LRB-2040/1
MIM:cdc&wlj
2023 - 2024 LEGISLATURE
January 26, 2024 - Introduced by Representatives Wittke, Kitchens, Brooks,
Duchow, Behnke, Goeben, Gustafson, Melotik, Moses, Murphy, Mursau,
Neylon, O'Connor, Rozar, Baldeh, Conley, Myers, Steffen and Novak,
cosponsored by Senators Knodl, Wanggaard, Feyen, Quinn and Felzkowski.
Referred to Committee on Local Government.
AB1018,1,4 1An Act to repeal 40.26 (5m), 40.26 (6) and 323.19 (3); to amend 40.22 (1), 40.22
2(2m) (intro.), 40.22 (2r) (intro.), 40.22 (3) (intro.), 40.26 (1m) and 40.26 (5)
3(intro.); and to create 40.04 (5) (am) and 40.26 (7) and (8) of the statutes;
4relating to: rehired annuitants in the Wisconsin Retirement System.
Analysis by the Legislative Reference Bureau
Under current law, certain people who receive a retirement or disability
annuity from the Wisconsin Retirement System (WRS) and who are hired by an
employer that participates in the WRS must suspend that annuity and may not
receive a WRS annuity payment until the person is no longer in a WRS-covered
position. This suspension applies to a person who 1) has reached his or her normal
retirement date; 2) is appointed to a position with a WRS-participating employer;
and 3) is expected to work at least two-thirds of what is considered full-time
employment by the Department of Employee Trust Funds.
This bill allows such a person, who is hired by a WRS employer as an employee
or to provide employee services, to not suspend his or her annuity for up to 60 months.
The bill also requires participating employers that hire such annuitants to make
payments to ETF equal to what they would have paid as required contributions for
each rehired annuitant if the rehired annuitant had suspended his or her annuity.
Under the bill, these payments are deposited in the employer reserve account.
If the person does not terminate the annuity and does not become an active
WRS-participating employee, in the case of state employment, the person is not
eligible for group insurance benefits provided to active WRS-participating

employees and may not use any of his or her service in the new position for any WRS
purposes. If the person opts to again become an active WRS-participating employee,
the person is eligible for all group insurance benefits provided to other participating
employees and may accumulate additional years of creditable service under the WRS
for the new period of WRS-covered employment.
The bill also repeals two obsolete provisions related to return to WRS-covered
employment by WRS annuitants during the public health emergency declared on
March 12, 2020, by executive order 72, which ended on May 13, 2020.
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:
AB1018,1 1Section 1. 40.04 (5) (am) of the statutes is created to read:
AB1018,2,22 40.04 (5) (am) Credited all employer payments made under s. 40.26 (8).
AB1018,2 3Section 2 . 40.22 (1) of the statutes is amended to read:
AB1018,2,84 40.22 (1) Except as otherwise provided in sub. (2) and s. 40.26 (6) (7), each
5employee currently in the service of, and receiving earnings from, a state agency or
6other participating employer shall be included within the provisions of the Wisconsin
7retirement system as a participating employee of that state agency or participating
8employer.
AB1018,3 9Section 3 . 40.22 (2m) (intro.) of the statutes is amended to read:
AB1018,2,1610 40.22 (2m) (intro.) Except as otherwise provided in s. 40.26 (6) (7), an employee
11who was a participating employee before July 1, 2011, who is not expected to work
12at least one-third of what is considered full-time employment by the department,
13as determined by rule, and who is not otherwise excluded under sub. (2) from
14becoming a participating employee shall become a participating employee if he or she
15is subsequently employed by the state agency or other participating employer for
16either of the following periods:
AB1018,4 17Section 4 . 40.22 (2r) (intro.) of the statutes is amended to read:
AB1018,3,7
140.22 (2r) (intro.) Except as otherwise provided in s. 40.26 (6) (7), an employee
2who was not a participating employee before July 1, 2011, who is not expected to work
3at least two-thirds of what is considered full-time employment by the department,
4as determined by rule, and who is not otherwise excluded under sub. (2) from
5becoming a participating employee shall become a participating employee if he or she
6is subsequently employed by the state agency or other participating employer for
7either of the following periods:
AB1018,5 8Section 5 . 40.22 (3) (intro.) of the statutes is amended to read:
AB1018,3,119 40.22 (3) (intro.) Except as otherwise provided in s. 40.26 (6) (7), a person who
10qualifies as a participating employee shall be included within, and shall be subject
11to, the Wisconsin retirement system effective on one of the following dates:
AB1018,6 12Section 6. 40.26 (1m) of the statutes is amended to read:
AB1018,3,1913 40.26 (1m) (a) Except as otherwise provided in sub. (6) (7), if a participant
14receiving a retirement annuity, or a disability annuitant who has attained his or her
15normal retirement date, is employed in a position in covered employment in which
16he or she is expected to work at least two-thirds of what is considered full-time
17employment by the department, as determined under s. 40.22 (2r), the participant's
18annuity shall be suspended and no annuity payment shall be payable until after the
19participant terminates covered employment.
AB1018,4,220 (b) Except as otherwise provided in sub. (6) (7), if a participant receiving a
21retirement annuity, or a disability annuitant who has attained his or her normal
22retirement date, enters into a contract to provide employee services with a
23participating employer and he or she is expected to work at least two-thirds of what
24is considered full-time employment by the department, as determined under s. 40.22
25(2r), the participant's annuity shall be suspended and no annuity payment shall be

1payable until after the participant no longer provides employee services under the
2contract.
AB1018,7 3Section 7. 40.26 (5) (intro.) of the statutes is amended to read:
AB1018,4,84 40.26 (5) (intro.) Except as otherwise provided in sub. (5m), if If a participant
5applies for an annuity or lump sum payment during the period in which less than 75
6days have elapsed between the termination of employment with a participating
7employer and becoming a participating employee with any participating employer,
8all of the following shall apply:
AB1018,8 9Section 8. 40.26 (5m) of the statutes is repealed.
AB1018,9 10Section 9. 40.26 (6) of the statutes is repealed.
AB1018,10 11Section 10. 40.26 (7) and (8) of the statutes are created to read:
AB1018,4,1812 40.26 (7) Beginning on the effective date of this subsection .... [LRB inserts
13date], a participant may elect to not suspend his or her retirement annuity or
14disability annuity under sub. (1m) for up to a total of 60 months, if the participant
15applies for an annuity or lump sum payment after at least 75 days have elapsed since
16the participant's termination of employment with a participating employer and prior
17to becoming an employee with a participating employer if all of the following
18conditions are met:
AB1018,4,2019 (a) The participant terminates his or her employment with a participating
20employer after July 2, 2013.
AB1018,5,221 (b) At the time the participant terminates his or her employment with a
22participating employer, the participant does not have an agreement with any
23participating employer to return to employment or enter into a contract to provide
24employee services for a participating employer and complies with 26 CFR 1.401-1

1(a) (2) (i) and requirements set by the federal department of the treasury for bona fide
2separation from service.
AB1018,5,43 (c) The participant elects on a form provided by the department to not become
4a participating employee.
AB1018,5,95 40.26 (8) Each participating employer who hires an annuitant who has elected
6to not suspend his or her annuity under sub. (7) shall make payments to the
7department that are equal to the amount of contributions that would have been
8required to be paid for that employee under s. 40.05 (2) (a). All payments under this
9subsection shall be credited to the account under s. 40.04 (5) (am).
AB1018,11 10Section 11. 323.19 (3) of the statutes is repealed.
AB1018,5,1111 (End)
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