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SB70-SSA2-SA1,41 3Section 41. 40.61 (3) of the statutes is amended to read:
SB70-SSA2-SA1,40,104 40.61 (3) Any An employer under s. 40.02 (28), other than the state, may offer
5to all of its employees an a group income continuation insurance plan through a
6program offered by the group insurance board. Notwithstanding sub. (2) and ss.
740.05 (5) and 40.62, the department may by rule establish different eligibility
8standards or contribution requirements for such those employees and employers and
9may by rule limit the categories of employers which that may be included as
10participating employers under this subchapter.
SB70-SSA2-SA1,42 11Section 42. 40.62 (1) of the statutes is amended to read:
SB70-SSA2-SA1,40,1912 40.62 (1) The group insurance board shall establish an a group income
13continuation insurance plan providing for full or partial payment of the financial loss
14of earnings incurred as a result of injury or illness with separate provisions for
15short-term insurance with a benefit duration of no more than one year and
16long-term insurance covering injury or illness of indefinite duration. Employees An
17employee
insured under the plan shall be is eligible for benefits upon exhaustion of
18accumulated sick leave and completion of the elimination waiting period established
19by the group insurance board.
SB70-SSA2-SA1,43 20Section 43 . 40.62 (1) of the statutes, as affected by 2023 Wisconsin Act .... (this
21act), is renumbered 40.62 and amended to read:
SB70-SSA2-SA1,41,4 2240.62 Income continuation insurance benefits. The board shall establish
23a group income continuation insurance plan providing for full or partial payment of
24the financial loss of earnings incurred as a result of injury or illness with separate
25provisions for short-term insurance with a benefit duration of no more than one year

1and long-term insurance covering injury or illness of indefinite duration
. An
2employee insured under the plan is eligible for benefits upon exhaustion of
3accumulated sick leave and
completion of the a waiting period selected by the
4employee from the available options
established by the board.
SB70-SSA2-SA1,44 5Section 44. 40.62 (1m) of the statutes is repealed.
SB70-SSA2-SA1,45 6Section 45. 40.62 (2) of the statutes is repealed.
SB70-SSA2-SA1,46 7Section 46. 40.63 (7) of the statutes is renumbered 40.23 (1) (bm) 2.
SB70-SSA2-SA1,47 8Section 47. 40.64 of the statutes is created to read:
SB70-SSA2-SA1,41,10 940.64 Long-term disability insurance coverage. The board may establish
10a group long-term disability insurance plan.
SB70-SSA2-SA1,48 11Section 48. 757.02 (5) of the statutes is amended to read:
SB70-SSA2-SA1,41,1612 757.02 (5) Except for retired judges appointed under s. 753.075, each supreme
13court justice, court of appeals judge and circuit court judge included under ch. 40
14shall accrue sick leave at the rate established under s. 230.35 (2) for the purpose of
15credits under s. 40.05 (4) (b) and for premium payment determinations under s. 40.05
16(4) and (5).
SB70-SSA2-SA1,9113 17Section 9113. Nonstatutory provisions; Employee Trust Funds.
SB70-SSA2-SA1,41,1818 (1k) Transfer of oversight of group disability benefit insurance plans.
SB70-SSA2-SA1,41,2319 (a) Tangible personal property. On the effective date of this paragraph, all
20tangible personal property, including records, of the group insurance board that is
21primarily related to the group income continuation insurance plan or long-term
22disability insurance plan, as determined by the secretary of employee trust funds,
23is transferred to the employee trust funds board.
SB70-SSA2-SA1,42,524 (b) Contracts. All contracts entered into by the group insurance board in effect
25on the effective date of this paragraph that are primarily related to the group income

1continuation insurance plan or long-term disability insurance plan, as determined
2by the secretary of employee trust funds, remain in effect and are transferred to the
3employee trust funds board. The employee trust funds board shall carry out any
4obligations under those contracts unless modified or rescinded by the employee trust
5funds board to the extent allowed under the contract.
