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3 3. May take any action as trustees that is considered advisable and not
4specifically prohibited or delegated to some other governmental agency to carry out
5the purpose and intent of the plans.
6 4. May apportion all excess moneys becoming available to the board through
7operation of the plans to reduce premium payments in following contract years or to
8establish reserves to stabilize costs in subsequent years. If the board determines
9that the excess became available due to favorable experience of specific groups of
10employers or specific employee groups, the board may make the apportionment in
11a manner designated to benefit the specific employers or employee groups only or to
12a greater extent than other employers and employee groups.
13 5. Shall take prompt action to liquidate any actuarial or cash deficit that occurs
14in the accounts and reserves maintained in the fund for the plans.
15 6. Shall accept timely appeals of determinations made by the department
16affecting any right or benefit under the plans.
17Section 699 . 40.03 (2) (d) of the statutes is amended to read:
18 40.03 (2) (d) May suspend an annuity pending final action by the board, or a
19disability annuity pending final action by the Wisconsin retirement board or the
20teachers retirement board
, when, in the secretary's judgment, the annuitant is not
21eligible to receive the annuity.
22Section 700 . 40.03 (2) (i) of the statutes is amended to read:
23 40.03 (2) (i) Shall Except as provided under pars. (ig) and (ir), shall promulgate,
24with the approval of the board, all rules, except rules promulgated under par. (ig) or
25(ir),
that are required for the efficient administration of the fund or of any of the

1benefit plans established by this chapter. In addition to being approved by the board,
2rules promulgated under this paragraph relating to teachers must be approved by
3the teachers retirement board and
rules promulgated under this paragraph relating
4to participants other than teachers must be approved by the Wisconsin retirement
5board, except rules promulgated under s. 40.30
and shall promulgate rules as
6necessary for a long-term disability insurance plan established under s. 40.64. All
7rules promulgated under this paragraph are subject to board approval under sub. (1)
8(m)
.
9Section 701 . 40.03 (2) (ig) of the statutes is amended to read:
10 40.03 (2) (ig) Shall promulgate, with the approval of the group insurance board,
11all rules required for the administration of the group health, long-term care, income
12continuation
or life insurance plans established under subchs. IV to and VI and
13health savings accounts under subch. IV.
14Section 702 . 40.03 (2) (p) of the statutes is amended to read:
15 40.03 (2) (p) Shall establish procedures for and conduct the elections of board
16members required under ss. s. 15.16 (1) (d) and 15.165 (3) (a) 1., 2., 6. and 7. (1) (cm)
171.
The procedures shall include the establishment of a nominating process and shall
18provide for the distribution of ballots to all participating employees and annuitants
19eligible to vote in the election.
20Section 703 . 40.03 (2) (v) of the statutes is amended to read:
21 40.03 (2) (v) May settle any dispute in an appeal of a determination made by
22the department that is subject to review under sub. (1) (j), or (6) (i), (7) (f), or (8) (f),
23or s. 40.80 (2g), but only with the approval of the board having the authority to accept
24the appeal. In deciding whether to settle such a dispute, the secretary shall consider
25the cost of litigation, the likelihood of success on the merits, the cost of delay in

1resolving the dispute, the actuarial impact on the trust fund, and any other relevant
2factor the secretary considers appropriate. Any moneys paid by the department to
3settle a dispute under this paragraph shall be paid from the appropriation account
4under s. 20.515 (1) (r).
5Section 704. 40.03 (2) (x) of the statutes is repealed.
6Section 705 . 40.03 (4m) of the statutes is created to read:
7 40.03 (4m) Office of internal audit. (a) The office of internal audit shall
8provide independent assurance that the public employee trust fund assets under the
9control of the department are safeguarded for the purpose of ensuring the fulfillment
10of the benefit commitments to individuals under this chapter.
11 (b) The internal auditor may review any activity, information, or record of the
12department that relates to the administration of the fund.
13 (c) The internal auditor shall plan and conduct audit activities, including
14external audits, risk assessments, research projects, and management reviews,
15under the direction of the board and in accordance with policies, principles, and
16directives determined by the board.
17 (d) The internal auditor shall monitor the department's compliance with
18applicable legal requirements and contracts entered into by the department and the
19board.
20Section 706 . 40.03 (6) (intro.) of the statutes is amended to read:
21 40.03 (6) Group insurance board. (intro.) The With respect to the group
22insurance plans provided for by this chapter other than the group income
23continuation insurance plan established under ss. 40.61 and 40.62 and the group
24long-term disability insurance plan established under s. 40.64, the
group insurance
25board:

