SB44-SSA1, s. 1015 7Section 1015. 40.05 (4g) (a) 4. of the statutes is amended to read:
SB44-SSA1,453,128 40.05 (4g) (a) 4. Has received a military leave of absence under s. 230.32 (3) (a)
9or 230.35 (3), under a collective bargaining agreement under subch. V of ch. 111 or
10under rules promulgated by the secretary of employment relations director of the
11office of state human resources management
or is eligible for reemployment with the
12state under s. 45.50 after completion of his or her service in the U.S. armed forces.
SB44-SSA1, s. 1016 13Section 1016. 40.06 (1) (dm) of the statutes is amended to read:
SB44-SSA1,453,1914 40.06 (1) (dm) Each determination by a department head regarding the
15classification of a state employee as a protective occupation participant shall be
16reviewed by the department of employment relations office of state human resources
17management
. A state employee's name may not be certified to the fund as a
18protective occupation participant under par. (d) until the department of employment
19relations
office of state human resources management approves the determination.
SB44-SSA1, s. 1019 20Section 1019. 40.23 (2m) (em) 1. a. of the statutes is amended to read:
SB44-SSA1,453,2421 40.23 (2m) (em) 1. a. Any creditable service forfeited by a participating
22employee before January 1, 2000, and which is subsequently reestablished by the
23participating employee under s. 40.25 (6) 40.285 (2) (a), shall be considered to have
24been performed before January 1, 2000.
SB44-SSA1, s. 1020 25Section 1020. 40.23 (2m) (em) 1. b. of the statutes is amended to read:
SB44-SSA1,454,3
140.23 (2m) (em) 1. b. Any creditable service received under s. 40.25 (7) 40.285
2(2) (b)
, which is based on service performed before January 1, 2000, shall be
3considered to have been performed before January 1, 2000.
SB44-SSA1, s. 1022 4Section 1022. 40.25 (3) of the statutes is amended to read:
SB44-SSA1,454,135 40.25 (3) Upon administrative approval of payment of an amount under either
6sub. (1) or (2), the participant's account shall be closed and there shall be no further
7right, interest or claim on the part of the former participant to any benefit from the
8Wisconsin retirement system except as provided by subs. sub. (5) and (6) s. 40.285
9(2) (a)
. Any former participant who is subsequently employed by any participating
10employer shall be treated as a new participating employee for all purposes of this
11chapter. New accumulations of contributions and credits and the computation of any
12future benefits shall bear no relationship to any accumulations and credits paid as
13single sums under sub. (1) or (2).
SB44-SSA1, s. 1023 14Section 1023. 40.25 (6) of the statutes is repealed.
SB44-SSA1, s. 1024 15Section 1024. 40.25 (7) of the statutes is repealed.
SB44-SSA1, s. 1025 16Section 1025. 40.285 of the statutes is created to read:
SB44-SSA1,454,21 1740.285 Purchase of creditable service. (1) General requirements. (a)
18Deadline for purchase of creditable service. An application to purchase creditable
19service must be received by the department, on a form provided by the department,
20from an applicant who is a participating employee on the day that the department
21receives the application.
SB44-SSA1,454,2422 (b) Calculation of creditable service. Creditable service purchased under this
23section shall be calculated in an amount equal to the year and fractions of a year to
24the nearest one-hundredth of a year.
SB44-SSA1,455,3
1(c) Use of creditable service. Credit for service purchased under this section is
2added to a participant's total creditable service, but may not be treated as service for
3a particular annual earnings period and does not confer any other rights or benefits.
SB44-SSA1,455,64 (d) Applicability of Internal Revenue Code. The crediting of service under this
5section is subject to any applicable limit or requirement under the Internal Revenue
6Code.
SB44-SSA1,455,9 7(2) Conditions for the purchase of different types of creditable service. (a)
8Forfeited service. 1. A participating employee may purchase creditable service
9forfeited in the manner specified in subd. 2., subject to all of the following:
SB44-SSA1,455,1110 a. The participating employee must have at least 3 continuous years of
11creditable service at the time of application to purchase the creditable service.
