Wisconsin 2025-2026 Regular Session

Wisconsin Assembly Bill AB196 Compare Versions

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

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1	1	2025 - 2026 LEGISLATURE
2	2	LRB-1723/1
3	3	MIM:wlj
4	4	2025 ASSEMBLY BILL 196
5	5	April 15, 2025 - Introduced by Representatives WITTKE, KITCHENS, RODRIGUEZ,
6	6	NOVAK, BROOKS, KNODL, KREIBICH, KURTZ, MELOTIK, MURPHY, O'CONNOR,
7	7	PENTERMAN, STEFFEN and ORTIZ-VELEZ, cosponsored by Senators MARKLEIN,
8	8	CABRAL-GUEVARA, FEYEN, PFAFF, QUINN and HABUSH SINYKIN. Referred to
9	9	Committee on Local Government.
10	10
11	11	*AUTHORS SUBJECT TO CHANGE*
12	12	AN ACT to repeal 40.26 (5m), 40.26 (6) and 323.19 (3); to amend 40.22 (1),
13	13	40.22 (2m) (intro.), 40.22 (2r) (intro.), 40.22 (3) (intro.), 40.26 (1m) and 40.26
14	14	(5) (intro.); to create 40.04 (5) (am) and 40.26 (7) and (8) of the statutes;
15	15	relating to: rehired annuitants in the Wisconsin Retirement System.
16	16	Analysis by the Legislative Reference Bureau
17	17	Under current law, certain people who receive a retirement or disability
18	18	annuity from the Wisconsin Retirement System (WRS) and who are hired by an
19	19	employer that participates in the WRS must suspend that annuity and may not
20	20	receive a WRS annuity payment until they are no longer in a WRS-covered position.
21	21	This suspension applies to an annuitant who 1) has reached his or her normal
22	22	retirement date; 2) is appointed to a position with a WRS-participating employer;
23	23	and 3) is expected to work at least two-thirds of what is considered full-time
24	24	employment by the Department of Employee Trust Funds.
25	25	This bill allows such an annuitant who is hired by a WRS-participating
26	26	employer as an employee or to provide employee services to not suspend his or her
27	27	annuity for up to 60 months. The bill also requires WRS-participating employers
28	28	that hire such annuitants to make payments to ETF equal to what they would have
29	29	paid as required contributions for each rehired annuitant if the rehired annuitant
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33	33	4 2025 - 2026 Legislature
34	34	ASSEMBLY BILL 196
35	35	- 2 - LRB-1723/1
36	36	MIM:wlj
37	37	SECTION 1
38	38	had suspended his or her annuity. Under the bill, these payments are deposited
39	39	into the employer reserve account.
40	40	If the annuitant does not suspend the annuity and does not become an active
41	41	WRS-participating employee, in the case of state employment, the annuitant is not
42	42	eligible for group insurance benefits provided to active WRS-participating
43	43	employees and may not use any of his or her service in the new position for any WRS
44	44	purposes. If the annuitant opts to again become an active WRS-participating
45	45	employee, the annuitant is eligible for all group insurance benefits provided to other
46	46	participating employees and may accumulate additional years of creditable service
47	47	under the WRS for the new period of WRS-covered employment.
48	48	The bill also repeals two obsolete provisions related to WRS annuitants
49	49	returning to WRS-covered employment during the public health emergency
50	50	declared on March 12, 2020, by executive order 72, which ended on May 13, 2020.
51	51	Because this bill relates to public employee retirement or pensions, it may be
52	52	referred to the Joint Survey Committee on Retirement Systems for a report to be
53	53	printed as an appendix to the bill.
54	54	For further information see the state and local fiscal estimate, which will be
55	55	printed as an appendix to this bill.
56	56	The people of the state of Wisconsin, represented in senate and assembly, do
57	57	enact as follows:
58	58	SECTION 1. 40.04 (5) (am) of the statutes is created to read:
59	59	40.04 (5) (am) Credited all employer payments made under s. 40.26 (8).
60	60	SECTION 2. 40.22 (1) of the statutes is amended to read:
61	61	40.22 (1) Except as otherwise provided in sub. (2) and s. 40.26 (6) (7), each
62	62	employee currently in the service of, and receiving earnings from, a state agency or
63	63	other participating employer shall be included within the provisions of the
64	64	Wisconsin retirement system as a participating employee of that state agency or
65	65	participating employer.
66	66	SECTION 3. 40.22 (2m) (intro.) of the statutes is amended to read:
67	67	40.22 (2m) (intro.) Except as otherwise provided in s. 40.26 (6) (7), an
68	68	employee who was a participating employee before July 1, 2011, who is not expected
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80	80	ASSEMBLY BILL 196
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82	82	MIM:wlj
83	83	SECTION 3
84	84	to work at least one-third of what is considered full-time employment by the
85	85	department, as determined by rule, and who is not otherwise excluded under sub.
86	86	(2) from becoming a participating employee shall become a participating employee if
87	87	he or she is subsequently employed by the state agency or other participating
88	88	employer for either of the following periods:
