SB418: Bill Text

SB418, s. 69 Section 69. 40.28 (1) (a) 1. of the statutes is amended to read:

SB418,30,23 40.28 (1) (a) 1. The amount of the additional contribution accumulations and tax-deferred additional contribution accumulations reserved for a variable annuity as of the date the annuity begins;

SB418, s. 70 Section 70. 40.63 (7) of the statutes is amended to read:

SB418,31,7 40.63 (7) If an application, by a participant age 55 or over, or by a protective occupation participant age 50 or over, for any disability annuity is disapproved denied, withdrawn, or cancelled, the date which would have been the disability annuity effective date shall be the retirement annuity effective date if so requested by the applicant within 60 days of the disapproval date of withdrawal, denial, or cancellation or, if the disapproval denial is appealed, within 60 days of final disposition of the appeal.

SB418, s. 71 Section 71. 40.63 (9) (b) of the statutes is amended to read:

SB418,32,2 40.63 (9) (b) If a disability annuitant, prior to attaining the normal retirement date for the annuitant's former participant classification, receives earnings or other earned income from any source whatsoever for personal services, including services performed on a contractual basis, the annuity shall be suspended, except for any amount provided by additional contributions or tax-deferred additional contributions, and no payment shall be payable after the first of the month in which the earnings or earned income received during any calendar year exceed the amount established under sub. (11), except that if payment was being made under sub. (4) the annuity may only be suspended if the annuitant is employed in a law enforcement or fire fighting capacity and then the suspension shall be effective immediately. The suspended amount shall be reinstated on January 1 following the date of suspension, or, if earlier, on the first day of the 2nd month following the termination of personal services. An amount, which is reinstated in any calendar year, other than on January 1 of the calendar year, shall again be suspended for any subsequent month in the calendar year following a month in which the disability annuitant receives any amount of earnings or earned income for personal services. The department may request any earnings or compensation information as it deems necessary to implement the provisions of this paragraph and par. (c).

SB418, s. 72 Section 72. 40.63 (10) of the statutes is amended to read:

SB418,32,13 40.63 (10) Upon termination of an annuity in accordance with sub. (9), each participant whose annuity is so terminated shall, as of the beginning of the calendar month following termination, be credited with additional contributions and tax-deferred additional contributions equal to the then present value of the portion of the terminated annuity which was originally provided by the corresponding type of additional contributions. Except for additional contributions and tax-deferred additional contributions, the retirement account of the participant shall be reestablished as if the terminated annuity had never been effective, including crediting of interest and of any contributions and creditable service earned during the period the annuity was in force.

SB418, s. 73 Section 73. 40.70 (1) (b) of the statutes is amended to read:

SB418,32,19 40.70 (1) (b) The employee files with the department an application in the manner provided by rule or contract, to be effective on a date fixed by the department, for one or more of the types of coverage established under this subchapter. The group insurance board may provide a different method of enrollment than provided under this subsection.

SB418, s. 74 Section 74. 40.70 (6) of the statutes is amended to read:

SB418,33,3 40.70 (6) Except as provided in sub. (7m), any employee who has not applied for coverage under sub. (1) within 6 months the time period specified by rule or contract after becoming eligible for coverage or any employee whose insurance terminates under sub. (8) shall not thereafter become insured for that coverage unless prior to the attainment of age 55 the employee furnishes evidence of insurability satisfactory to the insurer, at his or her own expense. If the evidence is approved, the employee shall become insured on the first day of the first month beginning after the approval.

SB418, s. 75 Section 75. 40.71 (1) (d) of the statutes is renumbered 40.71 (1) (d) (intro.) and amended to read:

SB418,33,7 40.71 (1) (d) (intro.) Every participant is deemed an annuitant immediately upon the later of the following:

SB418,33,8 1. The effective date of the participant's annuity , or the.

SB418,33,10 2. The date the application for an annuity is received by the department, but only if the participant is living on that date, whichever is later.

SB418, s. 76 Section 76. 40.71 (2) of the statutes is amended to read:

SB418,33,20 40.71 (2) Any death benefit may be paid as a beneficiary annuity, subject to s. 40.73 (3), or as a single cash sum as specified by the beneficiary in the application for the death benefit unless the participant prohibited payment of a single cash sum in a written notice received by the department prior to the participant's death. A prohibition on payment of a single cash sum shall not be effective if the monthly amount of the annuity would be less than the amount determined under s. 40.25 (1) (a), if the department commences an automatic distribution under s. 40.23 (4), or if the beneficiary is the participant's estate or a trust in which the beneficiary has a beneficial interest.

SB418, s. 77 Section 77. 40.73 (1) (am) of the statutes is renumbered 40.73 (1) (am) (intro.) and amended to read:

SB418,34,4 40.73 (1) (am) (intro.) Upon the death of a participating employee, except as otherwise provided by par. (c), the sum of the additional contribution and twice the employee required contribution accumulations credited following accumulations, including any interest credited to the accumulations, that are 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.:

SB418, s. 78 Section 78. 40.73 (1) (am) 1. of the statutes is created to read:

SB418,34,6 40.73 (1) (am) 1. Additional contributions.

SB418, s. 79 Section 79. 40.73 (1) (am) 2. of the statutes is created to read:

SB418,34,8 40.73 (1) (am) 2. Lump sum payments under s. 40.25 (7) (a) 5.

SB418, s. 80 Section 80. 40.73 (1) (am) 3. of the statutes is created to read:

SB418,34,11 40.73 (1) (am) 3. Twice the employee required contributions, less the amounts under subd. 2.

SB418, s. 81 Section 81. 40.73 (1) (b) of the statutes is amended to read:

SB418,34,18 40.73 (1) (b) Upon the death of an annuitant, in addition to any amounts payable by virtue of the annuity option elected by an annuitant, the amount determined under par. (a) for contributions made under s. 40.05 (1) subsequent to the effective date of the annuity, or additional contributions and tax-deferred additional contributions not applied to provide an annuity, provided the amounts have not been previously paid out as a lump sum under s. 40.25.

SB418, s. 82 Section 82. 40.73 (3) (e) of the statutes is amended to read:

SB418,34,25 40.73 (3) (e) Any beneficiary who is eligible to receive a beneficiary annuity may elect to receive the annuity in any of the optional annuity forms provided for retirement annuities, other than as an annuity under s. 40.24 (1) (c) or any annuity payable over the joint life expectancies of the beneficiary and another person or as an annuity payable under s. 40.24 (1) (b) or (c) if the payment period would exceed the life expectancy of the beneficiary.

SB418, s. 83 Section 83. 40.80 (2) (g) of the statutes is created to read:

SB418,35,4 40.80 (2) (g) Serve as trustee of any deferred compensation plan established under this section and hold the assets and income of the plan in trust for the exclusive benefit of the employees who participate in the plan and their beneficiaries.

SB418, s. 84 Section 84. Initial applicability.

SB418,35,7 (1) This act first applies to individuals who are participating employees on the effective date of this subsection.

SB418,35,8 (End)