AB795,20,125
40.08
(8) (c) The department shall publish a class 1 notice, under ch. 985, in
6the official state paper stating the names of persons presumed to have died intestate,
7without heirs or beneficiary, or whose accounts are presumed to be abandoned under
8par. (a), and the fact that a benefit will be paid, if applied for within the time limits
9under par.
(a) (d) and if the participant, alternate payee or other person offers proof
10satisfactory to the department that the participant, alternate payee or other person
11is entitled to the benefit. Such proof shall include, but is not limited to, evidence that
12the participant died and that the person is the beneficiary under s. 40.02 (8).
AB795, s. 35
13Section
35. 40.08 (8) (e) of the statutes is amended to read:
AB795,20,2014
40.08
(8) (e) Notwithstanding
any other provision of the statutes s. 40.02 (8), 15any account subject to this subsection may, at the discretion of the department, be
16settled by any heirs of a deceased participant or beneficiary making application, on
17a form approved by the department, certifying the names of any other persons not
18known by the applicants to be deceased and known by the applicants to have an equal
19or superior claim to the account and certifying that the applicants have no knowledge
20of the whereabouts of any of the persons so named.
AB795, s. 36
21Section
36. 40.08 (10) of the statutes is renumbered 40.08 (10) (a) and
22amended to read:
AB795,21,623
40.08
(10) (a)
Service credits granted and contribution, premium and benefit
24payments made under this chapter are not Except as provided in par. (b), the factors
25that are used to calculate a participant's retirement benefits are subject to correction
1unless correction is requested or made prior to the end of 7 full calendar for 7 years
2after the date
of the alleged error or January 1, 1987, whichever is later that the
3department calculates the benefits, unless the alleged error is the result of fraud or
4unless another limitation is specifically provided by
statute. This subsection does
5not prohibit correction of purely clerical errors in reporting or recording
6contributions, service and earnings law.
AB795, s. 37
7Section
37. 40.08 (10) (b) of the statutes is created to read:
AB795,21,98
40.08
(10) (b) Contribution payments are subject to correction as provided in
9a decision under s. 40.06 (1) (e).
AB795, s. 38
10Section
38. 40.08 (10) (c) of the statutes is created to read:
AB795,21,1411
40.08
(10) (c) Individual premium and benefit payments are subject to
12correction for 7 years after the premium is due or after the benefit is paid, whichever
13is applicable, unless the alleged error is the result of fraud or unless another
14limitation is specifically provided by law.
AB795, s. 39
15Section
39. 40.08 (10) (d) of the statutes is created to read:
AB795,21,1716
40.08
(10) (d) This subsection does not prohibit correction of purely clerical
17errors in reporting or recording contributions, service, and earnings.
AB795, s. 40
18Section
40. 40.08 (13) of the statutes is amended to read:
AB795,21,2219
40.08
(13) Beneficiary designation. The department may not be required by
20a court order, or by any other action or proceeding, to enforce or otherwise monitor
21the any beneficiary designation
specified in a qualified domestic relations order filed
22with the department.
AB795, s. 41
23Section
41. 40.22 (2) (h) of the statutes is repealed.
AB795, s. 42
24Section
42. 40.23 (1) (b) of the statutes is amended to read:
AB795,22,12
140.23
(1) (b) Except as provided in par. (bm), all retirement annuities shall be
2effective on the day following, or on the first day of a month following, the date of
3separation from the last participating employer by which the participant was
4employed, as specified by the participant in the written application for the annuity.
5However, the date shall not be more than 90 days prior to the date of receipt of the
6application by the department. The participant may specify that additional
and
7tax-deferred additional contribution accumulations shall not be applied to provide
8an annuity until a subsequent application is filed for an annuity to be paid from the
9additional
and tax-deferred additional contribution accumulations. The
10subsequent application shall be made as specified under sub. (4) or the department
11shall automatically distribute the accumulated additional
and tax-deferred
12additional contribution accumulations as a lump sum.
