finally, the bill creates, as a prohibited subject of collective bargaining for
municipal and state employees who are police officers, fire fighters, or emergency
service providers (public safety employees), benefit features of, and eligibility
conditions and methodology for obtaining and continuing to receive, any type of duty
disability and survivor benefits as well as the impact of the features and such
conditions and methodology on the wages, hours, and conditions of employment of
the public safety employee.
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:
SB657,1 1Section 1. 40.65 (3) of the statutes is renumbered 40.65 (3) (a) and amended
2to read:
SB657,3,93 40.65 (3) (a) The Wisconsin retirement board shall determine the amount of
4each monthly benefit payable under this section and its effective date. The board

1shall periodically review the dollar amount of each monthly benefit and adjust it to
2conform with the provisions of this section. The board may request any income or
3benefit information, or any information concerning a person's marital status, which
4it considers to be necessary to implement this subsection paragraph and may require
5a participant to authorize the board to obtain a copy of his or her most recent state
6or federal income tax return. The board may terminate the monthly benefit of any
7person who refuses to submit information requested by the board, who refuses to
8authorize the board to obtain a copy of his or her most recent state or federal income
9tax return, or who submits false information to the board.
SB657,2 10Section 2. 40.65 (3) (b) of the statutes is created to read:
SB657,3,1611 40.65 (3) (b) The Wisconsin retirement board shall require that any person who
12receives a monthly benefit under this section be examined by at least one licensed
13and practicing physician, designated or approved by the board, every 5 years. A
14written report of the examination in a form approved by the department, which shall
15indicate whether the person is still disabled as specified in sub. (4) (b), shall be filed
16with the department.
SB657,3 17Section 3. 40.65 (3) (c) of the statutes is created to read:
SB657,3,2018 40.65 (3) (c) The monthly benefit payable under this section shall be
19terminated and no payment shall be payable after the first of the month in which a
20determination is made by the department that any of the following occurs:
SB657,3,2321 1. The written physician's report required in par. (b) indicates that the person
22has recovered from the disability so the person is no longer disabled to the extent
23required under sub. (4) (b).
SB657,3,2424 2. The person refuses to submit to an examination under par. (b).
SB657,4 25Section 4. 40.65 (4) (intro.) of the statutes is amended to read:
SB657,4,3
140.65 (4) (intro.) A Subject to sub. (4d), a protective occupation participant is
2entitled to a duty disability benefit as provided in this section if all of the following
3occur
:
SB657,5 4Section 5. 40.65 (4) (a) of the statutes is amended to read:
SB657,4,65 40.65 (4) (a) The employee is injured while performing his or her duty or
6contracts a disease due to his or her occupation;.
SB657,6 7Section 6. 40.65 (4) (b) of the statutes is amended to read:
SB657,4,88 40.65 (4) (b) The disability is likely to be permanent ; and.
SB657,7 9Section 7. 40.65 (4) (c) of the statutes is repealed and recreated to read:
SB657,4,1010 40.65 (4) (c) The disability causes the employee to retire from his or her job.
SB657,8 11Section 8. 40.65 (4d) of the statutes is created to read:
SB657,4,1712 40.65 (4d) If an employer offers an employee who qualifies for a duty disability
13benefit under sub. (4) another position and the employee does not accept the offer,
14the employee may not receive a duty disability benefit. If an employee accepts such
15an offer of employment, the amount of the employee's monthly benefit is reduced by
16all earnings payable to the employee from the employer as provided under sub. (5)
17(b) 5.
SB657,9 18Section 9. 111.70 (4) (mc) 1. of the statutes is created to read:
SB657,4,2319 111.70 (4) (mc) 1. The benefit features of, and the eligibility conditions and
20methodology for obtaining and continuing to receive, any type of duty disability and
21survivor benefits for the public safety employee and the impact of the benefit features
22and such conditions and methodology on the wages, hours, and conditions of
23employment of the public safety employee.
SB657,10 24Section 10. 111.91 (2) (hm) of the statutes is created to read:
SB657,5,5
1111.91 (2) (hm) The benefit features of, and the eligibility conditions and
2methodology for obtaining and continuing to receive, any type of duty disability and
3survivor benefits for the public safety employee and the impact of the benefit features
4and such conditions and methodology on the wages, hours, and conditions of
5employment of the public safety employee.
SB657,11 6Section 11. Nonstatutory provisions.
SB657,5,87 (1) Audit of certain disability and survivor benefit programs under public
8employee retirement systems in Wisconsin.
SB657,5,139 (a) The legislative audit bureau shall conduct a program evaluation audit of the
10duty disability and survivor benefits program under section 40.65 of the statutes and
11any comparable program under a retirement system of a county having a population
12of 500,000 or more and a retirement system of a 1st class city. The legislative audit
13bureau shall examine all of the following:
SB657,5,14 141. The history and purpose of the programs.
SB657,5,15 152. The costs and benefits of the programs to state and local governments.
SB657,5,16 163. Any inequities, abuse, or other problems of the programs.
SB657,5,18 174. Similarities and differences between the programs and those of similar
18programs in other states.
SB657,5,2119 (b) In performing the program evaluation audit, the legislative audit bureau
20shall consider and propose changes to the design and implementation of the duty
21disability and survivor benefits programs.
SB657,5,2322 (c) The legislative audit bureau shall file its report in the manner described
23under section 13.94 (1) (b) of the statutes before January 1, 2015.
SB657,12 24Section 12. Initial applicability.
SB657,6,4
1(1) The treatment of sections 111.70 (4) (mc) 1. and 111.91 (2) (hm) of the
2statutes first applies to a public safety employee who is covered by a collective
3bargaining agreement on the day on which the collective bargaining agreement
4expires or is extended, modified, or renewed, whichever occurs first.
SB657,6,55 (End)
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