Amendment SA1-SSA2-SB70

SB70-SSA2-SA1,47,4 40.61 (2) Except as provided in sub. (4), any an eligible employee may become covered by group income continuation insurance by electing coverage within 30 days of initial eligibility, to be effective as of the first day of the month that first occurs during the 30-day period, or by electing coverage within 60 days of initially becoming eligible for a higher level of employer contribution towards the premium cost to be effective as of the first day of the month following the date of eligibility for teachers employed by the university and effective as of the following April 1 for all other employees. Any An employee who does not so elect at one of these times, or who subsequently cancels the insurance, may not thereafter become insured unless the employee furnishes evidence of insurability under the terms of the contract, or as otherwise provided by rule for employees under sub. (3), at the employee's own expense or obtains coverage subject to contractual waiting periods if contractual waiting periods are provided for by the contract or by rule for employees under sub. (3). An employee who furnishes satisfactory evidence of insurability under the terms of the contract shall become insured as of the first day of the month following the date of approval of evidence. The method to be used shall be determined by the group insurance board under sub. (1).

SB70-SSA2-SA1,60 Section 60. 40.61 (3) of the statutes is amended to read:

SB70-SSA2-SA1,47,12 40.61 (3) Any An employer under s. 40.02 (28), other than the state, may offer to all of its employees an a group income continuation insurance plan through a program offered by the group insurance board. Notwithstanding sub. (2) and ss. 40.05 (5) and 40.62, the department may by rule establish different eligibility standards or contribution requirements for such those employees and employers and may by rule limit the categories of employers which that may be included as participating employers under this subchapter.

SB70-SSA2-SA1,61 Section 61. 40.62 (1) of the statutes is amended to read:

SB70-SSA2-SA1,47,21 40.62 (1) The group insurance board shall establish an a group income continuation insurance plan providing for full or partial payment of the financial loss of earnings incurred as a result of injury or illness with separate provisions for short-term insurance with a benefit duration of no more than one year and long-term insurance covering injury or illness of indefinite duration. Employees An employee insured under the plan shall be is eligible for benefits upon exhaustion of accumulated sick leave and completion of the elimination waiting period established by the group insurance board.

SB70-SSA2-SA1,62 Section 62. 40.64 of the statutes is created to read:

SB70-SSA2-SA1,47,24 40.64 Long-term disability insurance coverage. The board may establish a group long-term disability insurance plan.

SB70-SSA2-SA1,9113 Section 9113. Nonstatutory provisions; Employee Trust Funds.

SB70-SSA2-SA1,48,1 (1) Transfer of oversight of group disability benefit insurance plans.

SB70-SSA2-SA1,48,6 (a) Tangible personal property. On the effective date of this paragraph, all tangible personal property, including records, of the group insurance board that is primarily related to the group income continuation insurance plan or long-term disability insurance plan, as determined by the secretary of employee trust funds, is transferred to the employee trust funds board.

SB70-SSA2-SA1,48,13 (b) Contracts. All contracts entered into by the group insurance board in effect on the effective date of this paragraph that are primarily related to the group income continuation insurance plan or long-term disability insurance plan, as determined by the secretary of employee trust funds, remain in effect and are transferred to the employee trust funds board. The employee trust funds board shall carry out any obligations under those contracts unless modified or rescinded by the employee trust funds board to the extent allowed under the contract.

SB70-SSA2-SA1,48,18 (c) Rules. All rules promulgated by the secretary of employee trust funds and approved by the group insurance board in effect on the effective date of this paragraph that are primarily related to the group income continuation insurance plan or long-term disability insurance plan remain in effect until their specified expiration dates or until amended or repealed by the employee trust funds board.

SB70-SSA2-SA1,48,25 (d) Pending matters. Any matter pending with the group insurance board on the effective date of this paragraph that is primarily related to the group income continuation insurance plan or long-term disability insurance plan, as determined by the secretary of employee trust funds, is transferred to the employee trust funds board. All materials submitted to or actions taken by the group insurance board with respect to the pending matter are considered as having been submitted to or taken by the employee trust funds board.”.

SB70-SSA2-SA1,49,1 117. Page 374, line 11: after that line insert:

SB70-SSA2-SA1,49,2 “ Section 63. 15.165 (title) of the statutes is amended to read:

SB70-SSA2-SA1,49,3 15.165 (title) Same; attached boards and offices.

SB70-SSA2-SA1,64 Section 64. 15.165 (5) of the statutes is created to read:

SB70-SSA2-SA1,49,9 15.165 (5) Office of internal audit. There is created an office of internal audit that is attached to the department of employee trust funds under s. 15.03. The office shall be under the direction and supervision of an internal auditor who shall be appointed by the employee trust funds board in the classified service. The internal auditor shall report directly to the employee trust funds board.