1Section 707. 40.03 (6) (a) 1. of the statutes is amended to read:
2 40.03 (6) (a) 1. Except as provided in par. (m), shall, on behalf of the state, enter
3into a contract or contracts with one or more insurers authorized to transact
4insurance business in this state for the purpose of providing the group insurance
5plans provided for by this chapter; or
6Section 708 . 40.03 (6) (d) (intro.) of the statutes is amended to read:
7 40.03 (6) (d) (intro.) May take any action as trustees which that is deemed
8advisable and not specifically prohibited or delegated to some other governmental
9agency, to carry out the purpose and intent of the group insurance plans provided
10under this chapter
, including, but not limited to, provisions in the appropriate
11contracts relating to:
12Section 709 . 40.03 (6) (i) of the statutes is amended to read:
13 40.03 (6) (i) Shall accept timely appeals of determinations made by the
14department affecting any right or benefit under any group insurance plan provided
15for under this chapter
plans that are overseen by the group insurance board.
16Section 710 . 40.03 (7) of the statutes is repealed.
17Section 711 . 40.03 (8) of the statutes is repealed.
18Section 712 . 40.04 (3) (a) of the statutes is amended to read:
19 40.04 (3) (a) The net gain or loss of the variable retirement investment trust
20shall be distributed annually on December 31 to each participating account in the
21same ratio as each account's average daily balance within the respective trust bears
22to the total average daily balance of all participating accounts in the trust. The
23amount to be distributed shall be the excess of the increase within the period in the
24value of the assets of the trust resulting from income from the investments of the
25trust and from the sale or appreciation in value of any investment of the trust, over

1the decrease within the period in the value of the assets resulting from the sale or
2the depreciation in value of any investments of the trust.
3Section 713 . 40.04 (3) (am) 3. (intro.) of the statutes is amended to read:
4 40.04 (3) (am) 3. (intro.) Annually, on December 31, the sum of all of the
5following shall be distributed from the market recognition account to each
6participating account in the core retirement investment trust in the same ratio as
7each account's average daily balance bears to the total average daily balance of all
8participating accounts in the trust:
9Section 714 . 40.05 (2) (aw) of the statutes is created to read:
10 40.05 (2) (aw) For purposes of this subsection, the participating employer of an
11employee subject to s. 40.65 who is on a deployment, training, or readiness exercise
12as the member of an urban search and rescue task force under a contract under s.
13323.72 (1) is the local agency, and the local agency shall contribute any additional
14percentage or percentages related to the deployment, training, or readiness exercises
15under a contract under s. 323.72 (1) as calculated by the actuary under s. 40.03 (5)
16(c). A local agency may seek reimbursement from the department of military affairs
17under s. 323.72 (2m).
18Section 715. 40.05 (4) (a) 2. of the statutes is amended to read:
19 40.05 (4) (a) 2. For an insured employee who is an eligible employee under s.
2040.02 (25) (a) 2. or (b) 1m. or 2c., the employer shall pay required employer
21contributions toward the health insurance premium of the insured employee
22beginning on the date on which the employee becomes insured. For an insured state
23employee who is currently employed, but who is not a limited term appointment
24under s. 230.26 or an eligible employee under s. 40.02 (25) (a) 2. or (b) 1m. or 2c., the
25employer shall pay required employer contributions toward the health insurance

1premium of the insured employee beginning on the first day of the 3rd 2nd month
2beginning after the date on which the employee begins employment with the state,
3not including any leave of absence. For an insured employee who has a limited term
4appointment under s. 230.26, the employer shall pay required employer
5contributions toward the health insurance premium of the insured employee
6beginning on the first day of the 7th month beginning after the date on which the
7employee first becomes a participating employee.
8Section 716. 40.06 (8) of the statutes is created to read:
9 40.06 (8) For periods during which a protective occupation participant who is
10a participating employee is on a deployment, training, or readiness exercise with an
11urban search and rescue task force under a contract under s. 323.72 (1), all of the
12following shall apply:
13 (a) The employer remits required contributions to the department under s.
1440.05 (1) (a) and (2) (a).
15 (b) The employer reports to the department service and earnings that are at
16least the same rate the employee would have received if the employee had not been
17on the deployment, training, or readiness exercise.
18Section 717 . 40.08 (12) of the statutes is amended to read:
19 40.08 (12) Court review. Notwithstanding s. 227.52, any action, decision, or
20determination of the board, the Wisconsin retirement board, the teachers retirement
21board,
the group insurance board, or the deferred compensation board in an
22administrative proceeding shall be reviewable only by an action for certiorari in the
23circuit court for Dane County that is commenced by any party to the administrative
24proceeding, including the department, within 30 days after the date on which notice