SB70-SSA2-SA1,42,106 (c) Rules. All rules promulgated by the secretary of employee trust funds and
7approved by the group insurance board in effect on the effective date of this
8paragraph that are primarily related to the group income continuation insurance
9plan or long-term disability insurance plan remain in effect until their specified
10expiration dates or until amended or repealed by the employee trust funds board.
SB70-SSA2-SA1,42,1711 (d) Pending matters. Any matter pending with the group insurance board on
12the effective date of this paragraph that is primarily related to the group income
13continuation insurance plan or long-term disability insurance plan, as determined
14by the secretary of employee trust funds, is transferred to the employee trust funds
15board. All materials submitted to or actions taken by the group insurance board with
16respect to the pending matter are considered as having been submitted to or taken
17by the employee trust funds board.
SB70-SSA2-SA1,9313 18Section 9313. Initial applicability; Employee Trust Funds.
SB70-SSA2-SA1,42,2119 (1k) Income continuation insurance premiums. The treatment of ss. 13.121 (4),
2040.05 (5) (intro.), (a), and (b), and 757.02 (5) first applies to premiums paid on the
21effective date of this subsection.
SB70-SSA2-SA1,9413 22Section 9413. Effective dates; Employee Trust Funds.
SB70-SSA2-SA1,43,223 (1k) Income continuation insurance premiums; election of income
24continuation insurance coverage; eligibility for income continuation insurance
25benefits.
The treatment of ss. 13.121 (4), 40.05 (5) (intro.), (a), and (b), 40.61 (2) (by

1Section 40 ), 40.62 (1m) and (2), and 757.02 (5), the renumbering and amendment of
2s. 40.62 (1), and Section 9313 (1k) of this act take effect on January 1, 2025.”.
SB70-SSA2-SA1,43,3 3116. Page 374, line 11: after that line insert:
SB70-SSA2-SA1,43,4 4 Section 49. 40.03 (1) (i) of the statutes is amended to read:
SB70-SSA2-SA1,43,95 40.03 (1) (i) May determine that some or all of the disability annuities and
6death benefits provided from the Wisconsin retirement system shall instead be
7provided through group insurance plans to be established by the group insurance
8board
either as separate plans or as integral parts of the group life and income
9continuation insurance plans established under this chapter.
SB70-SSA2-SA1,50 10Section 50. 40.03 (1) (p) of the statutes is amended to read:
SB70-SSA2-SA1,43,1411 40.03 (1) (p) May, upon the recommendation of the actuary, transfer in whole
12or in part the assets and reserves held in any account described in s. 40.04 (9) to a
13different account described in s. 40.04 (9), for the purpose of providing any group
14insurance benefit offered by the group insurance board.
SB70-SSA2-SA1,51 15Section 51. 40.03 (1) (q) of the statutes is created to read:
SB70-SSA2-SA1,43,1816 40.03 (1) (q) For the purposes of the group income continuation insurance plan
17established under ss. 40.61 and 40.62 and the group long-term disability insurance
18plan established under s. 40.64:
SB70-SSA2-SA1,43,2119 1. May, on behalf of the state, enter into a contract or contracts with one or more
20insurers authorized to transact insurance business in this state for the purpose of
21providing the plans.
SB70-SSA2-SA1,43,2322 2. May, wholly or partially in lieu of subd. 1., on behalf of the state, provide the
23plans on a self-insured basis.
SB70-SSA2-SA1,44,3
13. May take any action as trustees that is considered advisable and not
2specifically prohibited or delegated to some other governmental agency to carry out
3the purpose and intent of the plans.
SB70-SSA2-SA1,44,104 4. May apportion all excess moneys becoming available to the board through
5operation of the plans to reduce premium payments in following contract years or to
6establish reserves to stabilize costs in subsequent years. If the board determines
7that the excess became available due to favorable experience of specific groups of
8employers or specific employee groups, the board may make the apportionment in
9a manner designated to benefit the specific employers or employee groups only or to
10a greater extent than other employers and employee groups.
SB70-SSA2-SA1,44,1211 5. Shall take prompt action to liquidate any actuarial or cash deficit that occurs
12in the accounts and reserves maintained in the fund for the plans.
