Amendment AA1-AB414

LRBa0969/1

RAC:hmh:pg

2001 - 2002 LEGISLATURE

ASSEMBLY AMENDMENT 1, TO 2001 ASSEMBLY BILL 414

January 14, 2002 - Offered by Representative Musser.

AB414-AA1,1,1 At the locations indicated, amend the bill as follows:

AB414-AA1,1,4 1. Page 1, line 3: after "system" insert "and granting creditable service under the Wisconsin retirement system for service in the federal public health service and national oceanic and atmospheric administration".

AB414-AA1,1,5 2. Page 2, line 1: before that line insert:

AB414-AA1,1,6 " Section 1c. 40.02 (15) (a) (intro.) of the statutes is amended to read:

AB414-AA1,1,11 40.02 (15) (a) (intro.) "Creditable military, federal public health, or national oceanic and atmospheric administration service" means active service in the U.S. armed forces, federal public health service, or national oceanic and atmospheric administration, based on the total period of service in the U.S. armed forces, federal public health service, or national oceanic and atmospheric administration, provided:

AB414-AA1, s. 1g Section 1g. 40.02 (15) (a) 1. to 4. of the statutes are amended to read:

AB414-AA1,2,3 40.02 (15) (a) 1. The participant enlisted or was ordered or inducted into active service in the U.S. armed forces or joined the federal public health service or national oceanic and atmospheric administration;

AB414-AA1,2,6 2. The participant left the employment of a participating employer to enter the U.S. armed forces, federal public health service, or national oceanic and atmospheric administration;

AB414-AA1,2,14 3. The participant returns to the employment of the employer whose employment the participant left to enter the U.S. armed forces, federal public health service, or national oceanic and atmospheric administration within 180 days of release or discharge from the armed forces or resignation from the federal public health service or national oceanic and atmospheric administration, or within 180 days of release from hospitalization because of injury or sickness resulting from service in the armed forces, federal public health service, or national oceanic and atmospheric administration;

AB414-AA1,2,17 4. The period of service in the U.S. armed forces, federal public health service, or national oceanic and atmospheric administration is not more than 4 years, unless involuntarily extended for a longer period;

AB414-AA1, s. 1L Section 1L. 40.02 (15) (a) 6. of the statutes is amended to read:

AB414-AA1,2,22 40.02 (15) (a) 6. The participant upon return from service in the U.S. armed forces, federal public health service, or national oceanic and atmospheric administration furnishes evidence required to establish the participant's rights under this chapter; and

AB414-AA1, s. 1p Section 1p. 40.02 (15) (b) of the statutes is amended to read:

AB414-AA1,3,3 40.02 (15) (b) The creditable military service, federal public health service, or national oceanic and atmospheric administration under par. (a) shall be the same type, as set forth in s. 40.23 (2m) (e), as the participant was receiving prior to entry into the U.S. armed forces, federal public health service, or national oceanic and atmospheric administration.

AB414-AA1, s. 1t Section 1t. 40.02 (15) (c) (intro.) of the statutes is amended to read:

AB414-AA1,3,11 40.02 (15) (c) (intro.) Notwithstanding sub. (17) (intro.) and any other law, any person who is credited with 5, 10, 15, or 20 or more years of creditable service, not counting any previously granted creditable military, federal public health, or national oceanic and atmospheric administration service, may receive creditable military, federal public health, or national oceanic and atmospheric administration service at the time of retirement for not more than 1, 2, 3, or 4 years, respectively, of active service which meets the standards under par. (a) 5., provided:".

AB414-AA1,3,12 3. Page 2, line 1: delete " Section 1" and substitute "Section 1x".

AB414-AA1,3,14 4. Page 2, line 5: after "military" insert ", federal public health, or national oceanic and atmospheric administration".

AB414-AA1,3,16 5. Page 2, line 9: after "military" insert ", federal public health, or national oceanic and atmospheric administration".

AB414-AA1,3,17 6. Page 2, line 9: after that line insert:

AB414-AA1,3,18 " Section 3m. 40.02 (15) (c) 2. and 3. of the statutes are amended to read:

AB414-AA1,3,21 40.02 (15) (c) 2. Any creditable military, federal public health, or national oceanic and atmospheric administration service otherwise granted shall be included in determining the maximum years to be granted under this paragraph.

AB414-AA1,4,2 3. Creditable military, federal public health, or national oceanic and atmospheric administration service under this paragraph shall be allocated at the time of retirement in proportion to the amount of the participant's creditable service for each of the types of creditable service set forth in s. 40.23 (2m) (e) on the date the participant attains 5, 10, 15, or 20 years of creditable service.".

