Amendment JR2 SA1-SSA1-AB1

LRBb2714/1

RAC:jld:cmh

January 2002 Special Session

2001 - 2002 LEGISLATURE

SENATE AMENDMENT 1, TO SENATE SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 1

March 29, 2002 - Offered by Senators M. Meyer and Wirch.

AB1-SSA1-SA1,1,1 At the locations indicated, amend the substitute amendment as follows:

AB1-SSA1-SA1,1,2 1. Page 32, line 23: after that line insert:

AB1-SSA1-SA1,1,3 " Section 100hr. 40.05 (2) (b) of the statutes is amended to read:

AB1-SSA1-SA1,2,3 40.05 (2) (b) Contributions shall be made by each participating employer for unfunded prior service liability in a percentage of the earnings of each participating employee. A separate percentage rate shall be determined for the employee occupational categories under s. 40.23 (2m) as of the employer's effective date of participation. The rates shall be sufficient to amortize as a level percent of payroll over a period of 40 years from the later of that date or January 1, 1986, the unfunded prior service liability for the categories of employees of each employer determined under s. 40.05 (2) (b), 1981 stats., increased to reflect any creditable prior service granted on or after January 1, 1986, increased to reflect the effect of 1983 Wisconsin Act 141, increased at the end of each calendar year after January 1, 1986, by interest at the assumed rate on the unpaid balance at the end of the year and adjusted under pars. (bu), (bv) and (bw) to (bz).

AB1-SSA1-SA1, s. 100ht Section 100ht. 40.05 (2) (bwd) of the statutes is created to read:

AB1-SSA1-SA1,2,9 40.05 (2) (bwd) The employer contribution rate under par. (b) for state agencies shall be adjusted to reflect the cost of providing the retirement benefits under 2001 Wisconsin Act .... (this act), section 9116 (1c) (c), and that rate shall be sufficient to amortize the unfunded prior service liability of the state agencies over a 25-year amortization period.

AB1-SSA1-SA1, s. 100ig Section 100ig. 40.05 (2) (bwm) of the statutes is created to read:

AB1-SSA1-SA1,2,20 40.05 (2) (bwm) The employer contribution rate under par. (b) for employers that make an election under 2001 Wisconsin Act .... (this act), section 9116 (1c) (e), shall be adjusted to reflect the cost of providing the retirement benefits under 2001 Wisconsin Act .... (this act), section 9116 (1c) (c), and that rate shall be sufficient to amortize the unfunded prior service liability of the employers over a 25-year amortization period. The department shall pool all employers that make the election under 2001 Wisconsin Act .... (this act), section 9116 (1c) (e), into a single employing unit for the purpose of calculating the increase in unfunded prior service liability rates under par. (b) that results from providing the retirement benefits under 2001 Wisconsin Act .... (this act), section 9116 (1c) (c).

AB1-SSA1-SA1, s. 100jc Section 100jc. 40.05 (2) (c) of the statutes is amended to read:

AB1-SSA1-SA1,3,4 40.05 (2) (c) The percentage rates determined under this subsection shall become effective as of the beginning of the calendar year to which they are applicable and shall remain in effect during the calendar year, except that the secretary, upon the written certification of the actuary, may change any percentage determined under par. (b) during any calendar year for the purpose of reflecting any reduced obligation which results from any payment of advance contributions or any increased obligation that results from providing the retirement benefits under 2001 Wisconsin Act .... (this act), section 9116 (1c) (c).".

AB1-SSA1-SA1,3,5 2. Page 355, line 15: after that line insert:

AB1-SSA1-SA1,3,7 "(1c) Early retirement option for certain participating employees in the Wisconsin retirement system.

AB1-SSA1-SA1,3,10 (a) Definitions. The definitions in section 40.02 of the statutes are applicable in this subsection, except that "elected official" means a participating employee elected to an office by vote of the people.

AB1-SSA1-SA1,3,15 (b) Eligibility for early retirement benefits. All of the following individuals who are participating employees on the effective date of this paragraph and who were employed by a participating employer, or on a leave of absence from a position with a participating employer, on February 1, 2002, are eligible for the early retirement benefits provided under paragraphs (c) and (d):

AB1-SSA1-SA1,3,20 1. Any state agency employee, other than an elected official or an employee of the board of regents of the University of Wisconsin System, who has at least 10 years of creditable service, who terminates covered employment during the period that begins on July 1, 2002, and ends on January 1, 2003, and who receives an immediate annuity.

AB1-SSA1-SA1,3,24 2. Any employee of the board of regents of the University of Wisconsin System, who has at least 10 years of creditable service, who terminates covered employment during the period that begins on January 1, 2003, and ends on July 1, 2003, and who receives an immediate annuity.

AB1-SSA1-SA1,4,6 3. Any employee who is not a state agency employee, a school district employee, a technical college district employee, or an elected official, whose employer has elected under paragraph (e) to make its employees eligible for the early retirement benefits, who has at least 10 years of creditable service, who terminates covered employment during the period that begins on July 1, 2002, and ends on January 1, 2003, and who receives an immediate annuity.