SB44-SSA1,455,2212 b. The number of years that may be purchased may not be greater than the
13accumulated current creditable service of the participating employee at the date of
14application, excluding all creditable service purchased under this section or s. 40.02
15(17) (b), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats.,
16s. 40.02 (17) (e), 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02
17(17) (i), 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02 (17) (k), 1989,
181991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.25 (6), 1981, 1983, 1985, 1987,
191989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. or 40.25 (7), 1991, 1993, 1995,
201997, 1999, and 2001 stats., less the number of years of creditable service previously
21purchased under this paragraph or s. 40.25 (6), 1981, 1983, 1985, 1987, 1989, 1991,
221993, 1995, 1997, 1999, and 2001 stats.
SB44-SSA1,456,523 c. The participating employee pays to the fund an amount equal to the
24employee's statutory contribution on earnings under s. 40.05 (1) (a) for each year of
25forfeited service to be purchased, based upon the participating employee's final

1average earnings, determined as if the employee had retired on the first day of the
2annual earnings period during which the department receives the application. The
3amount payable shall be paid in a lump sum payment, except as provided in sub. (4)
4(b), and no employer may pay any amount payable on behalf of a participating
5employee.
SB44-SSA1,456,96 d. Upon receipt by the fund of the total payment required under this
7subdivision, the creditable service meeting the conditions and requirements of this
8paragraph shall be credited to the account of the participating employee making the
9payment.
SB44-SSA1,456,1110 2. Creditable service may be purchased under this paragraph if it was forfeited
11as a result of any of the following:
SB44-SSA1,456,1212 a. Payment of an amount under s. 40.25 (2).
SB44-SSA1,456,1413 b. The receipt of a separation or withdrawal benefit under the applicable laws
14and rules in effect prior to January 1, 1982.
SB44-SSA1,456,1515 c. Payment of an amount under s. 40.25 (2m), 1991, 1993, 1995, and 1997 stats.
SB44-SSA1,456,1816 3. Unless otherwise provided by the department by rule, a participating
17employee may not purchase creditable service under this paragraph more than 2
18times in any calendar year.
SB44-SSA1,457,219 (b) Other governmental service. 1. Each participating employee whose
20creditable service terminates on or after May 1, 1992, and who has performed
21service, other than military service, as an employee of the federal government or a
22state or local governmental entity in the United States, other than a participating
23employer, that is located within or outside of this state, or each participating
24employee whose creditable service terminates on or after May 4, 1994, and who has
25performed service as an employee for an employer who was not at the time a

1participating employer but who subsequently became a participating employer, may
2receive creditable service for such service if all of the following occur:
SB44-SSA1,457,43 a. The participant has at least 3 continuous years of creditable service at the
4time of application.
SB44-SSA1,457,155 b. The number of years of creditable service applied for under this paragraph
6does not exceed the number of years of creditable service that the participant has at
7the date of application, excluding all creditable service purchased under this section
8or s. 40.02 (17) (b), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and
92001 stats., s. 40.02 (17) (e), 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001
10stats., s. 40.02 (17) (i), 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02
11(17) (k), 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.25 (6), 1981, 1983,
121985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., or s. 40.25 (7), 1991,
131993, 1995, 1997, 1999, and 2001 stats., less the number of years of creditable service
14previously purchased under this paragraph or s. 40.25 (7), 1991, 1993, 1995, 1997,
151999, and 2001 stats.
SB44-SSA1,457,1716 c. At the time of application, the participant furnishes evidence of such service
17that is acceptable to the department.
SB44-SSA1,457,2418 d. Except as provided in sub. (4) (b), at the time of application, the participant
19pays to the department a lump sum equal to the present value of the creditable
20service applied for under this paragraph, in accordance with rates actuarially
21determined to be sufficient to fund the cost of the increased benefits that will result
22from granting the creditable service under this paragraph. The department shall by
23rule establish different rates for different categories of participants, based on factors
24recommended by the actuary.
SB44-SSA1,458,3
12. The creditable service granted under this paragraph shall be the same type
2of creditable service as the type that is granted to participants who are not executive
3participating employees, elected officials, or protective occupation participants.