AB414-AA1,4,3 7. Page 2, line 18: after that line insert:

AB414-AA1,4,4 " Section 5b. 40.02 (17) (intro.) of the statutes is amended to read:

AB414-AA1,4,20 40.02 (17) (intro.) "Creditable service" means the creditable current and prior service, expressed in years and fractions of a year to the nearest one-hundredth, for which a participating employee receives or is considered to receive earnings under sub. (22) (e) or (em) and for which contributions have been made as required by s. 40.05 (1) and (2) and creditable military, federal public health, or national oceanic and atmospheric administration service, service credited under s. 40.25 (7) and service credited under s. 40.29, expressed in years and fractions of years to the nearest one-hundredth. How much service in any annual earnings period is the full-time equivalent of one year of creditable service shall be determined by rule by the department and the rules may provide for differing equivalents for different types of employment. Except as provided under pars. (i) and (k), the amount of creditable service for periods prior to January 1, 1982, shall be the amount for which the participant was eligible under the applicable laws and rules in effect prior to January 1, 1982. No more than one year of creditable service shall be granted for any annual earnings period. Creditable service is determined in the following manner for the following persons:

AB414-AA1, s. 5d Section 5d. 40.02 (40) of the statutes is amended to read:

AB414-AA1,5,12 40.02 (40) "Leave of absence" means any period during which an employee has ceased to render services for a participating employer and receive earnings and there has been no formal termination of the employer-employee relationship. For purposes of the fund every leave of absence, except a military , federal public health service, or national oceanic and atmospheric administration leave or union service leave, shall terminate 3 years after it begins or, if earlier, upon the date specified by the employer in a notification to the department that the employer-employee relationship has terminated. A leave of absence is not deemed ended or interrupted by reason of resumption of active duty until the employee has resumed active performance of duty for 30 consecutive calendar days for at least 50% of what is considered that employee's normal work time with that employer. For the purpose of group health insurance coverage, every leave of absence due to employee layoff which has not been terminated before 3 years have elapsed shall continue for affected insured employees until an additional 2 years elapse or until sick leave credits used to pay health insurance premiums are exhausted, whichever occurs first.

AB414-AA1, s. 5f Section 5f. 40.02 (48m) (f) of the statutes is amended to read:

AB414-AA1,5,17 40.02 (48m) (f) The judgment, decree, or order requires the participant to certify, in a form prescribed by the department, all of the participant's active military, federal public health, or national oceanic and atmospheric administration service, as described in sub. (15) (a).

AB414-AA1, s. 5h Section 5h. 40.05 (2) (b) of the statutes is amended to read:

AB414-AA1,6,5 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), and (bx).

AB414-AA1, s. 5j Section 5j. 40.05 (2) (bx) of the statutes is created to read:

AB414-AA1,6,12 40.05 (2) (bx) The employer contribution rate determined under par. (b) for participating employees who served in the federal public health service or national oceanic and atmospheric administration shall be adjusted to reflect the cost of granting creditable service for those participating employees under s. 40.02 (15) and that rate shall be sufficient to amortize the unfunded prior service liability of the employers over the remainder of the 40-year amortization period under par. (b).

AB414-AA1, s. 5L Section 5L. 40.25 (7) (a) (intro.) of the statutes is amended to read:

AB414-AA1,6,23 40.25 (7) (a) (intro.) Each participating employee whose creditable service terminates on or after May 1, 1992, and who has performed service, other than military, federal public health, or national oceanic and atmospheric administration service, as an employee of the federal government or a state or local governmental entity in the United States, other than a participating employer, that is located within or outside of this state, or each participating employee whose creditable service terminates on or after May 4, 1994, and who has performed service as an employee for an employer who was not at the time a participating employer but who subsequently became a participating employer, may receive creditable service for such service if all of the following conditions are met:

AB414-AA1, s. 5n Section 5n. 40.25 (7) (b) of the statutes is amended to read:

AB414-AA1,7,10 40.25 (7) (b) Creditable service granted under par. (a) shall be calculated in an amount equal to the year and fractions of a year to the nearest one-hundredth of a year for service other than military, federal public health, or national oceanic and atmospheric administration service performed for the governmental entity, as determined by evidence of such service furnished under par. (a) 4. Creditable service granted under par. (a) shall be the same type of creditable service as the type that is granted to participants who are not executive participating employees, elected officials or protective occupation participants. A participating employee may apply to receive part or all of the creditable service that he or she is eligible to receive under par. (a).

AB414-AA1, s. 5p Section 5p. 40.30 (3) of the statutes is amended to read:

AB414-AA1,7,18 40.30 (3) The sum of all service credited to the individual under each retirement system specified in sub. (2) shall be used in determining whether the individual has met any vesting period required for retirement benefit eligibility during any subsequent employment covered by any retirement system specified in sub. (2), but shall not be used in determining the amount of the benefit nor in determining credit for military, federal public health, or national oceanic and atmospheric administration service.

AB414-AA1, s. 5r Section 5r. 40.71 (1) (c) of the statutes is amended to read:

AB414-AA1,7,25 40.71 (1) (c) If the death of a participating employee on leave of absence, other than a leave for purposes of military, federal public health, or national oceanic and atmospheric administration service, arises from employment by any employer other than a participating employer, employment is deemed to have terminated and the participant shall not be considered a participating employee on the date of his or her death.".

AB414-AA1,8,1 8. Page 3, line 3: after that line insert:

AB414-AA1,8,3 " Section 6m. Effective dates. This act takes effect on the day after publication, except as follows:

AB414-AA1,8,5 (1) The treatment of section 40.05 (2) (b) and (bx) of the statutes takes effect on the January 1 after publication.".

AB414-AA1,8,6 (End)