SB384: Bill Text

LRB-3823/2

RAC:skg:ks

1995 - 1996 LEGISLATURE

1995 Senate BILL 384

October 25, 1995 - Introduced by Senators Andrea, Burke, Moen and Risser, cosponsored by Representatives Baldwin, Wirch, Baldus, Black, Boyle, Dobyns, Gronemus, Hasenohrl, Kreibich, Meyer, Musser, Plombon and Ryba. Referred to Joint survey committee on Retirement Systems.

SB384,1,3 An Act to amend 40.23 (2m) (e) 1., 40.23 (2m) (e) 3. and 40.23 (2m) (e) 4. of the statutes; relating to: increasing the formula multiplier for the amount of an annuity for certain classes of participants in the Wisconsin retirement system.

Analysis by the Legislative Reference Bureau

Under current law, when a participant in the Wisconsin retirement system (WRS) terminates covered employment and becomes eligible for a retirement annuity, the amount of the annuity is determined by multiplying the participant's final average earnings by the participant's years of creditable service and by a percentage multiplier. For a protective occupation participant who is covered by social security, the percentage multiplier is 2%. For a protective occupation participant who is not covered by social security, the percentage multiplier is 2.5%. For all other participants in the WRS, other than elected officials or executive participating employes, the percentage multiplier is 1.6%.

This bill increases the percentage multiplier for certain classes of participants in the WRS. For a protective occupation participant, who is not covered by social security and who terminates covered employment on or after January 1, 1997, the percentage multiplier is increased to 2.7%. For a protective occupation participant, who is covered by social security and who terminates covered employment on or after January 1, 1997, the percentage multiplier is to 2.2%. For all other participants in the WRS, other than elected officials or executive participating employes, who terminate covered employment on or after January 1, 1997, the percentage multiplier is increased to 2%.

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 this 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:

SB384, s. 1 Section 1. 40.23 (2m) (e) 1. of the statutes is amended to read:

SB384,2,5 40.23 (2m) (e) 1. For each participant for creditable service of a type not otherwise specified in this paragraph, 1.6% if the participant terminates covered employment before January 1, 1997, and 2% if the participant terminates covered employment on or after January 1, 1997.

SB384, s. 2 Section 2. 40.23 (2m) (e) 3. of the statutes is amended to read:

SB384,2,10 40.23 (2m) (e) 3. For each participant subject to titles II and XVIII of the federal social security act, for service as a protective occupation participant, 2% if the participant terminates covered employment before January 1, 1997, and 2.2% if the participant terminates covered employment on or after January 1, 1997.

SB384, s. 3 Section 3. 40.23 (2m) (e) 4. of the statutes is amended to read:

SB384,2,15 40.23 (2m) (e) 4. For each participant not subject to titles II and XVIII of the federal social security act, for service as a protective occupation participant, 2.5% if the participant terminates covered employment before January 1, 1997, and 2.7% if the participant terminates covered employment on or after January 1, 1997.

SB384,2,16 (End)