Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB1018 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 1018
5	5	January 26, 2024 - Introduced by Representatives WITTKE, KITCHENS, BROOKS,
6	6	DUCHOW, BEHNKE, GOEBEN, GUSTAFSON, MELOTIK, MOSES, MURPHY, MURSAU,
7	7	NEYLON, O'CONNOR, ROZAR, BALDEH, CONLEY, MYERS, STEFFEN and NOVAK,
8	8	cosponsored by Senators KNODL, WANGGAARD, FEYEN, QUINN and FELZKOWSKI.
9	9	Referred to Committee on Local Government.
10	10	*AUTHORS SUBJECT TO CHANGE*
11	11	AN ACT to repeal 40.26 (5m), 40.26 (6) and 323.19 (3); to amend 40.22 (1), 40.22
12	12	(2m) (intro.), 40.22 (2r) (intro.), 40.22 (3) (intro.), 40.26 (1m) and 40.26 (5)
13	13	(intro.); and to create 40.04 (5) (am) and 40.26 (7) and (8) of the statutes;
14	14	relating to: rehired annuitants in the Wisconsin Retirement System.
15	15	Analysis by the Legislative Reference Bureau
16	16	Under current law, certain people who receive a retirement or disability
17	17	annuity from the Wisconsin Retirement System (WRS) and who are hired by an
18	18	employer that participates in the WRS must suspend that annuity and may not
19	19	receive a WRS annuity payment until the person is no longer in a WRS-covered
20	20	position. This suspension applies to a person who 1) has reached his or her normal
21	21	retirement date; 2) is appointed to a position with a WRS-participating employer;
22	22	and 3) is expected to work at least two-thirds of what is considered full-time
23	23	employment by the Department of Employee Trust Funds.
24	24	This bill allows such a person, who is hired by a WRS employer as an employee
25	25	or to provide employee services, to not suspend his or her annuity for up to 60 months.
26	26	The bill also requires participating employers that hire such annuitants to make
27	27	payments to ETF equal to what they would have paid as required contributions for
28	28	each rehired annuitant if the rehired annuitant had suspended his or her annuity.
29	29	Under the bill, these payments are deposited in the employer reserve account.
30	30	If the person does not terminate the annuity and does not become an active
31	31	WRS-participating employee, in the case of state employment, the person is not
32	32	eligible for group insurance benefits provided to active WRS-participating
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38	38	ASSEMBLY BILL 1018
39	39	employees and may not use any of his or her service in the new position for any WRS
40	40	purposes. If the person opts to again become an active WRS-participating employee,
41	41	the person is eligible for all group insurance benefits provided to other participating
42	42	employees and may accumulate additional years of creditable service under the WRS
43	43	for the new period of WRS-covered employment.
44	44	The bill also repeals two obsolete provisions related to return to WRS-covered
45	45	employment by WRS annuitants during the public health emergency declared on
46	46	March 12, 2020, by executive order 72, which ended on May 13, 2020.
47	47	For further information see the state and local fiscal estimate, which will be
48	48	printed as an appendix to this bill.
49	49	The people of the state of Wisconsin, represented in senate and assembly, do
50	50	enact as follows:
51	51	SECTION 1. 40.04 (5) (am) of the statutes is created to read:
52	52	40.04 (5) (am) Credited all employer payments made under s. 40.26 (8).
53	53	SECTION 2. 40.22 (1) of the statutes is amended to read:
54	54	40.22 (1) Except as otherwise provided in sub. (2) and s. 40.26 (6) (7), each
55	55	employee currently in the service of, and receiving earnings from, a state agency or
56	56	other participating employer shall be included within the provisions of the Wisconsin
57	57	retirement system as a participating employee of that state agency or participating
58	58	employer.
