AB352: Bill Text

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 time, the participant's annuity must be terminated and no annuity payment is payable until after the participant terminates covered employment.

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 time, 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:

AB352, s. 1 Section 1. 40.22 (2) (a) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB352,3,2 40.22 (2) (a) Except as provided in sub. (2m), the employee was initially employed by a participating employer a participating employee before July 1, 2011, and is not expected to work at least one-third of what is considered full-time employment by the department, as determined by rule.

AB352, s. 2 Section 2. 40.22 (2) (am) of the statutes, as created by 2011 Wisconsin Act 32, is amended to read:

AB352,3,12 40.22 (2) (am) Except as provided in sub. (2r), the employee was initially employed by a participating employer on or after July 1, 2011, and is not expected to work at least two-thirds one-half of what is considered full-time employment by the department, as determined by rule. For teachers and educational support personnel employees, one-half of what is considered full-time employment is 660 hours of employment with an employer in one year. For all other employees, one-half of what is considered full-time employment is 1,000 hours of employment with an employer in one year.

AB352, s. 3 Section 3. 40.22 (2m) (intro.) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB352,3,21 40.22 (2m) (intro.) An employee who was initially employed by a participating employer a participating employee before July 1, 2011, who is not expected to work at least one-third of what is considered full-time employment by the department, as determined by rule, and who is not otherwise excluded under sub. (2) from becoming a participating employee shall become a participating employee if he or she is subsequently employed by the state agency or other participating employer for either of the following periods:

AB352, s. 4 Section 4. 40.22 (2r) of the statutes, as created by 2011 Wisconsin Act 32, is amended to read:

AB352,4,5 40.22 (2r) An employee who was initially employed by a participating employer on or after July 1, 2011, who is not expected to work at least two-thirds one-half of what is considered full-time employment by the department, as determined by rule provided under sub. (2) (am), and who is not otherwise excluded under sub. (2) from becoming a participating employee shall become a participating employee if he or she is subsequently employed by the state agency or other participating employer for either of the following periods:

AB352,4,9 (a) At least one year for at least two-thirds one-half of what is considered full-time employment by the department, as determined by rule, or, for an educational support personnel employee, at least one year for at least two-thirds of what is considered full-time employment for a teacher provided under sub. (2) (am).

AB352,4,10 (b) At least 1,200 1,000 hours in the immediately preceding 12-month period.

AB352, s. 5 Section 5. 40.22 (3) (b) 2. of the statutes, as created by 2011 Wisconsin Act 32, is amended to read:

AB352,4,17 40.22 (3) (b) 2. The first day after completion of one year of employment for at least two-thirds one-half of what is considered full-time employment by the department, as determined by rule provided under sub. (2) (am), if the person becomes a participating employee under sub. (2r) after the employer's effective date of participation.

AB352, s. 6 Section 6. 40.23 (1) (a) 1. of the statutes is amended to read:

AB352,4,23 40.23 (1) (a) 1. The participant is separated, regardless of cause, and continues to be separated until the annuity effective date, the date 30 days after the application is received by the department, or the date 30 180 days after separation, whichever is later latest, from all employment meeting the qualifications for inclusion specified in s. 40.22 for any participating employer.

AB352, s. 7 Section 7. 40.26 (1) of the statutes is amended to read:

AB352,5,8 40.26 (1) Except as provided in sub. (1m) and ss. 40.05 (2) (g) 2. and 40.23 (1) (am), if a participant receiving a retirement annuity, or a disability annuitant who has attained his or her normal retirement date, receives earnings that are subject to s. 40.05 (1) or that would be subject to s. 40.05 (1) except for the exclusion specified in s. 40.22 (2) (L), the annuity shall be terminated and no annuity payment shall be payable after the month in which the participant files with the department a written election to be included within the provisions of the Wisconsin retirement system as a participating employee.

AB352, s. 8 Section 8. 40.26 (1m) of the statutes is created to read:

AB352,5,16 40.26 (1m) (a) If a participant receiving a retirement annuity, or a disability annuitant who has attained his or her normal retirement date, is appointed to a position in covered employment after the effective date of this paragraph .... [LRB inserts date], in which he or she is expected to work at least one-half of what is considered full-time employment, as provided under s. 40.22 (2) (am), the participant's retirement annuity shall be terminated and no annuity payment shall be payable until after the participant terminates covered employment.

AB352,5,24 (b) 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 effective date of this paragraph .... [LRB inserts date], and he or she is expected to work at least one-half of what is considered full-time employment, as provided under s. 40.22 (2) (am), the participant's retirement annuity shall be terminated and no annuity payment shall be payable until after the participant no longer provides employee services under the contract.

AB352, s. 9 Section 9. 40.26 (2) (intro.) of the statutes is amended to read:

AB352,6,3 40.26 (2) (intro.) Upon termination of an annuity under sub. (1) or (1m), the retirement account of the participant whose annuity is so terminated shall be reestablished on the following basis:

AB352, s. 10 Section 10. Initial applicability.

AB352,6,8 (1) The treatment of section 40.23 (1) (a) 1. of the statutes first applies to participating employees under the Wisconsin Retirement System who terminate covered employment under the Wisconsin Retirement System on the effective date of this subsection.

AB352,6,9 (End)