1 | 1 | | LRB-0781/1 |
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2 | 2 | | MIM:kms&amn |
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3 | 3 | | 2023 - 2024 LEGISLATURE |
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4 | 4 | | 2023 ASSEMBLY BILL 18 |
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5 | 5 | | February 7, 2023 - Introduced by Representatives TITTL, PENTERMAN, BALDEH, |
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6 | 6 | | KNODL, MURPHY, MURSAU, MYERS, ROZAR, SCHRAA, SPIROS, TUSLER, |
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7 | 7 | | VANDERMEER and WICHGERS, cosponsored by Senators JACQUE, BALLWEG, |
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8 | 8 | | CABRAL-GUEVARA, QUINN and WANGGAARD. Referred to Committee on State |
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9 | 9 | | Affairs. |
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10 | 10 | | ***AUTHORS SUBJECT TO CHANGE*** |
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11 | 11 | | AN ACT to amend 40.22 (1), 40.22 (2m) (intro.), 40.22 (2r) (intro.) and 40.22 (3) |
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12 | 12 | | (intro.); and to create 40.26 (7) of the statutes; relating to: rehired teacher |
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13 | 13 | | annuitants. |
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14 | 14 | | Analysis by the Legislative Reference Bureau |
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15 | 15 | | Under current law, certain individuals who receive a retirement or disability |
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16 | 16 | | annuity from the Wisconsin Retirement System (WRS) and who are hired by an |
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17 | 17 | | employer that participates in the WRS must suspend that annuity and may not |
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18 | 18 | | receive a WRS annuity payment until the individual is no longer in a WRS-covered |
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19 | 19 | | position. This suspension applies to an individual who 1) has reached his or her |
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20 | 20 | | normal retirement date; 2) is appointed to a position with a WRS-participating |
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21 | 21 | | employer or provides employee services as a contractor to a WRS-participating |
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22 | 22 | | employer; and 3) is expected to work at least two-thirds of what is considered |
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23 | 23 | | full-time employment by the Department of Employee Trust Funds. |
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24 | 24 | | This bill creates an exception to this suspension if 1) the individual retired from |
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25 | 25 | | WRS-covered employment as a teacher for grades kindergarten to 12 after July 2, |
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26 | 26 | | 2013; 2) at least 30 days have elapsed from the date the individual left WRS-covered |
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27 | 27 | | employment with a school district; 3) the individual is rehired as a substitute |
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28 | 28 | | teacher; 4) at the time the individual initially retires from a school district, the |
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29 | 29 | | individual does not have an agreement with any school district to return to |
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30 | 30 | | employment; 5) the individual elects to not become a participating employee at the |
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31 | 31 | | time the individual is rehired or enters into a contract after retirement; and 6) the |
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32 | 32 | | individual is hired between the effective date of the bill and August 1, 2026. In other |
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35 | 35 | | 3 - 2 -2023 - 2024 Legislature LRB-0781/1 |
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36 | 36 | | MIM:kms&amn |
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37 | 37 | | ASSEMBLY BILL 18 |
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38 | 38 | | words, the bill allows a WRS teacher annuitant to return to work as a substitute |
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39 | 39 | | teacher with a participating employer and elect to not become a participating |
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40 | 40 | | employee for purposes of the WRS and instead continue to receive his or her annuity |
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41 | 41 | | between the effective date of the bill and August 1, 2026. |
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42 | 42 | | For further information see the state and local fiscal estimate, which will be |
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43 | 43 | | printed as an appendix to this bill. |
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44 | 44 | | The people of the state of Wisconsin, represented in senate and assembly, do |
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45 | 45 | | enact as follows: |
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46 | 46 | | SECTION 1. 40.22 (1) of the statutes is amended to read: |
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47 | 47 | | 40.22 (1) Except as otherwise provided in sub. (2) and s. 40.26 (6) and (7), each |
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48 | 48 | | employee currently in the service of, and receiving earnings from, a state agency or |
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49 | 49 | | other participating employer shall be included within the provisions of the Wisconsin |
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50 | 50 | | retirement system as a participating employee of that state agency or participating |
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51 | 51 | | employer. |
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52 | 52 | | SECTION 2. 40.22 (2m) (intro.) of the statutes is amended to read: |
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53 | 53 | | 40.22 (2m) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an |
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54 | 54 | | employee who was a participating employee before July 1, 2011, who is not expected |
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55 | 55 | | to work at least one-third of what is considered full-time employment by the |
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56 | 56 | | department, as determined by rule, and who is not otherwise excluded under sub. (2) |
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57 | 57 | | from becoming a participating employee shall become a participating employee if he |
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58 | 58 | | or she is subsequently employed by the state agency or other participating employer |
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59 | 59 | | for either of the following periods: |
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60 | 60 | | SECTION 3. 40.22 (2r) (intro.) of the statutes is amended to read: |
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61 | 61 | | 40.22 (2r) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an |
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62 | 62 | | employee who was not a participating employee before July 1, 2011, who is not |
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63 | 63 | | expected to work at least two-thirds of what is considered full-time employment by |
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64 | 64 | | the department, as determined by rule, and who is not otherwise excluded under sub. |
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83 | 83 | | 19 - 3 -2023 - 2024 Legislature |
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84 | 84 | | LRB-0781/1 |
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85 | 85 | | MIM:kms&amn |
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86 | 86 | | SECTION 3 |
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87 | 87 | | ASSEMBLY BILL 18 |
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88 | 88 | | (2) from becoming a participating employee shall become a participating employee |
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89 | 89 | | if he or she is subsequently employed by the state agency or other participating |
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90 | 90 | | employer for either of the following periods: |
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91 | 91 | | SECTION 4. 40.22 (3) (intro.) of the statutes is amended to read: |
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92 | 92 | | 40.22 (3) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), a person |
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93 | 93 | | who qualifies as a participating employee shall be included within, and shall be |
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94 | 94 | | subject to, the Wisconsin retirement system effective on one of the following dates: |
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95 | 95 | | SECTION 5. 40.26 (7) of the statutes is created to read: |
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96 | 96 | | 40.26 (7) During the period beginning on the effective date of this subsection |
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97 | 97 | | .... [LRB inserts date], and ending on August 1, 2026, subs. (1) to (5) do not apply to |
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98 | 98 | | a participant who applies for an annuity or lump sum payment during the period in |
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99 | 99 | | which at least 30 days have elapsed between the participant's termination of |
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100 | 100 | | employment as a teacher with a school district that is a participating employer and |
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101 | 101 | | the date on which the participant becomes a substitute teacher as an employee or |
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102 | 102 | | contractor providing employee services with any school district that is a |
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103 | 103 | | participating employer if all of the following conditions are met: |
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104 | 104 | | (a) The participant terminates his or her employment after July 2, 2013. |
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105 | 105 | | (b) At the time the participant terminates his or her employment as a teacher |
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106 | 106 | | with a school district, the participant does not have an agreement with any school |
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107 | 107 | | district that is a participating employer to return to employment as a substitute |
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108 | 108 | | teacher or enter into a contract to provide employee services as a substitute teacher |
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109 | 109 | | for that school district. |
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110 | 110 | | (c) The participant elects on a form provided by the department to not become |
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111 | 111 | | a participating employee. |
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112 | 112 | | (END) |
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