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2023 - 2024 LEGISLATURE
2023 SENATE BILL 512
October 16, 2023 - Introduced by Senators SMITH, LARSON, L. JOHNSON, ROYS,
HESSELBEIN, AGARD, SPREITZER, CARPENTER and PFAFF, cosponsored by
Representatives CONLEY, SHELTON, C. ANDERSON, J. ANDERSON, BALDEH,
CABRERA, CLANCY, CONSIDINE, HAYWOOD, HONG, JOERS, MYERS, NEUBAUER,
OHNSTAD, PALMERI, RATCLIFF, SINICKI, SNODGRASS and STUBBS. Referred to
Committee on Government Operations.
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: rehired annuitant
teachers in the Wisconsin Retirement System.
Analysis by the Legislative Reference Bureau
Under current law, certain people who receive a retirement or disability
annuity from the Wisconsin Retirement System (WRS) 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 person 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 as a contractor 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 if 1) the person retired from
WRS-covered employment as a teacher; 2) at least 30 days have elapsed from the
date the person left WRS-covered employment with a school district; 3) the person
is hired as an employee or contractor to provide employee services; 4) at the time the
person initially retires from a school district, the person does not have an agreement
with any school district to return to employment or a contractor providing employee
services; and 5) the person elects to not become a participating employee at the time
the person is rehired or enters into a contract after retirement. In other words, the
bill allows a WRS teacher annuitant who is either hired as an employee or provides
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employee services with a school district that is a participating employer to return to
work with a school district 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 state and 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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(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) 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 30 days have
elapsed between the participant's termination of employment as a teacher with a
school district that is a participating employer and becoming an employee or
contractor providing employee services with any school district that is a
participating employer if all of the following conditions are met:
(a) At the time the participant terminates his or her employment as a teacher
with a school district, the participant does not have an agreement with any school
district that is a participating employer to return to employment or enter into a
contract to provide employee services for the school district.
(b) The participant elects on a form provided by the department to not become
a participating employee.
SECTION 6.0Initial applicability.
(1) REHIRED TEACHER ANNUITANTS. The treatment of s. 40.26 (7) first applies to
participating employees under the Wisconsin Retirement System who terminate
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covered employment under the Wisconsin Retirement System on the effective date
of this subsection.
(END)
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