Amendment SSA1-SB44

SB44-SSA1,454,13 40.25 (3) Upon administrative approval of payment of an amount under either sub. (1) or (2), the participant's account shall be closed and there shall be no further right, interest or claim on the part of the former participant to any benefit from the Wisconsin retirement system except as provided by subs. sub. (5) and (6) s. 40.285 (2) (a). Any former participant who is subsequently employed by any participating employer shall be treated as a new participating employee for all purposes of this chapter. New accumulations of contributions and credits and the computation of any future benefits shall bear no relationship to any accumulations and credits paid as single sums under sub. (1) or (2).

SB44-SSA1, s. 1023 Section 1023. 40.25 (6) of the statutes is repealed.

SB44-SSA1, s. 1024 Section 1024. 40.25 (7) of the statutes is repealed.

SB44-SSA1, s. 1025 Section 1025. 40.285 of the statutes is created to read:

SB44-SSA1,454,21 40.285 Purchase of creditable service. (1) General requirements. (a) Deadline for purchase of creditable service. An application to purchase creditable service must be received by the department, on a form provided by the department, from an applicant who is a participating employee on the day that the department receives the application.

SB44-SSA1,454,24 (b) Calculation of creditable service. Creditable service purchased under this section shall be calculated in an amount equal to the year and fractions of a year to the nearest one-hundredth of a year.

SB44-SSA1,455,3 (c) Use of creditable service. Credit for service purchased under this section is added to a participant's total creditable service, but may not be treated as service for a particular annual earnings period and does not confer any other rights or benefits.

SB44-SSA1,455,6 (d) Applicability of Internal Revenue Code. The crediting of service under this section is subject to any applicable limit or requirement under the Internal Revenue Code.

SB44-SSA1,455,9 (2) Conditions for the purchase of different types of creditable service. (a) Forfeited service. 1. A participating employee may purchase creditable service forfeited in the manner specified in subd. 2., subject to all of the following:

SB44-SSA1,455,11 a. The participating employee must have at least 3 continuous years of creditable service at the time of application to purchase the creditable service.

SB44-SSA1,455,22 b. The number of years that may be purchased may not be greater than the accumulated current creditable service of the participating employee at the date of application, excluding all creditable service purchased under this section or s. 40.02 (17) (b), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02 (17) (e), 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02 (17) (i), 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02 (17) (k), 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.25 (6), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. or 40.25 (7), 1991, 1993, 1995, 1997, 1999, and 2001 stats., less the number of years of creditable service previously purchased under this paragraph or s. 40.25 (6), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats.

SB44-SSA1,456,5 c. The participating employee pays to the fund an amount equal to the employee's statutory contribution on earnings under s. 40.05 (1) (a) for each year of forfeited service to be purchased, based upon the participating employee's final average earnings, determined as if the employee had retired on the first day of the annual earnings period during which the department receives the application. The amount payable shall be paid in a lump sum payment, except as provided in sub. (4) (b), and no employer may pay any amount payable on behalf of a participating employee.

SB44-SSA1,456,9 d. Upon receipt by the fund of the total payment required under this subdivision, the creditable service meeting the conditions and requirements of this paragraph shall be credited to the account of the participating employee making the payment.

SB44-SSA1,456,11 2. Creditable service may be purchased under this paragraph if it was forfeited as a result of any of the following:

SB44-SSA1,456,12 a. Payment of an amount under s. 40.25 (2).

SB44-SSA1,456,14 b. The receipt of a separation or withdrawal benefit under the applicable laws and rules in effect prior to January 1, 1982.

SB44-SSA1,456,15 c. Payment of an amount under s. 40.25 (2m), 1991, 1993, 1995, and 1997 stats.

SB44-SSA1,456,18 3. Unless otherwise provided by the department by rule, a participating employee may not purchase creditable service under this paragraph more than 2 times in any calendar year.

SB44-SSA1,457,2 (b) Other governmental service. 1. Each participating employee whose creditable service terminates on or after May 1, 1992, and who has performed service, other than military service, as an employee of the federal government or a state or local governmental entity in the United States, other than a participating employer, that is located within or outside of this state, or each participating employee whose creditable service terminates on or after May 4, 1994, and who has performed service as an employee for an employer who was not at the time a participating employer but who subsequently became a participating employer, may receive creditable service for such service if all of the following occur:

SB44-SSA1,457,4 a. The participant has at least 3 continuous years of creditable service at the time of application.

