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2 | 2 | | MIM:emw |
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3 | 3 | | 2023 - 2024 LEGISLATURE |
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4 | 4 | | 2023 ASSEMBLY BILL 1147 |
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5 | 5 | | March 6, 2024 - Introduced by Representatives EDMING, SNODGRASS, ARMSTRONG, |
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6 | 6 | | CALLAHAN, CONLEY, JOERS, MAXEY, OHNSTAD, ORTIZ-VELEZ, RATCLIFF, SCHMIDT, |
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7 | 7 | | SINICKI, SUBECK and MURSAU, cosponsored by Senators BALLWEG, CARPENTER, |
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8 | 8 | | JACQUE, SPREITZER and WIRCH. Referred to Committee on Labor and |
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9 | 9 | | Integrated Employment. |
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10 | 10 | | ***AUTHORS SUBJECT TO CHANGE*** |
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11 | 11 | | AN ACT to amend 40.02 (15) (a) 3.; and to create 40.02 (15) (cm) and 40.05 (2) |
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12 | 12 | | (at) of the statutes; relating to: creditable military service under the |
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13 | 13 | | Wisconsin Retirement System. |
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14 | 14 | | Analysis by the Legislative Reference Bureau |
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15 | 15 | | This bill modifies the conditions under which a Wisconsin Retirement System |
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16 | 16 | | participant may receive creditable service under the WRS for military service. |
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17 | 17 | | Under current law, a participating employee in the WRS may receive one year |
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18 | 18 | | of creditable service under the WRS for each year of military service, up to a |
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19 | 19 | | maximum of four years of military service credit, at the time of retirement in either |
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20 | 20 | | of the following ways: |
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21 | 21 | | 1. If the participant left employment covered under the WRS to enter military |
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22 | 22 | | service and returned to the same employer within 180 days after being discharged, |
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23 | 23 | | the participant may receive one year of military service credit for each year of |
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24 | 24 | | military service. |
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25 | 25 | | 2. If the participant's military service was performed before 1974, the |
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26 | 26 | | participant may receive up to one, two, three, or four years of military service credit |
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27 | 27 | | if the participant has at least 5, 10, 15, or 20 years, respectively, of creditable service |
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28 | 28 | | (not counting previously granted military service credit). |
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29 | 29 | | The bill provides that a participating employee in the WRS who was an |
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30 | 30 | | employee of the Department of Corrections for at least five years and who terminates |
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31 | 31 | | covered service on or after the effective date of the bill may receive creditable military |
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32 | 32 | | service for active military service performed at any time. The requirements and |
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33 | 33 | | standards of item 2 apply to such a grant of creditable military service. |
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36 | 36 | | 3 - 2 -2023 - 2024 Legislature LRB-4724/1 |
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37 | 37 | | MIM:emw |
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38 | 38 | | ASSEMBLY BILL 1147 |
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39 | 39 | | The bill provides that, for the purposes of item 2, the participant may receive |
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40 | 40 | | military service credits under the WRS for military service that is also used for the |
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41 | 41 | | purpose of establishing entitlement to a retirement benefit that is paid by the federal |
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42 | 42 | | government. |
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43 | 43 | | The bill provides that, for the purpose of item 1, the participant need not return |
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44 | 44 | | to employment with the same WRS employer but may return to employment with |
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45 | 45 | | any WRS employer. |
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46 | 46 | | The bill requires that DOC make additional contributions as determined by the |
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47 | 47 | | actuary and agreed to by the Employee Trust Funds Board to cover the costs of |
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48 | 48 | | granting the additional military service credits authorized under the bill. |
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49 | 49 | | Because this bill relates to public employee retirement or pensions, it may be |
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50 | 50 | | referred to the Joint Survey Committee on Retirement Systems for a report to be |
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51 | 51 | | printed as an appendix to the bill. |
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52 | 52 | | For further information see the state fiscal estimate, which will be printed as |
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53 | 53 | | an appendix to this bill. |
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54 | 54 | | The people of the state of Wisconsin, represented in senate and assembly, do |
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55 | 55 | | enact as follows: |
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56 | 56 | | SECTION 1. 40.02 (15) (a) 3. of the statutes is amended to read: |
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57 | 57 | | 40.02 (15) (a) 3. The participant returns to the employment of the employer |
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58 | 58 | | whose employment the participant left to enter the U.S. armed forces any |
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59 | 59 | | participating employer within 180 days of release or discharge from the armed |
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60 | 60 | | forces, or within 180 days of release from hospitalization because of injury or sickness |
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61 | 61 | | resulting from service in the armed forces; |
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62 | 62 | | SECTION 2. 40.02 (15) (cm) of the statutes is created to read: |
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63 | 63 | | 40.02 (15) (cm) Notwithstanding par. (a) and sub. (17) (intro.), any participant |
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64 | 64 | | who has been a participating employee employed by the department of corrections |
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65 | 65 | | for 5 or more years and who is credited with 5, 10, 15, or 20 or more years of creditable |
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66 | 66 | | service, not counting any previously granted creditable military service, may receive |
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67 | 67 | | creditable military service at the time of retirement for not more than 1, 2, 3, or 4 |
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68 | 68 | | years, respectively, of active service that meets the standards under par. (a) 5., |
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69 | 69 | | provided: |
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83 | 83 | | 14 - 3 -2023 - 2024 Legislature |
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84 | 84 | | LRB-4724/1 |
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85 | 85 | | MIM:emw |
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86 | 86 | | SECTION 2 |
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87 | 87 | | ASSEMBLY BILL 1147 |
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88 | 88 | | 1. Any creditable military service otherwise granted shall be included in |
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89 | 89 | | determining the maximum years to be granted under this paragraph. |
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90 | 90 | | 2. Creditable military service under this paragraph shall be allocated at the |
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91 | 91 | | time of retirement in proportion to the amount of the participant's creditable service |
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92 | 92 | | for each of the employment categories as set forth in s. 40.23 (2m) (e), unless a higher |
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93 | 93 | | benefit would result from the prorated allocation of creditable military service based |
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94 | 94 | | on the amount of the participant's creditable service for each of the types of creditable |
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95 | 95 | | service on the date the participant attains the greater of 5, 10, 15, or 20 years of |
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96 | 96 | | creditable service. |
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97 | 97 | | 3. If the participant makes an election under s. 40.30 (2), this paragraph does |
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98 | 98 | | not apply to any active service used for the purpose of establishing entitlement to, |
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99 | 99 | | or the amount of, any benefit, other than a disability benefit, to be paid by any |
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100 | 100 | | retirement system specified in s. 40.30 (2) other than the Wisconsin Retirement |
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101 | 101 | | System. |
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102 | 102 | | SECTION 3. 40.05 (2) (at) of the statutes is created to read: |
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103 | 103 | | 40.05 (2) (at) The department of corrections shall contribute an additional |
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104 | 104 | | percentage of earnings, as determined by the actuary and approved by the board, to |
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105 | 105 | | reflect the shared cost of granting creditable military service under 2023 Wisconsin |
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106 | 106 | | Act .... (this act). |
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107 | 107 | | SECTION 4.0Initial applicability. |
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108 | 108 | | (1) This act first applies to participating employees in the Wisconsin |
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109 | 109 | | Retirement System who terminate covered employment on the effective date of this |
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110 | 110 | | subsection. |
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111 | 111 | | (END) |
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