LRB-0992/1
RAC:kmg:jlb
1997 - 1998 LEGISLATURE
January 21, 1997 - Introduced by Representatives Schneider and Klusman,
cosponsored by Senator Shibilski. Referred to Joint survey committee on
Retirement Systems.
AB10,1,2
1An Act relating to: eligibility for a social security integrated annuity under the
2Wisconsin retirement system.
Analysis by the Legislative Reference Bureau
Under current law, beginning on April 23, 1994, for participants in the
Wisconsin retirement system (WRS) who have been employed in a position covered
under the WRS after March 9, 1984, the retirement annuity in the normal form is
a straight life annuity payable in monthly instalments for the life of the annuitant.
But if a participant's retirement annuity in the normal form would be less than or
equal to $100 monthly, the participant must receive the present value of the annuity
in a single lump sum instead of as an annuity. Current law also provides that a
participant in the WRS who retires and elects to receive a WRS annuity before the
age of 62 may receive a social security integrated annuity. A social security
integrated annuity allows a participant to receive an accelerated WRS annuity in the
form of a higher annuity before the age of 62 than he or she would ordinarily receive.
But when the participant begins to receive social security payments at the age of 62,
the WRS annuity is reduced to an amount less than he or she would ordinarily
receive. The amount of the accelerated WRS monthly annuity before the participant
attains the age of 62 should be the same as the sum of the WRS monthly annuity and
the social security monthly annuity received by the participant after he or she attains
the age of 62. A participant is eligible for the social security integrated annuity,
according to department of employe trust fund rules, only if the amount of the
reduced WRS annuity that he or she receives after attaining the age of 62 is greater
than $100 monthly. Prior to April 23, 1994, the $100 monthly threshold for a lump
sum payment and eligibility for a social security integrated annuity was $41.
This bill provides that any participant who applied for a social security
integrated annuity before April 23, 1994, for an annuity with an effective date
beginning on or after April 23, 1994, is eligible for a social security integrated
annuity if the amount of the reduced WRS annuity that he or she receives after
attaining the age of 62 is greater than $41 monthly.
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:
AB10,2,122
(1) Notwithstanding section 40.25 (1) of the statutes and any rules
3promulgated by the department of employe trust funds to administer section 40.24
4(1) (e) of the statutes, any participant in the Wisconsin retirement system who
5applied for a social security integrated annuity before April 23, 1994, for an annuity
6with an effective date beginning on or after April 23, 1994, is eligible for a social
7security integrated annuity if the amount of the reduced Wisconsin retirement
8system annuity that he or she receives after attaining the age of 62 is greater than
9$41 monthly. To be eligible for a social security integrated annuity under this
10subsection, the participant must submit a subsequent application to the department
11of employe trust funds for a social security integrated annuity no later than 60 days
12after the effective date of this subsection.