AB1-SSA1-SA1,4,11 4. Any employee who is a school district employee or a technical college district employee, whose employer has elected under paragraph (e) to make its employees eligible for the early retirement benefits, who has at least 10 years of creditable service, who terminates covered employment during the period that begins on January 1, 2003, and ends on July 1, 2003, and who receives an immediate annuity.

AB1-SSA1-SA1,4,16 (c) Early retirement benefits: calculation of retirement annuity and receipt of other benefits. Any participating employee described in paragraph (b) shall have all of the following apply for the purpose of calculating his or her retirement annuity under section 40.23 of the statutes and for receiving any benefit provided under chapter 40 of the statutes:

AB1-SSA1-SA1,4,18 1. The earliest retirement date for the employee under section 40.23 (1) of the statutes is reduced by 2 years.

AB1-SSA1-SA1,4,24 2. The employee's years of creditable service are increased by 3 years. For the purpose of calculating the value of a money purchase annuity under section 40.23 (3) of the statutes, the initial monthly amount of the retirement annuity in the normal form shall be increased by the amount that equals the increase in the initial monthly amount of the retirement annuity under section 40.23 (2m) of the statues that results from providing the additional 3 years of creditable service.

AB1-SSA1-SA1,5,2 3. The employee's age is increased by 2 years, except for the purpose specified under section 40.23 (2m) (f) 3. of the statutes.

AB1-SSA1-SA1,5,4 4. Any limitation in the initial retirement annuity amount under section 40.23 (2m) (b) of the statutes shall not apply.

AB1-SSA1-SA1,5,9 (d) Early retirement benefits: health insurance premium credits. For any participating employee described in paragraph (b) 1. or 2., the number of health insurance premium credits provided to the employee under subchapter IX of chapter 40 are increased by the number that yields an additional $20,000 in health insurance premium credits.

AB1-SSA1-SA1,5,13 (e) Early retirement option for employers other than the state. Any employer, other than a state agency, may elect to make its participating employees eligible for the early retirement benefits provided under paragraph (c) by notifying the department, in writing, before July 1, 2002.".

AB1-SSA1-SA1,5,14 3. Page 368, line 8: after that line insert:

AB1-SSA1-SA1,5,16 "(4c) Compensation and fringe benefit savings for state employees who elect to receive retirement annuities during part of the 2002-03 fiscal year.

AB1-SSA1-SA1,5,19 (a) The definitions in section 20.001 of the statutes are applicable in this subsection, except that "state agency" does not include the department of employee trust funds or the investment board.

AB1-SSA1-SA1,6,2 (b) The secretary of administration shall determine for each state agency the amount that the agency would have been required to expend for compensation and fringe benefits during the period that begins on January 1, 2003, and ends on June 30, 2003, for state employees who elect to receive retirement benefits under Section 9116 (1c) (c) of this act and from each appropriation from which the moneys would have been expended, other than appropriations of federal revenues.

AB1-SSA1-SA1,6,8 (c) From each sum certain appropriation of general purpose revenue identified in paragraph (b), the secretary of administration shall lapse to the general fund the amount specified in paragraph (b) that would otherwise have been expended from each of the appropriations. After the secretary of administration makes the lapse, each of the sum certain appropriations is decreased by the amount specified in paragraph (b) for that appropriation.

AB1-SSA1-SA1,6,12 (d) For each sum sufficient appropriation of general purpose revenue identified in paragraph (b), the expenditure estimate for the appropriation during the 2002-03 fiscal year is reestimated to subtract the amount specified in paragraph (b) for that appropriation.

AB1-SSA1-SA1,6,19 (e) From each appropriation of program revenues or program revenues-service identified in paragraph (b), the secretary of administration shall lapse to the general fund the amount specified in paragraph (b) that would otherwise have been expended from each of the appropriations. After the secretary of administration makes the lapse, each of the sum certain program revenues or program revenues-service appropriations is decreased by the amount specified in paragraph (b) for that appropriation.

AB1-SSA1-SA1,7,5 (f) From each appropriation of segregated fund revenues or segregated fund revenues — service identified in paragraph (b), the secretary of administration shall lapse to the underlying fund the amount specified in paragraph (b) that would otherwise have been expended from each of the appropriations. After the secretary of administration makes the lapse, each of the sum certain segregated revenues or segregated revenues — service appropriations is decreased by the amount specified in paragraph (b) for that appropriation and the expenditure estimate for each of the appropriations that are not sum certain appropriations is reestimated to subtract the amount specified in paragraph (b) for that appropriation. The secretary of administration shall then transfer the lapsed amounts and an amount equal to the amount subtracted from the estimates to the general fund.

AB1-SSA1-SA1,7,11 (4cc) Employer obligation to fill certain vacant positions. Any employer that elects under Section 9116 (1c) (e) of this act to provide the retirement benefits under Section 9116 (1c) (c) of this act to its employees shall fill, no later than January 1, 2004, all law enforcement and fire fighting positions that are vacated by employees who receive the retirement benefits under Section 9116 (1c) (c) of this act, but only if the employer can fill the positions with qualified individuals.".

AB1-SSA1-SA1,7,12 (End)