AB795, s. 43
13Section
43. 40.23 (3) of the statutes is amended to read:
AB795,22,2014
40.23
(3) The initial monthly amount of any retirement annuity in the normal
15form shall not be less than the money purchase annuity which can be provided by
16applying the sum of the participant's accumulated additional and required
17contributions plus an amount from the employer accumulation reserve equal to the
18participant's accumulated required contributions
, less the amount of any lump sum
19payment under s. 40.25 (7) (a) 5. and any interest thereon, to fund the annuity in
20accordance with the actuarial tables in effect on the annuity effective date.
AB795, s. 44
21Section
44. 40.23 (4) (a) of the statutes is amended to read:
AB795,23,422
40.23
(4) (a) Subject to all requirements under the
internal revenue code 23Internal Revenue Code, the department shall distribute to the participant the entire
24benefit attributable to the amount that is credited to the account of a participant
25under the Wisconsin retirement system no later than the required beginning date,
1unless the department distributes this
amount
benefit as an annuity or in more than
2one payment. If the department distributes this
amount benefit as an annuity or in
3more than one payment, the department shall begin the distribution no later than
4the required beginning date.
AB795, s. 45
5Section
45. 40.23 (4) (b) of the statutes is amended to read:
AB795,23,126
40.23
(4) (b) In the calendar year immediately preceding the calendar year of
7a participant's required beginning date, if the department distributes the
benefit
8attributable to the amount that is credited to the account of a participant under the
9Wisconsin retirement system in a form other than as a lump sum payment, the
10department, subject to all requirements under the
internal revenue code Internal
11Revenue Code, shall calculate the distribution to the participant according to one of
12the following:
AB795,23,1513
1. The life
expectancy of a participant or, if the annuity is in the form of a joint
14and survivor annuity, the joint
lives life expectancies of the participant and the
15named survivor.
AB795,23,1916
2. For an annuity authorized under s. 40.24 (1) (f), a term certain not to exceed
17the life expectancy of the participant
or, if the annuity is in the form of a joint and
18survivor annuity, the joint life expectancies of the participant and the named
19survivor.
AB795, s. 46
20Section
46. 40.23 (4) (c) of the statutes is amended to read:
AB795,24,1121
40.23
(4) (c) If a participant during the calendar year in which he or she attains
2269.5 years
or in which he or she terminates employment with a participating
23employer, whichever is later, or the alternate payee during the calendar year in
24which the participant attains
or would have attained 69.5 years, does not apply
25before December 31 in that year for a distribution of the
benefit attributable to the
1amount that is credited to the account of a participant under the Wisconsin
2retirement system, the department shall begin, effective the following January 1, an
3automatic distribution to the participant or alternate payee in the form of an annuity
4specified under s. 40.24 (1) (c) or as determined by the department by rule. If the
5department makes an automatic distribution under this paragraph, the beneficiary
6designation filed with the department before the date on which the department
7begins the automatic distribution is no longer applicable under ss. 40.71 and 40.73.
8Unless the participant or alternate payee files a subsequent beneficiary designation
9with the department after the date on which the department begins the automatic
10distribution, the department shall pay any death benefit as provided under s. 40.02
11(8) (a) 2.
AB795, s. 47
12Section
47. 40.23 (4) (d) of the statutes is amended to read:
AB795,24,2013
40.23
(4) (d) If a participant dies after the department begins to distribute the
14benefit attributable to the amount that is credited to the account of a participant
15under the Wisconsin retirement system, but before the entire
amount in the account 16benefit has been distributed, the department shall distribute the remaining portion
17of the
account benefit at least as rapidly as is provided in the manner of distribution
18selected by the participant. If the beneficiary does not apply to the department to
19continue the distribution, within a period specified by rule, the department shall pay
20the remaining distribution to the beneficiary as a lump sum.
AB795, s. 48
21Section
48. 40.23 (4) (e) 1. of the statutes is amended to read:
AB795,25,222
40.23
(4) (e) 1. Subject to subds. 2. to 4., if a participant dies before the
23distribution of benefits has commenced and the participant's beneficiary is the
24spouse, the department shall begin the distribution
within 5 years after the date no
1later than December 31 of the 5th calendar year that occurs after the year of the
2participant's death.
