SB326, s. 24 22Section 24 . 40.25 (6) (a) 1. of the statutes is amended to read:
SB326,15,3
140.25 (6) (a) 1. The participating employe must have at least 3 continuous years
2of creditable current service under the fund at the time of application for
3reestablishment of creditable service under this subsection.
Note: This provision is amended to clarify that a participating employe must have
at least three continuous years of creditable current service at the time of application for
purchasing forfeited service.
SB326, s. 25 4Section 25. 40.25 (6) (a) 2. of the statutes is amended to read:
SB326,15,115 40.25 (6) (a) 2. Applications for reestablishment of creditable service must
6include all creditable service that has been forfeited except that the number of years
7which may be reestablished under this subsection may not be greater than the
8creditable service of the participating employe at the date of application, or 10 years,
9whichever is smaller. Creditable service previously purchased under this chapter
10may not be used to determine the maximum amount of service that may be purchased
11under this subsection.
Note: This provision is amended to clarify that the total number of years of
forfeited service that the person can purchase is the lesser of ten years, or a number of
years equal to the current creditable service of the employe at the date of application.
SB326, s. 26 12Section 26. 40.25 (7) (a) 2. of the statutes is amended to read:
SB326,15,1413 40.25 (7) (a) 2. The participant has at least 3 continuous years of creditable
14current service under the fund at the time of application under subd. 1.
Note: This provision is amended to clarify that the participant must have had at
least three continuous years of creditable current service at the time of applying to
purchase creditable service for service as an employe of the federal government or for
service with an employer that was not covered by the Wisconsin Retirement System
during the period in which the service was performed but subsequently became a
participating employer.
SB326, s. 27 15Section 27. 40.25 (7) (a) 3. of the statutes is amended to read:
SB326,16,216 40.25 (7) (a) 3. The number of years of creditable service applied for under this
17paragraph does not exceed the number of years of creditable service that the
18participant has at the date of application or 10 years, whichever is less. Creditable

1service previously purchased under this chapter may not be used to determine the
2maximum amount of service that may be purchased under this subsection.
Note: This clarifies that the number of years of creditable service for service with
the federal government or an employer that previously did not participate in the
Wisconsin Retirement System, that the person can purchase may not exceed the lesser
of ten years or a number of years equal to the current creditable service that the
participant has, of the date of application.
SB326, s. 28 3Section 28 . 40.26 (2) (a) of the statutes is amended to read:
SB326,16,74 40.26 (2) (a) The then present value of any portion of the terminated annuity
5which was originally provided by employe or employer additional contributions or
6tax-deferred additional contributions
shall be credited to the corresponding
7additional contribution account or tax-deferred additional contribution account.
SB326, s. 29 8Section 29 . 40.26 (2) (b) of the statutes, as affected by 1999 Wisconsin Act 11,
9is amended to read:
SB326,16,1810 40.26 (2) (b) The amount of the annuity payments, excluding any portion
11originally provided by additional contributions or tax-deferred additional
12contributions
, which would have been paid under the terminated annuity, if the
13annuity had been a straight life annuity, prior to the participant's normal retirement
14date or prior to the annuity termination date, whichever would first occur, shall be
15credited to a memorandum account which is subject to s. 40.04 (4) (a) 2., 2g. and 2m.
16and (c). If the annuity was recomputed under s. 40.08 (1m) because of a qualified
17domestic relations order, the memorandum account established under this
18paragraph shall be adjusted as provided under s. 40.08 (1m) (f) 2.
Note: The changes made by Section 28 and 29 in provisions on reentry into
covered service, clarify that the provisions apply to both categories of additional
contributions.
SB326, s. 30 19Section 30. 40.28 (1) (a) 1. of the statutes is amended to read:
SB326,17,3
140.28 (1) (a) 1. The amount of the additional contribution accumulations and
2tax-deferred additional contribution accumulations
reserved for a variable annuity
3as of the date the annuity begins;
Note: This change clarifies that the provision, relating to variable benefits, applies
to both categories of additional contributions.
SB326, s. 31 4Section 31. 40.63 (9) (b) of the statutes is amended to read:
SB326,17,225 40.63 (9) (b) If a disability annuitant, prior to attaining the normal retirement
6date for the annuitant's former participant classification, receives earnings or other
7earned income from any source whatsoever for personal services, including services
8performed on a contractual basis, the annuity shall be suspended, except for any
9amount provided by additional contributions or tax-deferred additional
10contributions
, and no payment shall be payable after the first of the month in which
11the earnings or earned income received during any calendar year exceed the amount
12established under sub. (11), except that if payment was being made under sub. (4)
13the annuity may only be suspended if the annuitant is employed in a law
14enforcement or fire fighting capacity and then the suspension shall be effective
15immediately. The suspended amount shall be reinstated on January 1 following the
16date of suspension, or, if earlier, on the first day of the 2nd month following the
17termination of personal services. An amount, which is reinstated in any calendar
18year, other than on January 1 of the calendar year, shall again be suspended for any
19subsequent month in the calendar year following a month in which the disability
20annuitant receives any amount of earnings or earned income for personal services.
21The department may request any earnings or compensation information as it deems
22necessary to implement the provisions of this paragraph and par. (c).
Note: The change clarifies that provisions relating to suspension of disability
annuities of persons who receive earnings from personal services do not apply to either
category of additions contributions.
SB326, s. 32
1Section 32. 40.63 (10) of the statutes is amended to read:
SB326,18,112 40.63 (10) Upon termination of an annuity in accordance with sub. (9), each
3participant whose annuity is so terminated shall, as of the beginning of the calendar
4month following termination, be credited with additional contributions and
5tax-deferred additional contributions
equal to the then present value of the portion
6of the terminated annuity which was originally provided by the corresponding type
7of additional contributions. Except for additional contributions and tax-deferred
8additional contributions
, the retirement account of the participant shall be
9reestablished as if the terminated annuity had never been effective, including
10crediting of interest and of any contributions and creditable service earned during
11the period the annuity was in force.
Note: The change to this provision, relating to disability annuities, clarifies that
it applies to both categories of additional contributions.
SB326, s. 33 12Section 33. 40.73 (1) (b) of the statutes is amended to read:
SB326,18,1813 40.73 (1) (b) Upon the death of an annuitant, in addition to any amounts
14payable by virtue of the annuity option elected by an annuitant, the amount
15determined under par. (a) for contributions made under s. 40.05 (1) subsequent to the
16effective date of the annuity, or additional contributions and tax-deferred additional
17contributions
not applied to provide an annuity, provided the amounts have not been
18previously paid out as a lump sum under s. 40.25.
Note: This provision, relating to death benefits, is amended to provide that it
applies to both categories of additional contributions.
SB326, s. 34 19Section 34. 40.80 (2) (g) of the statutes is created to read:
SB326,18,2220 40.80 (2) (g) Serve as trustee of any deferred compensation plan established
21under this section and hold the assets and income of the plan in trust for the exclusive
22benefit of the employes who participate in the plan and their beneficiaries.

Note: This provision clarifies that the Wisconsin deferred compensation program
is a trust and deferred compensation board members are its trustees.
SB326, s. 35 1Section 35. Initial applicability.
SB326,19,52 (1) The treatment of section 40.25 (6) (a) 1. and 2. and (7) (a) 2. and 3. of the
3statutes first applies to applications for the purchase of creditable service under
4section 40.25 (6) and (7) of the statutes submitted to the department of employe trust
5funds on the effective date of this subsection.
SB326,19,66 (End)
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