SB44-SSA1,457,15 b. 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, excluding all creditable service purchased under this section or s. 40.02 (17) (b), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02 (17) (e), 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02 (17) (i), 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02 (17) (k), 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.25 (6), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., or s. 40.25 (7), 1991, 1993, 1995, 1997, 1999, and 2001 stats., less the number of years of creditable service previously purchased under this paragraph or s. 40.25 (7), 1991, 1993, 1995, 1997, 1999, and 2001 stats.

SB44-SSA1,457,17 c. At the time of application, the participant furnishes evidence of such service that is acceptable to the department.

SB44-SSA1,457,24 d. Except as provided in sub. (4) (b), at the time of application, the participant pays to the department a lump sum equal to the present value of the creditable service applied for under this paragraph, in accordance with rates actuarially determined to be sufficient to fund the cost of the increased benefits that will result from granting the creditable service under this paragraph. The department shall by rule establish different rates for different categories of participants, based on factors recommended by the actuary.

SB44-SSA1,458,3 2. The creditable service granted under this paragraph shall be the same type of creditable service as the type that is granted to participants who are not executive participating employees, elected officials, or protective occupation participants.

SB44-SSA1,458,5 3. A participating employee may apply to receive part or all of the creditable service that he or she is eligible to receive under this paragraph.

SB44-SSA1,458,9 4. A participant may not receive creditable service under this paragraph for service that is used for the purpose of establishing entitlement to, or the amount of, any other benefit to be paid by any federal, state, or local government entity, except a disability or OASDHI benefit or a benefit paid for service in the national guard.

SB44-SSA1,458,12 5. Unless otherwise provided by the department by rule, a participating employee may not purchase creditable service under this paragraph more than 2 times in any calendar year.

SB44-SSA1,458,16 (3) Application process. (a) Provision of application forms and estimates. Upon request, the department shall provide a participating employee an application form for the purchase of creditable service under sub. (2) and shall also provide to the participating employee an estimate of the cost of purchasing the creditable service.

SB44-SSA1,458,22 (b) Certification of plan-to-plan transfers. Upon request, the department shall provide a participating employee a transfer certification form for payments made by a plan-to-plan transfer under sub. (5) (b). If the participating employee intends to make payments from more than one plan, the participating employee must submit to the department a separate transfer certification form for each plan from which moneys will be transferred.

SB44-SSA1,459,2 (4) Payment. (a) Required with application. Except as provided in par. (b), the department may not accept an application for the purchase of creditable service without payment in full of the department's estimated cost of creditable service accompanying the application. A participating employee may also do any of the following:

SB44-SSA1,459,4 1. Use his or her accumulated after-tax additional contributions that are made under s. 40.05 (1) (a) 5., including interest, to make payment.

SB44-SSA1,459,8 2. Use his or her accumulated contributions, including interest, to a tax sheltered annuity under section 403 (b) of the Internal Revenue Code, to make payment, but only if the participating employee's plan under section 403 (b) of the Internal Revenue Code authorizes the transfer.

SB44-SSA1,459,14 (b) Alternate payment options. Notwithstanding par. (a), the department may accept an application under this section without full payment if payment of at least 10% of the department's estimate of the cost of the creditable service is included with the application, in the manner required under par. (a), and the remaining balance is received by the department no later than 90 days after receipt of the application, in the form of a plan-to-plan transfer under sub. (5) (b).

SB44-SSA1,460,3 (c) Final cost calculation for purchase of creditable service. The department may audit any transaction to purchase creditable service under this subsection and make any necessary correction to the estimated cost of purchasing the creditable service to reflect the amount due under sub. (2). Except as otherwise provided in sub. (7), if the department determines that the final amount that is due is more than the amount paid to the department, the department shall notify the participant of the amount of the shortfall. If payment of the amount of the shortfall is not received by the department within 30 calendar days after the date on which the department sends notice to the participant, the department shall complete the creditable service purchase transaction by prorating the amount of creditable service that is purchased based on the payment amount actually received and shall notify the participant of the amount and category of service that is credited. The department, by rule, shall specify how a forfeited service purchase is prorated when the participant forfeited service under more than one category of employment under s. 40.23 (2m) (e).

SB44-SSA1,460,9 (d) Treatment of amounts to purchase creditable service. All amounts retained by the department for the purchase of creditable service under sub. (2) shall be credited and treated as employee required contributions for all purposes of the Wisconsin retirement system, except that amounts received for the purchase of creditable service under sub. (2) (b) may not be used for the purpose of making calculations under s. 40.23 (3) or 40.73 (1) (am).

