AB193: Bill Text

LRB-0209/1

RAC:hmh&jld:km

2001 - 2002 LEGISLATURE

2001 Assembly BILL 193

March 8, 2001 - Introduced by Representative Black, cosponsored by Senator Risser. Referred to Joint survey committee on Retirement Systems.

AB193,1,5 An Act to amend 40.02 (15) (a) (intro.), 1. to 4. and 6., (b) and (c) (intro.) and 1. to 3. , 40.02 (17) (intro.), 40.02 (40), 40.02 (48m) (f), 40.05 (2) (b), 40.25 (7) (a) (intro.), 40.25 (7) (b), 40.30 (3) and 40.71 (1) (c); and to create 40.05 (2) (bx) of the statutes; relating to: granting creditable service under the Wisconsin retirement system for service in the federal public health service.

Analysis by the Legislative Reference Bureau

Under current law, a participating employee under the Wisconsin retirement system (WRS) may receive one year of creditable service under WRS for each year of military service, up to a maximum of four years of military service credit, at the time of retirement in either of the following ways:

1. If the participant left employment covered under WRS to enter military service and returned to the same employer within 180 days after being discharged, the participant may receive one year of military service credit for each year of military service (regardless of the amount of the participant's creditable service).

2. If the participant's military service was performed before 1974 and the participant terminates employment covered under WRS on or after March 9, 1984, the participant may receive up to one, two, three, or four years of military service credit if the participant has at least five, ten, fifteen, or twenty years, respectively, of creditable service (not counting previously granted military service credit).

This bill provides for similar granting of creditable service under WRS for service in the federal public health service.

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:

AB193, s. 1 Section 1. 40.02 (15) (a) (intro.), 1. to 4. and 6., (b) and (c) (intro.) and 1. to 3. of the statutes are amended to read:

AB193,2,6 40.02 (15) (a) (intro.) "Creditable military or the federal public health service" means active service in the U.S. armed forces or federal public health service, based on the total period of service in the U.S. armed forces or the federal public health service, provided:

AB193,2,8 1. The participant enlisted or was ordered or inducted into active service in the U.S. armed forces or joined the federal public health service;

AB193,2,10 2. The participant left the employment of a participating employer to enter the U.S. armed forces or the federal public health service;

AB193,2,16 3. The participant returns to the employment of the employer whose employment the participant left to enter the U.S. armed forces or the federal public health service within 180 days of release or discharge from the armed forces or resignation from the federal public health service, or within 180 days of release from hospitalization because of injury or sickness resulting from service in the armed forces or the federal public health service;

AB193,2,18 4. The period of service in the U.S. armed forces or the federal public health service is not more than 4 years, unless involuntarily extended for a longer period;

AB193,3,3 6. The participant upon return from service in the U.S. armed forces or the federal public health service furnishes evidence required to establish the participant's rights under this chapter; and

AB193,3,6 (b) The creditable military or federal public health service under par. (a) shall be the same type, as set forth in s. 40.23 (2m) (e), as the participant was receiving prior to entry into the U.S. armed forces or the federal public health service.

AB193,3,12 (c) (intro.) Notwithstanding sub. (17) (intro.) and any other law, any person who is credited with 5, 10, 15 or 20 or more years of creditable service, not counting any previously granted creditable military or federal public health service, may receive creditable military or federal public health service at the time of retirement for not more than 1, 2, 3 or 4 years, respectively, of active service which meets the standards under par. (a) 5., if applicable, provided:

AB193,3,14 1. This paragraph applies only to active military or federal public health service served prior to January 1, 1974.

AB193,3,17 2. Any creditable military or federal public health service otherwise granted shall be included in determining the maximum years to be granted under this paragraph.

AB193,3,22 3. Creditable military or federal public health service under this paragraph shall be allocated at the time of retirement in proportion to the amount of the participant's creditable service for each of the types of creditable service set forth in s. 40.23 (2m) (e) on the date the participant attains 5, 10, 15 or 20 years of creditable service.

AB193, s. 2 Section 2. 40.02 (17) (intro.) of the statutes is amended to read:

AB193,4,13 40.02 (17) (intro.) "Creditable service" means the creditable current and prior service, expressed in years and fractions of a year to the nearest one-hundredth, for which a participating employee receives or is considered to receive earnings under sub. (22) (e) or (em) and for which contributions have been made as required by s. 40.05 (1) and (2) and creditable military or federal public health service, service credited under s. 40.25 (7) and service credited under s. 40.29, expressed in years and fractions of years to the nearest one-hundredth. How much service in any annual earnings period is the full-time equivalent of one year of creditable service shall be determined by rule by the department and the rules may provide for differing equivalents for different types of employment. Except as provided under pars. (i) and (k), the amount of creditable service for periods prior to January 1, 1982, shall be the amount for which the participant was eligible under the applicable laws and rules in effect prior to January 1, 1982. No more than one year of creditable service shall be granted for any annual earnings period. Creditable service is determined in the following manner for the following persons:

