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May 25, 2021 - Introduced by Senators Jacque, Ballweg and Wanggaard,
cosponsored by Representatives Brandtjen, Brooks, Dittrich, Horlacher,
Loudenbeck, Milroy, Moses, Murphy, Mursau, Ramthun, Rozar, Thiesfeldt,
Tusler and Wichgers. Referred to Committee on Labor and Regulatory
Reform.
SB367,1,4 1An Act to amend 40.22 (1), 40.22 (2m) (intro.), 40.22 (2r) (intro.) and 40.22 (3)
2(intro.); and to create 40.26 (7) of the statutes; relating to: law enforcement
3and fire fighter annuitants in the Wisconsin Retirement System who are
4rehired by a participating employer.
Analysis by the Legislative Reference Bureau
Under current law, certain people who receive a retirement or disability
annuity from the Wisconsin Retirement System 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 employee 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 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 for an annuitant who retired
from employment with a participating employer and who is subsequently rehired or
provides employee services after retirement, if: 1) the annuitant is a retired law
enforcement officer or fire fighter; 2) at the time the person initially retires from
covered employment with a participating employer, the person does not have an
agreement with any participating employer to return to employment; and 3) 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 an

annuitant who was a law enforcement officer or fire fighter to return to work with
an employer who participates in the WRS, 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 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:
SB367,1 1Section 1. 40.22 (1) of the statutes is amended to read:
SB367,2,62 40.22 (1) Except as otherwise provided in sub. (2) and s. 40.26 (6) and (7), each
3employee currently in the service of, and receiving earnings from, a state agency or
4other participating employer shall be included within the provisions of the Wisconsin
5retirement system as a participating employee of that state agency or participating
6employer.
SB367,2 7Section 2. 40.22 (2m) (intro.) of the statutes is amended to read:
SB367,2,148 40.22 (2m) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an
9employee who was a participating employee before July 1, 2011, who is not expected
10to work at least one-third of what is considered full-time employment by the
11department, as determined by rule, and who is not otherwise excluded under sub. (2)
12from becoming a participating employee shall become a participating employee if he
13or she is subsequently employed by the state agency or other participating employer
14for either of the following periods:
SB367,3 15Section 3. 40.22 (2r) (intro.) of the statutes is amended to read:
SB367,3,316 40.22 (2r) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an
17employee who was not a participating employee before July 1, 2011, who is not
18expected to work at least two-thirds of what is considered full-time employment by
19the department, as determined by rule, and who is not otherwise excluded under sub.

1(2) from becoming a participating employee shall become a participating employee
2if he or she is subsequently employed by the state agency or other participating
3employer for either of the following periods:
SB367,4 4Section 4. 40.22 (3) (intro.) of the statutes is amended to read:
SB367,3,75 40.22 (3) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), a person
6who qualifies as a participating employee shall be included within, and shall be
7subject to, the Wisconsin retirement system effective on one of the following dates:
SB367,5 8Section 5. 40.26 (7) of the statutes is created to read:
SB367,3,149 40.26 (7) (intro.) As used in this subsection, “law enforcement officer” has the
10meaning given in s. 165.85 (2) (c). Subsections (1) to (5) do not apply to a participant
11who applies for an annuity or lump sum payment during the period in which at least
1275 days have elapsed between the participant's termination of employment and
13becoming an employee or contractor providing employee services with a
14participating employer if all of the following conditions are met:
SB367,3,1515 (a) The annuitant is a retired law enforcement officer or fire fighter.
SB367,3,1916 (b) At the time the participant terminates his or her employment with a
17participating employer, the participant does not have an agreement with any
18participating employer to return to employment or enter into a contract to provide
19employee services for the employer.
SB367,3,2120 (c) The participant elects on a form provided by the department to not become
21a participating employee.
SB367,6 22Section 6 . Initial applicability.
SB367,3,2423 (1) This act first applies to participants under the Wisconsin Retirement
24System who terminate employment on the effective date of this subsection.
SB367,3,2525 (End)
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