SB449: Bill Text

SB449, s. 44 Section 44. 40.32 of the statutes is created to read:

SB449,24,23 40.32 Limitations on contributions. (1) The sum of all contributions allocated to a participant's account under each defined contribution plan sponsored by the employer, including all employer contributions and picked-up contributions credited with interest at the effective rate under s. 40.04 (4) (a) and (5) (b) and all employe contributions made under ss. 40.02 (17), 40.05 (1) and (2m) and 40.25 (6) (a), may not in any calendar year exceed the lesser of the following:

SB449,24,24 (a) Thirty thousand dollars.

SB449,25,2 (b) Twenty-five percent of the participant's compensation, as defined in the internal revenue code, for the calendar year.

SB449,25,4 (c) The maximum contribution limit under section 415 (c) of the internal revenue code.

SB449,25,6 (2) The department may provide by rule additional limitations for participants who are participating in more than one retirement system.

SB449,25,13 (3) Any contribution that the department receives, which is allocated to the account of a participant and which exceeds the contributions limitation under this section, may be refunded or credited as provided in s. 40.08 (6). If the department refunds any contributions that exceed the limitation under this section, the department shall first refund amounts voluntarily contributed by a participating employe, either as an additional contribution under s. 40.05 (1) (a) 5. or a purchase of forfeited or creditable service under s. 40.02 (17) or 40.25 (6) (a).

SB449, s. 45 Section 45. 40.73 (3) (a) of the statutes is amended to read:

SB449,25,19 40.73 (3) (a) A death benefit may be paid as a beneficiary an annuity for the life of the beneficiary, if the amount of the death benefit is sufficient to provide a beneficiary annuity in the normal form at least equal to the amount determined under s. 40.25 (1) (a) and the beneficiary or the participant has elected to have the death benefit paid as a beneficiary annuity.

SB449, s. 46 Section 46. 40.73 (3) (e) of the statutes is amended to read:

SB449,25,24 40.73 (3) (e) Any beneficiary who is eligible to receive a beneficiary annuity may elect to receive the annuity in any of the optional annuity forms provided for retirement annuities, other than an annuity under s. 40.24 (1) (c) or any annuity payable over the joint life expectancies of the beneficiary and another person.

SB449, s. 47 Section 47. 40.86 (intro.) of the statutes is amended to read:

SB449,26,5 40.86 Covered expenses. (intro.) An employe-funded reimbursement account plan may provide reimbursement to an employe for only the following expenses that are actually incurred and paid by an employe and that the board determines are consistent with the applicable requirements of the internal revenue code, as defined in s. 71.01 (6):

SB449, s. 48 Section 48. 111.91 (2) (k) of the statutes is created to read:

SB449,26,7 111.91 (2) (k) The definition of earnings under s. 40.02 (22).

SB449, s. 49 Section 49. 111.91 (2) (L) of the statutes is created to read:

SB449,26,9 111.91 (2) (L) The maximum benefit limitations under s. 40.31.

SB449, s. 50 Section 50. 111.91 (2) (m) of the statutes is created to read:

SB449,26,11 111.91 (2) (m) The limitations on contributions under s. 40.32.

SB449, s. 51 Section 51. 1995 Wisconsin Act 27, section 1946m is repealed.

SB449, s. 52 Section 52. 1995 Wisconsin Act 27, section 9459 (2) (d) is amended to read:

SB449,26,17 [1995 Wisconsin Act 27] Section 9459 (2) (d) The treatment of section 40.81 (3) of the statutes and the repeal and recreation of sections 40.02 (22) (e) and (25) (b) 8., 40.05 (4) (ag) (intro.), (ar) and (b), (5) (intro.) and (b) 4. and (6) (a) and 40.62 (2) of the statutes take effect on July 1, 1997.

SB449, s. 53 Section 53. Appropriation changes.

SB449,26,24 (1)  Appropriation increase for the department of employe trust funds. In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of employe trust funds under section 20.515 (1) (w) of the statutes, as affected by the acts of 1995, the dollar amount is increased by $450,000 for fiscal year 1996-97 to implement changes in the Wisconsin retirement system relating to complying with the federal internal revenue code.

SB449, s. 54 Section 54. Initial applicability.

SB449,27,5 (1) Prohibited subjects of collective bargaining. The treatment of section 111.91 (2) (k), (L) and (m) of the statutes first applies to participants, who are affected by a collective bargaining agreement that contains provisions inconsistent with that treatment, on the day on which the collective bargaining agreement expires or is extended, modified or renewed, whichever occurs first.

SB449,27,9 (2)  Repurchase of creditable service. The treatment of section 40.05 (1) (a) 7. of the statutes first applies to an amount payable under section 40.02 (17) of the statutes on the date specified by the department of employe trust funds, but not later than January 1, 1997.

SB449,27,12 (3) Lump sum payments. The treatment of section 40.25 (7) (a) 1. of the statutes first applies to a participating employe who terminates covered employment on the effective date of this subsection.

SB449, s. 55 Section 55. Effective dates. This act takes effect on the day after publication, except as follows:

SB449,27,16 (1)  The treatment of sections 40.31 and 40.32 of the statutes takes effect on January 1, 1997.

SB449,27,17 (End)