AB361: Bill Text

AB361,1,5 An Act to repeal 40.23 (2m) (f), 40.23 (2m) (fm) and 40.23 (2m) (g); to amend 40.23 (1) (a) (intro.), 40.23 (1) (am) 2., 40.23 (1) (bm), 40.23 (2m) (b), 40.24 (1) (f), 40.25 (2), 40.63 (7) and 40.63 (8) (b); and to create 111.91 (2) (mo) of the statutes; relating to: minimum age for qualifying for a retirement annuity under the Wisconsin Retirement System.

Analysis by the Legislative Reference Bureau

Current law permits individuals in the Wisconsin Retirement System (WRS) to qualify for a retirement annuity beginning at age 55 if they are not protective occupation participants. (Protective occupation participants may qualify for such an annuity beginning at age 50.) This bill provides that WRS participants, other than protective occupation participants, who terminate covered employment after the bill's effective date must have reached the age of 59.5 to qualify for a retirement annuity under the WRS.

This bill will be referred to the Joint Survey Committee on Retirement Systems for a detailed analysis, which will be printed as an appendix to this bill.

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:

AB361, s. 1 Section 1. 40.23 (1) (a) (intro.) of the statutes is amended to read:

AB361,2,7 40.23 (1) (a) (intro.) Except as provided in par. (am), any participant who has attained age 55 59.5, and any protective occupation participant who has attained age 50, on or before the annuity effective date shall be entitled to a retirement annuity in accordance with the actuarial tables in effect on the effective date of the annuity if the participant submits an application for a retirement annuity on a form furnished by the department and all of the following apply:

AB361, s. 2 Section 2. 40.23 (1) (am) 2. of the statutes is amended to read:

AB361,2,20 40.23 (1) (am) 2. Any participant who has attained age 55 59.5 and who is a participant because of employment other than part-time service as an elected official and who is also a participating employee because of part-time service as an elected official may, after termination of all covered employment other than service as a part-time elected official, waive further participation under the fund for his or her current, and any future, part-time service as an elected official. Any election under this paragraph is irrevocable and is effective beginning the day after the date of election. Notwithstanding par. (a), any participant who elects under this paragraph may receive a retirement annuity for all service under the fund credited to the participant to the date he or she elects. The date a participant elects under this paragraph is deemed to be the date of separation from the last participating employer by which that participant was employed.

AB361, s. 3 Section 3. 40.23 (1) (bm) of the statutes is amended to read:

AB361,3,2 40.23 (1) (bm) If an application by a participant age 55 59.5 or over, or by a protective occupation participant age 50 or over, for long-term disability insurance benefits is disapproved under rules promulgated by the department, the date which would have been the effective date for the insurance benefits shall be the retirement annuity effective date if requested by the applicant within 60 days of the disapproval or, if the disapproval is appealed, within 60 days of the final disposition of the appeal.

AB361, s. 4 Section 4. 40.23 (2m) (b) of the statutes is amended to read:

AB361,3,18 40.23 (2m) (b) Except as provided in s. 40.26, subject to the limitations under section 415 of the Internal Revenue Code, the initial amount of the normal form annuity shall be an amount equal to 70%, or 65% for participants whose formula rate is determined under par. (e) 3. or 85% for participants whose formula rate is determined under par. (e) 4., of the participant's final average earnings plus the amount which can be provided under pars. (c) and (d) or, if less, shall be in the monthly amount equal to the sum of the amounts determined under pars. (c), (d) and (e) as modified by par. (f) and in accordance with the actuarial tables in effect on the annuity effective date. If the participant has creditable service under both par. (e) 4. and another category under par. (e), the percent applied under this paragraph shall be determined by multiplying the percent that each type of creditable service is of the participant's total creditable service by 85% and 65% or 70%, respectively, and adding the results, except that the resulting benefit may not be less than the amount of the normal form annuity that could be paid based solely on the creditable service under par. (e) 4.

AB361, s. 5 Section 5. 40.23 (2m) (f) of the statutes is repealed.

AB361, s. 6 Section 6. 40.23 (2m) (fm) of the statutes is repealed.

AB361, s. 7 Section 7. 40.23 (2m) (g) of the statutes is repealed.

AB361, s. 8 Section 8. 40.24 (1) (f) of the statutes is amended to read:

AB361,4,10 40.24 (1) (f) From accumulated additional contributions made under s. 40.05 (1) (a) 5. only, an annuity certain payable for and terminating after the number of months specified by the applicant, regardless of whether the applicant dies before or after the number of months specified, provided that the monthly amount of the annuity certain is at least equal to the minimum amount established under s. 40.25 (1) (a). Subject to the period of distribution required under s. 40.23 (4) (b) 2., the number of months specified shall not exceed 180 and shall not be less than 24. If the death of the annuitant occurs prior to the expiration of the certain period, the remaining payments shall be made in accordance with s. 40.73 (2) without regard to any other annuity payments payable to the beneficiary. An annuity under this paragraph may be initiated prior to any other annuity amount provided under this subchapter and prior to age 55 59.5 if all other qualifications for receiving an annuity payment are met.

AB361, s. 9 Section 9. 40.25 (2) of the statutes is amended to read:

AB361,4,19 40.25 (2) Subject to sub. (2t), if all requirements for payment of a retirement annuity are met except attainment of age 55 59.5 or age 50 for protective occupation participants, a separation benefit may be paid, if the participant's written application for a separation benefit is received by the department prior to the participant's 55th birthday the day on which the participant turns age 59.5 or the participant's 50th birthday for protective occupation participants, in an amount equal to the additional and employee required contribution accumulations of the participant on the date the application for a separation benefit is approved.

AB361, s. 10 Section 10. 40.63 (7) of the statutes is amended to read:

AB361,5,2 40.63 (7) If an application, by a participant age 55 59.5 or over, or by a protective occupation participant age 50 or over, for any disability annuity is disapproved, the date which would have been the disability annuity effective date shall be the retirement annuity effective date if so requested by the applicant within 60 days of the disapproval or, if the disapproval is appealed, within 60 days of final disposition of the appeal.

AB361, s. 11 Section 11. 40.63 (8) (b) of the statutes is amended to read:

AB361,5,6 40.63 (8) (b) For purposes of s. 40.23 (2m) (e) and (f) only, the participant is deemed to have attained the participant's normal retirement date on the effective date of the annuity.

AB361, s. 12 Section 12. 111.91 (2) (mo) of the statutes is created to read:

AB361,5,9 111.91 (2) (mo) Minimum age under s. 40.23 (1) at which an individual is entitled to a retirement annuity under the Wisconsin retirement system.

AB361, s. 13 Section 13. Initial applicability.

AB361,5,12 (1) This act first applies to participants in the Wisconsin retirement system who terminate covered employment on the effective date of this subsection.

AB361,5,13 (End)