AB795, s. 49
3Section
49. 40.23 (4) (e) 3. of the statutes is amended to read:
AB795,25,74
40.23
(4) (e) 3. If the spouse does not apply for a distribution, the
distribution
5shall begin as an automatic distribution department shall distribute the entire
6benefit as provided under subd. 1. or
under par. (c) 2., whichever distribution date
7is
earlier later.
AB795, s. 50
8Section
50. 40.23 (4) (f) of the statutes is repealed and recreated to read:
AB795,25,149
40.23
(4) (f) If a participant dies before the distribution of benefits has
10commenced and the participant's beneficiary is not the spouse, the department shall
11distribute the entire benefit in a lump sum no later than December 31 of the calendar
12year that occurs after the year of the participant's death, unless the beneficiary
13begins an annuity benefit not to exceed his or her life expectancy no later than
14December 31 of the calendar year that occurs after the year of the participant's death.
AB795, s. 51
15Section
51. 40.23 (4) (g) of the statutes is amended to read:
AB795,25,1816
40.23
(4) (g) Nothing in this subsection shall be construed to create any benefit,
17lump sum payment option or form of annuity not otherwise expressly provided for
18in this
subchapter chapter.
AB795, s. 52
19Section
52
. 40.24 (1) (f) of the statutes is amended to read:
AB795,26,1020
40.24
(1) (f) From accumulated additional contributions made under s. 40.05
21(1) (a) 5.
and tax-deferred additional contribution accumulations made under s.
2240.05 (1) (a) 5m. only, an annuity certain payable for and terminating after the
23number of months specified by the applicant, regardless of whether the applicant
24dies before or after the number of months specified, provided that the monthly
25amount of the annuity certain is at least equal to the minimum amount established
1under s. 40.25 (1) (a). Subject to the period of distribution required under s. 40.23
2(4) (b) 2., the number of months specified shall not exceed 180 and shall not be less
3than 24.
At any time before the expiration of the certain period, the annuitant may
4elect to receive a lump-sum payment equal to the present value of the remaining
5monthly payments. If the death of the annuitant occurs prior to the expiration of the
6certain period, the remaining payments shall be made in accordance with s. 40.73
7(2) without regard to any other annuity payments payable to the beneficiary. An
8annuity under this paragraph may be initiated prior to any other annuity amount
9provided under this subchapter and prior to age 55 if all other qualifications for
10receiving an annuity payment are met.
AB795, s. 53
11Section
53. 40.24 (3) of the statutes is amended to read:
AB795,26,1412
40.24
(3) Any participant specified under sub. (1) (intro.) may elect to receive
13the amount provided by accumulated additional contributions
and tax-deferred
14additional contributions in a different optional form than the balance of the annuity.
AB795, s. 54
15Section
54
. 40.24 (7) (a) 4. of the statutes is amended to read:
AB795,26,1716
40.24
(7) (a) 4. Benefits paid from accumulated additional contributions
and
17tax-deferred additional contributions.
AB795, s. 55
18Section
55
. 40.25 (1) (a) of the statutes is amended to read:
AB795,27,519
40.25
(1) (a) If all other requirements for payment of a retirement annuity are
20met and if the retirement annuity in the normal form which could be provided under
21s. 40.23 is equal to or less than $100 monthly for a benefit with an effective date that
22is on or after April 23, 1994,
but before the end of the calendar year of 1993 or, for
23a benefit with an effective date in a subsequent calendar year, the monthly amount
24applied under this paragraph for the previous calendar year increased by the salary
25index and ignoring fractions of the dollar, the then present value, including
1additional contributions
and tax-deferred additional contributions, of the annuity
2shall be paid in a single sum instead of as an annuity. The additional contribution
3accumulations
and tax-deferred additional contribution accumulations shall not be
4included in determining whether a single sum should be paid if the optional form
5provided by s. 40.24 (1) (f) or a lump sum under sub. (4) is selected.
