LRB-3004/1
RAC:kjf:rs
2005 - 2006 LEGISLATURE
August 2, 2005 - Introduced by Representatives Vrakas, Petrowski, Krawczyk,
Mursau, Hines, Van Roy, Musser, Gunderson, Lothian, Berceau, Ott,
Molepske, Pettis, Suder, Pocan, Lehman and Turner, cosponsored by
Senators Brown, Grothman, Wirch, Roessler, Erpenbach, Hansen, Breske
and Miller. Referred to Joint Survey Committee on Retirement Systems.
AB590,1,2
1An Act to create 40.24 (2m) of the statutes;
relating to: payment of annuities
2under the Wisconsin Retirement System.
Analysis by the Legislative Reference Bureau
Currently, any participant in the Wisconsin Retirement System who is eligible
to receive a retirement annuity may elect to receive the annuity in one of several
actuarially equivalent forms. One form provides for an annuity payable for the life
of the annuitant and, after the death of the annuitant, monthly payments of 75
percent of the amount of the annuity paid to the annuitant to be continued to the
named survivor for the remainder of his or her life. Some of the other forms provide
for a straight-life annuity terminating at the death of the annuitant or a
straight-life annuity with a guarantee of 60 months. In addition, current law
authorizes the Department of Employee Trust Funds (DETF) to provide by rule for
other forms of annuity options. DETF has provided by rule for a joint and survivor
annuity option, in which there is a reduction in the initial annuity amount provided
to the annuitant or named survivor if either the annuitant or the named survivor
dies. Finally, under current law, under any annuity option that provides for a
reduction in the annuity amount to the named survivor, if the annuitant dies, or to
the annuitant, if the survivor dies, the reduction must take effect in the month in
which the annuitant or named survivor dies.
This bill provides that, if a participant elects an annuity option in which his or
her named survivor is to receive 75 percent of the annuity paid to the annuitant, any
such reduction in the annuity amount must not take effect until the first day of the
fourth month after the annuitant or named survivor dies.
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 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:
AB590, s. 1
1Section
1. 40.24 (2m) of the statutes is created to read:
AB590,2,52
40.24
(2m) If a participant elects to receive an annuity under sub. (1) (d), any
3reduction in the annuity amount that is to be paid to the named survivor may not
4take effect until the first day of the 4th month beginning after the month in which
5the annuitant dies.
AB590,2,97
(1) This act first applies to participants in the Wisconsin Retirement System
8who initially elect to receive an annuity under section 40.24 of the statutes on the
9effective date of this subsection.