SB70-SSA2-SA1,44,1413 6. Shall accept timely appeals of determinations made by the department
14affecting any right or benefit under the plans.
SB70-SSA2-SA1,52 15Section 52. 40.03 (2) (i) of the statutes is amended to read:
SB70-SSA2-SA1,45,216 40.03 (2) (i) Shall Except as provided under pars. (ig) and (ir), shall promulgate,
17with the approval of the board, all rules, except rules promulgated under par. (ig) or
18(ir),
that are required for the efficient administration of the fund or of any of the
19benefit plans established by this chapter. In addition to being approved by the board,
20rules promulgated under this paragraph relating to teachers must be approved by
21the teachers retirement board and
rules promulgated under this paragraph relating
22to participants other than teachers must be approved by the Wisconsin retirement
23board, except rules promulgated under s. 40.30
and shall promulgate rules as
24necessary for a group long-term disability insurance plan established under s. 40.64.

1All rules promulgated under this paragraph are subject to board approval under sub.
2(1) (m)
.
SB70-SSA2-SA1,53 3Section 53. 40.03 (2) (ig) of the statutes is amended to read:
SB70-SSA2-SA1,45,74 40.03 (2) (ig) Shall promulgate, with the approval of the group insurance board,
5all rules required for the administration of the group health, long-term care, income
6continuation
or life insurance plans established under subchs. IV to and VI and
7health savings accounts under subch. IV.
SB70-SSA2-SA1,54 8Section 54. 40.03 (6) (intro.) of the statutes is amended to read:
SB70-SSA2-SA1,45,139 40.03 (6) Group insurance board. (intro.) The With respect to the group
10insurance plans provided for by this chapter other than the group income
11continuation insurance plan established under ss. 40.61 and 40.62 and the group
12long-term disability insurance plan established under s. 40.64, the
group insurance
13board:
SB70-SSA2-SA1,55 14Section 55. 40.03 (6) (a) 1. of the statutes is amended to read:
SB70-SSA2-SA1,45,1815 40.03 (6) (a) 1. Except as provided in par. (m), shall, on behalf of the state, enter
16into a contract or contracts with one or more insurers authorized to transact
17insurance business in this state for the purpose of providing the group insurance
18plans provided for by this chapter; or
SB70-SSA2-SA1,56 19Section 56. 40.03 (6) (d) (intro.) of the statutes is amended to read:
SB70-SSA2-SA1,45,2420 40.03 (6) (d) (intro.) May take any action as trustees which that is deemed
21advisable and not specifically prohibited or delegated to some other governmental
22agency, to carry out the purpose and intent of the group insurance plans provided
23under this chapter
, including, but not limited to, provisions in the appropriate
24contracts relating to:
SB70-SSA2-SA1,57 25Section 57. 40.03 (6) (i) of the statutes is amended to read:
SB70-SSA2-SA1,46,3
140.03 (6) (i) Shall accept timely appeals of determinations made by the
2department affecting any right or benefit under any group insurance plan provided
3for under this chapter
that the group insurance board oversees.
SB70-SSA2-SA1,58 4Section 58. 40.23 (1) (bm) of the statutes is amended to read:
SB70-SSA2-SA1,46,115 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 group long-term disability insurance
7benefits under s. 40.64 is disapproved under rules promulgated by the department,
8the date which would have been the effective date for the insurance benefits shall be
9is the retirement annuity effective date if requested by the applicant within 60 days
10of the disapproval or, if the disapproval is appealed, within 60 days of the final
11disposition of the appeal.
SB70-SSA2-SA1,59 12Section 59. 40.61 (2) of the statutes is amended to read:
SB70-SSA2-SA1,47,413 40.61 (2) Except as provided in sub. (4), any an eligible employee may become
14covered by group income continuation insurance by electing coverage within 30 days
15of initial eligibility, to be effective as of the first day of the month that first occurs
16during the 30-day period, or by electing coverage within 60 days of initially becoming
17eligible for a higher level of employer contribution towards the premium cost to be
18effective as of the first day of the month following the date of eligibility for teachers
19employed by the university and effective as of the following April 1 for all other
20employees. Any An employee who does not so elect at one of these times, or who
21subsequently cancels the insurance, may not thereafter become insured unless the
22employee furnishes evidence of insurability under the terms of the contract, or as
23otherwise provided by rule for employees under sub. (3), at the employee's own
24expense or obtains coverage subject to contractual waiting periods if contractual
25waiting periods are provided for by the contract or by rule for employees under sub.