SB44-SSA1,458,54 3. A participating employee may apply to receive part or all of the creditable
5service that he or she is eligible to receive under this paragraph.
SB44-SSA1,458,96 4. A participant may not receive creditable service under this paragraph for
7service that is used for the purpose of establishing entitlement to, or the amount of,
8any other benefit to be paid by any federal, state, or local government entity, except
9a disability or OASDHI benefit or a benefit paid for service in the national guard.
SB44-SSA1,458,1210 5. Unless otherwise provided by the department by rule, a participating
11employee may not purchase creditable service under this paragraph more than 2
12times in any calendar year.
SB44-SSA1,458,16 13(3) Application process. (a) Provision of application forms and estimates.
14Upon request, the department shall provide a participating employee an application
15form for the purchase of creditable service under sub. (2) and shall also provide to the
16participating employee an estimate of the cost of purchasing the creditable service.
SB44-SSA1,458,2217 (b) Certification of plan-to-plan transfers. Upon request, the department shall
18provide a participating employee a transfer certification form for payments made by
19a plan-to-plan transfer under sub. (5) (b). If the participating employee intends to
20make payments from more than one plan, the participating employee must submit
21to the department a separate transfer certification form for each plan from which
22moneys will be transferred.
SB44-SSA1,459,2 23(4) Payment. (a) Required with application. Except as provided in par. (b), the
24department may not accept an application for the purchase of creditable service
25without payment in full of the department's estimated cost of creditable service

1accompanying the application. A participating employee may also do any of the
2following:
SB44-SSA1,459,43 1. Use his or her accumulated after-tax additional contributions that are made
4under s. 40.05 (1) (a) 5., including interest, to make payment.
SB44-SSA1,459,85 2. Use his or her accumulated contributions, including interest, to a tax
6sheltered annuity under section 403 (b) of the Internal Revenue Code, to make
7payment, but only if the participating employee's plan under section 403 (b) of the
8Internal Revenue Code authorizes the transfer.
SB44-SSA1,459,149 (b) Alternate payment options. Notwithstanding par. (a), the department may
10accept an application under this section without full payment if payment of at least
1110% of the department's estimate of the cost of the creditable service is included with
12the application, in the manner required under par. (a), and the remaining balance
13is received by the department no later than 90 days after receipt of the application,
14in the form of a plan-to-plan transfer under sub. (5) (b).
SB44-SSA1,460,315 (c) Final cost calculation for purchase of creditable service. The department
16may audit any transaction to purchase creditable service under this subsection and
17make any necessary correction to the estimated cost of purchasing the creditable
18service to reflect the amount due under sub. (2). Except as otherwise provided in sub.
19(7), if the department determines that the final amount that is due is more than the
20amount paid to the department, the department shall notify the participant of the
21amount of the shortfall. If payment of the amount of the shortfall is not received by
22the department within 30 calendar days after the date on which the department
23sends notice to the participant, the department shall complete the creditable service
24purchase transaction by prorating the amount of creditable service that is purchased
25based on the payment amount actually received and shall notify the participant of

1the amount and category of service that is credited. The department, by rule, shall
2specify how a forfeited service purchase is prorated when the participant forfeited
3service under more than one category of employment under s. 40.23 (2m) (e).
SB44-SSA1,460,94 (d) Treatment of amounts to purchase creditable service. All amounts retained
5by the department for the purchase of creditable service under sub. (2) shall be
6credited and treated as employee required contributions for all purposes of the
7Wisconsin retirement system, except that amounts received for the purchase of
8creditable service under sub. (2) (b) may not be used for the purpose of making
9calculations under s. 40.23 (3) or 40.73 (1) (am).
SB44-SSA1,460,13 10(5) Transfer of funds; plan-to-plan transfers. (a) Transfer from certain
11benefit plans.
Subject to any applicable limitations under the Internal Revenue
12Code, a participating employee may elect to use part or all of any of the following to
13purchase creditable service under this section:
SB44-SSA1,460,1514 1. Accumulated after-tax additional contributions, including interest, made
15under s. 40.05 (1) (a) 5.