SB70-SSA2-SA1,65 Section 65. 40.03 (1) (dm) of the statutes is created to read:

SB70-SSA2-SA1,49,14 40.03 (1) (dm) Shall develop and implement policies, principles, and directives for the office of internal audit and determine the qualifications of and appoint, in the classified service, staff for the office of internal audit. Staff appointed under this paragraph shall report directly to the board.

SB70-SSA2-SA1,66 Section 66. 40.03 (4m) of the statutes is created to read:

SB70-SSA2-SA1,49,19 40.03 (4m) Office of internal audit. (a) The office of internal audit shall provide independent assurance that the public employee trust fund assets under the control of the department are safeguarded for the purpose of ensuring the fulfillment of the benefit commitments to individuals under this chapter.

SB70-SSA2-SA1,49,21 (b) The internal auditor may review any activity, information, or record of the department that relates to the administration of the fund.

SB70-SSA2-SA1,50,2 (c) The internal auditor shall plan and conduct audit activities, including external audits, risk assessments, research projects, and management reviews, under the direction of the board and in accordance with policies, principles, and directives determined by the board.

SB70-SSA2-SA1,50,5 (d) The internal auditor shall monitor the department's compliance with applicable legal requirements and contracts entered into by the department and the board.

SB70-SSA2-SA1,9113 Section 9113. Nonstatutory provisions; Employee Trust Funds.

SB70-SSA2-SA1,50,10 (1) Incumbent internal auditor. The individual holding the position of internal auditor in the department of employee trust funds on the day before the effective date of this subsection shall continue to serve in that position until an internal auditor is appointed under s. 15.165 (5).

SB70-SSA2-SA1,50,14 (2) Incumbent staff. Individuals holding positions as staff internal auditors in the department of employee trust funds on the day before the effective date of this subsection shall continue to serve in those positions until staff are appointed under s. 40.03 (1) (dm).”.

SB70-SSA2-SA1,50,15 118. Page 374, line 11: after that line insert:

SB70-SSA2-SA1,50,16 “ Section 67 . 40.04 (3) (a) of the statutes is amended to read:

SB70-SSA2-SA1,51,2 40.04 (3) (a) The net gain or loss of the variable retirement investment trust shall be distributed annually on December 31 to each participating account in the same ratio as each account's average daily balance within the respective trust bears to the total average daily balance of all participating accounts in the trust. The amount to be distributed shall be the excess of the increase within the period in the value of the assets of the trust resulting from income from the investments of the trust and from the sale or appreciation in value of any investment of the trust, over the decrease within the period in the value of the assets resulting from the sale or the depreciation in value of any investments of the trust.

SB70-SSA2-SA1,68 Section 68 . 40.04 (3) (am) 3. (intro.) of the statutes is amended to read:

SB70-SSA2-SA1,51,8 40.04 (3) (am) 3. (intro.) Annually, on December 31, the sum of all of the following shall be distributed from the market recognition account to each participating account in the core retirement investment trust in the same ratio as each account's average daily balance bears to the total average daily balance of all participating accounts in the trust:”.

SB70-SSA2-SA1,51,9 119. Page 374, line 11: after that line insert:

SB70-SSA2-SA1,51,10 “ Section 69. 40.02 (8) (b) 3. of the statutes is repealed.

SB70-SSA2-SA1,70 Section 70. 40.02 (21d) (intro.) of the statutes is amended to read:

SB70-SSA2-SA1,51,14 40.02 (21d) (intro.) “Domestic partnership" means a relationship between 2 individuals, who submitted an affidavit of domestic partnership to the department before September 23, 2017, that satisfies all of the following:

SB70-SSA2-SA1,71 Section 71. 40.51 (2m) (a) of the statutes is repealed.

SB70-SSA2-SA1,72 Section 72. 40.51 (2m) (b) of the statutes is renumbered 40.51 (2m) and amended to read:

SB70-SSA2-SA1,51,21 40.51 (2m) If an eligible employee is divorced or was a domestic partner in a dissolved domestic partnership, the eligible employee may not enroll a new spouse or domestic partner in a group health insurance plan under this subchapter until 6 months have elapsed since the date of the divorce or dissolved domestic partnership.

SB70-SSA2-SA1,73 Section 73. 40.513 (3) (b) of the statutes is amended to read:

SB70-SSA2-SA1,51,24 40.513 (3) (b) The employee's spouse or domestic partner is receiving health care coverage under s. 40.51 (6).