1(3). An employee who furnishes satisfactory evidence of insurability under the terms
2of the contract shall become insured as of the first day of the month following the date
3of approval of evidence. The method to be used shall be determined by the group
4insurance
board under sub. (1).
SB70-SSA2-SA1,60 5Section 60. 40.61 (3) of the statutes is amended to read:
SB70-SSA2-SA1,47,126 40.61 (3) Any An employer under s. 40.02 (28), other than the state, may offer
7to all of its employees an a group income continuation insurance plan through a
8program offered by the group insurance board. Notwithstanding sub. (2) and ss.
940.05 (5) and 40.62, the department may by rule establish different eligibility
10standards or contribution requirements for such those employees and employers and
11may by rule limit the categories of employers which that may be included as
12participating employers under this subchapter.
SB70-SSA2-SA1,61 13Section 61. 40.62 (1) of the statutes is amended to read:
SB70-SSA2-SA1,47,2114 40.62 (1) The group insurance board shall establish an a group income
15continuation insurance plan providing for full or partial payment of the financial loss
16of earnings incurred as a result of injury or illness with separate provisions for
17short-term insurance with a benefit duration of no more than one year and
18long-term insurance covering injury or illness of indefinite duration. Employees An
19employee
insured under the plan shall be is eligible for benefits upon exhaustion of
20accumulated sick leave and completion of the elimination waiting period established
21by the group insurance board.
SB70-SSA2-SA1,62 22Section 62. 40.64 of the statutes is created to read:
SB70-SSA2-SA1,47,24 2340.64 Long-term disability insurance coverage. The board may establish
24a group long-term disability insurance plan.
SB70-SSA2-SA1,9113 25Section 9113. Nonstatutory provisions; Employee Trust Funds.
SB70-SSA2-SA1,48,1
1(1) Transfer of oversight of group disability benefit insurance plans.
SB70-SSA2-SA1,48,62 (a) Tangible personal property. On the effective date of this paragraph, all
3tangible personal property, including records, of the group insurance board that is
4primarily related to the group income continuation insurance plan or long-term
5disability insurance plan, as determined by the secretary of employee trust funds,
6is transferred to the employee trust funds board.
SB70-SSA2-SA1,48,137 (b) Contracts. All contracts entered into by the group insurance board in effect
8on the effective date of this paragraph that are primarily related to the group income
9continuation insurance plan or long-term disability insurance plan, as determined
10by the secretary of employee trust funds, remain in effect and are transferred to the
11employee trust funds board. The employee trust funds board shall carry out any
12obligations under those contracts unless modified or rescinded by the employee trust
13funds board to the extent allowed under the contract.
SB70-SSA2-SA1,48,1814 (c) Rules. All rules promulgated by the secretary of employee trust funds and
15approved by the group insurance board in effect on the effective date of this
16paragraph that are primarily related to the group income continuation insurance
17plan or long-term disability insurance plan remain in effect until their specified
18expiration dates or until amended or repealed by the employee trust funds board.
SB70-SSA2-SA1,48,2519 (d) Pending matters. Any matter pending with the group insurance board on
20the effective date of this paragraph that is primarily related to the group income
21continuation insurance plan or long-term disability insurance plan, as determined
22by the secretary of employee trust funds, is transferred to the employee trust funds
23board. All materials submitted to or actions taken by the group insurance board with
24respect to the pending matter are considered as having been submitted to or taken
25by the employee trust funds board.”.
SB70-SSA2-SA1,49,1
1117. Page 374, line 11: after that line insert:
SB70-SSA2-SA1,49,2 2 Section 63. 15.165 (title) of the statutes is amended to read:
SB70-SSA2-SA1,49,3 315.165 (title) Same; attached boards and offices.
