Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB512 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 SENATE BILL 512
5	5	October 16, 2023 - Introduced by Senators SMITH, LARSON, L. JOHNSON, ROYS,
6	6	HESSELBEIN, AGARD, SPREITZER, CARPENTER and PFAFF, cosponsored by
7	7	Representatives CONLEY, SHELTON, C. ANDERSON, J. ANDERSON, BALDEH,
8	8	CABRERA, CLANCY, CONSIDINE, HAYWOOD, HONG, JOERS, MYERS, NEUBAUER,
9	9	OHNSTAD, PALMERI, RATCLIFF, SINICKI, SNODGRASS and STUBBS. Referred to
10	10	Committee on Government Operations.
11	11	AN ACT to amend 40.22 (1), 40.22 (2m) (intro.), 40.22 (2r) (intro.) and 40.22 (3)
12	12	(intro.); and to create 40.26 (7) of the statutes; relating to: rehired annuitant
13	13	teachers in the Wisconsin Retirement System.
14	14	Analysis by the Legislative Reference Bureau
15	15	Under current law, certain people who receive a retirement or disability
16	16	annuity from the Wisconsin Retirement System (WRS) and who are hired by an
17	17	employer that participates in the WRS must suspend that annuity and may not
18	18	receive a WRS annuity payment until the person is no longer in a WRS-covered
19	19	position. This suspension applies to a person who 1) has reached his or her normal
20	20	retirement date; 2) is appointed to a position with a WRS-participating employer or
21	21	provides employee services as a contractor to a WRS-participating employer; and 3)
22	22	is expected to work at least two-thirds of what is considered full-time employment
23	23	by the Department of Employee Trust Funds.
24	24	This bill creates an exception to this suspension if 1) the person retired from
25	25	WRS-covered employment as a teacher; 2) at least 30 days have elapsed from the
26	26	date the person left WRS-covered employment with a school district; 3) the person
27	27	is hired as an employee or contractor to provide employee services; 4) at the time the
28	28	person initially retires from a school district, the person does not have an agreement
29	29	with any school district to return to employment or a contractor providing employee
30	30	services; and 5) the person elects to not become a participating employee at the time
31	31	the person is rehired or enters into a contract after retirement. In other words, the
32	32	bill allows a WRS teacher annuitant who is either hired as an employee or provides
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38	38	employee services with a school district that is a participating employer to return to
39	39	work with a school district and elect to not become a participating employee for
40	40	purposes of the WRS and instead continue to receive his or her annuity.
41	41	For further information see the state and local fiscal estimate, which will be
42	42	printed as an appendix to this bill.
43	43	The people of the state of Wisconsin, represented in senate and assembly, do
44	44	enact as follows:
45	45	SECTION 1. 40.22 (1) of the statutes is amended to read:
46	46	40.22 (1) Except as otherwise provided in sub. (2) and s. 40.26 (6) and (7), each
47	47	employee currently in the service of, and receiving earnings from, a state agency or
48	48	other participating employer shall be included within the provisions of the Wisconsin
49	49	retirement system as a participating employee of that state agency or participating
50	50	employer.
51	51	SECTION 2. 40.22 (2m) (intro.) of the statutes is amended to read:
52	52	40.22 (2m) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an
53	53	employee who was a participating employee before July 1, 2011, who is not expected
54	54	to work at least one-third of what is considered full-time employment by the
55	55	department, as determined by rule, and who is not otherwise excluded under sub. (2)
56	56	from becoming a participating employee shall become a participating employee if he
57	57	or she is subsequently employed by the state agency or other participating employer
58	58	for either of the following periods:
59	59	SECTION 3. 40.22 (2r) (intro.) of the statutes is amended to read:
60	60	40.22 (2r) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an
61	61	employee who was not a participating employee before July 1, 2011, who is not
62	62	expected to work at least two-thirds of what is considered full-time employment by
63	63	the department, as determined by rule, and who is not otherwise excluded under sub.
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85	85	SECTION 3
86	86	SENATE BILL 512
87	87	(2) from becoming a participating employee shall become a participating employee
88	88	if he or she is subsequently employed by the state agency or other participating
89	89	employer for either of the following periods:
90	90	SECTION 4. 40.22 (3) (intro.) of the statutes is amended to read:
91	91	40.22 (3) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), a person
92	92	who qualifies as a participating employee shall be included within, and shall be
93	93	subject to, the Wisconsin retirement system effective on one of the following dates:
94	94	SECTION 5. 40.26 (7) of the statutes is created to read:
95	95	40.26 (7) Subsections (1) to (5) do not apply to a participant who applies for an
96	96	annuity or lump sum payment during the period in which at least 30 days have
97	97	elapsed between the participant's termination of employment as a teacher with a
98	98	school district that is a participating employer and becoming an employee or
99	99	contractor providing employee services with any school district that is a
100	100	participating employer if all of the following conditions are met:
101	101	(a) At the time the participant terminates his or her employment as a teacher
102	102	with a school district, the participant does not have an agreement with any school
103	103	district that is a participating employer to return to employment or enter into a
104	104	contract to provide employee services for the school district.
105	105	(b) The participant elects on a form provided by the department to not become
106	106	a participating employee.
107	107	SECTION 6.0Initial applicability.
108	108	(1) REHIRED TEACHER ANNUITANTS. The treatment of s. 40.26 (7) first applies to
109	109	participating employees under the Wisconsin Retirement System who terminate
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134	134	SECTION 6 SENATE BILL 512
135	135	covered employment under the Wisconsin Retirement System on the effective date
136	136	of this subsection.
137	137	(END)
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