SB612: Bill Text

SB612,4,13 40.23 (1) (am) 2. Any participant who has attained age 55 59.5 or the age under 26 USC 401 (k) (2) (B) (III), whichever is greater, and who is a participant because of employment other than part-time service as an elected official and who is also a participating employee because of part-time service as an elected official and any protective occupation participant who has attained age 50 and who is also a participating employee because of part-time service as an elected official may, after termination of all covered employment other than service as a part-time elected official, waive further participation under the fund for his or her current, and any future, part-time service as an elected official. Any election under this paragraph is irrevocable and is effective beginning the day after the date of election. Notwithstanding par. (a), any participant who elects under this paragraph may receive a retirement annuity for all service under the fund credited to the participant to the date he or she elects. The date a participant elects under this paragraph is deemed to be the date of separation from the last participating employer by which that participant was employed.

SB612,7 Section 7 . 40.23 (1) (bm) of the statutes is amended to read:

SB612,4,21 40.23 (1) (bm) If an application by a participant age 55 59.5 or the age under 26 USC 401 (k) (2) (B) (III), whichever is greater, or over, or by a protective occupation participant age 50 or over, for long-term disability insurance benefits is disapproved under rules promulgated by the department, the date which would have been the effective date for the insurance benefits shall be the retirement annuity effective date if requested by the applicant within 60 days of the disapproval or, if the disapproval is appealed, within 60 days of the final disposition of the appeal.

SB612,8 Section 8 . 40.24 (1) (f) of the statutes is amended to read:

SB612,5,11 40.24 (1) (f) From accumulated additional contributions made under s. 40.05 (1) (a) 5. only, an annuity certain payable for and terminating after the number of months specified by the applicant, regardless of whether the applicant dies before or after the number of months specified, provided that the monthly amount of the annuity certain is at least equal to the minimum amount established under s. 40.25 (1) (a). Subject to the period of distribution required under s. 40.23 (4) (b) 2., the number of months specified shall not exceed 180 and shall not be less than 24. If the death of the annuitant occurs prior to the expiration of the certain period, the remaining payments shall be made in accordance with s. 40.73 (2) without regard to any other annuity payments payable to the beneficiary. An annuity under this paragraph may be initiated prior to any other annuity amount provided under this subchapter and prior to age 55 59.5 or the age under 26 USC 401 (k) (2) (B) (III), whichever is greater, if all other qualifications for receiving an annuity payment are met.

SB612,9 Section 9 . 40.25 (2) of the statutes is amended to read:

SB612,5,22 40.25 (2) Subject to sub. (2t), if all requirements for payment of a retirement annuity are met except attainment of age 55 59.5 or the age under 26 USC 401 (k) (2) (B) (III), whichever is greater, or age 50 for protective occupation participants, a separation benefit may be paid, if the participant's written application for a separation benefit is received by the department prior to the participant's 55th birthday date the participant would be 59.5 years old, or the age under 26 USC 401 (k) (2) (B) (III), whichever is greater, or the participant's 50th birthday for protective occupation participants, in an amount equal to the additional and employee required contribution accumulations of the participant on the date the application for a separation benefit is approved.

SB612,10 Section 10 . 40.26 (1m) (a) of the statutes is amended to read:

SB612,6,5 40.26 (1m) (a) If Except as otherwise provided in sub. (6), a participant receiving a retirement annuity, or a disability annuitant who has attained his or her normal retirement date, is employed in a position in covered employment in which he or she is expected to work at least two-thirds of what is considered full-time employment by the department, as determined under s. 40.22 (2r), the participant's annuity shall be suspended and no annuity payment shall be payable until after the participant terminates covered employment.

SB612,11 Section 11 . 40.26 (1m) (b) of the statutes is amended to read:

SB612,6,14 40.26 (1m) (b) If Except as otherwise provided in sub. (6), a participant receiving a retirement annuity, or a disability annuitant who has attained his or her normal retirement date, enters into a contract to provide employee services with a participating employer and he or she is expected to work at least two-thirds of what is considered full-time employment by the department, as determined under s. 40.22 (2r), the participant's annuity shall be suspended and no annuity payment shall be payable until after the participant no longer provides employee services under the contract.

SB612,12 Section 12 . 40.26 (5) (intro.) of the statutes is amended to read:

SB612,6,20 40.26 (5) (intro.) If a participant applies for an annuity or lump sum payment during the period in which less than 75 45 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:

SB612,13 Section 13 . 40.26 (6) of the statutes is created to read:

SB612,6,24 40.26 (6) A participant may elect to not suspend his or her retirement annuity or disability annuity under sub. (1m) for not more than a total of 36 months if all of the following conditions are met:

SB612,7,4 (a) At the time the participant terminates his or her employment with a participating employer, the participant does not have an agreement with any participating employer to return to employment or enter into a contract to provide employee services for the employer.

SB612,7,7 (b) The participating employer who employs the participant or enters into a contract to receive employee services from the participant indicates all of the following on a form provided by the department:

SB612,7,8 1. How the vacancy that the participant is filling was created.

SB612,7,9 2. Where notice of the vacancy that the participant is filling was posted.

SB612,7,11 3. Whether the participant will earn a higher salary than he or she did in his or her previous position with a participating employer.

SB612,7,13 4. If the participant will earn a higher salary than he or she did in his or her previous position with a participating employer, the reason for the increase in salary.

SB612,7,15 5. The employment category of the participant in his or her previous position, and the employment category of the position the participant is filling.

SB612,14 Section 14 . 40.26 (7) of the statutes is created to read:

SB612,7,18 40.26 (7) The department shall maintain a list of participants who make an election under sub. (6), which shall include all of the following:

SB612,7,19 (a) The information required under sub. (6) (b) 1.

SB612,7,22 (b) If the vacancy the participant is filling was created by a participating employee who terminated employment, whether the employee who terminated employment applied for an annuity.

SB612,7,23 (c) The information required under sub. (6) (b) 5.

SB612,15 Section 15 . 40.26 (8) of the statutes is created to read:

SB612,8,4 40.26 (8) Annually, by December 31, the department shall submit to the governor and to the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under s. 13.172 (3), a report that summarizes the information in sub. (7).

SB612,16 Section 16 . 40.63 (7) of the statutes is amended to read:

SB612,8,11 40.63 (7) If an application, by a participant age 55 59.5, or the age under 26 USC 401 (k) (2) (B) (III), whichever is greater, or over, or by a protective occupation participant age 50 or over, for any disability annuity is disapproved, the date which would have been the disability annuity effective date shall be the retirement annuity effective date if so requested by the applicant within 60 days of the disapproval or, if the disapproval is appealed, within 60 days of final disposition of the appeal.

SB612,17 Section 17 . Initial applicability.

SB612,8,16 (1) The treatment of ss. 40.23 (1) (a), (am) 2., and (bm), 40.24 (1) (f), and 40.25 (2) first applies to individuals who are under the age of 40 on the effective date of this subsection and who terminate covered employment under the Wisconsin Retirement System on the effective date of this subsection.

SB612,8,17 (End)