SB70-SSA2-SA1,64 4Section 64. 15.165 (5) of the statutes is created to read:
SB70-SSA2-SA1,49,95 15.165 (5) Office of internal audit. There is created an office of internal audit
6that is attached to the department of employee trust funds under s. 15.03. The office
7shall be under the direction and supervision of an internal auditor who shall be
8appointed by the employee trust funds board in the classified service. The internal
9auditor shall report directly to the employee trust funds board.
SB70-SSA2-SA1,65 10Section 65. 40.03 (1) (dm) of the statutes is created to read:
SB70-SSA2-SA1,49,1411 40.03 (1) (dm) Shall develop and implement policies, principles, and directives
12for the office of internal audit and determine the qualifications of and appoint, in the
13classified service, staff for the office of internal audit. Staff appointed under this
14paragraph shall report directly to the board.
SB70-SSA2-SA1,66 15Section 66. 40.03 (4m) of the statutes is created to read:
SB70-SSA2-SA1,49,1916 40.03 (4m) Office of internal audit. (a) The office of internal audit shall
17provide independent assurance that the public employee trust fund assets under the
18control of the department are safeguarded for the purpose of ensuring the fulfillment
19of the benefit commitments to individuals under this chapter.
SB70-SSA2-SA1,49,2120 (b) The internal auditor may review any activity, information, or record of the
21department that relates to the administration of the fund.
SB70-SSA2-SA1,50,222 (c) The internal auditor shall plan and conduct audit activities, including
23external audits, risk assessments, research projects, and management reviews,

1under the direction of the board and in accordance with policies, principles, and
2directives determined by the board.
SB70-SSA2-SA1,50,53 (d) The internal auditor shall monitor the department's compliance with
4applicable legal requirements and contracts entered into by the department and the
5board.
SB70-SSA2-SA1,9113 6Section 9113. Nonstatutory provisions; Employee Trust Funds.
SB70-SSA2-SA1,50,107 (1) Incumbent internal auditor. The individual holding the position of
8internal auditor in the department of employee trust funds on the day before the
9effective date of this subsection shall continue to serve in that position until an
10internal auditor is appointed under s. 15.165 (5).
SB70-SSA2-SA1,50,1411 (2) Incumbent staff. Individuals holding positions as staff internal auditors
12in the department of employee trust funds on the day before the effective date of this
13subsection shall continue to serve in those positions until staff are appointed under
14s. 40.03 (1) (dm).”.
SB70-SSA2-SA1,50,15 15118. Page 374, line 11: after that line insert:
SB70-SSA2-SA1,50,16 16 Section 67 . 40.04 (3) (a) of the statutes is amended to read:
SB70-SSA2-SA1,51,217 40.04 (3) (a) The net gain or loss of the variable retirement investment trust
18shall be distributed annually on December 31 to each participating account in the
19same ratio as each account's average daily balance within the respective trust bears
20to the total average daily balance of all participating accounts in the trust. The
21amount to be distributed shall be the excess of the increase within the period in the
22value of the assets of the trust resulting from income from the investments of the
23trust 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.
SB70-SSA2-SA1,68 3Section 68 . 40.04 (3) (am) 3. (intro.) of the statutes is amended to read:
SB70-SSA2-SA1,51,84 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:”.
SB70-SSA2-SA1,51,9 9119. Page 374, line 11: after that line insert:
SB70-SSA2-SA1,51,10 10 Section 69. 40.02 (8) (b) 3. of the statutes is repealed.
SB70-SSA2-SA1,70 11Section 70. 40.02 (21d) (intro.) of the statutes is amended to read:
SB70-SSA2-SA1,51,1412 40.02 (21d) (intro.) “Domestic partnership" means a relationship between 2
13individuals, who submitted an affidavit of domestic partnership to the department
14before September 23, 2017,
that satisfies all of the following:
SB70-SSA2-SA1,71 15Section 71. 40.51 (2m) (a) of the statutes is repealed.
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