AB11,36,1815 40.05 (1) (a) 2. For each participating employee whose formula rate is
16determined under s. 40.23 (2m) (e) 2., 5.5% of each payment of earnings an amount
17equal to one-half of all actuarially required contributions, as approved by the board
18under s. 40.03 (1) (e)
.
AB11, s. 83 19Section 83. 40.05 (1) (a) 3. of the statutes is amended to read:
AB11,36,2220 40.05 (1) (a) 3. For each participating employee whose formula rate is
21determined under s. 40.23 (2m) (e) 3., 6% of each payment of earnings the percentage
22of earnings paid by a participating employee under subd. 1
.
AB11, s. 84 23Section 84. 40.05 (1) (a) 4. of the statutes is amended to read:
AB11,37,3
140.05 (1) (a) 4. For each participating employee whose formula rate is
2determined under s. 40.23 (2m) (e) 4., 8% of each payment of earnings the percentage
3of earnings paid by a participating employee under subd. 1
.
AB11, s. 85 4Section 85. 40.05 (1) (b) of the statutes is repealed and recreated to read:
AB11,37,75 40.05 (1) (b) Except as otherwise provided in a collective bargaining agreement
6entered into under subch. IV or V of ch. 111, an employer may not pay, on behalf of
7a participating employee, any of the contributions required by par. (a).
AB11, s. 86 8Section 86. 40.05 (2m) of the statutes is repealed.
AB11, s. 87 9Section 87. 40.05 (2n) of the statutes is repealed.
AB11, s. 88 10Section 88. 40.05 (4) (a) 2. of the statutes is amended to read:
AB11,37,2411 40.05 (4) (a) 2. For an insured employee who is an eligible employee under s.
1240.02 (25) (a) 2. or (b) 1m. or 2c., the employer shall pay required employer
13contributions toward the health insurance premium of the insured employee
14beginning on the date on which the employee becomes insured. For an insured state
15employee who is currently employed, but who is not a limited term appointment
16under s. 230.26 or
an eligible employee under s. 40.02 (25) (a) 2. or (b) 1m. or 2c., the
17employer shall pay required employer contributions toward the health insurance
18premium of the insured employee beginning on the first day of the 3rd month
19beginning after the date on which the employee begins employment with the state,
20not including any leave of absence. For an insured employee who has a limited term
21appointment under s. 230.26, the employer shall pay required employer
22contributions toward the health insurance premium of the insured employee
23beginning on the first day of the 7th month beginning after the date on which the
24employee first becomes a participating employee.
AB11, s. 89 25Section 89. 40.05 (4) (ag) of the statutes is repealed and recreated to read:
AB11,38,3
140.05 (4) (ag) Except as otherwise provided in a collective bargaining
2agreement under subch. V of ch. 111, the employer shall pay for its currently
3employed insured employees:
AB11,38,74 1. For insured part-time employees other than employees specified in s. 40.02
5(25) (b) 2., including those in project positions as defined in s. 230.27 (1), who are
6appointed to work less than 1,566 hours per year, an amount determined annually
7by the director of the office of state employment relations.
AB11,38,128 2. For eligible employees not specified in subd. 1. and s. 40.02 (25) (b) 2., an
9amount not more than 88 percent of the average premium cost of plans offered in the
10tier with the lowest employee premium cost under s. 40.51 (6). Annually, the director
11of the office of state employment relations shall establish the amount that the
12employer is required to pay under this subdivision.
AB11, s. 90 13Section 90. 40.05 (4) (ar) of the statutes is repealed.
AB11, s. 91 14Section 91. 40.05 (4) (b) of the statutes is amended to read:
AB11,39,2215 40.05 (4) (b) Except as provided under pars. (bc) and (bp), accumulated unused
16sick leave under ss. 13.121 (4), 36.30, 230.35 (2), 233.10, and 757.02 (5) and subch.
17I, V, or VI of ch. 111 of any eligible employee shall, at the time of death, upon
18qualifying for an immediate annuity or for a lump sum payment under s. 40.25 (1)
19or upon termination of creditable service and qualifying as an eligible employee
20under s. 40.02 (25) (b) 6. or 10., be converted, at the employee's highest basic pay rate
21he or she received while employed by the state, to credits for payment of health
22insurance premiums on behalf of the employee or the employee's surviving insured
23dependents. Any supplemental compensation that is paid to a state employee who
24is classified under the state classified civil service as a teacher, teacher supervisor,
25or education director for the employee's completion of educational courses that have

