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2021 - 2022 LEGISLATURE
November 11, 2021 - Introduced by Senators Smith, Bewley, Roys, Ringhand,
Agard and Larson, cosponsored by Representatives Pope, Emerson, B.
Meyers
, Andraca, Conley, Considine, Shankland, Vruwink, Subeck,
Hesselbein, Spreitzer, Doyle, Stubbs, Bowen, Sinicki and Shelton.
Referred to Committee on Government Operations, Legal Review and
Consumer Protection.
SB701,1,3 1An Act to amend 40.22 (1), 40.22 (2m) (intro.), 40.22 (2r) (intro.) and 40.22 (3)
2(intro.); and to create 40.26 (7) of the statutes; relating to: rehired annuitant
3teachers in the Wisconsin Retirement System.
Analysis by the Legislative Reference Bureau
Under current law, certain people who receive a retirement or disability
annuity from the Wisconsin Retirement System (WRS) and who are hired by an
employer that participates in the WRS must suspend that annuity and may not
receive a WRS annuity payment until the person is no longer in a WRS-covered
position. This suspension applies to a person who 1) has reached his or her normal
retirement date; 2) is appointed to a position with a WRS-participating employer or
provides employee services as a contractor to a WRS-participating employer; and 3)
is expected to work at least two-thirds of what is considered full-time employment
by the Department of Employee Trust Funds.
This bill creates an exception to this suspension if 1) the person retired from
WRS-covered employment as a teacher; 2) at least 30 days have elapsed from the
date the person left WRS-covered employment with a school district; 3) the person
is hired as a teacher; 4) at the time the person initially retires from a school district,
the person does not have an agreement with any school district to return to
employment as a teacher or a contractor providing employee services as a teacher;
and 5) the person elects to not become a participating employee at the time the person
is rehired or enters into a contract after retirement. In other words, the bill allows
a WRS teacher annuitant who is either hired as a teacher or provides employee

services as a teacher with a school district that is a participating employer to return
to work as a teacher and elect to not become a participating employee for purposes
of the WRS and instead continue to receive his or her annuity.
For further information see the state and local 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:
SB701,1 1Section 1 . 40.22 (1) of the statutes is amended to read:
SB701,2,62 40.22 (1) Except as otherwise provided in sub. (2) and s. 40.26 (6) and (7), 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 Wisconsin
5retirement system as a participating employee of that state agency or participating
6employer.
SB701,2 7Section 2 . 40.22 (2m) (intro.) of the statutes is amended to read:
SB701,2,148 40.22 (2m) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an
9employee who was a participating employee before July 1, 2011, who is not expected
10to work at least one-third of what is considered full-time employment by the
11department, as determined by rule, and who is not otherwise excluded under sub. (2)
12from becoming a participating employee shall become a participating employee if he
13or she is subsequently employed by the state agency or other participating employer
14for either of the following periods:
SB701,3 15Section 3 . 40.22 (2r) (intro.) of the statutes is amended to read:
SB701,3,316 40.22 (2r) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an
17employee who was not a participating employee before July 1, 2011, who is not
18expected to work at least two-thirds of what is considered full-time employment by
19the department, as determined by rule, and who is not otherwise excluded under sub.

1(2) from becoming a participating employee shall become a participating employee
2if he or she is subsequently employed by the state agency or other participating
3employer for either of the following periods:
SB701,4 4Section 4 . 40.22 (3) (intro.) of the statutes is amended to read:
SB701,3,75 40.22 (3) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), a person
6who qualifies as a participating employee shall be included within, and shall be
7subject to, the Wisconsin retirement system effective on one of the following dates:
SB701,5 8Section 5 . 40.26 (7) of the statutes is created to read:
SB701,3,149 40.26 (7) Subsections (1) to (5) do not apply to a participant who applies for an
10annuity or lump sum payment during the period in which at least 30 days have
11elapsed between the participant's termination of employment as a teacher with a
12school district that is a participating employer and becoming a teacher as an
13employee or contractor providing employee services with any school district that is
14a participating employer if all of the following conditions are met:
SB701,3,1815 (a) At the time the participant terminates his or her employment as a teacher
16with a school district, the participant does not have an agreement with any school
17district that is a participating employer to return to employment as a teacher or enter
18into a contract to provide employee services as a teacher for the school district.
SB701,3,2019 (b) The participant elects on a form provided by the department to not become
20a participating employee.
SB701,6 21Section 6 . Initial applicability.
SB701,4,222 (1) Rehired teacher annuitants. The treatment of s. 40.26 (7) first applies to
23participating employees under the Wisconsin Retirement System who terminate

1covered employment under the Wisconsin Retirement System on the effective date
2of this subsection.
SB701,4,33 (End)
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