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2023 - 2024 LEGISLATURE
2023 ASSEMBLY BILL 1147
March 6, 2024 - Introduced by Representatives EDMING, SNODGRASS, ARMSTRONG,
CALLAHAN, CONLEY, JOERS, MAXEY, OHNSTAD, ORTIZ-VELEZ, RATCLIFF, SCHMIDT,
SINICKI, SUBECK and MURSAU, cosponsored by Senators BALLWEG, CARPENTER,
JACQUE, SPREITZER and WIRCH. Referred to Committee on Labor and
Integrated Employment.
***AUTHORS SUBJECT TO CHANGE***
AN ACT to amend 40.02 (15) (a) 3.; and to create 40.02 (15) (cm) and 40.05 (2)
(at) of the statutes; relating to: creditable military service under the
Wisconsin Retirement System.
Analysis by the Legislative Reference Bureau
This bill modifies the conditions under which a Wisconsin Retirement System
participant may receive creditable service under the WRS for military service.
Under current law, a participating employee in the WRS may receive one year
of creditable service under the WRS for each year of military service, up to a
maximum of four years of military service credit, at the time of retirement in either
of the following ways:
1. If the participant left employment covered under the WRS to enter military
service and returned to the same employer within 180 days after being discharged,
the participant may receive one year of military service credit for each year of
military service.
2. If the participant's military service was performed before 1974, the
participant may receive up to one, two, three, or four years of military service credit
if the participant has at least 5, 10, 15, or 20 years, respectively, of creditable service
(not counting previously granted military service credit).
The bill provides that a participating employee in the WRS who was an
employee of the Department of Corrections for at least five years and who terminates
covered service on or after the effective date of the bill may receive creditable military
service for active military service performed at any time. The requirements and
standards of item 2 apply to such a grant of creditable military service.
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ASSEMBLY BILL 1147
The bill provides that, for the purposes of item 2, the participant may receive
military service credits under the WRS for military service that is also used for the
purpose of establishing entitlement to a retirement benefit that is paid by the federal
government.
The bill provides that, for the purpose of item 1, the participant need not return
to employment with the same WRS employer but may return to employment with
any WRS employer.
The bill requires that DOC make additional contributions as determined by the
actuary and agreed to by the Employee Trust Funds Board to cover the costs of
granting the additional military service credits authorized under the bill.
Because this bill relates to public employee retirement or pensions, it may be
referred to the Joint Survey Committee on Retirement Systems for a report to be
printed as an appendix to the bill.
For further information see the state 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:
SECTION 1. 40.02 (15) (a) 3. of the statutes is amended to read:
40.02 (15) (a) 3. The participant returns to the employment of the employer
whose employment the participant left to enter the U.S. armed forces any
participating employer within 180 days of release or discharge from the armed
forces, or within 180 days of release from hospitalization because of injury or sickness
resulting from service in the armed forces;
SECTION 2. 40.02 (15) (cm) of the statutes is created to read:
40.02 (15) (cm) Notwithstanding par. (a) and sub. (17) (intro.), any participant
who has been a participating employee employed by the department of corrections
for 5 or more years and who is credited with 5, 10, 15, or 20 or more years of creditable
service, not counting any previously granted creditable military service, may receive
creditable military service at the time of retirement for not more than 1, 2, 3, or 4
years, respectively, of active service that meets the standards under par. (a) 5.,
provided:
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SECTION 2
ASSEMBLY BILL 1147
1. Any creditable military service otherwise granted shall be included in
determining the maximum years to be granted under this paragraph.
2. Creditable military service under this paragraph shall be allocated at the
time of retirement in proportion to the amount of the participant's creditable service
for each of the employment categories as set forth in s. 40.23 (2m) (e), unless a higher
benefit would result from the prorated allocation of creditable military service based
on the amount of the participant's creditable service for each of the types of creditable
service on the date the participant attains the greater of 5, 10, 15, or 20 years of
creditable service.
3. If the participant makes an election under s. 40.30 (2), this paragraph does
not apply to any active service used for the purpose of establishing entitlement to,
or the amount of, any benefit, other than a disability benefit, to be paid by any
retirement system specified in s. 40.30 (2) other than the Wisconsin Retirement
System.
SECTION 3. 40.05 (2) (at) of the statutes is created to read:
40.05 (2) (at) The department of corrections shall contribute an additional
percentage of earnings, as determined by the actuary and approved by the board, to
reflect the shared cost of granting creditable military service under 2023 Wisconsin
Act .... (this act).
SECTION 4.0Initial applicability.
(1) This act first applies to participating employees in the Wisconsin
Retirement System who terminate covered employment on the effective date of this
subsection.
(END)
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