AB118: Bill Text

LRB-0010/1

RAC:kaf:jlb

1997 - 1998 LEGISLATURE

1997 Assembly BILL 118

February 18, 1997 - Introduced by Representatives R. Young, Baldwin, Boyle, Gronemus, La Fave, Notestein, Robson and Turner, cosponsored by Senators Grobschmidt, Buettner and Adelman. Referred to Joint survey committee on Retirement Systems.

AB118,1,3 An Act to amend 40.08 (1m) (f) 1., 40.08 (1m) (f) 2. and 40.08 (1m) (j); and to create 40.08 (1m) (f) 3. of the statutes; relating to: qualified domestic relations orders under the Wisconsin retirement system.

Analysis by the Legislative Reference Bureau

Under current law, a participant in the Wisconsin retirement system (WRS), whose marriage is terminated by a court on or after April 28, 1990, may have his or her benefits under the WRS divided pursuant to a qualified domestic relations order. A qualified domestic relations order is a judgment, decree or order issued by a court pursuant to a domestic relations law of any state or territory of the United States that meets certain criteria. This bill provides that a participant in the WRS whose marriage was terminated by a court during the period that begins on January 1, 1982, and ends on April 27, 1990, and for whom the department of employe trust funds receives a qualified domestic relations order after the effective date of the bill, may also have his or her WRS benefits divided, but only with respect to the payment of future benefits.

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 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:

AB118, s. 1 Section 1. 40.08 (1m) (f) 1. of the statutes is amended to read:

AB118,2,5 40.08 (1m) (f) 1. If Subject to subd. 3., if the participant is not an annuitant on the decree date, an amount equal to the total of the alternate payee share distributed under par. (e), including creditable service, shall be subtracted from the participant's account.

AB118, s. 2 Section 2. 40.08 (1m) (f) 2. of the statutes is amended to read:

AB118,3,4 40.08 (1m) (f) 2. If Subject to subd. 3., if the participant is an annuitant on the decree date, the annuity shall be recomputed using the total value of the participant's account determined under par. (b) reduced by the total of the alternate payee share transferred under par. (e) 1., in accordance with the actuarial tables in effect and using the participant's age on the decree date. The decree date shall be the effective date of recomputation. If the optional annuity form before division of the participant's account under par. (b) was not a joint and survivor annuity with the alternate payee as the named survivor, the same annuity option with no change in the remaining guarantee period, if any, shall be continued upon recomputation to the participant. The present value of the alternate payee's share of the annuity after division shall be paid to the alternate payee as a straight life annuity based on the age of the alternate payee on the decree date. The alternate payee's annuity shall have the same remaining guarantee period, if any, as the participant's annuity. If the optional annuity form before division of the participant's account under par. (b) was a joint and survivor annuity with the alternate payee as the named survivor, the present value of the annuity after division shall be paid to both the participant and the alternate payee as a straight life annuity based upon their respective ages on the decree date. If the participant's account is reestablished under s. 40.26 (2) after the decree date, the memorandum account created under s. 40.26 (2) (b) shall be adjusted by the total of the alternate payee share computed under this subdivision. If the participant's account is reestablished under s. 40.63 (10) after the decree date, the amounts and creditable service reestablished shall be reduced by an amount equal to the percentage of the alternate payee share computed under this subdivision.

AB118, s. 3 Section 3. 40.08 (1m) (f) 3. of the statutes is created to read:

AB118,3,11 40.08 (1m) (f) 3. For any participant whose marriage is terminated by a court during the period that begins on January 1, 1982, and ends on April 27, 1990, and for whom the department receives a qualified domestic relations order after the effective date of this subdivision .... [revisor inserts date], the division of benefits may not apply to any benefits paid to the participant before the date on which the department receives the qualified domestic relations order.

AB118, s. 4 Section 4. 40.08 (1m) (j) of the statutes is amended to read:

AB118,3,16 40.08 (1m) (j) This subsection applies to qualified domestic relations orders issued on or after April 28, 1990, that provide for divisions of the accumulated rights and benefits of participants whose marriages have been terminated by a court on or after April 28, 1990 January 1, 1982.

AB118,3,17 (End)