SB326: Bill Text

SB326, s. 24 Section 24 . 40.25 (6) (a) 1. of the statutes is amended to read:

SB326,15,3 40.25 (6) (a) 1. The participating employe must have at least 3 continuous years of creditable current service under the fund at the time of application for reestablishment of creditable service under this subsection.

Note: This provision is amended to clarify that a participating employe must have at least three continuous years of creditable current service at the time of application for purchasing forfeited service.

SB326, s. 25 Section 25. 40.25 (6) (a) 2. of the statutes is amended to read:

SB326,15,11 40.25 (6) (a) 2. Applications for reestablishment of creditable service must include all creditable service that has been forfeited except that the number of years which may be reestablished under this subsection may not be greater than the creditable service of the participating employe at the date of application, or 10 years, whichever is smaller. Creditable service previously purchased under this chapter may not be used to determine the maximum amount of service that may be purchased under this subsection.

Note: This provision is amended to clarify that the total number of years of forfeited service that the person can purchase is the lesser of ten years, or a number of years equal to the current creditable service of the employe at the date of application.

SB326, s. 26 Section 26. 40.25 (7) (a) 2. of the statutes is amended to read:

SB326,15,14 40.25 (7) (a) 2. The participant has at least 3 continuous years of creditable current service under the fund at the time of application under subd. 1.

Note: This provision is amended to clarify that the participant must have had at least three continuous years of creditable current service at the time of applying to purchase creditable service for service as an employe of the federal government or for service with an employer that was not covered by the Wisconsin Retirement System during the period in which the service was performed but subsequently became a participating employer.

SB326, s. 27 Section 27. 40.25 (7) (a) 3. of the statutes is amended to read:

SB326,16,2 40.25 (7) (a) 3. The number of years of creditable service applied for under this paragraph does not exceed the number of years of creditable service that the participant has at the date of application or 10 years, whichever is less. Creditable service previously purchased under this chapter may not be used to determine the maximum amount of service that may be purchased under this subsection.

Note: This clarifies that the number of years of creditable service for service with the federal government or an employer that previously did not participate in the Wisconsin Retirement System, that the person can purchase may not exceed the lesser of ten years or a number of years equal to the current creditable service that the participant has, of the date of application.

SB326, s. 28 Section 28 . 40.26 (2) (a) of the statutes is amended to read:

SB326,16,7 40.26 (2) (a) The then present value of any portion of the terminated annuity which was originally provided by employe or employer additional contributions or tax-deferred additional contributions shall be credited to the corresponding additional contribution account or tax-deferred additional contribution account.

SB326, s. 29 Section 29 . 40.26 (2) (b) of the statutes, as affected by 1999 Wisconsin Act 11, is amended to read:

SB326,16,18 40.26 (2) (b) The amount of the annuity payments, excluding any portion originally provided by additional contributions or tax-deferred additional contributions, which would have been paid under the terminated annuity, if the annuity had been a straight life annuity, prior to the participant's normal retirement date or prior to the annuity termination date, whichever would first occur, shall be credited to a memorandum account which is subject to s. 40.04 (4) (a) 2., 2g. and 2m. and (c). If the annuity was recomputed under s. 40.08 (1m) because of a qualified domestic relations order, the memorandum account established under this paragraph shall be adjusted as provided under s. 40.08 (1m) (f) 2.

Note: The changes made by Section 28 and 29 in provisions on reentry into covered service, clarify that the provisions apply to both categories of additional contributions.

SB326, s. 30 Section 30. 40.28 (1) (a) 1. of the statutes is amended to read:

SB326,17,3 40.28 (1) (a) 1. The amount of the additional contribution accumulations and tax-deferred additional contribution accumulations reserved for a variable annuity as of the date the annuity begins;

Note: This change clarifies that the provision, relating to variable benefits, applies to both categories of additional contributions.

SB326, s. 31 Section 31. 40.63 (9) (b) of the statutes is amended to read:

SB326,17,22 40.63 (9) (b) If a disability annuitant, prior to attaining the normal retirement date for the annuitant's former participant classification, receives earnings or other earned income from any source whatsoever for personal services, including services performed on a contractual basis, the annuity shall be suspended, except for any amount provided by additional contributions or tax-deferred additional contributions, and no payment shall be payable after the first of the month in which the earnings or earned income received during any calendar year exceed the amount established under sub. (11), except that if payment was being made under sub. (4) the annuity may only be suspended if the annuitant is employed in a law enforcement or fire fighting capacity and then the suspension shall be effective immediately. The suspended amount shall be reinstated on January 1 following the date of suspension, or, if earlier, on the first day of the 2nd month following the termination of personal services. An amount, which is reinstated in any calendar year, other than on January 1 of the calendar year, shall again be suspended for any subsequent month in the calendar year following a month in which the disability annuitant receives any amount of earnings or earned income for personal services. The department may request any earnings or compensation information as it deems necessary to implement the provisions of this paragraph and par. (c).

Note: The change clarifies that provisions relating to suspension of disability annuities of persons who receive earnings from personal services do not apply to either category of additions contributions.

SB326, s. 32 Section 32. 40.63 (10) of the statutes is amended to read:

SB326,18,11 40.63 (10) Upon termination of an annuity in accordance with sub. (9), each participant whose annuity is so terminated shall, as of the beginning of the calendar month following termination, be credited with additional contributions and tax-deferred additional contributions equal to the then present value of the portion of the terminated annuity which was originally provided by the corresponding type of additional contributions. Except for additional contributions and tax-deferred additional contributions, the retirement account of the participant shall be reestablished as if the terminated annuity had never been effective, including crediting of interest and of any contributions and creditable service earned during the period the annuity was in force.

Note: The change to this provision, relating to disability annuities, clarifies that it applies to both categories of additional contributions.

SB326, s. 33 Section 33. 40.73 (1) (b) of the statutes is amended to read:

SB326,18,18 40.73 (1) (b) Upon the death of an annuitant, in addition to any amounts payable by virtue of the annuity option elected by an annuitant, the amount determined under par. (a) for contributions made under s. 40.05 (1) subsequent to the effective date of the annuity, or additional contributions and tax-deferred additional contributions not applied to provide an annuity, provided the amounts have not been previously paid out as a lump sum under s. 40.25.

Note: This provision, relating to death benefits, is amended to provide that it applies to both categories of additional contributions.

SB326, s. 34 Section 34. 40.80 (2) (g) of the statutes is created to read:

SB326,18,22 40.80 (2) (g) Serve as trustee of any deferred compensation plan established under this section and hold the assets and income of the plan in trust for the exclusive benefit of the employes who participate in the plan and their beneficiaries.

Note: This provision clarifies that the Wisconsin deferred compensation program is a trust and deferred compensation board members are its trustees.

SB326, s. 35 Section 35. Initial applicability.

SB326,19,5 (1) The treatment of section 40.25 (6) (a) 1. and 2. and (7) (a) 2. and 3. of the statutes first applies to applications for the purchase of creditable service under section 40.25 (6) and (7) of the statutes submitted to the department of employe trust funds on the effective date of this subsection.

SB326,19,6 (End)