SB44-SSA1,460,13 (5) Transfer of funds; plan-to-plan transfers. (a) Transfer from certain benefit plans. Subject to any applicable limitations under the Internal Revenue Code, a participating employee may elect to use part or all of any of the following to purchase creditable service under this section:

SB44-SSA1,460,15 1. Accumulated after-tax additional contributions, including interest, made under s. 40.05 (1) (a) 5.

SB44-SSA1,460,18 2. Accumulated contributions treated by the department as contributions to a tax sheltered annuity under section 403 (b) of the Internal Revenue Code, but only if the employer sponsoring the annuity plan authorizes the transfer.

SB44-SSA1,460,20 (b) Other plan-to-plan transfers. The department may also accept a plan to plan transfer from any of the following:

SB44-SSA1,460,22 1. Accumulated contributions under a state deferred compensation plan under subch. VII.

SB44-SSA1,460,25 2. The trustee of any plan qualified under sections 401 (a) or (k), 403 (b), or 457 of the Internal Revenue Code, but only if the purpose of the transfer is to purchase creditable service under this section.

SB44-SSA1,461,13 (c) Payment shortfall. Except as otherwise provided in sub. (7), if the department determines that the amount paid to the department to purchase creditable service under this subsection, together with the amount transferred under a plan-to-plan transfer, is less than the amount that is required to purchase the creditable service, the department shall notify the participant of the amount of the shortfall. If payment of the amount of the shortfall is not received by the department within 30 calendar days after the date on which the department sends notice to the participant, the department shall complete the creditable service purchase transaction by prorating the amount of creditable service that is purchased based on the payment amount actually received and shall notify the participant of the amount and category of service that is credited. The department, by rule, shall specify how a forfeited service purchase is prorated when the participant forfeited service under more than one category of employment under s. 40.23 (2m) (e).

SB44-SSA1,461,24 (6) Refunds. Except as provided in sub. (7), if the department determines that the amount paid to the department to purchase creditable service, including any amount in a plan-to-plan transfer, is greater than the amount that is required to purchase the creditable service, as determined by the department, the department shall refund the difference. The department shall pay any refund to the participant, up to the amount received from the participant. Any remaining amount shall be returned to the applicable account in the trust fund for transfers under sub. (5) (a) or to the trustee of a plan which was the source of a plan-to-plan transfer under sub. (5) (b). When more than one plan-to-plan transfer occurs, the department may determine which transfer is to be refunded, in whole or part. No funds transferred to the department by a plan-to-plan transfer may be refunded to a participant.

SB44-SSA1,462,4 (7) Limit on payment of corrections. The department may not require a participant to pay any shortfall under sub. (4) (c) or (5) (c) that is $25 or less. The department may not pay any refund under sub. (6) if the amount of the refund is $25 or less.

SB44-SSA1, s. 1026 Section 1026. 40.51 (6) of the statutes is amended to read:

SB44-SSA1,462,14 40.51 (6) This state shall offer to all of its employees at least 2 insured or uninsured health care coverage plans providing substantially equivalent hospital and medical benefits, including a health maintenance organization or a preferred provider plan, if those health care plans are determined by the group insurance board to be available in the area of the place of employment and are approved by the group insurance board. The group insurance board shall place each of the plans into one of 3 tiers established in accordance with standards adopted by the group insurance board. The tiers shall be separated according to the employee's share of premium costs.

SB44-SSA1, s. 1026e Section 1026e. 40.51 (10m) of the statutes is amended to read:

SB44-SSA1,462,23 40.51 (10m) Any eligible employee, as defined in s. 40.02 (25) (b) 6e. and 6g., may become covered under any health care coverage plan offered under sub. (6), without furnishing evidence of insurability, by submitting to the department, on a form provided by the department and within 30 days after the date on which the department receives the employee's application for a retirement annuity or for a lump sum payment under s. 40.25 (1), an election to obtain the coverage, by obtaining coverage subject to contractual waiting periods and by paying the cost of the required premiums, as provided in s. 40.05 (4) (ad).

SB44-SSA1, s. 1026r Section 1026r. 40.53 of the statutes is created to read:

SB44-SSA1,462,25 40.53 Pharmacy benefits purchasing pool. (1) In this section:

SB44-SSA1,463,1 (a) "Brand name" has the meaning given in s. 450.12 (1) (a).