SB44-SSA1,460,1816 2. Accumulated contributions treated by the department as contributions to a
17tax sheltered annuity under section 403 (b) of the Internal Revenue Code, but only
18if the employer sponsoring the annuity plan authorizes the transfer.
SB44-SSA1,460,2019 (b) Other plan-to-plan transfers. The department may also accept a plan to
20plan transfer from any of the following:
SB44-SSA1,460,2221 1. Accumulated contributions under a state deferred compensation plan under
22subch. VII.
SB44-SSA1,460,25232. The trustee of any plan qualified under sections 401 (a) or (k), 403 (b), or 457
24of the Internal Revenue Code, but only if the purpose of the transfer is to purchase
25creditable service under this section.
SB44-SSA1,461,13
1(c) Payment shortfall. Except as otherwise provided in sub. (7), if the
2department determines that the amount paid to the department to purchase
3creditable service under this subsection, together with the amount transferred
4under a plan-to-plan transfer, is less than the amount that is required to purchase
5the creditable service, the department shall notify the participant of the amount of
6the shortfall. If payment of the amount of the shortfall is not received by the
7department within 30 calendar days after the date on which the department sends
8notice to the participant, the department shall complete the creditable service
9purchase transaction by prorating the amount of creditable service that is purchased
10based on the payment amount actually received and shall notify the participant of
11the amount and category of service that is credited. The department, by rule, shall
12specify how a forfeited service purchase is prorated when the participant forfeited
13service under more than one category of employment under s. 40.23 (2m) (e).
SB44-SSA1,461,24 14(6) Refunds. Except as provided in sub. (7), if the department determines that
15the amount paid to the department to purchase creditable service, including any
16amount in a plan-to-plan transfer, is greater than the amount that is required to
17purchase the creditable service, as determined by the department, the department
18shall refund the difference. The department shall pay any refund to the participant,
19up to the amount received from the participant. Any remaining amount shall be
20returned to the applicable account in the trust fund for transfers under sub. (5) (a)
21or to the trustee of a plan which was the source of a plan-to-plan transfer under sub.
22(5) (b). When more than one plan-to-plan transfer occurs, the department may
23determine which transfer is to be refunded, in whole or part. No funds transferred
24to the department by a plan-to-plan transfer may be refunded to a participant.
SB44-SSA1,462,4
1(7) Limit on payment of corrections. The department may not require a
2participant to pay any shortfall under sub. (4) (c) or (5) (c) that is $25 or less. The
3department may not pay any refund under sub. (6) if the amount of the refund is $25
4or less.
SB44-SSA1, s. 1026 5Section 1026. 40.51 (6) of the statutes is amended to read:
SB44-SSA1,462,146 40.51 (6) This state shall offer to all of its employees at least 2 insured or
7uninsured health care coverage plans providing substantially equivalent hospital
8and medical benefits, including a health maintenance organization or a preferred
9provider plan, if those health care plans are determined by the group insurance
10board to be available in the area of the place of employment and are approved by the
11group insurance board. The group insurance board shall place each of the plans into
12one of 3 tiers established in accordance with standards adopted by the group
13insurance board. The tiers shall be separated according to the employee's share of
14premium costs.
SB44-SSA1, s. 1026e 15Section 1026e. 40.51 (10m) of the statutes is amended to read:
SB44-SSA1,462,2316 40.51 (10m) Any eligible employee, as defined in s. 40.02 (25) (b) 6e. and 6g.,
17may become covered under any health care coverage plan offered under sub. (6),
18without furnishing evidence of insurability, by submitting to the department, on a
19form provided by the department and within 30 days after the date on which the
20department receives the employee's application for a retirement annuity or for a
21lump sum payment under s. 40.25 (1), an election to obtain the coverage, by obtaining
22coverage subject to contractual waiting periods and by paying the cost of the required
23premiums, as provided in s. 40.05 (4) (ad).
