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AB670,5 15Section 5 . 40.23 (1) (a) (intro.) of the statutes is amended to read:
AB670,3,2216 40.23 (1) (a) (intro.) Except as provided in par. (am), any participant who has
17attained age 55 59.5 or the age under 26 USC 401 (k) (2) (B) (III), whichever is
18greater
, and any protective occupation participant who has attained age 50, on or
19before the annuity effective date shall be entitled to a retirement annuity in
20accordance with the actuarial tables in effect on the effective date of the annuity if
21the participant submits an application for a retirement annuity on a form furnished
22by the department and all of the following apply:
AB670,6 23Section 6 . 40.23 (1) (am) 2. of the statutes is amended to read:
AB670,4,1324 40.23 (1) (am) 2. Any participant who has attained age 55 59.5 or the age under
2526 USC 401 (k) (2) (B) (III), whichever is greater,
and who is a participant because

1of employment other than part-time service as an elected official and who is also a
2participating employee because of part-time service as an elected official and any
3protective occupation participant who has attained age 50 and who is also a
4participating employee because of part-time service as an elected official may, after
5termination of all covered employment other than service as a part-time elected
6official, waive further participation under the fund for his or her current, and any
7future, part-time service as an elected official. Any election under this paragraph
8is irrevocable and is effective beginning the day after the date of election.
9Notwithstanding par. (a), any participant who elects under this paragraph may
10receive a retirement annuity for all service under the fund credited to the participant
11to the date he or she elects. The date a participant elects under this paragraph is
12deemed to be the date of separation from the last participating employer by which
13that participant was employed.
AB670,7 14Section 7 . 40.23 (1) (bm) of the statutes is amended to read:
AB670,4,2115 40.23 (1) (bm) If an application by a participant age 55 59.5 or the age under
1626 USC 401 (k) (2) (B) (III), whichever is greater,
or over, or by a protective occupation
17participant age 50 or over, for long-term disability insurance benefits is disapproved
18under rules promulgated by the department, the date which would have been the
19effective date for the insurance benefits shall be the retirement annuity effective
20date if requested by the applicant within 60 days of the disapproval or, if the
21disapproval is appealed, within 60 days of the final disposition of the appeal.
AB670,8 22Section 8 . 40.24 (1) (f) of the statutes is amended to read:
AB670,5,1123 40.24 (1) (f) From accumulated additional contributions made under s. 40.05
24(1) (a) 5. only, an annuity certain payable for and terminating after the number of
25months specified by the applicant, regardless of whether the applicant dies before or

1after the number of months specified, provided that the monthly amount of the
2annuity certain is at least equal to the minimum amount established under s. 40.25
3(1) (a). Subject to the period of distribution required under s. 40.23 (4) (b) 2., the
4number of months specified shall not exceed 180 and shall not be less than 24. If the
5death of the annuitant occurs prior to the expiration of the certain period, the
6remaining payments shall be made in accordance with s. 40.73 (2) without regard to
7any other annuity payments payable to the beneficiary. An annuity under this
8paragraph may be initiated prior to any other annuity amount provided under this
9subchapter and prior to age 55 59.5 or the age under 26 USC 401 (k) (2) (B) (III),
10whichever is greater,
if all other qualifications for receiving an annuity payment are
11met.
AB670,9 12Section 9 . 40.25 (2) of the statutes is amended to read:
AB670,5,2213 40.25 (2) Subject to sub. (2t), if all requirements for payment of a retirement
14annuity are met except attainment of age 55 59.5 or the age under 26 USC 401 (k)
15(2) (B) (III), whichever is greater,
or age 50 for protective occupation participants, a
16separation benefit may be paid, if the participant's written application for a
17separation benefit is received by the department prior to the participant's 55th
18birthday
date the participant would be 59.5 years old, or the age under 26 USC 401
19(k) (2) (B) (III), whichever is greater,
or the participant's 50th birthday for protective
20occupation participants, in an amount equal to the additional and employee required
21contribution accumulations of the participant on the date the application for a
22separation benefit is approved.
AB670,10 23Section 10 . 40.26 (1m) (a) of the statutes is amended to read:
AB670,6,524 40.26 (1m) (a) If Except as otherwise provided in sub. (6), a participant
25receiving a retirement annuity, or a disability annuitant who has attained his or her