SB44-SSA1,463,4 (b) "Eligible party" means an employer, other than the state, or a person doing business or operating an organization in this state, including a self-employed individual.

SB44-SSA1,463,5 (c) "Generic name" has the meaning given in s. 450.12 (1) (b).

SB44-SSA1,463,6 (d) "Prescription drug" has the meaning given in s. 450.01 (20).

SB44-SSA1,463,16 (2) Beginning on January 1, 2005, the group insurance board shall develop a purchasing pool for pharmacy benefits that uses a preferred list of covered prescription drugs. The pool shall consist of the state and any eligible party that satisfies the conditions established under sub. (3) for joining the pool. The group insurance board shall seek to develop the preferred list of covered prescription drugs under an evidence-based analysis that first identifies the relative effectiveness of prescription drugs within therapeutic classes for particular diseases and conditions and next identifies the least costly prescription drugs, including prescription drugs with generic names that are alternatives to prescription drugs with brand names, among those found to be equally effective.

SB44-SSA1,464,2 (3) The group insurance board shall propose conditions that an eligible party must satisfy to join the purchasing pool established under sub. (2) and shall submit the proposed conditions to the joint committee on finance. If the cochairpersons of the committee do not notify the group insurance board within 14 working days after the date of the group insurance board's submittal that the committee has scheduled a meeting for the purpose of reviewing the proposed conditions, the conditions may be implemented as proposed by the group insurance board. If, within 14 working days after the date of the group insurance board's submittal, the cochairpersons of the committee notify the group insurance board that the committee has scheduled a meeting for the purpose of reviewing the proposed conditions, the conditions may be implemented only upon approval of the committee.

SB44-SSA1, s. 1026t Section 1026t. 40.95 (1) (a) (intro.) of the statutes is amended to read:

SB44-SSA1,464,10 40.95 (1) (a) (intro.) Subject to sub. (2), the department shall administer a program that provides health insurance premium credits for the purchase of health insurance for a retired employee, or the retired employee's surviving insured dependents, and for an eligible employee under s. 40.02 (25) (b) 6e., or the eligible employee's surviving insured dependents, for the benefit of an eligible employee whose compensation includes such health insurance premium credits and who satisfies at least one of the following:

SB44-SSA1, s. 1027 Section 1027. 40.98 (2) (h) of the statutes is amended to read:

SB44-SSA1,464,17 40.98 (2) (h) The department may seek funding from any person for the payment of costs of designing, marketing, and contracting for or providing administrative services under the health care coverage program and for lapsing to the general fund any amount required under sub. (6m). Any moneys received by the department under this paragraph shall be credited to the appropriation account under s. 20.515 (2) (g).

SB44-SSA1, s. 1028 Section 1028. 40.98 (6m) of the statutes is repealed.

SB44-SSA1, s. 1030 Section 1030. 43.24 (1) (c) of the statutes is amended to read:

SB44-SSA1,464,25 43.24 (1) (c) Beginning in the fiscal year in which the total amount of state aid appropriated for public library systems under s. 20.255 (3) (e) and (qm), as determined by the department, equals at least 11.25% of the total operating expenditures for public library services from local and county sources in the calendar year ending in that fiscal year, the amount paid to each system shall be determined by adding the result of each of the following calculations:

SB44-SSA1,465,2 1. Multiply the system's percentage of the state's population by the product of the amount appropriated under s. 20.255 (3) (e) and (qm) and 0.85.

SB44-SSA1,465,4 2. Multiply the system's percentage of the state's geographical area by the product of the amount appropriated under s. 20.255 (3) (e) and (qm) and 0.075.

SB44-SSA1,465,10 3. Divide the sum of the payments to the municipalities and counties in the system under subch. I of ch. 79 for the current fiscal year, as reflected in the statement of estimated payments under s. 79.015, by the total of all payments under subch. I of ch. 79 for the current fiscal year, as reflected in the statement of estimated payments under s. 79.015, and multiply the result by the product of the amount appropriated under s. 20.255 (3) (e) and (qm) and 0.075.

