1995 - 1996 LEGISLATURE
February 24, 1995 - Introduced by Representatives Grobschmidt, Meyer, R.
Young, Bock, Boyle, Plombon, Hanson, Notestein
and L. Young, cosponsored
by Senators Wineke and Andrea. Referred to Joint survey committee on
Retirement Systems.
AB158,1,4 1An Act to repeal 40.02 (17) (j), 40.23 (1) (a) 3. and 40.25 (2m); and to amend
240.02 (45), 40.04 (4) (a) 2m., 40.22 (3m), 40.23 (1) (am) 2., 40.25 (3), 40.25 (6) (b)
31. and 40.63 (1) (intro.) of the statutes; relating to: the 5-year vesting
4requirement to receive an annuity under the Wisconsin retirement system.
Analysis by the Legislative Reference Bureau
Under current law, a participant in the Wisconsin retirement system who is
initially employed on or after January 1, 1990, must have earned 5 years of creditable
service before he or she gains the right to receive a retirement annuity. This bill
eliminates the 5-year annuity vesting period for participants employed on or after
January 1, 1990.
This bill will be referred to the joint survey committee on retirement systems
for a detailed analysis, which will 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:
AB158, s. 1 5Section 1. 40.02 (17) (j) of the statutes is repealed.
AB158, s. 2 6Section 2. 40.02 (45) of the statutes is amended to read:
AB158,1,97 40.02 (45) "Participant" means any person included within the provisions of
8the Wisconsin retirement system by virtue of being or having been a participating
9employe whose account has not been closed under s. 40.25 (1), or (2) or (2m).
AB158, s. 3
1Section 3. 40.04 (4) (a) 2m. of the statutes is amended to read:
AB158,2,62 40.04 (4) (a) 2m. Debited, if a participant terminates covered employment on
3or after January 1, 1990, and applies for a benefit under s. 40.25 (2) or (2m), with an
4amount equal to the amount by which the fixed annuity division interest credited on
5or after January 1, 1990, to employe required contributions, exceeds the interest
6crediting at an annual rate of 3% on each prior year's closing balance.
AB158, s. 4 7Section 4. 40.22 (3m) of the statutes is amended to read:
AB158,2,138 40.22 (3m) Any employe who becomes a participating employe shall continue
9to be a participating employe notwithstanding sub. (2) (a) or (b) for periods of
10subsequent employment with that state agency or other participating employer
11unless the employment with the state agency or other participating employer is
12terminated for 12 or more consecutive calendar months or unless the employe
13receives a benefit under s. 40.23, 40.25 (1), or (2) or (2m) or 40.63.
AB158, s. 5 14Section 5. 40.23 (1) (a) 3. of the statutes is repealed.
AB158, s. 6 15Section 6. 40.23 (1) (am) 2. of the statutes is amended to read:
AB158,3,616 40.23 (1) (am) 2. Any participant who has attained age 55 and who is a
17participant because of employment other than part-time service as an elected official
18and who is also a participating employe because of part-time service as an elected
19official may, after termination of all covered employment other than service as a
20part-time elected official, waive further participation under the fund for his or her
21current, and any future, part-time service as an elected official. Any election under
22this paragraph is irrevocable and is effective beginning the day after the date of
23election. Notwithstanding par. (a), any participant initially employed before
24January 1, 1990,
who elects under this paragraph may receive a retirement annuity
25for all service under the fund credited to the participant to the date he or she elects.

1Notwithstanding par. (a), any participant initially employed on or after January 1,
21990, who elects under this paragraph may receive a retirement annuity for all
3service under the fund credited to the participant to the date he or she elects only if
4the participant has creditable service in at least 5 calendar years.
The date a
5participant elects under this paragraph is deemed to be the date of separation from
6the last participating employer by which that participant was employed.
AB158, s. 7 7Section 7. 40.25 (2m) of the statutes is repealed.
AB158, s. 8 8Section 8. 40.25 (3) of the statutes is amended to read:
AB158,3,179 40.25 (3) Upon administrative approval of payment of an amount under either
10sub. (1), or (2) or (2m), the participant's account shall be closed and there shall be no
11further right, interest or claim on the part of the former participant to any benefit
12from the Wisconsin retirement system except as provided by subs. (5) and (6). Any
13former participant who is subsequently employed by any participating employer
14shall be treated as a new participating employe for all purposes of this chapter. New
15accumulations of contributions and credits and the computation of any future
16benefits shall bear no relationship to any accumulations and credits paid as single
17sums under sub. (1), or (2) or (2m).
AB158, s. 9 18Section 9. 40.25 (6) (b) 1. of the statutes is amended to read:
AB158,3,2019 40.25 (6) (b) 1. Forfeited because of payment of an amount under sub. (2) or
20(2m)
; or
AB158, s. 10 21Section 10. 40.63 (1) (intro.) of the statutes is amended to read:
AB158,4,222 40.63 (1) (intro.) Notwithstanding the requirement for creditable service in at
23least 5 calendar years for retirement annuities under s. 40.23 (1) (a) and (am), any

24Any participating employe is entitled to a disability annuity from the Wisconsin

1retirement system, beginning on the date determined under sub. (8) if, prior to
2attaining his or her normal retirement date, all of the following apply:
AB158,4,33 (End)
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