SB44-SSA1, s. 1026r 24Section 1026r. 40.53 of the statutes is created to read:
SB44-SSA1,462,25 2540.53 Pharmacy benefits purchasing pool. (1) In this section:
SB44-SSA1,463,1
1(a) "Brand name" has the meaning given in s. 450.12 (1) (a).
SB44-SSA1,463,42 (b) "Eligible party" means an employer, other than the state, or a person doing
3business or operating an organization in this state, including a self-employed
4individual.
SB44-SSA1,463,55 (c) "Generic name" has the meaning given in s. 450.12 (1) (b).
SB44-SSA1,463,66 (d) "Prescription drug" has the meaning given in s. 450.01 (20).
SB44-SSA1,463,16 7(2) Beginning on January 1, 2005, the group insurance board shall develop a
8purchasing pool for pharmacy benefits that uses a preferred list of covered
9prescription drugs. The pool shall consist of the state and any eligible party that
10satisfies the conditions established under sub. (3) for joining the pool. The group
11insurance board shall seek to develop the preferred list of covered prescription drugs
12under an evidence-based analysis that first identifies the relative effectiveness of
13prescription drugs within therapeutic classes for particular diseases and conditions
14and next identifies the least costly prescription drugs, including prescription drugs
15with generic names that are alternatives to prescription drugs with brand names,
16among those found to be equally effective.
SB44-SSA1,464,2 17(3) The group insurance board shall propose conditions that an eligible party
18must satisfy to join the purchasing pool established under sub. (2) and shall submit
19the proposed conditions to the joint committee on finance. If the cochairpersons of
20the committee do not notify the group insurance board within 14 working days after
21the date of the group insurance board's submittal that the committee has scheduled
22a meeting for the purpose of reviewing the proposed conditions, the conditions may
23be implemented as proposed by the group insurance board. If, within 14 working
24days after the date of the group insurance board's submittal, the cochairpersons of
25the committee notify the group insurance board that the committee has scheduled

1a meeting for the purpose of reviewing the proposed conditions, the conditions may
2be implemented only upon approval of the committee.
SB44-SSA1, s. 1026t 3Section 1026t. 40.95 (1) (a) (intro.) of the statutes is amended to read:
SB44-SSA1,464,104 40.95 (1) (a) (intro.) Subject to sub. (2), the department shall administer a
5program that provides health insurance premium credits for the purchase of health
6insurance for a retired employee, or the retired employee's surviving insured
7dependents, and for an eligible employee under s. 40.02 (25) (b) 6e., or the eligible
8employee's surviving insured dependents,
for the benefit of an eligible employee
9whose compensation includes such health insurance premium credits and who
10satisfies at least one of the following:
SB44-SSA1, s. 1027 11Section 1027. 40.98 (2) (h) of the statutes is amended to read:
SB44-SSA1,464,1712 40.98 (2) (h) The department may seek funding from any person for the
13payment of costs of designing, marketing, and contracting for or providing
14administrative services under the health care coverage program and for lapsing to
15the general fund any amount required under sub. (6m)
. Any moneys received by the
16department under this paragraph shall be credited to the appropriation account
17under s. 20.515 (2) (g).
SB44-SSA1, s. 1028 18Section 1028. 40.98 (6m) of the statutes is repealed.
SB44-SSA1, s. 1030 19Section 1030. 43.24 (1) (c) of the statutes is amended to read:
SB44-SSA1,464,2520 43.24 (1) (c) Beginning in the fiscal year in which the total amount of state aid
21appropriated for public library systems under s. 20.255 (3) (e) and (qm), as
22determined by the department, equals at least 11.25% of the total operating
23expenditures for public library services from local and county sources in the calendar
24year ending in that fiscal year, the amount paid to each system shall be determined
25by adding the result of each of the following calculations:
SB44-SSA1,465,2
11. Multiply the system's percentage of the state's population by the product of
2the amount appropriated under s. 20.255 (3) (e) and (qm) and 0.85.
SB44-SSA1,465,43 2. Multiply the system's percentage of the state's geographical area by the
4product of the amount appropriated under s. 20.255 (3) (e) and (qm) and 0.075.