AB795, s. 56
6Section
56. 40.25 (1) (b) of the statutes is amended to read:
AB795,27,177
40.25
(1) (b) If all other requirements for payment of a retirement annuity are
8met and if the retirement annuity in the normal form which could be provided under
9s. 40.23 from all available accumulations and credits, other than accumulations from
10additional contributions
and tax-deferred additional contributions, is more than
11$100 and less than $200 monthly for a benefit with an effective date that is on or after
12April 23, 1994,
but before the end of the calendar year of 1993 or, for a benefit with
13an effective date in a subsequent calendar year, the monthly amounts applied under
14this paragraph for the previous calendar year increased by the salary index and
15ignoring fractions of the dollar, then any participant may elect to receive, in lieu of
16the annuity, the then present value, including additional contributions
and
17tax-deferred additional contributions, of the annuity in a single sum.
AB795, s. 57
18Section
57
. 40.25 (3m) of the statutes is amended to read:
AB795,28,219
40.25
(3m) A participant's application for a lump sum payment under sub. (1)
20(b) or (2), filed after May 7, 1994, shall be signed by both the participant and the
21participant's spouse, if the participant has been married to that spouse for at least
22one year immediately preceding the date the application is filed. The department
23may promulgate rules that allow for the waiver of the requirements of this subsection
24for a situation in which, by reason of absence or incompetency, the spouse's signature
1may not be obtained. This subsection does not apply to any benefits paid from
2accumulated additional contributions
and tax-deferred additional contributions.
AB795, s. 58
3Section
58
. 40.25 (4) of the statutes is amended to read:
AB795,28,94
40.25
(4) If all the requirements for payment of a retirement annuity or a
5separation benefit are met, except filing of an application, a participant may elect
6that the accumulation from the participant's additional contributions made under
7s. 40.05 (1) (a) 5.
and tax-deferred additional contributions made under s. 40.05 (1)
8(a) 5m. be paid as a lump sum in lieu of an annuity from those additional
9contributions.
AB795, s. 59
10Section
59
. 40.25 (6) (a) 1. of the statutes is amended to read:
AB795,28,1311
40.25
(6) (a) 1. The participating employee must have at least 3 continuous
12years of creditable
current service under the fund at the time of application for
13reestablishment of creditable service under this subsection.
AB795, s. 60
14Section
60. 40.25 (6) (a) 2. of the statutes is amended to read:
AB795,28,2315
40.25
(6) (a) 2.
Applications for reestablishment of creditable service must
16include all creditable service that has been forfeited except that the Subject to the
17rules promulgated by the department, a participating employee may apply for all or
18part of the creditable service that he or she has forfeited. The total number of years
19which may be reestablished under this subsection may not be greater than the
20creditable service of the participating employee at the date of application, or 10
21years, whichever is smaller.
Creditable service previously purchased under this
22chapter may not be used to determine the maximum amount of service that may be
23purchased under this subsection.
AB795, s. 61
24Section
61. 40.25 (7) (a) 2. of the statutes is amended to read:
AB795,29,2
140.25
(7) (a) 2. The participant has at least 3 continuous years of creditable
2current service under the fund at the time of application under subd. 1.
AB795, s. 62
3Section
62. 40.25 (7) (a) 3. of the statutes is amended to read:
AB795,29,84
40.25
(7) (a) 3. The number of years of creditable service applied for under this
5paragraph does not exceed the number of years of creditable service that the
6participant has at the date of application or 10 years, whichever is less.
Creditable
7service previously purchased under this chapter may not be used to determine the
8maximum amount of service that may be purchased under this subsection.
AB795, s. 63
9Section
63. 40.25 (7) (d) of the statutes is amended to read:
AB795,29,1210
40.25
(7) (d) The lump sum payment under par. (a) 5. shall be credited and
11treated as an employee required contribution for all purposes of the retirement
12system, except
for purposes of s. as provided in ss. 40.23 (3)
and 40.73 (1) (am).