59	59	SECTION 3. 40.22 (2m) (intro.) of the statutes is amended to read:
60	60	40.22 (2m) (intro.) Except as otherwise provided in s. 40.26 (6) (7), an employee
61	61	who was a participating employee before July 1, 2011, who is not expected to work
62	62	at least one-third of what is considered full-time employment by the department,
63	63	as determined by rule, and who is not otherwise excluded under sub. (2) from
64	64	becoming a participating employee shall become a participating employee if he or she
65	65	is subsequently employed by the state agency or other participating employer for
66	66	either of the following periods:
67	67	SECTION 4. 40.22 (2r) (intro.) of the statutes is amended to read:
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87	87	SECTION 4
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89	89	40.22 (2r) (intro.) Except as otherwise provided in s. 40.26 (6) (7), an employee
90	90	who was not a participating employee before July 1, 2011, who is not expected to work
91	91	at least two-thirds of what is considered full-time employment by the department,
92	92	as determined by rule, and who is not otherwise excluded under sub. (2) from
93	93	becoming a participating employee shall become a participating employee if he or she
94	94	is subsequently employed by the state agency or other participating employer for
95	95	either of the following periods:
96	96	SECTION 5. 40.22 (3) (intro.) of the statutes is amended to read:
97	97	40.22 (3) (intro.) Except as otherwise provided in s. 40.26 (6) (7), a person who
98	98	qualifies as a participating employee shall be included within, and shall be subject
99	99	to, the Wisconsin retirement system effective on one of the following dates:
100	100	SECTION 6. 40.26 (1m) of the statutes is amended to read:
101	101	40.26 (1m) (a) Except as otherwise provided in sub. (6) (7), if a participant
102	102	receiving a retirement annuity, or a disability annuitant who has attained his or her
103	103	normal retirement date, is employed in a position in covered employment in which
104	104	he or she is expected to work at least two-thirds of what is considered full-time
105	105	employment by the department, as determined under s. 40.22 (2r), the participant's
106	106	annuity shall be suspended and no annuity payment shall be payable until after the
107	107	participant terminates covered employment.
108	108	(b) Except as otherwise provided in sub. (6) (7), if a participant receiving a
109	109	retirement annuity, or a disability annuitant who has attained his or her normal
110	110	retirement date, enters into a contract to provide employee services with a
111	111	participating employer and he or she is expected to work at least two-thirds of what
112	112	is considered full-time employment by the department, as determined under s. 40.22
113	113	(2r), the participant's annuity shall be suspended and no annuity payment shall be
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140	140	SECTION 6 ASSEMBLY BILL 1018
141	141	payable until after the participant no longer provides employee services under the
142	142	contract.
143	143	SECTION 7. 40.26 (5) (intro.) of the statutes is amended to read:
144	144	40.26 (5) (intro.) Except as otherwise provided in sub. (5m), if If a participant
145	145	applies for an annuity or lump sum payment during the period in which less than 75
146	146	days have elapsed between the termination of employment with a participating
147	147	employer and becoming a participating employee with any participating employer,
148	148	all of the following shall apply:
149	149	SECTION 8. 40.26 (5m) of the statutes is repealed.
150	150	SECTION 9. 40.26 (6) of the statutes is repealed.
151	151	SECTION 10. 40.26 (7) and (8) of the statutes are created to read:
152	152	40.26 (7) Beginning on the effective date of this subsection .... [LRB inserts
153	153	date], a participant may elect to not suspend his or her retirement annuity or
154	154	disability annuity under sub. (1m) for up to a total of 60 months, if the participant
155	155	applies for an annuity or lump sum payment after at least 75 days have elapsed since
156	156	the participant's termination of employment with a participating employer and prior
157	157	to becoming an employee with a participating employer if all of the following
158	158	conditions are met:
159	159	(a) The participant terminates his or her employment with a participating
160	160	employer after July 2, 2013.
161	161	(b) At the time the participant terminates his or her employment with a
162	162	participating employer, the participant does not have an agreement with any
163	163	participating employer to return to employment or enter into a contract to provide
164	164	employee services for a participating employer and complies with 26 CFR 1.401-1
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191	191	SECTION 10
192	192	ASSEMBLY BILL 1018
193	193	(a) (2) (i) and requirements set by the federal department of the treasury for bona fide
194	194	separation from service.
195	195	(c) The participant elects on a form provided by the department to not become
196	196	a participating employee.
197	197	40.26 (8) Each participating employer who hires an annuitant who has elected
198	198	to not suspend his or her annuity under sub. (7) shall make payments to the
199	199	department that are equal to the amount of contributions that would have been
200	200	required to be paid for that employee under s. 40.05 (2) (a). All payments under this
201	201	subsection shall be credited to the account under s. 40.04 (5) (am).
202	202	SECTION 11. 323.19 (3) of the statutes is repealed.
203	203	(END)
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