AB880: Bill Text

AB880,2 Section 2 . 40.04 (3) (am) 3. (intro.) of the statutes is amended to read:

AB880,3,11 40.04 (3) (am) 3. (intro.) Annually, on December 31, the sum of all of the following shall be distributed from the market recognition account to each participating account in the core retirement investment trust in the same ratio as each account's average daily balance bears to the total average daily balance of all participating accounts in the trust:

Note: Sections 1 and 2 eliminate the requirement for ETF to distribute the annual certified earnings for the core and variable investment trust funds by calculating an average daily balance, and instead, simply require use of an average balance.

AB880,3 Section 3 . 40.08 (1m) (f) 1. of the statutes is amended to read:

AB880,3,16 40.08 (1m) (f) 1. Subject to subd. 3., if If the participant is not an annuitant on the decree date, an amount equal to the total of the alternate payee share distributed under par. (e), including creditable service, shall be subtracted from the participant's account.

Note: Sections 3 and 4 delete cross-references to the statute in Section 5 .

AB880,4 Section 4 . 40.08 (1m) (f) 2. of the statutes is amended to read:

AB880,4,16 40.08 (1m) (f) 2. Subject to subd. 3., if If the participant is an annuitant on the decree date, the annuity shall be recomputed using the total value of the participant's account determined under par. (b) reduced by the total of the alternate payee share transferred under par. (e) 1., in accordance with the actuarial tables in effect and using the participant's age on the decree date. The decree date shall be the effective date of recomputation. If the optional annuity form before division of the participant's account under par. (b) was not a joint and survivor annuity with the alternate payee as the named survivor, the same annuity option with no change in the remaining guarantee period, if any, shall be continued upon recomputation to the participant. The present value of the alternate payee's share of the annuity after division shall be paid to the alternate payee as a straight life annuity based on the age of the alternate payee on the decree date. The alternate payee's annuity shall have the same remaining guarantee period, if any, as the participant's annuity. If the optional annuity form before division of the participant's account under par. (b) was a joint and survivor annuity with the alternate payee as the named survivor, the present value of the annuity after division shall be paid to both the participant and the alternate payee as a straight life annuity based upon their respective ages on the decree date. If the participant's account is reestablished under s. 40.63 (10) after the decree date, the amounts and creditable service reestablished shall be reduced by an amount equal to the percentage of the alternate payee share computed under this subdivision.

AB880,5 Section 5 . 40.08 (1m) (f) 3. of the statutes is repealed.

Note: This Section repeals an obsolete statute relating to the division of Wisconsin Retirement System benefits for any participant whose marriage is terminated by a court during the period that begins on January 1, 1982, and ends on April 27, 1990, and for whom the Department of Employee Trust Funds receives a qualified domestic relations order after May 2, 1998.

AB880,6 Section 6 . 40.24 (7) (a) (intro.) of the statutes is amended to read:

AB880,5,11 40.24 (7) (a) (intro.) Any participant who has been married to the same spouse, or in a domestic partnership with the same domestic partner, for at least one year immediately preceding the participant's annuity effective date shall elect the annuity option under sub. (1) (d), the annuity option under sub. (1) (e), if the reduced annuity under sub. (1) (e) is payable in an optional life form provided under sub. (1) (d), or an annuity option in a form provided by rule, if the annuity is payable for life with monthly payments of at least 75 percent of the amount of the annuity to be continued to the beneficiary named survivor, for life, upon the death of the participant, and the participant shall designate the spouse or domestic partner as the beneficiary named survivor, unless the participant's application for a retirement annuity in a different optional annuity form is signed by both the participant and the participant's spouse or domestic partner or unless the participant establishes to the satisfaction of the department that, by reason of absence or other inability, the spouse's or domestic partner's signature may not be obtained. This subsection does not apply to any of the following:

Note: Sections 6 and 7 replace the term “beneficiary” with “named survivor” in statutes relating to annuity options for the Wisconsin Retirement System.

AB880,7 Section 7 . 40.24 (7) (b) of the statutes is amended to read:

AB880,6,2 40.24 (7) (b) In administering this subsection, the secretary may require the participant to provide the department with a certification of the participant's marital or domestic partnership status and of the validity of the spouse's or domestic partner's signature. If a participant is exempted from the requirements under par. (a) on the basis of a certification which the department or a court subsequently determines to be invalid, the liability of the fund and the department shall be limited to a conversion of annuity options at the time the certification is determined to be invalid. The conversion shall be from the present value of the annuity in the optional form originally elected by the participant to an annuity with the same present value but in the optional form under sub. (1) (d) and with monthly payments of 100 percent of the amount of the annuity paid to the annuitant to be continued to the spouse or domestic partner beneficiary named survivor.

AB880,8 Section 8. 40.285 (2) (b) 1. a. to d. of the statutes are amended to read:

AB880,6,5 40.285 (2) (b) 1. a. The participant participating employee has at least 3 continuous years of creditable service at the time of application.

AB880,6,16 b. The number of years of creditable service applied for under this paragraph does not exceed the number of years of creditable service that the participant participating employee has at the date of application, excluding all creditable service purchased under this section or s. 40.02 (17) (b), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02 (17) (e), 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02 (17) (i), 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02 (17) (k), 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.25 (6), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., or s. 40.25 (7), 1991, 1993, 1995, 1997, 1999, and 2001 stats., less the number of years of creditable service previously purchased under this paragraph or s. 40.25 (7), 1991, 1993, 1995, 1997, 1999, and 2001 stats.

AB880,6,18 c. At the time of application, the participant participating employee furnishes evidence of such service that is acceptable to the department.

AB880,6,25 d. Except as provided in sub. (4) (b), at the time of application, the participant participating employee pays to the department a lump sum equal to the present value of the creditable service applied for under this paragraph, 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 under this paragraph. The department shall by rule establish different rates for different categories of participants, based on factors recommended by the actuary.

Note: This Section replaces the term “participant” with “participating employee” in a statute relating to purchasing creditable service for purposes of the Wisconsin Retirement System.

AB880,9 Section 9. 40.63 (10) of the statutes is amended to read:

AB880,7,10 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 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, 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.

Note: This Section clarifies that, under the Wisconsin Retirement System, an individual may not earn contributions and creditable service during a period in which the individual receives an annuity from the Wisconsin Retirement System based on the individual's own service as a participating employee.

AB880,10 Section 10 . 40.86 (1) (intro.) of the statutes is created to read:

AB880,7,13 40.86 (1) (intro.) Expenses authorized under section 125 of the Internal Revenue Code, which may include any of the following:

AB880,11 Section 11 . 40.86 (1) of the statutes is renumbered 40.86 (1) (a).

AB880,12 Section 12 . 40.86 (2) of the statutes is renumbered 40.86 (1) (b).

AB880,13 Section 13 . 40.86 (3) of the statutes is renumbered 40.86 (1) (c).

AB880,14 Section 14 . 40.86 (4) of the statutes is renumbered 40.86 (2m).

Note: Sections 10 and 14 align statutory language with the Internal Revenue Code by distinguishing between expenses reimbursable under two different plan types. Sections 10 to 13 address expenses authorized under section 125 plans, and Section 14 addresses expenses authorized under section 132 plans.

AB880,7,18 (End)