1normal retirement date, is employed in a position in covered employment in which
2he or she is expected to work at least two-thirds of what is considered full-time
3employment by the department, as determined under s. 40.22 (2r), the participant's
4annuity shall be suspended and no annuity payment shall be payable until after the
5participant terminates covered employment.
AB670,11 6Section 11 . 40.26 (1m) (b) of the statutes is amended to read:
AB670,6,147 40.26 (1m) (b) If Except as otherwise provided in sub. (6), a participant
8receiving a retirement annuity, or a disability annuitant who has attained his or her
9normal retirement date, enters into a contract to provide employee services with a
10participating employer and he or she is expected to work at least two-thirds of what
11is considered full-time employment by the department, as determined under s. 40.22
12(2r), the participant's annuity shall be suspended and no annuity payment shall be
13payable until after the participant no longer provides employee services under the
14contract.
AB670,12 15Section 12 . 40.26 (5) (intro.) of the statutes is amended to read:
AB670,6,2016 40.26 (5) (intro.) If a participant applies for an annuity or lump sum payment
17during the period in which less than 75 45 days have elapsed between the
18termination of employment with a participating employer and becoming a
19participating employee with any participating employer, all of the following shall
20apply:
AB670,13 21Section 13 . 40.26 (6) of the statutes is created to read:
AB670,6,2422 40.26 (6) A participant may elect to not suspend his or her retirement annuity
23or disability annuity under sub. (1m) for not more than a total of 36 months if all of
24the following conditions are met:
AB670,7,4
1(a) At the time the participant terminates his or her employment with a
2participating employer, the participant does not have an agreement with any
3participating employer to return to employment or enter into a contract to provide
4employee services for the employer.
AB670,7,75 (b) The participating employer who employs the participant or enters into a
6contract to receive employee services from the participant indicates all of the
7following on a form provided by the department:
AB670,7,88 1. How the vacancy that the participant is filling was created.
AB670,7,99 2. Where notice of the vacancy that the participant is filling was posted.
AB670,7,1110 3. Whether the participant will earn a higher salary than he or she did in his
11or her previous position with a participating employer.
AB670,7,1312 4. If the participant will earn a higher salary than he or she did in his or her
13previous position with a participating employer, the reason for the increase in salary.
AB670,7,1514 5. The employment category of the participant in his or her previous position,
15and the employment category of the position the participant is filling.
AB670,14 16Section 14 . 40.26 (7) of the statutes is created to read:
AB670,7,1817 40.26 (7) The department shall maintain a list of participants who make an
18election under sub. (6), which shall include all of the following:
AB670,7,1919 (a) The information required under sub. (6) (b) 1.
AB670,7,2220 (b) If the vacancy the participant is filling was created by a participating
21employee who terminated employment, whether the employee who terminated
22employment applied for an annuity.
AB670,7,2323 (c) The information required under sub. (6) (b) 5.
AB670,15 24Section 15 . 40.26 (8) of the statutes is created to read:
AB670,8,4
140.26 (8) Annually, by December 31, the department shall submit to the
2governor and to the chief clerk of each house of the legislature, for distribution to the
3appropriate standing committees under s. 13.172 (3), a report that summarizes the
4information in sub. (7).
AB670,16 5Section 16 . 40.63 (7) of the statutes is amended to read:
AB670,8,116 40.63 (7) If an application, by a participant age 55 59.5, or the age under 26
7USC 401
(k) (2) (B) (III), whichever is greater,
or over, or by a protective occupation
8participant age 50 or over, for any disability annuity is disapproved, the date which
9would have been the disability annuity effective date shall be the retirement annuity
10effective date if so requested by the applicant within 60 days of the disapproval or,
11if the disapproval is appealed, within 60 days of final disposition of the appeal.
AB670,17 12Section 17 . Initial applicability.
AB670,8,1613 (1) The treatment of ss. 40.23 (1) (a), (am) 2., and (bm), 40.24 (1) (f), and 40.25
14(2) first applies to individuals who are under the age of 40 on the effective date of this
15subsection and who terminate covered employment under the Wisconsin Retirement
16System on the effective date of this subsection.
AB670,8,1717 (End)
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