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2025 - 2026 LEGISLATURE
LRB-1617/1
MIM:cjs
June 2, 2025 - Introduced by Senators Roys, Habush Sinykin, Hesselbein, L. Johnson, Keyeski, Ratcliff and Larson, cosponsored by Representatives Mayadev, Anderson, Bare, Clancy, DeSmidt, Fitzgerald, Joers, Johnson, Madison, Miresse, Neubauer, Palmeri, Phelps, Roe, Sheehan, Snodgrass, Stroud, Tenorio and Udell. Referred to Committee on Transportation and Local Government.
SB301,1,4
1An Act to repeal 40.26 (1m), 40.26 (5m), 40.26 (6) and 323.19 (3) and (4); to
2amend 40.22 (1), 40.22 (2) (L), 40.22 (2m) (intro.), 40.22 (2r) (intro.), 40.22 (3)
3(intro.), 40.26 (1), 40.26 (2) (intro.) and 40.26 (5) (intro.) of the statutes;
4relating to: rehired annuitants.
Analysis by the Legislative Reference Bureau
Under current law, if a Wisconsin Retirement System annuitant, or a disability annuitant who has attained his or her normal retirement date, is appointed to a position with a WRS-participating employer or provides employee services to a WRS-participating employer in which he or she is expected to work at least two-thirds of what is considered full-time employment by the Department of Employee Trust Funds, the annuity must be suspended and no annuity payment is payable until after the participant again terminates covered employment.
This bill removes the requirement that an annuitant who returns to work for a participating employer have his or her annuity suspended and become a participating employee and instead allows an annuitant who returns to work to either 1) elect to suspend his or her annuity and become a participating employee; or 2) elect to continue receiving his or her annuity and not become a participating employee.
Under current law, a WRS participant who has applied to receive a retirement annuity must wait at least 75 days between terminating covered employment with a WRS employer and returning to covered employment again as a participating employee. The bill reduces that period to 30 days.
Because this bill relates to public employee retirement or pensions, it may be referred to the Joint Survey Committee on Retirement Systems for a report to be printed as an appendix to the bill.
For further information see the state 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:
SB301,1
1Section 1. 40.22 (1) of the statutes is amended to read:
SB301,2,6240.22 (1) Except as otherwise provided in sub. (2) and s. 40.26 (6), 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
5Wisconsin retirement system as a participating employee of that state agency or
6participating employer.
SB301,27Section 2. 40.22 (2) (L) of the statutes is amended to read:
SB301,2,10840.22 (2) (L) The employee is employed by a participating employer after the
9person becomes an annuitant, unless the service is after the annuity is suspended
10by the election of the employee under s. 40.26.
SB301,311Section 3. 40.22 (2m) (intro.) of the statutes is amended to read:
SB301,3,21240.22 (2m) (intro.) Except as otherwise provided in s. 40.26 (6), an employee
13who was a participating employee before July 1, 2011, who is not expected to work
14at least one-third of what is considered full-time employment by the department, as
15determined by rule, and who is not otherwise excluded under sub. (2) from
16becoming a participating employee shall become a participating employee if he or

1she is subsequently employed by the state agency or other participating employer
2for either of the following periods:
SB301,43Section 4. 40.22 (2r) (intro.) of the statutes is amended to read:
SB301,3,10440.22 (2r) (intro.) Except as otherwise provided in s. 40.26 (6), an employee
5who was not a participating employee before July 1, 2011, who is not expected to
6work at least two-thirds of what is considered full-time employment by the
7department, as determined by rule, and who is not otherwise excluded under sub.
8(2) from becoming a participating employee shall become a participating employee if
9he or she is subsequently employed by the state agency or other participating
10employer for either of the following periods:
SB301,511Section 5. 40.22 (3) (intro.) of the statutes is amended to read:
SB301,3,141240.22 (3) (intro.) Except as otherwise provided in s. 40.26 (6), a person who
13qualifies as a participating employee shall be included within, and shall be subject
14to, the Wisconsin retirement system effective on one of the following dates:
SB301,615Section 6. 40.26 (1) of the statutes is amended to read:
SB301,4,21640.26 (1) Except as provided in sub. (1m) and ss. 40.05 (2) (g) 2. and 40.23 (1)
17(am), if a participant receiving a retirement annuity, or a disability annuitant who
18has attained his or her normal retirement date, receives earnings that are subject to
19s. 40.05 (1) or that would be subject to s. 40.05 (1) except for the exclusion specified
20in s. 40.22 (2) (L), the annuity shall be suspended, including any amount provided
21by additional contributions, and no annuity payment shall be payable after the
22month in which the participant files with the department a written election to be

1included within the provisions of the Wisconsin retirement system as a
2participating employee.
SB301,73Section 7. 40.26 (1m) of the statutes is repealed.
SB301,84Section 8. 40.26 (2) (intro.) of the statutes is amended to read:
SB301,4,7540.26 (2) (intro.) Upon suspension of an annuity under sub. (1) or (1m), the
6retirement account of the participant whose annuity is so suspended shall be
7established on the following basis:
SB301,98Section 9. 40.26 (5) (intro.) of the statutes is amended to read:
SB301,4,13940.26 (5) (intro.) Except as otherwise provided in sub. (5m), if If a participant
10applies for an annuity or lump sum payment during the period in which less than
1175 30 days have elapsed between the termination of employment with a
12participating employer and becoming a participating employee with any
13participating employer, all of the following shall apply:
SB301,1014Section 10. 40.26 (5m) of the statutes is repealed.
SB301,1115Section 11. 40.26 (6) of the statutes is repealed.
SB301,1216Section 12. 323.19 (3) and (4) of the statutes are repealed.
SB301,1317Section 13. Nonstatutory provisions.
SB301,5,218(1) Election to continue annuity suspension. No later than 60 days after
19the effective date of this subsection, if an individual who is employed by a covered
20employer under the Wisconsin Retirement System has his or her annuity
21suspended under s. 40.26 (1m), 2023 stats., on the effective date of this subsection
22and wants to continue the suspension, the individual shall notify the department of

1employee trust funds on a form provided by the department. An election to
2continue the suspension is irrevocable.
SB301,5,33(end)
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