1been approved by the employee's employer is considered as part of the employee's
2basic pay for purposes of this paragraph. The full premium for any eligible employee
3who is insured at the time of retirement, or for the surviving insured dependents of
4an eligible employee who is deceased, shall be deducted from the credits until the
5credits are exhausted and paid from the account under s. 40.04 (10), and then
6deducted from annuity payments, if the annuity is sufficient. The department shall
7provide for the direct payment of premiums by the insured to the insurer if the
8premium to be withheld exceeds the annuity payment. Upon conversion of an
9employee's unused sick leave to credits under this paragraph or par. (bf), the
10employee or, if the employee is deceased, the employee's surviving insured
11dependents may initiate deductions from those credits or may elect to delay
12initiation of deductions from those credits, but only if the employee or surviving
13insured dependents are covered by a comparable health insurance plan or policy
14during the period beginning on the date of the conversion and ending on the date on
15which the employee or surviving insured dependents later elect to initiate
16deductions from those credits. If an employee or an employee's surviving insured
17dependents elect to delay initiation of deductions from those credits, an employee or
18the employee's surviving insured dependents may only later elect to initiate
19deductions from those credits during the annual enrollment period under par. (be).
20A health insurance plan or policy is considered comparable if it provides hospital and
21medical benefits that are substantially equivalent to the standard health insurance
22plan established under s. 40.52 (1).
AB11, s. 92 23Section 92. 40.05 (4) (bw) of the statutes is amended to read:
AB11,40,924 40.05 (4) (bw) On converting accumulated unused sick leave to credits for the
25payment of health insurance premiums under par. (b), the department shall add

1additional credits, calculated in the same manner as are credits under par. (b), that
2are based on a state employee's accumulated sabbatical leave or earned vacation
3leave from the state employee's last year of service prior to retirement, or both. The
4department shall apply the credits awarded under this paragraph for the payment
5of health insurance premiums only after the credits awarded under par. (b) are
6exhausted. This paragraph applies only to state employees who are eligible for
7accumulated unused sick leave conversion under par. (b) and who are entitled to the
8benefits under this paragraph pursuant to a collective bargaining agreement under
9subch. V or VI of ch. 111.
AB11, s. 93 10Section 93. 40.05 (4) (c) of the statutes is amended to read:
AB11,40,1411 40.05 (4) (c) The employer shall contribute toward the payment of premiums
12for the plan established under s. 40.52 (3) not more than the percentage of premium
13paid by the employer for health insurance coverage under par. (ag) 2
the amount
14established under s. 40.52 (3)
.
AB11, s. 94 15Section 94. 40.05 (4g) (a) 4. of the statutes is amended to read:
AB11,40,2016 40.05 (4g) (a) 4. Has received a military leave of absence under s. 230.32 (3) (a)
17or 230.35 (3), under a collective bargaining agreement under subch. V or VI of ch. 111
18or under rules promulgated by the director of the office of state employment relations
19or is eligible for reemployment with the state under s. 321.64 after completion of his
20or her service in the U.S. armed forces.
AB11, s. 95 21Section 95. 40.05 (5) (intro.) of the statutes is amended to read:
AB11,41,222 40.05 (5) Income continuation insurance premiums. (intro.) For the income
23continuation insurance provided under subch. V the employee shall pay the amount
24remaining after the employer has contributed the following or, if different, the

1amount determined under a collective bargaining agreement under subch. I, V, or VI
2of ch. 111 or s. 230.12 or 233.10:
AB11, s. 96 3Section 96. 40.05 (5) (b) 4. of the statutes is amended to read:
AB11,41,64 40.05 (5) (b) 4. The accrual and crediting of sick leave shall be determined in
5accordance with ss. 13.121 (4), 36.30, 230.35 (2), 233.10 and 757.02 (5) and subch. I,
6V, or VI of ch. 111.
AB11, s. 97 7Section 97. 40.05 (6) (a) of the statutes is amended to read: