LRB-0005/1
RAC:kaf:km
1997 - 1998 LEGISLATURE
November 11, 1997 - Introduced by Representative Black. Referred to Joint
survey committee on Retirement Systems.
AB596,1,3 1An Act to amend 40.73 (1) (a) and 40.73 (1) (c); and to create 40.73 (1) (am) of
2the statutes; relating to: the amount of a death benefit for participating
3employes under the Wisconsin retirement system.
Analysis by the Legislative Reference Bureau
Under current law, the death benefit for a participant in the Wisconsin
retirement system (WRS), other than an annuitant, is generally equal to the sum of
the employe additional and employe required contribution accumulations. This bill
increases the death benefit for a WRS participant who is a participating employe to
an amount equal to the sum of the employe additional contribution and twice the
employe required contribution accumulations, including any interest credited to the
accumulations.
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:
AB596, s. 1 4Section 1. 40.73 (1) (a) of the statutes is amended to read:
AB596,2,5
140.73 (1) (a) Upon the death of a participant, other than an annuitant or a
2participating employe
, the sum of the additional and employe required contribution
3accumulations credited to the participant's account on the beneficiary annuity
4effective date or, in the case of a lump sum payment, the first day of the month in
5which the death benefit is approved. In addition:
AB596,2,116 1. For teacher participants, other than annuitants or participating employes,
7who were members of the state teachers retirement system or the Milwaukee
8teachers retirement fund on June 30, 1966, the amount shall be increased by the
9employer contribution accumulation credited to the participant's account on or prior
10to June 30, 1973, plus interest at the effective rate subsequently credited to the
11accumulations.
AB596,2,1612 2. For participants, other than annuitants or participating employes, who were
13participants of the Wisconsin retirement fund on or prior to December 31, 1965, the
14amount shall be increased by the employer contribution accumulation credited to the
15participant's account on December 31, 1965, plus interest at the effective rate
16subsequently credited to the accumulations.
AB596, s. 2 17Section 2. 40.73 (1) (am) of the statutes is created to read:
AB596,2,2218 40.73 (1) (am) Upon the death of a participating employe, the sum of the
19additional contribution and twice the employe required contribution accumulations
20credited, including any interest credited to the accumulations, to the participant's
21account on the beneficiary annuity effective date or, in the case of a lump sum
22payment, the first day of the month in which the death benefit is approved.
AB596, s. 3 23Section 3. 40.73 (1) (c) of the statutes is amended to read:
AB596,3,1724 40.73 (1) (c) In lieu of the benefit payable under par. (a) (am) or (b), upon the
25death of a participating employe who has attained the age of 60 years, or age 55 if

1a protective occupation participant, if the beneficiary to whom a death benefit is
2payable is a dependent of the participating employe, or a trust in which such a
3beneficiary has a beneficial interest, the present value on the day following the date
4of death of the life annuity to the beneficiary which would have been payable if the
5participating employe had been eligible to receive a retirement annuity, computed
6under s. 40.23 or 40.26, beginning on the date of death and had elected to receive the
7annuity in the form of a joint and survivor annuity providing the same amount of
8annuity to the surviving beneficiary as the reduced amount payable during the
9participant's lifetime. If there is more than one beneficiary the amount of the
10annuity and its present value will be determined as if the oldest of the beneficiaries
11were the sole beneficiary. If the death benefit payable to the beneficiary under this
12paragraph would be less than the amount determined under par. (a) (am) or (b) the
13death benefit shall be payable under par. (a) (am) or (b) and this paragraph shall not
14be applicable to the beneficiary. An annuitant receiving an annuity only under s.
1540.24 (1) (f), which annuity was an immediate annuity, shall be deemed a
16participating employe for purposes of this paragraph only, but the amount payable
17under s. 40.24 (1) (f) shall not be changed.
AB596,3,1818 (End)
Loading...
Loading...