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2023 - 2024 LEGISLATURE
2023 ASSEMBLY BILL 671
November 27, 2023 - Introduced by Representatives RETTINGER, DONOVAN, C.
ANDERSON, BARE, BEHNKE, CALLAHAN, DITTRICH, GOEBEN, GREEN, JACOBSON,
KURTZ, MELOTIK, MICHALSKI, MOSES, MURSAU, NEDWESKI, O'CONNOR, OHNSTAD,
ROZAR, SPIROS, SUBECK, TITTL, WICHGERS, MAGNAFICI and OLDENBURG,
cosponsored by Senators TOMCZYK, BALLWEG, BRADLEY, CABRAL-GUEVARA,
FEYEN, HUTTON, KNODL, MARKLEIN, QUINN, ROYS, SPREITZER, WANGGAARD and
HESSELBEIN. Referred to Committee on State Affairs.
***AUTHORS SUBJECT TO CHANGE***
AN ACT to amend 40.22 (1), 40.22 (2m) (intro.), 40.22 (2r) (intro.) and 40.22 (3)
(intro.); and to create 40.26 (7) of the statutes; relating to: protective
occupation annuitants in the Wisconsin Retirement System who are rehired by
a participating employer.
Analysis by the Legislative Reference Bureau
Under current law, certain persons who receive a retirement or disability
annuity from the Wisconsin Retirement System and who are hired by an employer
that participates in the WRS must suspend that annuity and may not receive a WRS
annuity payment until the employee is no longer in a WRS-covered position. This
suspension applies to a person who 1) has reached his or her normal retirement date;
2) is appointed to a position with a WRS-participating employer or provides
employee services to a WRS-participating employer; and 3) is expected to work at
least two-thirds of what is considered full-time employment by the Department of
Employee Trust Funds.
This bill creates an exception to this suspension for an annuitant who retired
from employment with a participating employer and who is subsequently rehired or
provides employee services after retirement if 1) the annuitant retired as a protective
occupation participant; 2) at the time the annuitant initially retires from covered
employment with a participating employer, the annuitant does not have an
agreement with any participating employer to return to employment; and 3) the
annuitant elects to not become a participating employee at the time the annuitant
is rehired or enters into a contract after retirement. In other words, the bill allows
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an annuitant who retired as a protective occupation participant to return to work
with an employer who participates in the WRS and elect to not become a
participating employee for purposes of the WRS, and instead continue to receive his
or her annuity.
For further information see the local 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. 40.22 (1) of the statutes is amended to read:
40.22 (1) Except as otherwise provided in sub. (2) and s. 40.26 (6) and (7), each
employee currently in the service of, and receiving earnings from, a state agency or
other participating employer shall be included within the provisions of the Wisconsin
retirement system as a participating employee of that state agency or participating
employer.
SECTION 2. 40.22 (2m) (intro.) of the statutes is amended to read:
40.22 (2m) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an
employee who was a participating employee before July 1, 2011, who is not expected
to work at least one-third of what is considered full-time employment by the
department, as determined by rule, and who is not otherwise excluded under sub. (2)
from becoming a participating employee shall become a participating employee if he
or she is subsequently employed by the state agency or other participating employer
for either of the following periods:
SECTION 3. 40.22 (2r) (intro.) of the statutes is amended to read:
40.22 (2r) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an
employee who was not a participating employee before July 1, 2011, who is not
expected to work at least two-thirds of what is considered full-time employment by
the department, as determined by rule, and who is not otherwise excluded under sub.
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SECTION 3
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(2) from becoming a participating employee shall become a participating employee
if he or she is subsequently employed by the state agency or other participating
employer for either of the following periods:
SECTION 4. 40.22 (3) (intro.) of the statutes is amended to read:
40.22 (3) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), a person
who qualifies as a participating employee shall be included within, and shall be
subject to, the Wisconsin retirement system effective on one of the following dates:
SECTION 5. 40.26 (7) of the statutes is created to read:
40.26 (7) (a) Subsections (1) to (5) do not apply to a participant who applies for
an annuity or lump sum payment during the period in which at least 75 days have
elapsed between the participant's termination of employment and becoming an
employee or contractor providing employee services with a participating employer
if all of the following conditions are met:
1. The individual is a protective occupation participant retired from a
protective occupation under the WRS.
2. At the time the participant terminates his or her employment with a
participating employer, the participant does not have an agreement with any
participating employer to return to employment or enter into a contract to provide
employee services for the employer.
3. The participant elects on a form provided by the department to not become
a participating employee.
SECTION 6.0Initial applicability.
(1) This act first applies to a participant under the Wisconsin Retirement
System who terminates employment on the effective date of this subsection.
(END)
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