89	89	SECTION 4. 40.22 (2r) (intro.) of the statutes is amended to read:
90	90	40.22 (2r) (intro.) Except as otherwise provided in s. 40.26 (6) (7), an employee
91	91	who was not a participating employee before July 1, 2011, who is not expected to
92	92	work at least two-thirds of what is considered full-time employment by the
93	93	department, as determined by rule, and who is not otherwise excluded under sub.
94	94	(2) from becoming a participating employee shall become a participating employee if
95	95	he or she is subsequently employed by the state agency or other participating
96	96	employer for either of the following periods:
97	97	SECTION 5. 40.22 (3) (intro.) of the statutes is amended to read:
98	98	40.22 (3) (intro.) Except as otherwise provided in s. 40.26 (6) (7), a person who
99	99	qualifies as a participating employee shall be included within, and shall be subject
100	100	to, the Wisconsin retirement system effective on one of the following dates:
101	101	SECTION 6. 40.26 (1m) of the statutes is amended to read:
102	102	40.26 (1m) (a) Except as otherwise provided in sub. (6) (7), if a participant
103	103	receiving a retirement annuity, or a disability annuitant who has attained his or
104	104	her normal retirement date, is employed in a position in covered employment in
105	105	which he or she is expected to work at least two-thirds of what is considered full-
106	106	time employment by the department, as determined under s. 40.22 (2r), the
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130	130	ASSEMBLY BILL 196
131	131	- 4 - LRB-1723/1
132	132	MIM:wlj
133	133	SECTION 6
134	134	participant[s annuity shall be suspended and no annuity payment shall be payable
135	135	until after the participant terminates covered employment.
136	136	(b) Except as otherwise provided in sub. (6) (7), if a participant receiving a
137	137	retirement annuity, or a disability annuitant who has attained his or her normal
138	138	retirement date, enters into a contract to provide employee services with a
139	139	participating employer and he or she is expected to work at least two-thirds of what
140	140	is considered full-time employment by the department, as determined under s.
141	141	40.22 (2r), the participant[s annuity shall be suspended and no annuity payment
142	142	shall be payable until after the participant no longer provides employee services
143	143	under the contract.
144	144	SECTION 7. 40.26 (5) (intro.) of the statutes is amended to read:
145	145	40.26 (5) (intro.) Except as otherwise provided in sub. (5m), if If a participant
146	146	applies for an annuity or lump sum payment during the period in which less than
147	147	75 days have elapsed between the termination of employment with a participating
148	148	employer and becoming a participating employee with any participating employer,
149	149	all of the following shall apply:
150	150	SECTION 8. 40.26 (5m) of the statutes is repealed.
151	151	SECTION 9. 40.26 (6) of the statutes is repealed.
152	152	SECTION 10. 40.26 (7) and (8) of the statutes are created to read:
153	153	40.26 (7) Beginning on the effective date of this subsection .... [LRB inserts
154	154	date], a participant may elect to not suspend his or her retirement annuity or
155	155	disability annuity under sub. (1m) for up to 60 months, which need not be
156	156	consecutive, if the participant applies for an annuity or lump sum payment after at
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179	179	23 2025 - 2026 Legislature
180	180	ASSEMBLY BILL 196
181	181	- 5 - LRB-1723/1
182	182	MIM:wlj
183	183	SECTION 10
184	184	least 75 days have elapsed since the participant[s termination of employment with
185	185	a participating employer and prior to becoming an employee with a participating
186	186	employer if all of the following conditions are met:
187	187	(a) The participant terminates his or her employment with a participating
188	188	employer after July 2, 2013.
189	189	(b) At the time the participant terminates his or her employment with a
190	190	participating employer, the participant does not have an agreement with any
191	191	participating employer to return to employment or enter into a contract to provide
192	192	employee services for a participating employer and complies with 26 CFR 1.401-1
193	193	(a) (2) (i) and requirements set by the federal department of the treasury for bona
194	194	fide separation from service.
195	195	(c) The participant elects on a form provided by the department to not become
196	196	a participating employee.
197	197	40.26 (8) Each participating employer that hires a participant who has
198	198	elected to not suspend his or her annuity under sub. (7) shall make payments to the
199	199	department that are equal to the amount of contributions that would have been
200	200	required to be paid for that employee under s. 40.05 (2) (a). All payments under this
201	201	subsection shall be credited to the account under s. 40.04 (5) (am).
202	202	SECTION 11. 323.19 (3) of the statutes is repealed.
203	203	(END)
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