LRB-5904/1
MIM:skw/cdc/emw
2023 - 2024 LEGISLATURE
2023 SENATE BILL 1051
February 21, 2024 - Introduced by LAW REVISION COMMITTEE. Referred to
Committee on Senate Organization.
***AUTHORS SUBJECT TO CHANGE***
AN ACT to amend 40.05 (1) (b) 1a., 40.23 (1) (bm) and 40.63 (7) of the statutes;
relating to: contributions by protective occupation participants and
separation from service for retirement benefits under the W isconsin
Retirement System (suggested as remedial legislation by the Department of
Employee Trust Funds).
Analysis by the Legislative Reference Bureau
This bill corrects a reference to a date for the purposes of contributions to the
Wisconsin Retirement System by county jailers who are first certified as protective
occupation participants for purposes of the WRS on or after January 1, 2024, in a
county that did not classify county jailers as protective occupation participants
before that date.
Under current law, if an application for long-term disability benefits or an
application for a disability annuity by a participant who is at least minimum
retirement age under the WRS is denied, and the applicant applies for a regular
annuity, the effective date of the annuity is set as the date on which the disability
benefits or disability annuity would have been effective. Federal law prohibits a
participant in a qualified retirement plan, such as the WRS, from having a benefit
effective date that is before the participant has a bona fide separation from service.
The bill sets the effective date for a regular retirement annuity for participants
whose application for long-term disability benefits or a disability annuity is denied
as the later of the date that would have been the effective date of that annuity or those
benefits or the day after the participant's separation from service.
1
2
3
4
5 - 2 -2023 - 2024 Legislature LRB-5904/1
MIM:skw/cdc/emw
SENATE BILL 1051
For further information, see the NOTES provided by the Law Revision
Committee of the Joint Legislative Council.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
LAW REVISION COMMITTEE PREFATORY NOTE: This bill is a remedial legislation
proposal, requested by the Department of Employee Trust Funds and introduced by the
Law Revision Committee under s. 13.83 (1) (c) 4. and 5., stats. After careful consideration
of the various provisions of the bill, the Law Revision Committee has determined that this
bill makes minor substantive changes in the statutes, and that these changes are
desirable as a matter of public policy.
SECTION 1. 40.05 (1) (b) 1a. of the statutes, as created by 2023 Wisconsin Act
4, is amended to read:
40.05 (1) (b) 1a. Contributions under par. (a) 7. that are made by county jailers
who are first certified as protective occupation participants on or after January 1,
2024, and who are employed in a county that did not classify county jailers as
protective occupation participants on July 1, 2022 January 1, 2024, shall be treated
as employee contributions.
NOTE: This SECTION changes a date for purposes of contributions to the Wisconsin
Retirement System made by county jailers who were not classified as protective
occupation participants before that date.
SECTION 2. 40.23 (1) (bm) of the statutes is amended to read:
40.23 (1) (bm) If an application by a participant age 55 or over, or by a protective
occupation participant age 50 or over, for long-term disability insurance benefits is
disapproved under rules promulgated by the department, the date which would have
been the effective date for the insurance benefits, or the day after the date of
separation from the last participating employer, whichever is later, shall be the
retirement annuity effective date if requested by the applicant within 60 days of the
disapproval or, if the disapproval is appealed, within 60 days of the final disposition
of the appeal.
NOTE: This SECTION establishes that if certain participants in the Wisconsin
Retirement System apply for long-term disability insurance benefits and the application
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16 - 3 -2023 - 2024 Legislature
LRB-5904/1
MIM:skw/cdc/emw
SECTION 2
SENATE BILL 1051
is not approved under rules promulgated by the Department of Employee Trust Funds,
the effective date for a regular retirement annuity will be the later of the date that would
have been the effective date of the insurance benefits had the application been approved,
or the day after the date of separation from the last participating employer.
SECTION 3. 40.63 (7) of the statutes is amended to read:
40.63 (7) If an application, by a participant age 55 or over, or by a protective
occupation participant age 50 or over, for any disability annuity is disapproved, the
date which would have been the disability annuity effective date, or the day after the
date of separation from the last participating employer, whichever is later, shall be
the retirement annuity effective date if so requested by the applicant within 60 days
of the disapproval or, if the disapproval is appealed, within 60 days of final
disposition of the appeal.
NOTE: This SECTION establishes that if certain participants in the Wisconsin
Retirement System apply for disability insurance benefits and the application is not
approved, the effective date for a regular retirement annuity will be the later of the date
that would have been the effective date of the insurance benefits had the application been
approved, or the day after the date of separation from the last participating employer.
SECTION 4.0Effective dates. This act takes effect on the day after publication,
except as follows:
(1) The treatment of s. 40.05 (1) (b) 1a. takes effect retroactively to January 1,
2024.
(END)
1
2
3
4
5
6
7
8
9
10
11
12
13