SB70-SSA2-SA1,74 Section 74. 40.52 (2) of the statutes is amended to read:

SB70-SSA2-SA1,52,14 40.52 (2) Health insurance benefits under this subchapter shall be integrated, with exceptions determined appropriate by the group insurance board, with benefits under federal plans for hospital and health care for the aged and disabled. Exclusions and limitations with respect to benefits and different rates may be established for persons eligible under federal plans for hospital and health care for the aged and disabled in recognition of the utilization by persons within the age limits eligible under the federal program. The plan may include special provisions for spouses, domestic partners, and other dependents covered under a plan established under this subchapter where one spouse or domestic partner is eligible under federal plans for hospital and health care for the aged but the others are not eligible because of age or other reasons. As part of the integration, the department may, out of premiums collected under s. 40.05 (4), pay premiums for the federal health insurance.

SB70-SSA2-SA1,75 Section 75. 40.55 (1) of the statutes is amended to read:

SB70-SSA2-SA1,52,22 40.55 (1) Except as provided in sub. (5), the state shall offer, through the group insurance board, to eligible employees under s. 40.02 (25) (bm) and to state annuitants long-term care insurance policies which have been filed with the office of the commissioner of insurance and which have been approved for offering under contracts established by the group insurance board. The state shall also allow an eligible employee or a state annuitant to purchase those policies for his or her spouse, domestic partner, or parent.

SB70-SSA2-SA1,76 Section 76. 40.65 (7) (am) 1. of the statutes is amended to read:

SB70-SSA2-SA1,53,6 40.65 (7) (am) 1. To the surviving spouse or surviving domestic partner until the surviving spouse remarries, or the surviving domestic partner enters into a new domestic partnership or marries, if the surviving spouse was married to the participant on the date that the participant was disabled under sub. (4), or the surviving domestic partner was in a domestic partnership on the date that the participant was disabled under sub. (4), 50 percent of the participant's monthly salary at the time of death, but reduced by any amount payable under sub. (5) (b) 1. to 6.

SB70-SSA2-SA1,77 Section 77. 40.65 (7) (am) 1g. of the statutes is repealed.

SB70-SSA2-SA1,78 Section 78. 40.65 (7) (am) 1m. of the statutes is repealed.

SB70-SSA2-SA1,79 Section 79. 40.65 (7) (am) 3. of the statutes is amended to read:

SB70-SSA2-SA1,53,13 40.65 (7) (am) 3. The total monthly amount paid under subds. 1., 1g., 1m., and 2. may not exceed 70 percent of the participant's monthly salary at the time of death reduced by any amounts under sub. (5) (b) 1. to 6. that relate to the participant's work record.

SB70-SSA2-SA1,80 Section 80. 40.65 (7) (ar) 1. a. of the statutes is amended to read:

SB70-SSA2-SA1,53,22 40.65 (7) (ar) 1. a. To the surviving spouse or the surviving domestic partner until the surviving spouse remarries, or the surviving domestic partner enters into a new domestic partnership or marries, if the surviving spouse was married to the participant on the date that the participant was disabled under sub. (4), or the surviving domestic partner was in a domestic partnership with the participant on the date that the participant was disabled under sub. (4), 70 percent of the participant's monthly salary at the time of death, but reduced by any amount payable under sub. (5) (b) 1. to 6.

SB70-SSA2-SA1,81 Section 81. 40.65 (7) (ar) 1. ag. of the statutes is repealed.

SB70-SSA2-SA1,82 Section 82. 40.65 (7) (ar) 1. am. of the statutes is repealed.

SB70-SSA2-SA1,83 Section 83. 40.80 (2r) (a) 1. of the statutes is amended to read:

SB70-SSA2-SA1,54,2 40.80 (2r) (a) 1. Relates to a marriage or domestic partnership that terminated after December 1, 2001.

SB70-SSA2-SA1,84 Section 84. 40.80 (2r) (a) 2. of the statutes is amended to read:

SB70-SSA2-SA1,54,7 40.80 (2r) (a) 2. Assigns all or part of a participant's accumulated assets held in a deferred compensation plan under this subchapter to a spouse, former spouse, domestic partner, former domestic partner, child, or other dependent to satisfy a family support or marital property obligation.

SB70-SSA2-SA1,9313 Section 9313. Initial applicability; Employee Trust Funds.

SB70-SSA2-SA1,54,11 (1) Deferred compensation; domestic partners. The treatment of s. 40.02 (8) (b) 3. first applies to benefits paid to a surviving domestic partner of a participant who dies on the effective date of this subsection.

SB70-SSA2-SA1,54,14 (2) Duty disability death benefits; domestic partners. The treatment of s. 40.65 (7) (am) 1. and (ar) 1. a. first applies to a surviving domestic partner of a participant who dies on the effective date of this subsection.”.

SB70-SSA2-SA1,54,15 120. Page 374, line 11: after that line insert:

SB70-SSA2-SA1,54,16 “ Section 85. 40.22 (1) of the statutes is amended to read:

SB70-SSA2-SA1,54,21 40.22 (1) Except as otherwise provided in sub. (2) and s. 40.26 (6) (1), each employee currently in the service of, and receiving earnings from, a state agency or other participating employer shall be included within the provisions of the Wisconsin retirement system as a participating employee of that state agency or participating employer.