AB795, s. 64
13Section
64
. 40.26 (2) (a) of the statutes is amended to read:
AB795,29,1714
40.26
(2) (a) The then present value of any portion of the terminated annuity
15which was originally provided by employee or employer additional contributions
or
16tax-deferred additional contributions shall be credited to the corresponding
17additional contribution account
or tax-deferred additional contribution account.
AB795, s. 65
18Section
65
. 40.26 (2) (b) of the statutes is amended to read:
AB795,30,219
40.26
(2) (b) The amount of the annuity payments, excluding any portion
20originally provided by additional contributions
or tax-deferred additional
21contributions, which would have been paid under the terminated annuity, if the
22annuity had been a straight life annuity, prior to the participant's normal retirement
23date or prior to the annuity termination date, whichever would first occur, shall be
24credited to a memorandum account which is subject to s. 40.04 (4) (a) 2., 2g.
, and 2m.
25and (c). If the annuity was recomputed under s. 40.08 (1m) because of a qualified
1domestic relations order, the memorandum account established under this
2paragraph shall be adjusted as provided under s. 40.08 (1m) (f) 2.
AB795, s. 66
3Section
66. 40.26 (5) (intro.) of the statutes is amended to read:
AB795,30,84
40.26
(5) (intro.) If a participant
applies for an annuity or lump sum payment
5during the period in which less than 30 days have elapsed between the termination
6of employment with a participating employer and becoming a participating employee
7with any participating employer does not satisfy the condition under s. 40.23 (1) (a)
81., all of the following shall apply:
AB795, s. 67
9Section
67. 40.26 (5) (a) of the statutes is repealed.
AB795, s. 68
10Section
68. 40.26 (5) (c) of the statutes is amended to read:
AB795,30,1911
40.26
(5) (c) Any annuity or lump sum payment made to the participant shall
12be considered to have been made in error and is subject to s. 40.08 (4).
The sum of
13the payments made in error shall be credited to a memorandum account. The
14memorandum account is subject to s. 40.04 (4) (a) 2., 2g. and 2m. and (c). If the
15annuity was recomputed under s. 40.08 (1m), the memorandum account established
16under this paragraph shall be adjusted pursuant to s. 40.08 (1m) (f) 2. The
17retirement account of a participant paid in error, and whose annuity was terminated,
18shall be reestablished as if the terminated annuity had never been effective,
19including the crediting of interest.
AB795, s. 69
20Section
69. 40.28 (1) (a) 1. of the statutes is amended to read:
AB795,30,2321
40.28
(1) (a) 1. The amount of the additional contribution accumulations
and
22tax-deferred additional contribution accumulations reserved for a variable annuity
23as of the date the annuity begins;
AB795, s. 70
24Section
70. 40.63 (7) of the statutes is amended to read:
AB795,31,7
140.63
(7) If an application, by a participant age 55 or over, or by a protective
2occupation participant age 50 or over, for any disability annuity is
disapproved 3denied, withdrawn, or cancelled, the date which would have been the disability
4annuity effective date shall be the retirement annuity effective date if so requested
5by the applicant within 60 days of the
disapproval
date of withdrawal, denial, or
6cancellation or, if the
disapproval denial is appealed, within 60 days of final
7disposition of the appeal.
AB795, s. 71
8Section
71. 40.63 (9) (b) of the statutes is amended to read:
AB795,32,29
40.63
(9) (b) If a disability annuitant, prior to attaining the normal retirement
10date for the annuitant's former participant classification, receives earnings or other
11earned income from any source whatsoever for personal services, including services
12performed on a contractual basis, the annuity shall be suspended, except for any
13amount provided by additional contributions
or tax-deferred additional
14contributions, and no payment shall be payable after the first of the month in which
15the earnings or earned income received during any calendar year exceed the amount
16established under sub. (11), except that if payment was being made under sub. (4)
17the annuity may only be suspended if the annuitant is employed in a law
18enforcement or fire fighting capacity and then the suspension shall be effective
19immediately. The suspended amount shall be reinstated on January 1 following the
20date of suspension, or, if earlier, on the first day of the 2nd month following the
21termination of personal services. An amount, which is reinstated in any calendar
22year, other than on January 1 of the calendar year, shall again be suspended for any
23subsequent month in the calendar year following a month in which the disability
24annuitant receives any amount of earnings or earned income for personal services.
