Wisconsin Senate Bill SB1051

Wisconsin 2023-2024 Regular Session

• Introduced: 2/21/24
• Refer: 2/21/24
• Failed: 4/15/24

Caption

Contributions by protective occupation participants and separation from service for retirement benefits under the Wisconsin Retirement System (suggested as remedial legislation by the Department of Employee Trust Funds).

Impact

If enacted, SB1051 will refine the effective date of retirement annuities for certain participants who apply for long-term disability benefits or disability annuities but face disapprovals. The modification stipulates that the effective date for their regular annuity will be the later of either the date on which the denials would have taken effect, or the day following their separation from service. This adjustment is intended to maintain compliance with federal law while ensuring that eligible participants can transition smoothly from disability to regular annuity benefits without undue delay.

Summary

Senate Bill 1051 seeks to amend provisions related to contributions and effective dates for retirement benefits under the Wisconsin Retirement System (WRS), specifically for county jailers classified as protective occupation participants. The bill is presented as remedial legislation requested by the Department of Employee Trust Funds, aimed at correcting certain date references pertinent to the classification of county jailers and their contributions to the retirement system. The proposed changes are critical for aligning with federal regulations that prohibit benefit effective dates prior to a participant's legitimate separation from service.

Contention

There may be concerns surrounding how the amendments to the existing statutes, particularly those affecting county jailers newly certified as protective occupation participants, impact the understanding of retirement benefits among these employees. While the bill is largely seen as necessary to correct minor statutory issues, any disagreement might stem from differing perspectives on the urgency of the amendments and their implications for affected employees' financial security during the transition from disability to retirement annuities.