SB44-SSA1,465,105 3. Divide the sum of the payments to the municipalities and counties in the
6system under subch. I of ch. 79 for the current fiscal year, as reflected in the
7statement of estimated payments under s. 79.015, by the total of all payments under
8subch. I of ch. 79 for the current fiscal year, as reflected in the statement of estimated
9payments under s. 79.015, and multiply the result by the product of the amount
10appropriated under s. 20.255 (3) (e) and (qm) and 0.075.
SB44-SSA1, s. 1031 11Section 1031. 43.24 (3) of the statutes is amended to read:
SB44-SSA1,466,412 43.24 (3) Annually, the division shall review the reports and proposed service
13plans submitted by the public library systems under s. 43.17 (5) for conformity with
14this chapter and such rules and standards as are applicable. Upon approval, the
15division shall certify to the department of administration an estimated amount to
16which each system is entitled under this section. Annually on or before December
171 of the year immediately preceding the year for which aids are to be paid, the
18department of administration shall pay each system 75% of the certified estimated
19amount from the appropriation appropriations under s. 20.255 (3) (e) and (qm). The
20division shall, on or before the following April 30, certify to the department of
21administration the actual amount to which the system is entitled under this section.
22On or before July 1, the department of administration shall pay each system the
23difference between the amount paid on December 1 of the prior year and the certified
24actual amount of aid to which the system is entitled from the appropriation
25appropriations under s. 20.255 (3) (e) and (qm). The division may reduce state aid

1payments when any system or any participant thereof fails to meet the requirements
2of sub. (2). Beginning September 1, 1991, the division may reduce state aid payments
3to any system if the system or any participant in the system fails to meet the
4requirements of s. 43.15 (4).
SB44-SSA1, s. 1032 5Section 1032. 43.24 (3m) of the statutes is amended to read:
SB44-SSA1,466,86 43.24 (3m) If the appropriation appropriations under s. 20.255 (3) (e) and (qm)
7in any one year is are insufficient to pay the full amount under sub. (1), state aid
8payments shall be prorated among the library systems entitled to such aid.
SB44-SSA1, s. 1033 9Section 1033. 43.70 (3) of the statutes is amended to read:
SB44-SSA1,466,2410 43.70 (3) Immediately upon making such apportionment, the state
11superintendent shall certify to the department of administration the estimated
12amount that each school district is entitled to receive under this section and shall
13notify each school district administrator of the estimated amount so certified for his
14or her school district. The department of administration shall issue its warrants
15upon which the state treasurer shall
distribute each school district's aid entitlement
16in one payment on or before May 1. The amount paid to each school district shall be
17based upon the amount in the appropriation account under s. 20.255 (2) (s) on April
1815. All moneys distributed under this section shall be expended for the purchase of
19instructional materials from the state historical society for use in teaching Wisconsin
20history and for the purchase of library books and other instructional materials for
21school libraries, but not for public library facilities operated by school districts under
22s. 43.52, in accordance with rules promulgated by the state superintendent.
23Appropriate records of such purchases shall be kept and necessary reports thereon
24shall be made to the state superintendent.
SB44-SSA1, s. 1034 25Section 1034. Chapter 44 (title) of the statutes is amended to read:
SB44-SSA1,467,5
1CHAPTER 44
2 HISTORICAL SOCIETIES, and ARTS
3 BOARD and technology for
4 educational achievement in
5 Wisconsin board
SB44-SSA1, s. 1034s 6Section 1034s. 44.53 (1) (fm) of the statutes is repealed.
SB44-SSA1, s. 1034t 7Section 1034t. 44.53 (2) (am) of the statutes is repealed.
SB44-SSA1, s. 1035 8Section 1035. Subchapter IV (title) of chapter 44 [precedes 44.70] of the
9statutes is repealed.
SB44-SSA1, s. 1036d 10Section 1036d. 44.70 (intro.) of the statutes is renumbered 16.99 (intro.).
SB44-SSA1, s. 1037 11Section 1037. 44.70 (1) of the statutes is repealed.
SB44-SSA1, s. 1038d 12Section 1038d. 44.70 (1d) of the statutes is renumbered 16.99 (1d).
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