SB70-SSA2-SA1,86 Section 86. 40.22 (2) (L) of the statutes is amended to read:

SB70-SSA2-SA1,55,3 40.22 (2) (L) The employee is employed by a participating employer after the person becomes an annuitant, unless the service is after the annuity is suspended by the election of the employee under s. 40.26.

SB70-SSA2-SA1,87 Section 87. 40.22 (2m) (intro.) of the statutes is amended to read:

SB70-SSA2-SA1,55,11 40.22 (2m) (intro.) Except as otherwise provided in s. 40.26 (6) (1), an employee who was a participating employee before July 1, 2011, who is not expected to work at least one-third of what is considered full-time employment by the department, as determined by rule, and who is not otherwise excluded under sub. (2) from becoming a participating employee shall become a participating employee if he or she is subsequently employed by the state agency or other participating employer for either of the following periods:

SB70-SSA2-SA1,88 Section 88. 40.22 (2r) (intro.) of the statutes is amended to read:

SB70-SSA2-SA1,55,19 40.22 (2r) (intro.) Except as otherwise provided in s. 40.26 (6) (1), an employee who was not a participating employee before July 1, 2011, who is not expected to work at least two-thirds of what is considered full-time employment by the department, as determined by rule, and who is not otherwise excluded under sub. (2) from becoming a participating employee shall become a participating employee if he or she is subsequently employed by the state agency or other participating employer for either of the following periods:

SB70-SSA2-SA1,89 Section 89. 40.22 (3) (intro.) of the statutes is amended to read:

SB70-SSA2-SA1,55,23 40.22 (3) (intro.) Except as otherwise provided in s. 40.26 (6) (1), a person who qualifies as a participating employee shall be included within, and shall be subject to, the Wisconsin retirement system effective on one of the following dates:

SB70-SSA2-SA1,90 Section 90. 40.26 (1) of the statutes is amended to read:

SB70-SSA2-SA1,56,9 40.26 (1) Except as provided in sub. (1m) and ss. 40.05 (2) (g) 2. and 40.23 (1) (am), if a participant receiving a retirement annuity, or a disability annuitant who has attained his or her normal retirement date, receives earnings that are subject to s. 40.05 (1) or that would be subject to s. 40.05 (1) except for the exclusion specified in s. 40.22 (2) (L), the annuity shall be suspended, including any amount provided by additional contributions, and no annuity payment shall be payable after the month in which the participant files with the department a written election to be included within the provisions of the Wisconsin retirement system as a participating employee.

SB70-SSA2-SA1,91 Section 91. 40.26 (1m) of the statutes is repealed.

SB70-SSA2-SA1,92 Section 92. 40.26 (2) (intro.) of the statutes is amended to read:

SB70-SSA2-SA1,56,14 40.26 (2) (intro.) Upon suspension of an annuity under sub. (1) or (1m), the retirement account of the participant whose annuity is so suspended shall be established on the following basis:

SB70-SSA2-SA1,93 Section 93. 40.26 (5) (intro.) of the statutes is amended to read:

SB70-SSA2-SA1,56,20 40.26 (5) (intro.) Except as otherwise provided in sub. (5m), if If a participant applies for an annuity or lump sum payment during the period in which less than 75 30 days have elapsed between the termination of employment with a participating employer and becoming a participating employee with any participating employer, all of the following shall apply:

SB70-SSA2-SA1,94 Section 94. 40.26 (5m) of the statutes is repealed.

SB70-SSA2-SA1,95 Section 95. 40.26 (6) of the statutes is repealed.

SB70-SSA2-SA1,96 Section 96. 323.19 (3) and (4) of the statutes are repealed.

SB70-SSA2-SA1,9113 Section 9113. Nonstatutory provisions; Employee Trust Funds.

SB70-SSA2-SA1,57,7 (1) Election to continue annuity suspension. No later than 60 days after the effective date of this subsection, if an individual who is employed by a covered employer under the Wisconsin Retirement System has his or her annuity suspended under s. 40.26 (1m), 2021 stats., on the effective date of this subsection and wants to continue the suspension, the individual shall notify the department of employee trust funds on a form provided by the department. An election to continue the suspension is irrevocable.”.

SB70-SSA2-SA1,57,8 121. Page 374, line 11: after that line insert:

SB70-SSA2-SA1,57,9 “ Section 9113. Nonstatutory provisions; Employee Trust Funds.

SB70-SSA2-SA1,57,13 (1) 2025-27 biennial budget request. In submitting information under s. 16.42 for purposes of the 2025-27 biennial budget bill, the department of employee trust funds shall include a request for funding for the modernization of the department's pension administration system.”.