AB495: Bill Text

AB495,14,14 2. This paragraph shall only apply to participants who are participating employes on or after January 1, 2000.

AB495, s. 22 Section 22. 40.26 (2) (b) of the statutes is amended to read:

AB495,14,24 40.26 (2) (b) The amount of the annuity payments, excluding any portion originally provided by additional contributions, which would have been paid under the terminated annuity, if the annuity had been a straight life annuity, prior to the participant's normal retirement date or prior to the annuity termination date, whichever would first occur, shall be credited to a memorandum account which is subject to s. 40.04 (4) (a) 2., 2g. and 2m. and (c). If the annuity was recomputed under s. 40.08 (1m) because of a qualified domestic relations order, the memorandum account established under this paragraph shall be adjusted as provided under s. 40.08 (1m) (f) 2.

AB495, s. 23 Section 23. 40.26 (5) (c) of the statutes is amended to read:

AB495,15,9 40.26 (5) (c) Any annuity or lump sum payment made to the participant shall be considered to have been made in error and is subject to s. 40.08 (4). The sum of the payments made in error shall be credited to a memorandum account. The memorandum account is subject to s. 40.04 (4) (a) 2., 2g. and 2m. and (c). If the annuity was recomputed under s. 40.08 (1m), the memorandum account established under this paragraph shall be adjusted pursuant to s. 40.08 (1m) (f) 2. The retirement account of a participant paid in error, and whose annuity was terminated, shall be reestablished as if the terminated annuity had never been effective, including the crediting of interest.

AB495, s. 24 Section 24. 40.73 (1) (a) (intro.) of the statutes is amended to read:

AB495,15,15 40.73 (1) (a) (intro.) Upon the death of a participant, other than an annuitant or a participating employe, the sum of the additional and employe required contribution accumulations credited to the participant's account on the beneficiary annuity effective date or, in the case of a lump sum payment, the first day of the month in which the death benefit is approved. In addition:

AB495, s. 25 Section 25. 40.73 (1) (am) of the statutes is created to read:

AB495,15,22 40.73 (1) (am) Upon the death of a participating employe who has not attained age 55, and any protective occupation participant who has not attained age 50, the sum of the additional contribution and twice the employe required contribution accumulations credited, including any interest credited to the accumulations, to the participant's account on the beneficiary annuity effective date or, in the case of a lump sum payment, the first day of the month in which the death benefit is approved.

AB495, s. 26 Section 26. 40.73 (1) (c) of the statutes is amended to read:

AB495,16,18 40.73 (1) (c) In lieu of the benefit payable under par. (a) or (b), upon Upon the death of a participating employe who, prior to death, met all of the requirements under s. 40.23 (1) except termination of employment and the filing of an application, if the beneficiary to whom a death benefit is payable is a dependent of the participating employe natural person, or a trust in which such a beneficiary the natural person has a beneficial interest, the present value on the day following the date of death of the life annuity to the beneficiary which would have been payable if the participating employe had been eligible to receive a retirement annuity, computed under s. 40.23 or 40.26, beginning on the date of death and had elected to receive the annuity in the form of a joint and survivor annuity providing the same amount of annuity to the surviving beneficiary as the reduced amount payable during the participant's lifetime. If there is more than one beneficiary the amount of the annuity and its present value will be determined as if the oldest of the beneficiaries were the sole beneficiary. If the death benefit payable to the beneficiary under this paragraph would be less than the amount determined under par. (a) or (b) the death benefit shall be payable under par. (a) or (b) and this paragraph shall not be applicable to the beneficiary. An annuitant receiving an annuity only under s. 40.24 (1) (f), which annuity was an immediate annuity, shall be deemed a participating employe for purposes of this paragraph only, but the amount payable under s. 40.24 (1) (f) shall not be changed.

AB495, s. 27 Section 27. Nonstatutory provisions.

AB495,16,21 (1) Transfer of funds from the transaction amortization account of the fixed retirement investment trust.

AB495,17,3 (a) On December 31, 1999, after the annual distribution required under section 40.04 (3) (a) of the statutes for the 1999 calendar year is made, $4,000,000,000 shall be distributed from the transaction amortization account of the fixed retirement investment trust to the reserves and accounts of the fixed retirement investment trust in an amount equal to a percentage of the total distribution determined by dividing each reserve's and account's balance on the prior January 1 by the total balance of the fixed retirement investment trust on the prior January 1.

AB495,17,25 (b) 1. The employe trust funds board shall determine each participating employer's share of the increase in the employer accumulation reserve that results from the distribution under paragraph (a ) and shall establish for each employer a credit balance in the employer accumulation reserve that equals the employer's share of the increase in the employer accumulation reserve that results from the distribution under paragraph (a), based on each employer's share of covered payroll in 1998. The total amount that shall be reserved for credit balances under this subdivision shall be $200,000,000. In lieu of requiring that an employer make required employer contributions under section 40.05 (2) (b) of the statutes, the employe trust funds board, beginning no later than March 1, 2000, shall deduct from the employer's credit balance in the employer accumulation reserve, on a monthly basis, an amount that the employer would otherwise have been required to contribute under section 40.05 (2) (b) of the statutes had there been no establishment of the credit balance from the distribution under paragraph (a). For any employer that is not required to make contributions under section 40.05 (2) (b) of the statutes, the employe trust funds board, beginning no later than March 1, 2000, shall deduct from the employer's credit balance in the employer accumulation reserve, on a monthly basis, an amount that the employer would otherwise have been required to contribute under section 40.05 (2) (a) of the statutes had there been no establishment of the credit balance from the distribution under paragraph (a). The employe trust funds board shall make such deductions until the credit balance is exhausted, at which time the employer shall resume making all required employer contributions.