SB44-SSA1, s. 1031 Section 1031. 43.24 (3) of the statutes is amended to read:

SB44-SSA1,466,4 43.24 (3) Annually, the division shall review the reports and proposed service plans submitted by the public library systems under s. 43.17 (5) for conformity with this chapter and such rules and standards as are applicable. Upon approval, the division shall certify to the department of administration an estimated amount to which each system is entitled under this section. Annually on or before December 1 of the year immediately preceding the year for which aids are to be paid, the department of administration shall pay each system 75% of the certified estimated amount from the appropriation appropriations under s. 20.255 (3) (e) and (qm). The division shall, on or before the following April 30, certify to the department of administration the actual amount to which the system is entitled under this section. On or before July 1, the department of administration shall pay each system the difference between the amount paid on December 1 of the prior year and the certified actual amount of aid to which the system is entitled from the appropriation appropriations under s. 20.255 (3) (e) and (qm). The division may reduce state aid payments when any system or any participant thereof fails to meet the requirements of sub. (2). Beginning September 1, 1991, the division may reduce state aid payments to any system if the system or any participant in the system fails to meet the requirements of s. 43.15 (4).

SB44-SSA1, s. 1032 Section 1032. 43.24 (3m) of the statutes is amended to read:

SB44-SSA1,466,8 43.24 (3m) If the appropriation appropriations under s. 20.255 (3) (e) and (qm) in any one year is are insufficient to pay the full amount under sub. (1), state aid payments shall be prorated among the library systems entitled to such aid.

SB44-SSA1, s. 1033 Section 1033. 43.70 (3) of the statutes is amended to read:

SB44-SSA1,466,24 43.70 (3) Immediately upon making such apportionment, the state superintendent shall certify to the department of administration the estimated amount that each school district is entitled to receive under this section and shall notify each school district administrator of the estimated amount so certified for his or her school district. The department of administration shall issue its warrants upon which the state treasurer shall distribute each school district's aid entitlement in one payment on or before May 1. The amount paid to each school district shall be based upon the amount in the appropriation account under s. 20.255 (2) (s) on April 15. All moneys distributed under this section shall be expended for the purchase of instructional materials from the state historical society for use in teaching Wisconsin history and for the purchase of library books and other instructional materials for school libraries, but not for public library facilities operated by school districts under s. 43.52, in accordance with rules promulgated by the state superintendent. Appropriate records of such purchases shall be kept and necessary reports thereon shall be made to the state superintendent.

SB44-SSA1, s. 1034 Section 1034. Chapter 44 (title) of the statutes is amended to read:

SB44-SSA1,467,5 CHAPTER 44 HISTORICAL SOCIETIES, and ARTS BOARD and technology for educational achievement in Wisconsin board

SB44-SSA1, s. 1034s Section 1034s. 44.53 (1) (fm) of the statutes is repealed.

SB44-SSA1, s. 1034t Section 1034t. 44.53 (2) (am) of the statutes is repealed.

SB44-SSA1, s. 1035 Section 1035. Subchapter IV (title) of chapter 44 [precedes 44.70] of the statutes is repealed.

SB44-SSA1, s. 1036d Section 1036d. 44.70 (intro.) of the statutes is renumbered 16.99 (intro.).

SB44-SSA1, s. 1037 Section 1037. 44.70 (1) of the statutes is repealed.

SB44-SSA1, s. 1038d Section 1038d. 44.70 (1d) of the statutes is renumbered 16.99 (1d).

SB44-SSA1, s. 1039d Section 1039d. 44.70 (1m) of the statutes is renumbered 16.99 (1m).

SB44-SSA1, s. 1040 Section 1040. 44.70 (2) of the statutes is repealed.

SB44-SSA1, s. 1041d Section 1041d. 44.70 (2g) of the statutes is renumbered 16.99 (2g) and amended to read:

SB44-SSA1,467,21 16.99 (2g) "Educational agency" means a school district, charter school sponsor, secured correctional facility, private school, cooperative educational service agency, technical college district, private college, public library system, public library board, public museum, the Wisconsin Center for the Blind and Visually Impaired, or the Wisconsin Educational Services Program for the Deaf and Hard of Hearing.

SB44-SSA1, s. 1042d Section 1042d. 44.70 (3) of the statutes is renumbered 16.99 (3).

SB44-SSA1, s. 1043d Section 1043d. 44.70 (3d) of the statutes is renumbered 16.99 (3d).

SB44-SSA1, s. 1044d Section 1044d. 44.70 (3g) of the statutes is renumbered 16.99 (3g).

SB44-SSA1, s. 1045d Section 1045d. 44.70 (3j) of the statutes is renumbered 16.99 (3j).