Feed for /2011/related/proposals/ab318 PDF
LRB-2567/2
RAC:kjf:rs
2011 - 2012 LEGISLATURE
October 12, 2011 - Introduced by Representatives Stroebel, Wynn, August,
Bernier, Craig, Endsley, Kapenga, Kestell, Kleefisch, Klenke, Knilans,
Knudson, Kuglitsch, LeMahieu, Litjens, Nass, Petersen, Pridemore, Rivard,
Severson, Steineke, Strachota, Tauchen, Thiesfeldt
and Weininger,
cosponsored by Senators Vukmir, Darling, Grothman and Lazich. Referred to
Committee on Insurance.
AB318,1,4 1An Act to amend 40.22 (2) (L), 40.26 (1) and 40.26 (2) (intro.); and to create
240.02 (25) (a) 7., 40.02 (25) (b) 5m. and 40.26 (1m) of the statutes; relating to:
3post-retirement employment of annuitants under the Wisconsin Retirement
4System and granting rule-making authority.
Analysis by the Legislative Reference Bureau
Under current law, when a participant in the Wisconsin Retirement System
(WRS) terminates covered employment and begins to receive an annuity he or she
may return to covered employment and either terminate the annuity and again
become a participating employee in the WRS or, instead, continue to receive the
annuity, as well as wages from covered employment. If a participant continues to
receive the annuity, the participant may not be a participating employee in the WRS
and, in the case of state employment, is not eligible for group insurance benefits
provided to participating employees, and may not use any of his or her employment
service as a rehired annuitant for any WRS purposes. If the participant terminates
the annuity, the participant returns to participating employee status and is eligible
for all group insurance benefits provided other participating employees, as well as
is able to accumulate additional years of creditable service under the WRS for the
additional period of covered employment.
This bill provides that, beginning on the bill's effective date, if a participant in
the WRS, who is receiving an annuity, or a disability annuitant who has attained his
or her normal retirement date, is appointed to a position in covered employment in
which he or she is expected to work at least one-half of what is considered full-time

employment by the Department of Employee Trust Funds (DETF), as determined by
rule, the participant's annuity must be terminated and no annuity payment is
payable until after the participant terminates covered employment. In addition,
such a participant cannot again become a participating employee in the WRS, with
the result that no additional years of creditable service may be acquired as a result
of the post-retirement employment. The bill, however, does provide that for
annuitants who again become state employees, they are eligible to receive group
insurance benefits provided to other state employees who are participating
employees in the WRS.
The bill also provides that if a participant receiving a retirement annuity, or a
disability annuitant who has attained his or her normal retirement date, enters into
a contract to provide employee services with a participating employer after the bill's
effective date, and he or she is expected to work at least one-half of what is
considered full-time employment by DETF, as determined by rule, the participant's
retirement annuity must be terminated and no annuity payment is payable until
after the participant no longer provides employee services under the contract.
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.
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:
AB318, s. 1 1Section 1. 40.02 (25) (a) 7. of the statutes is created to read:
AB318,2,62 40.02 (25) (a) 7. A participant who is employed by a state agency after becoming
3an annuitant and who terminates his or her retirement annuity during the period
4of covered employment pursuant to s. 40.26 (1m) (a). This subdivision shall not apply
5to a participant who is employed by a state agency as a limited term employee under
6s. 230.26.
AB318, s. 2 7Section 2. 40.02 (25) (b) 5m. of the statutes is created to read:
AB318,3,28 40.02 (25) (b) 5m. A participant who is employed by a state agency after
9becoming an annuitant and who terminates his or her retirement annuity during the
10period of covered employment pursuant to s. 40.26 (1m) (a). This subdivision shall

1not apply to a participant who is employed by a state agency as a limited term
2employee under s. 230.26.
AB318, s. 3 3Section 3. 40.22 (2) (L) of the statutes is amended to read:
AB318,3,64 40.22 (2) (L) The employee is employed by a participating employer after the
5person becomes an annuitant, unless the service is after the annuity is terminated
6under s. 40.26 (1).
AB318, s. 4 7Section 4. 40.26 (1) of the statutes is amended to read:
AB318,3,158 40.26 (1) Except as provided in sub. (1m) and ss. 40.05 (2) (g) 2. and 40.23 (1)
9(am), if a participant receiving a retirement annuity, or a disability annuitant who
10has attained his or her normal retirement date, receives earnings that are subject
11to s. 40.05 (1) or that would be subject to s. 40.05 (1) except for the exclusion specified
12in s. 40.22 (2) (L), the annuity shall be terminated and no annuity payment shall be
13payable after the month in which the participant files with the department a written
14election to be included within the provisions of the Wisconsin retirement system as
15a participating employee.
AB318, s. 5 16Section 5. 40.26 (1m) of the statutes is created to read:
AB318,3,2317 40.26 (1m) (a) If a participant receiving a retirement annuity, or a disability
18annuitant who has attained his or her normal retirement date, is appointed to a
19position in covered employment after the effective date of this paragraph .... [LRB
20inserts date], in which he or she is expected to work at least one-half of what is
21considered full-time employment by the department, as determined by rule, the
22participant's retirement annuity shall be terminated and no annuity payment shall
23be payable until after the participant terminates covered employment.
AB318,4,624 (b) If a participant receiving a retirement annuity, or a disability annuitant
25who has attained his or her normal retirement date, enters into a contract to provide

1employee services with a participating employer after the effective date of this
2paragraph .... [LRB inserts date], and he or she is expected to work at least one-half
3of what is considered full-time employment by the department, as determined by
4rule, the participant's retirement annuity shall be terminated and no annuity
5payment shall be payable until after the participant no longer provides employee
6services under the contract.
AB318, s. 6 7Section 6. 40.26 (2) (intro.) of the statutes is amended to read:
AB318,4,108 40.26 (2) (intro.) Upon termination of an annuity under sub. (1) or (1m), the
9retirement account of the participant whose annuity is so terminated shall be
10reestablished on the following basis:
AB318, s. 7 11Section 7. Nonstatutory provisions.
AB318,4,2212 (1) Promulgation of emergency rules for reentry into service. The
13department of employee trust funds may use the procedure under section 227.24 of
14the statutes to promulgate rules under section 40.26 (1m) of the statutes, as created
15by this act. Notwithstanding section 227.24 (1) (c) and (2) of the statutes, emergency
16rules promulgated under this subsection remain in effect until January 1, 2013, or
17the date on which permanent rules take effect, whichever is sooner.
18Notwithstanding section 227.24 (1) (a) and (3) of the statutes, the department is not
19required to provide evidence that promulgating a rule under this subsection as an
20emergency rule is necessary for the preservation of the public peace, health, safety,
21or welfare and is not required to provide a finding of emergency for a rule
22promulgated under this subsection.
AB318,4,2323 (End)
Loading...
Loading...