LRBb3138/1
RAC:jlg:km
1997 - 1998 LEGISLATURE
ASSEMBLY AMENDMENT 25,
TO ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 1997 ASSEMBLY BILL 768
May 6, 1998 - Offered by Representatives Travis and Kunicki.
AB768-ASA1-AA25,1,6
21. Page 11, line 13: after "enforcement;" insert "making an accelerated
3distribution from the transaction amortization account of the fixed retirement
4investment trust of the employe trust fund; increasing the retirement formula
5multiplier for participating employes in the Wisconsin retirement system; affecting
6certain assumptions for valuing the liabilities of the Wisconsin retirement system;".
AB768-ASA1-AA25,2,79
40.02
(7) "Assumed rate" means the probable average effective rate expected
10to be earned for the fixed annuity division on a long-term basis. The assumed rate
11shall be a rate of
7.5% 8% and the actuarial assumption for across-the-board salary
12increases for the purpose of valuing the liabilities of the Wisconsin retirement system
1shall be
1.9% 3.2% less than the assumed rate unless due to changed economic
2circumstances the actuary recommends and the board approves a different rate. The
3assumed rate for a calendar year shall be used for all calculations of required
4contributions and reserves for participants, except as provided in s. 40.04 (4) (a) 2.
5and 2m., and the amount of any lump sum benefit paid instead of an annuity, except
6it shall not be used for any purpose for which the assumed benefit rate is to be used
7under sub. (6).".
AB768-ASA1-AA25,2,1210
40.23
(2m) (e) 1. For each participant for creditable service of a type not
11otherwise specified in this paragraph
that is credited before January 1, 1998, 1.8%;
12for such creditable service that is credited on or after January 1, 1998, 1.6%.
AB768-ASA1-AA25,2,1614
40.23
(2m) (e) 2. For each participant for creditable service as an elected official
15or as an executive participating employe
that is credited before January 1, 1998,
162.2%; for such creditable service that is credited on or after January 1, 1998, 2%.
AB768-ASA1-AA25,2,2118
40.23
(2m) (e) 3. For each participant subject to titles II and XVIII of the federal
19social security act, for service as a protective occupation participant
that is credited
20before January 1, 1998, 2.2%; for such creditable service that is credited on or after
21January 1, 1998, 2%.
AB768-ASA1-AA25,3,223
40.23
(2m) (e) 4. For each participant not subject to titles II and XVIII of the
24federal social security act, for service as a protective occupation participant
that is
1credited before January 1, 1998, 2.7%; for such creditable service that is credited on
2or after January 1, 1998, 2.5%.".
AB768-ASA1-AA25,3,6
5(1b) Transfer of funds from the transaction amortization account of the
6fixed retirement investment trust.
AB768-ASA1-AA25,3,12
7(a) On the effective date of this paragraph, $2,100,000,000 shall be distributed
8from the transaction amortization account of the fixed retirement investment trust
9to the employe accumulation, employer accumulation and annuity reserves of the
10fixed retirement investment trust in an amount equal to a percentage of the total
11distribution determined by dividing each reserve's balance on the prior January 1 by
12the total balance of the fixed retirement investment trust on the prior January 1.
AB768-ASA1-AA25,3,16
13(b) The increase in the employer accumulation reserve that results from the
14distribution under paragraph (a) shall, on the recommendation of the actuary, be
15applied to funding any liabilities created by the treatment of section 40.23 (2m) (e)
161., 2., 3. and 4. of the statutes in this act.
AB768-ASA1-AA25,3,20
17(c) The total amount distributed to the employe accumulation reserve under
18paragraph (a) shall be equitably credited to participants' accounts based on their
19account balances as of January 1, 1998, pursuant to section 40.04 (4) (a) 2. of the
20statutes.
AB768-ASA1-AA25,3,22
21(d) The total amount distributed to the annuity reserve under paragraph (a)
22shall be distributed as provided under section 40.27 (2) of the statutes.
AB768-ASA1-AA25,3,23
23(1bc) Determination of employer required contribution rate.
AB768-ASA1-AA25,4,4
1(a) The employe trust funds board shall recalculate all Wisconsin retirement
2system contributions for calendar year 1998 no later than March 1, 1998, or the first
3day of the 3rd month that begins after the effective date of this subsection, whichever
4is later.
AB768-ASA1-AA25,4,7
5(1bd) Administration of benefit improvements. No later than the first day of
6the 6th month beginning after the effective date of this subsection, the department
7of employe trust funds shall do all of the following:
AB768-ASA1-AA25,4,9
8(a) Implement the changes required by the amendments to section 40.23 (2m)
9(e) 1., 2., 3. and 4. of the statutes in this act.
AB768-ASA1-AA25,4,13
10(b) If necessary, adjust the benefits paid to any participant in the Wisconsin
11retirement system who terminated covered employment between the effective date
12of this subsection and the first day of the 6th month beginning after the effective date
13of this paragraph.".
AB768-ASA1-AA25,4,18
15"
(2b) Formula multiplier; maximum annuity amount. The treatment of section
1640.23 (2m) (e) 1., 2., 3. and 4. of the statutes first applies to the calculation of
17retirement benefits of individuals who are participating employes in the Wisconsin
18retirement system on the effective date of this subsection.".
