LRB-4976/1
MIM:wlj
2019 - 2020 LEGISLATURE
December 23, 2019 - Introduced by Representatives Pope, Anderson, Billings,
Considine, Hebl, Milroy, L. Myers, Ohnstad, Sargent, Shankland, Sinicki,
Spreitzer, Stubbs, C. Taylor, Vruwink and Zamarripa, cosponsored by
Senators Smith, Ringhand, Risser, Schachtner and Wirch. Referred to
Committee on State Affairs.
AB698,1,5 1An Act to amend 40.22 (1), 40.22 (2m) (intro.), 40.22 (2r) (intro.) and 40.22 (3)
2(intro.); and to create 40.26 (6) (intro.), (a) and (b) of the statutes; relating to:
3annuitants in the Wisconsin Retirement System who retire from employment
4as a teacher and are rehired by or provide employee services to a school district
5that is a participating employer.
Analysis by the Legislative Reference Bureau
Under current law, if a Wisconsin Retirement System annuitant, or a disability
annuitant who has attained his or her normal retirement date, is appointed to a
position with a WRS-participating employer, or provides employee services to a
WRS-participating employer in which he or she is expected to work at least
two-thirds of what is considered full-time employment by the Department of
Employee Trust Funds, the annuity must be suspended and no annuity payment is
payable until after the participant again terminates covered employment.
This bill creates an exception to this requirement for an annuitant who retired
from employment as a teacher with a school district who is subsequently rehired or
provides employee services as a teacher after retirement if 1) the participating
employer is a school district; 2) at least 30 days have elapsed from the date the person
left covered employment with a school district; 3) at the time the person initially
retires from a school district, the person does not have an agreement with any school
district to return to employment; and 4) the person elects to not become a
participating employee at the time the person is rehired as a teacher by a school

district or enters into a contract to provide employee services as a teacher after
retirement. In other words, the bill allows a teacher annuitant who retired from a
school district to return to work as a teacher for a school district that is a
participating employer and elect to not become a participating employee for purposes
of the Wisconsin Retirement System, and instead continue to receive his or her
annuity.
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.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB698,1 1Section 1 . 40.22 (1) of the statutes is amended to read:
AB698,2,62 40.22 (1) Except as provided in sub. (2) and s. 40.26 (6), each employee
3currently in the service of, and receiving earnings from, a state agency or other
4participating employer shall be included within the provisions of the Wisconsin
5retirement system as a participating employee of that state agency or participating
6employer.
AB698,2 7Section 2 . 40.22 (2m) (intro.) of the statutes is amended to read:
AB698,2,148 40.22 (2m) (intro.) An Except as otherwise provided in s. 40.26 (6), an employee
9who was a participating employee before July 1, 2011, who is not expected to work
10at least one-third of what is considered full-time employment by the department,
11as determined by rule, and who is not otherwise excluded under sub. (2) from
12becoming a participating employee shall become a participating employee if he or she
13is subsequently employed by the state agency or other participating employer for
14either of the following periods:
AB698,3 15Section 3 . 40.22 (2r) (intro.) of the statutes is amended to read:
AB698,3,516 40.22 (2r) (intro.) An Except as otherwise provided in s. 40.26 (6), an employee
17who was not a participating employee before July 1, 2011, who is not expected to work

1at least two-thirds of what is considered full-time employment by the department,
2as determined by rule, and who is not otherwise excluded under sub. (2) from
3becoming a participating employee shall become a participating employee if he or she
4is subsequently employed by the state agency or other participating employer for
5either of the following periods:
AB698,4 6Section 4 . 40.22 (3) (intro.) of the statutes is amended to read:
AB698,3,97 40.22 (3) (intro.) A Except as otherwise provided in s. 40.26 (6), a person who
8qualifies as a participating employee shall be included within, and shall be subject
9to, the Wisconsin retirement system effective on one of the following dates:
AB698,5 10Section 5 . 40.26 (6) (intro.), (a) and (b) of the statutes are created to read:
AB698,3,1611 40.26 (6) (intro.) Subsections (1) to (5) do not apply to a participant who applies
12for an annuity or lump sum payment during the period in which at least 30 days have
13elapsed between the participant's termination of employment as a teacher with a
14school district that is a participating employer, and becoming a teacher as an
15employee or contractor providing employee services as a teacher with any school
16district that is a participating employer if all of the following conditions are met:
AB698,3,2017 (a) At the time the participant terminates his or her employment as a teacher
18with a school district, the participant does not have an agreement with any school
19district that is a participating employer to return to employment as a teacher or enter
20into a contract to provide employee services as a teacher for the school district.
AB698,3,2221 (b) The participant elects on a form provided by the department to not become
22a participating employee.
AB698,6 23Section 6. Initial applicability.
AB698,4,3
1(1) WRS teacher annuitants. This act first applies to participants under the
2Wisconsin Retirement System who terminate employment on the effective date of
3this subsection.
AB698,4,44 (End)
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