1of the action, decision, or determination is mailed to that party, and any party to the
2certiorari proceedings may appeal the decision of that court.
3Section 718. 40.22 (1) of the statutes is amended to read:
4 40.22 (1) Except as otherwise provided in sub. (2) and s. 40.26 (6) and (7), each
5employee currently in the service of, and receiving earnings from, a state agency or
6other participating employer shall be included within the provisions of the Wisconsin
7retirement system as a participating employee of that state agency or participating
8employer.
9Section 719. 40.22 (2m) (intro.) of the statutes is amended to read:
10 40.22 (2m) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an
11employee who was a participating employee before July 1, 2011, who is not expected
12to work at least one-third of what is considered full-time employment by the
13department, as determined by rule, and who is not otherwise excluded under sub. (2)
14from becoming a participating employee shall become a participating employee if he
15or she is subsequently employed by the state agency or other participating employer
16for either of the following periods:
17Section 720. 40.22 (2r) (intro.) of the statutes is amended to read:
18 40.22 (2r) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an
19employee who was not a participating employee before July 1, 2011, who is not
20expected to work at least two-thirds of what is considered full-time employment by
21the department, as determined by rule, and who is not otherwise excluded under sub.
22(2) from becoming a participating employee shall become a participating employee
23if he or she is subsequently employed by the state agency or other participating
24employer for either of the following periods:
25Section 721 . 40.22 (3) (intro.) of the statutes is amended to read:

140.22 (3) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), a person
2who qualifies as a participating employee shall be included within, and shall be
3subject to, the Wisconsin retirement system effective on one of the following dates:
4Section 722 . 40.23 (1) (bm) of the statutes is amended to read:
5 40.23 (1) (bm) If an application by a participant age 55 or over, or by a protective
6occupation participant age 50 or over, for long-term disability insurance benefits
7under s. 40.64 is disapproved under rules promulgated by the department, the date
8which would have been the effective date for the insurance benefits shall be is the
9retirement annuity effective date if requested by the applicant within 60 days of the
10disapproval or, if the disapproval is appealed, within 60 days of the final disposition
11of the appeal.
12Section 723. 40.26 (7) of the statutes is created to read:
13 40.26 (7) Subsections (1) to (5) do not apply to a participant who applies for an
14annuity or lump sum payment during the period in which at least 15 days have
15elapsed between the participant's termination of employment as a teacher with a
16school district that is a participating employer and becoming a teacher as an
17employee or contractor providing employee services with any school district that is
18a participating employer if all of the following conditions are met:
19 (a) At the time the participant terminates his or her employment as a teacher
20with a school district, the participant does not have an agreement with any school
21district that is a participating employer to return to employment as a teacher or enter
22into a contract to provide employee services as a teacher for the school district.
23 (b) The participant elects on a form provided by the department to not become
24a participating employee.
25Section 724 . 40.27 (2) (d) of the statutes is repealed.

1Section 725. 40.51 (2m) (a) of the statutes is repealed.
2Section 726. 40.51 (2m) (b) of the statutes is renumbered 40.51 (2m) and
3amended to read:
4 40.51 (2m) If an eligible employee is divorced or was a domestic partner in a
5dissolved domestic partnership, the eligible employee may not enroll a new spouse
6or domestic partner in a group health insurance plan under this subchapter until 6
7months have elapsed since the date of the divorce or dissolved domestic partnership.
8Section 727. 40.51 (7) (a) of the statutes is amended to read:
9 40.51 (7) (a) Any employer, other than the state, including an employer that
10is not a participating employer, may offer to all of its employees a health care
11coverage plan through a program offered by the group insurance board.
12Notwithstanding sub. (2) and ss. 40.05 (4) and 40.52 (1), the department may by rule
13establish different eligibility standards or contribution requirements for such
14employees and employers. Beginning on January 1, 2012, except as otherwise
15provided in a collective bargaining agreement under subch. IV of ch. 111 that covers
16public safety employees or transit employees
and except as provided in par. (b), an
17employer may not offer a health care coverage plan to its employees under this
18subsection if the employer pays more than 88 percent of the average premium cost
19of plans offered in any tier with the lowest employee premium cost under this
20subsection.
21Section 728 . 40.51 (8) of the statutes is amended to read:
22 40.51 (8) Every health care coverage plan offered by the state under sub. (6)
23shall comply with ss. 631.89, 631.90, 631.93 (2), 631.95, 632.72 (2), 632.729, 632.746
24(1) to (8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853,

