AB414: Bill Text

LRB-3118/1

RAC:wlj:ph

2013 - 2014 LEGISLATURE

2013 Assembly BILL 414

October 4, 2013 - Introduced by Representatives Petryk, Brooks, Kaufert, Bernier, LeMahieu, Born, Marklein, Murtha, Wright, Kestell, Kahl, Thiesfeldt, Petersen, Bies, Berceau, Ripp, Bernard Schaber, Mursau and Weatherston, cosponsored by Senators Gudex, Jauch, Farrow, Harsdorf, Hansen, Lehman, Leibham, Lassa, Cowles, Schultz and Moulton. Referred to Committee on Veterans.

AB414,1,4 An Act to renumber and amend 40.285 (2) (b) 4.; to amend 40.285 (2) (b) 1. (intro.); and to create 40.285 (2) (b) 1. e. and 40.285 (2) (b) 4. b. of the statutes; relating to: purchase of military service under the Wisconsin Retirement System.

Analysis by the Legislative Reference Bureau

This bill establishes a program under which participating employees in the Wisconsin Retirement System (WRS) may purchase years of creditable service under the WRS for all years of active service in the U.S. armed forces. A number of conditions must be satisfied to receive creditable service under the program, the most important of which include the following:

1. The employee pays to the Department of Employee Trust Funds (DETF) an amount equal to the present value of the creditable service to be purchased, in accordance with rates actuarially determined to be sufficient to fund the cost of the increased benefits that will result from granting the creditable service.

2. The employee must have been discharged from the U.S. armed forces under conditions other than dishonorable.

3. The employee may not receive creditable service under the program for any service that is used for the purpose of establishing entitlement to, or the amount of, any other benefit to be paid by any federal, state, or local government entity, except a disability or social security benefit, a benefit under the federal retired pay for nonregular military service program, and a benefit paid for service in the national guard.

4. The employee must have at least three continuous years of creditable service at the time of application to purchase the creditable 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:

AB414,1 Section 1. 40.285 (2) (b) 1. (intro.) of the statutes is amended to read:

AB414,2,10 40.285 (2) (b) 1. (intro.) Each participating employee whose creditable service terminates on or after May 1, 1992, and who has performed service , other than military 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 occur:

AB414,2 Section 2. 40.285 (2) (b) 1. e. of the statutes is created to read:

AB414,2,15 40.285 (2) (b) 1. e. If the participating employee is applying to receive creditable service for service in the U.S. armed forces, the participating employee must have been discharged from the U.S. armed forces under conditions other than dishonorable.

AB414,3 Section 3. 40.285 (2) (b) 4. of the statutes is renumbered 40.285 (2) (b) 4. (intro.) and amended to read:

AB414,3,2 40.285 (2) (b) 4. (intro.) A participant may not receive creditable service under this paragraph for service that is used for the purpose of establishing entitlement to, or the amount of, any other benefit to be paid by any federal, state, or local government entity, except a for the following:

AB414,3,3 a. A disability or OASDHI benefit or a .

AB414,3,4 c. A benefit paid for service in the national guard.

AB414,4 Section 4. 40.285 (2) (b) 4. b. of the statutes is created to read:

AB414,3,7 40.285 (2) (b) 4. b. A benefit under the retired pay for nonregular military service program under 10 USC 12731 to 12740.

AB414,5 Section 5. Initial applicability.

AB414,3,10 (1) This act first applies to participating employees in the Wisconsin retirement system who terminate covered employment on the effective date of this subsection.

AB414,3,11 (End)