AB361,1,5 1An Act to repeal 40.23 (2m) (f), 40.23 (2m) (fm) and 40.23 (2m) (g); to amend
240.23 (1) (a) (intro.), 40.23 (1) (am) 2., 40.23 (1) (bm), 40.23 (2m) (b), 40.24 (1)
3(f), 40.25 (2), 40.63 (7) and 40.63 (8) (b); and to create 111.91 (2) (mo) of the
4statutes; relating to: minimum age for qualifying for a retirement annuity
5under the Wisconsin Retirement System.
Analysis by the Legislative Reference Bureau
Current law permits individuals in the Wisconsin Retirement System (WRS)
to qualify for a retirement annuity beginning at age 55 if they are not protective
occupation participants. (Protective occupation participants may qualify for such an
annuity beginning at age 50.) This bill provides that WRS participants, other than
protective occupation participants, who terminate covered employment after the
bill's effective date must have reached the age of 59.5 to qualify for a retirement
annuity under the WRS.
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:
AB361, s. 1
1Section 1. 40.23 (1) (a) (intro.) of the statutes is amended to read:
AB361,2,72 40.23 (1) (a) (intro.) Except as provided in par. (am), any participant who has
3attained age 55 59.5, and any protective occupation participant who has attained age
450, on or before the annuity effective date shall be entitled to a retirement annuity
5in accordance with the actuarial tables in effect on the effective date of the annuity
6if the participant submits an application for a retirement annuity on a form
7furnished by the department and all of the following apply:
AB361, s. 2 8Section 2. 40.23 (1) (am) 2. of the statutes is amended to read:
AB361,2,209 40.23 (1) (am) 2. Any participant who has attained age 55 59.5 and who is a
10participant because of employment other than part-time service as an elected official
11and who is also a participating employee because of part-time service as an elected
12official may, after termination of all covered employment other than service as a
13part-time elected official, waive further participation under the fund for his or her
14current, and any future, part-time service as an elected official. Any election under
15this paragraph is irrevocable and is effective beginning the day after the date of
16election. Notwithstanding par. (a), any participant who elects under this paragraph
17may receive a retirement annuity for all service under the fund credited to the
18participant to the date he or she elects. The date a participant elects under this
19paragraph is deemed to be the date of separation from the last participating
20employer by which that participant was employed.
AB361, s. 3 21Section 3. 40.23 (1) (bm) of the statutes is amended to read:
AB361,3,222 40.23 (1) (bm) If an application by a participant age 55 59.5 or over, or by a
23protective occupation participant age 50 or over, for long-term disability insurance
24benefits is disapproved under rules promulgated by the department, the date which
25would have been the effective date for the insurance benefits shall be the retirement

1annuity effective date if requested by the applicant within 60 days of the disapproval
2or, if the disapproval is appealed, within 60 days of the final disposition of the appeal.
AB361, s. 4 3Section 4. 40.23 (2m) (b) of the statutes is amended to read:
AB361,3,184 40.23 (2m) (b) Except as provided in s. 40.26, subject to the limitations under
5section 415 of the Internal Revenue Code, the initial amount of the normal form
6annuity shall be an amount equal to 70%, or 65% for participants whose formula rate
7is determined under par. (e) 3. or 85% for participants whose formula rate is
8determined under par. (e) 4., of the participant's final average earnings plus the
9amount which can be provided under pars. (c) and (d) or, if less, shall be in the
10monthly amount equal to the sum of the amounts determined under pars. (c), (d) and
11(e) as modified by par. (f) and in accordance with the actuarial tables in effect on the
12annuity effective date. If the participant has creditable service under both par. (e)
134. and another category under par. (e), the percent applied under this paragraph
14shall be determined by multiplying the percent that each type of creditable service
15is of the participant's total creditable service by 85% and 65% or 70%, respectively,
16and adding the results, except that the resulting benefit may not be less than the
17amount of the normal form annuity that could be paid based solely on the creditable
18service under par. (e) 4.
AB361, s. 5 19Section 5. 40.23 (2m) (f) of the statutes is repealed.
AB361, s. 6 20Section 6. 40.23 (2m) (fm) of the statutes is repealed.
AB361, s. 7 21Section 7. 40.23 (2m) (g) of the statutes is repealed.
AB361, s. 8 22Section 8. 40.24 (1) (f) of the statutes is amended to read:
AB361,4,1023 40.24 (1) (f) From accumulated additional contributions made under s. 40.05
24(1) (a) 5. only, an annuity certain payable for and terminating after the number of
25months specified by the applicant, regardless of whether the applicant dies before or

1after the number of months specified, provided that the monthly amount of the
2annuity certain is at least equal to the minimum amount established under s. 40.25
3(1) (a). Subject to the period of distribution required under s. 40.23 (4) (b) 2., the
4number of months specified shall not exceed 180 and shall not be less than 24. If the
5death of the annuitant occurs prior to the expiration of the certain period, the
6remaining payments shall be made in accordance with s. 40.73 (2) without regard to
7any other annuity payments payable to the beneficiary. An annuity under this
8paragraph may be initiated prior to any other annuity amount provided under this
9subchapter and prior to age 55 59.5 if all other qualifications for receiving an annuity
10payment are met.
AB361, s. 9 11Section 9. 40.25 (2) of the statutes is amended to read:
AB361,4,1912 40.25 (2) Subject to sub. (2t), if all requirements for payment of a retirement
13annuity are met except attainment of age 55 59.5 or age 50 for protective occupation
14participants, a separation benefit may be paid, if the participant's written
15application for a separation benefit is received by the department prior to the
16participant's 55th birthday the day on which the participant turns age 59.5 or the
17participant's
50th birthday for protective occupation participants, in an amount
18equal to the additional and employee required contribution accumulations of the
19participant on the date the application for a separation benefit is approved.
AB361, s. 10 20Section 10. 40.63 (7) of the statutes is amended to read:
AB361,5,221 40.63 (7) If an application, by a participant age 55 59.5 or over, or by a
22protective occupation participant age 50 or over, for any disability annuity is
23disapproved, the date which would have been the disability annuity effective date
24shall be the retirement annuity effective date if so requested by the applicant within

160 days of the disapproval or, if the disapproval is appealed, within 60 days of final
2disposition of the appeal.
AB361, s. 11 3Section 11. 40.63 (8) (b) of the statutes is amended to read:
AB361,5,64 40.63 (8) (b) For purposes of s. 40.23 (2m) (e) and (f) only, the participant is
5deemed to have attained the participant's normal retirement date on the effective
6date of the annuity.
AB361, s. 12 7Section 12. 111.91 (2) (mo) of the statutes is created to read:
AB361,5,98 111.91 (2) (mo) Minimum age under s. 40.23 (1) at which an individual is
9entitled to a retirement annuity under the Wisconsin retirement system.
AB361, s. 13 10Section 13. Initial applicability.
AB361,5,1211 (1) This act first applies to participants in the Wisconsin retirement system who
12terminate covered employment on the effective date of this subsection.
AB361,5,1313 (End)
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