1632.855, 632.862, 632.867, 632.87 (3) to (6), 632.871, 632.885, 632.89, 632.895 (5m)
2and (8) to (17), and 632.896.
3Section 729 . 40.51 (8) of the statutes, as affected by 2021 Wisconsin Act ....
4(this act), section 728, is amended to read:
5 40.51 (8) Every health care coverage plan offered by the state under sub. (6)
6shall comply with ss. 631.89, 631.90, 631.93 (2), 631.95, 632.72 (2), 632.728, 632.729,
7632.746 (1) to (8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835, 632.85,
8632.853, 632.855, 632.862, 632.867, 632.87 (3) to (6), 632.871, 632.885, 632.89,
9632.895 (5m) and (8) to (17), and 632.896.
10Section 730 . 40.51 (8) of the statutes, as affected by 2021 Wisconsin Act ....
11(this act), section 729, is amended to read:
12 40.51 (8) Every health care coverage plan offered by the state under sub. (6)
13shall comply with ss. 631.89, 631.90, 631.93 (2), 631.95, 632.72 (2), 632.728, 632.729,
14632.746 (1) to (8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835, 632.85,
15632.853, 632.855, 632.861, 632.862, 632.867, 632.87 (3) to (6), 632.871, 632.885,
16632.89, 632.895 (5m) and (8) to (17), and 632.896.
17Section 731 . 40.51 (8m) of the statutes is amended to read:
18 40.51 (8m) Every health care coverage plan offered by the group insurance
19board under sub. (7) shall comply with ss. 631.95, 632.729, 632.746 (1) to (8) and (10),
20632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853, 632.855, 632.862,
21632.867, 632.871, 632.885, 632.89, and 632.895 (11) to (17).
22Section 732 . 40.51 (8m) of the statutes, as affected by 2021 Wisconsin Act ....
23(this act), section 731, is amended to read:
24 40.51 (8m) Every health care coverage plan offered by the group insurance
25board under sub. (7) shall comply with ss. 631.95, 632.728, 632.729, 632.746 (1) to

1(8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853, 632.855,
2632.862, 632.867, 632.871, 632.885, 632.89, and 632.895 (11) (8) and (10) to (17).
3Section 733 . 40.51 (8m) of the statutes, as affected by 2021 Wisconsin Act ....
4(this act), section 732, is amended to read:
5 40.51 (8m) Every health care coverage plan offered by the group insurance
6board under sub. (7) shall comply with ss. 631.95, 632.728, 632.729, 632.746 (1) to
7(8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853, 632.855,
8632.861, 632.862, 632.867, 632.871, 632.885, 632.89, and 632.895 (8) and (10) to (17).
9Section 734 . 40.51 (15m) of the statutes is repealed.
10Section 735. 40.513 (3) (b) of the statutes is amended to read:
11 40.513 (3) (b) The employee's spouse or domestic partner is receiving health
12care coverage under s. 40.51 (6).
13Section 736. 40.52 (2) of the statutes is amended to read:
14 40.52 (2) Health insurance benefits under this subchapter shall be integrated,
15with exceptions determined appropriate by the group insurance board, with benefits
16under federal plans for hospital and health care for the aged and disabled.
17Exclusions and limitations with respect to benefits and different rates may be
18established for persons eligible under federal plans for hospital and health care for
19the aged and disabled in recognition of the utilization by persons within the age
20limits eligible under the federal program. The plan may include special provisions
21for spouses, domestic partners, and other dependents covered under a plan
22established under this subchapter where one spouse or domestic partner is eligible
23under federal plans for hospital and health care for the aged but the others are not
24eligible because of age or other reasons. As part of the integration, the department

1may, out of premiums collected under s. 40.05 (4), pay premiums for the federal
2health insurance.
3Section 737. 40.55 (1) of the statutes is amended to read:
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