AB193, s. 3 Section 3. 40.02 (40) of the statutes is amended to read:

AB193,5,4 40.02 (40) "Leave of absence" means any period during which an employee has ceased to render services for a participating employer and receive earnings and there has been no formal termination of the employer-employee relationship. For purposes of the fund every leave of absence, except a military or federal public health service leave or union service leave, shall terminate 3 years after it begins or, if earlier, upon the date specified by the employer in a notification to the department that the employer-employee relationship has terminated. A leave of absence is not deemed ended or interrupted by reason of resumption of active duty until the employee has resumed active performance of duty for 30 consecutive calendar days for at least 50% of what is considered that employee's normal work time with that employer. For the purpose of group health insurance coverage, every leave of absence due to employee layoff which has not been terminated before 3 years have elapsed shall continue for affected insured employees until an additional 2 years elapse or until sick leave credits used to pay health insurance premiums are exhausted, whichever occurs first.

AB193, s. 4 Section 4. 40.02 (48m) (f) of the statutes is amended to read:

AB193,5,8 40.02 (48m) (f) The judgment, decree or order requires the participant to certify, in a form prescribed by the department, all of the participant's active military or federal public health service, as described in sub. (15) (a).

AB193, s. 5 Section 5. 40.05 (2) (b) of the statutes is amended to read:

AB193,5,21 40.05 (2) (b) Contributions shall be made by each participating employer for unfunded prior service liability in a percentage of the earnings of each participating employee. A separate percentage rate shall be determined for the employee occupational categories under s. 40.23 (2m) as of the employer's effective date of participation. The rates shall be sufficient to amortize as a level percent of payroll over a period of 40 years from the later of that date or January 1, 1986, the unfunded prior service liability for the categories of employees of each employer determined under s. 40.05 (2) (b), 1981 stats., increased to reflect any creditable prior service granted on or after January 1, 1986, increased to reflect the effect of 1983 Wisconsin Act 141, increased at the end of each calendar year after January 1, 1986, by interest at the assumed rate on the unpaid balance at the end of the year and adjusted under pars. (bu), (bv) and, (bw), and (bx).

AB193, s. 6 Section 6. 40.05 (2) (bx) of the statutes is created to read:

AB193,6,3 40.05 (2) (bx) The employer contribution rate determined under par. (b) for participating employees who served in the federal public health service shall be adjusted to reflect the cost of granting creditable service for those participating employees under s. 40.02 (15) and that rate shall be sufficient to amortize the unfunded prior service liability of the employers over the remainder of the 40-year amortization period under par. (b).

AB193, s. 7 Section 7. 40.25 (7) (a) (intro.) of the statutes is amended to read:

AB193,6,14 40.25 (7) (a) (intro.) Each participating employee whose creditable service terminates on or after May 1, 1992, and who has performed service, other than military or federal public health service, as an employee of the federal government or a state or local governmental entity in the United States, other than a participating employer, that is located within or outside of this state, or each participating employee whose creditable service terminates on or after May 4, 1994, and who has performed service as an employee for an employer who was not at the time a participating employer but who subsequently became a participating employer, may receive creditable service for such service if all of the following conditions are met:

AB193, s. 8 Section 8. 40.25 (7) (b) of the statutes is amended to read:

AB193,6,24 40.25 (7) (b) Creditable service granted under par. (a) shall be calculated in an amount equal to the year and fractions of a year to the nearest one-hundredth of a year for service, other than military or federal public health, service performed for the governmental entity, as determined by evidence of such service furnished under par. (a) 4. Creditable service granted under par. (a) shall be the same type of creditable service as the type that is granted to participants who are not executive participating employees, elected officials or protective occupation participants. A participating employee may apply to receive part or all of the creditable service that he or she is eligible to receive under par. (a).

AB193, s. 9 Section 9. 40.30 (3) of the statutes is amended to read:

AB193,7,6 40.30 (3) The sum of all service credited to the individual under each retirement system specified in sub. (2) shall be used in determining whether the individual has met any vesting period required for retirement benefit eligibility during any subsequent employment covered by any retirement system specified in sub. (2), but shall not be used in determining the amount of the benefit nor in determining credit for military service or federal public health service.

AB193, s. 10 Section 10. 40.71 (1) (c) of the statutes is amended to read:

AB193,7,12 40.71 (1) (c) If the death of a participating employee on leave of absence, other than a leave for purposes of military or federal public health service, arises from employment by any employer other than a participating employer, employment is deemed to have terminated and the participant shall not be considered a participating employee on the date of his or her death.

AB193, s. 11 Section 11. Effective dates. This act takes effect on the day after publication, except as follows:

AB193,7,16 (1) The treatment of section 40.05 (2) (b) and (bx) of the statutes takes effect on the January 1 after publication.

AB193,7,17 (End)