1The department may request any earnings or compensation information as it deems
2necessary to implement the provisions of this paragraph and par. (c).
AB795, s. 72
3Section
72. 40.63 (10) of the statutes is amended to read:
AB795,32,134
40.63
(10) Upon termination of an annuity in accordance with sub. (9), each
5participant whose annuity is so terminated shall, as of the beginning of the calendar
6month following termination, be credited with additional contributions
and
7tax-deferred additional contributions equal to the then present value of the portion
8of the terminated annuity which was originally provided by the corresponding type
9of
additional contributions. Except for additional contributions
and tax-deferred
10additional contributions, the retirement account of the participant shall be
11reestablished as if the terminated annuity had never been effective, including
12crediting of interest and of any contributions and creditable service earned during
13the period the annuity was in force.
AB795, s. 73
14Section
73. 40.70 (1) (b) of the statutes is amended to read:
AB795,32,1915
40.70
(1) (b) The employee files
with the department an application
in the
16manner provided by rule or contract, to be effective on a date fixed by the department,
17for one or more of the types of coverage established under this subchapter. The group
18insurance board may provide a different method of enrollment than provided under
19this subsection.
AB795, s. 74
20Section
74. 40.70 (6) of the statutes is amended to read:
AB795,33,321
40.70
(6) Except as provided in sub. (7m), any employee who has not applied
22for coverage under sub. (1) within
6 months the time period specified by rule or
23contract after becoming eligible for coverage or any employee whose insurance
24terminates under sub. (8) shall not thereafter become insured for that coverage
25unless
prior to the attainment of age 55 the employee furnishes evidence of
1insurability satisfactory to the insurer, at his or her own expense. If the evidence is
2approved, the employee shall become insured on the first day of the first month
3beginning after the approval.
AB795, s. 75
4Section
75. 40.71 (1) (d) of the statutes is renumbered 40.71 (1) (d) (intro.) and
5amended to read:
AB795,33,76
40.71
(1) (d) (intro.) Every participant is deemed an annuitant immediately
7upon the
later of the following:
AB795,33,8
81. The effective date of the participant's annuity
, or the.
AB795,33,10
92. The date the application
for an annuity is received by the department
, but
10only if the participant is living on that date
, whichever is later.
AB795, s. 76
11Section
76. 40.71 (2) of the statutes is amended to read:
AB795,33,2012
40.71
(2) Any death benefit may be paid as a beneficiary annuity, subject to s.
1340.73 (3), or as a single cash sum as specified by the beneficiary in the application
14for the death benefit unless the participant prohibited payment of a single cash sum
15in a written notice received by the department prior to the participant's death. A
16prohibition on payment of a single cash sum shall not be effective if the monthly
17amount of the annuity would be less than the amount determined under s. 40.25 (1)
18(a)
, if the department commences an automatic distribution under s. 40.23 (4), or if
19the beneficiary is the participant's estate or a trust in which the beneficiary has a
20beneficial interest.
AB795, s. 77
21Section
77. 40.73 (1) (am) of the statutes is renumbered 40.73 (1) (am) (intro.)
22and amended to read:
AB795,34,423
40.73
(1) (am) (intro.) Upon the death of a participating employee, except as
24otherwise provided by par. (c), the sum of the
additional contribution and twice the
25employee required contribution accumulations credited following accumulations,
1including any interest credited to the accumulations,
that are credited to the
2participant's account on the beneficiary annuity effective date or, in the case of a
3lump sum payment, the first day of the month in which the death benefit is
4approved
.: