Wisconsin Assembly Bill AB196

Wisconsin 2025-2026 Regular Session

• Introduced: 4/15/25
• Refer: 4/15/25

Caption

Rehired annuitants in the Wisconsin Retirement System. (FE)

Impact

The bill is expected to impact state laws by changing the existing requirements for annuitants returning to employment with WRS-participating employers. Specifically, rather than suspending their annuities upon reemployment, these individuals may continue receiving benefits for a defined period. Furthermore, hiring employers will be required to make contributions to the Employee Trust Funds equivalent to what would have been paid had the annuity been suspended. This could encourage local governments to consider rehiring seasoned workers who would otherwise be legally barred from earning concurrent benefits.

Summary

Assembly Bill 196 proposes significant changes to the policies surrounding rehired annuitants within the Wisconsin Retirement System (WRS). Under the current law, individuals receiving a retirement or disability annuity from WRS must suspend their annuity if they are rehired in a position expected to require at least two-thirds of full-time employment. AB196 seeks to allow these individuals to maintain their annuity without suspension for up to 60 months if certain conditions are met. It aims to provide more flexible employment options for retirees while addressing the needs of public employers for experienced personnel.

Contention

There may be notable points of contention surrounding AB196, particularly regarding concerns over the financial implications for the WRS and equity among current employees versus rehired annuitants. Stakeholders may debate whether allowing rehired annuitants to retain their annuities undermines the retirement system's intended purpose or sets a precedent that could affect future retirement policies. The bill also repeals two obsolete provisions related to the treatment of annuitants during the public health emergency, indicating a legislative response to prompt changing contexts within the state's workforce.