AB495,18,5 2. The total amount of the increase in the employer accumulation reserve that results from the distribution under paragraph (a ) and that remains after the establishment of the credit balances under subdivision 1. shall, on the recommendation of the actuary, be applied to funding any liabilities created by the treatment of section 40.23 (2m) (e) 1., 2., 3. and 4. of the statutes in this act.

AB495,18,9 (c) The total amount distributed to the employe accumulation reserve under paragraph (a) shall be credited to participants' accounts based on their account balances as of January 1, 1999, pursuant to section 40.04 (4) (a) 2. and 2g. of the statutes.

AB495,18,11 (d) The total amount distributed to the annuity reserve under paragraph (a ) shall be distributed as provided under section 40.27 (2) of the statutes.

AB495,18,12 (2) Purchase of legislative service.

AB495,18,13 (a) In this subsection:

AB495,18,14 1. "Employer" has the meaning specified in section 40.02 (28) of the statutes.

AB495,18,16 2. "Final average earnings" has the meaning specified in section 40.02 (33) of the statutes.

AB495,18,18 3. "Legislative service agency" has the meaning specified in section 13.90 (1m) (a) of the statutes.

AB495,18,20 4. "Participating employe" has the meaning specified in section 40.02 (46) of the statutes.

AB495,19,13 (b) Any person who is a participating employe on the effective date of this paragraph shall be granted creditable service under the Wisconsin retirement system for any service that was performed before the effective date of this paragraph as a member or employe of the legislature or employe of a legislative service agency and that has not been previously credited, if the participating employe was a member or employe of the legislature or employe of a legislative service agency for at least 600 hours during the calendar year in which the service was performed or the calendar year immediately succeeding the calendar year in which the service was performed and if, not later than the first day of the 7th month beginning after the effective date of this paragraph, the participating employe submits an application for the creditable service to the department of employe trust funds and pays to the department a lump sum equal to the employe required contribution rate under section 40.05 (1) (a) of the statutes that is applicable to the service multiplied by the participating employe's final average earnings, determined as if the participating employe has terminated employment and applied for a retirement annuity under the Wisconsin retirement system on the date on which the department receives the participating employe's application for the creditable service, and by the number of months of creditable service granted under this paragraph.

AB495,19,15 (c) An employer may pay any amount payable under paragraph (b ) on behalf of any participating employe.

AB495,19,23 (d) Any liability incurred as a result of granting creditable service to a participating employe under paragraph (b ) that is not funded by the contributions made by the participating employe under paragraph (b ), or by the employer on behalf of the participating employe under paragraph (c ), shall be paid from the appropriation accounts under section 20.765 (1) (a) and (b) of the statutes. The amount apportioned to section 20.765 (1) (a) of the statutes and to section 20.765 (1) (b) of the statutes to fund the liability shall be determined by the presiding officers of each house of the legislature.

AB495,20,3 (3) Authority of employe trust funds board. Notwithstanding any provision in this act, the employe trust funds board shall retain the authority to maintain proper actuarial funding of the Wisconsin retirement system.

AB495, s. 28 Section 28. Initial applicability.

AB495,20,8 (1) Calculation of contribution rates. The treatment of section 40.02 (7) of the statutes first applies to the calculation of contribution rates under section 40.05 (1) and (2) of the statutes for the Wisconsin retirement system for the 2001 calendar year.

AB495,20,12 (2) Calculation of retirement benefits. The treatment of section 40.23 (2m) (b) and (e) 1., 2., 3. and 4. of the statutes first applies to the calculation of retirement benefits for individuals who are participating employes in the Wisconsin retirement system on January 1, 2000.

AB495,20,16 (3) Death benefits. The treatment of section 40.73 (1) (a) (intro.), (am) and (c) of the statutes first applies to death benefits paid to participants in the Wisconsin retirement system who are participating employes in the Wisconsin retirement system on the effective date of this subsection.

AB495,20,20 (4) Variable annuity. The treatment of section 40.04 (7) (a) (intro.) of the statutes first applies to elections for variable annuity participation that are made by individuals who are participating employes in the Wisconsin retirement system on January 1, 2001.

AB495,20,24 (5) Calculation of unfunded prior service liability balances. The treatment of section 40.05 (2) (cm) of the statutes first applies to the calculation of unfunded prior service liability balances under section 40.05 (2) (b) of the statutes for the Wisconsin retirement system for the 2001 calendar year.

AB495, s. 29 Section 29. Effective dates. This act takes effect on the day after publication, except as follows:

AB495,21,6 (1) Elimination of transaction amortization account and creation of market recognition account. The treatment of sections 25.17 (14) (f), 25.18 (1) (a) and (m) and 40.04 (3) (intro.), (a), (ab), (am) and (d) of the statutes takes effect on January 1, 2000.

AB495,21,7 (End)