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SB996,5,2014 40.08 (8) (a) 2. If an estate that is determined by the department to be a
15beneficiary is never opened or is closed prior to the payment of benefits payable under
16this chapter as a result of the death of the participant and the estate is not opened
17or
reopened within 6 months after the department notifies the estate that a benefit
18is payable, the benefit shall be considered irrevocably abandoned and shall be
19transferred to the employer accumulation reserve, unless the estate was the
20designated beneficiary under s. 40.02 (8) (a) 1.
Note: Sections 7 and 8 clarify how the Department of Employee Trust Funds must
treat abandoned benefits from the account of a deceased individual if a probate estate is
never opened for that individual.
SB996,8
1Section 8 . 40.08 (8) (a) 2m. of the statutes is amended to read:
SB996,6,102 40.08 (8) (a) 2m. If the estate was the designated beneficiary under s. 40.02 (8)
3(a) 1. and the estate is never opened or is closed prior to the payment of benefits
4payable under this chapter as a result of death of the participant and the estate is
5not opened or reopened within 6 months after the department notifies the estate that
6a benefit is payable, the department shall pay the benefit to a beneficiary as
7determined under s. 40.02 (8) (a) 2. If the department is unable to locate any such
8beneficiary within 6 months, all such beneficiaries shall be presumed to have
9predeceased the participant and the benefit shall be considered irrevocably
10abandoned and shall be transferred to the employer accumulation reserve.
SB996,9 11Section 9 . 40.23 (4) (c) of the statutes is amended to read:
SB996,7,212 40.23 (4) (c) If a participant during the calendar year in which before the year
13he or she attains 69.5 years the age set under section 401 (a) (9) of the Internal
14Revenue Code
, or the alternate payee during the calendar year before the year in
15which the participant attains 69.5 years the age set under section 401 (a) (9) of the
16Internal Revenue Code
, does not apply before December 31 in that year for a
17distribution of the amount that is credited to the account of a participant under the
18Wisconsin retirement system, the department shall begin, effective the following
19January 1, an automatic distribution to the participant or alternate payee in the
20form of an annuity specified under s. 40.24 (1) (c) or as determined by the department
21by rule. If the department makes an automatic distribution under this paragraph,
22the beneficiary designation filed with the department before the date on which the
23department begins the automatic distribution is no longer applicable under ss. 40.71
24and 40.73. Unless the participant or alternate payee files a subsequent beneficiary
25designation with the department after the date on which the department begins the

1automatic distribution, the department shall pay any death benefit as provided
2under s. 40.02 (8) (a) 2.
SB996,10 3Section 10 . 40.23 (4) (e) 2. of the statutes is amended to read:
SB996,7,84 40.23 (4) (e) 2. Subject to section 401 (a) (9) of the Internal Revenue Code, if the
5spouse or domestic partner files a subsequent beneficiary designation with the
6department, the payment of the distribution may be deferred until the January 1 of
7the year in which the participant would have attained the age of 70.5 years set under
8section 401 (a) (9) of the Internal Revenue Code
.
SB996,11 9Section 11 . 40.24 (7) (a) (intro.) of the statutes is amended to read:
SB996,7,2410 40.24 (7) (a) (intro.) Any participant who has been married to the same spouse,
11or in a domestic partnership with the same domestic partner, for at least one year
12immediately preceding the participant's annuity effective date shall elect the
13annuity option under sub. (1) (d), the annuity option under sub. (1) (e), if the reduced
14annuity under sub. (1) (e) is payable in an optional life form provided under sub. (1)
15(d), or an annuity option in a form provided by rule, if the annuity is payable for life
16with monthly payments of at least 75 percent of the amount of the annuity to be
17continued to the beneficiary named survivor, for life, upon the death of the
18participant, and the participant shall designate the spouse or domestic partner as
19the beneficiary named survivor, unless the participant's application for a retirement
20annuity in a different optional annuity form is signed by both the participant and the
21participant's spouse or domestic partner or unless the participant establishes to the
22satisfaction of the department that, by reason of absence or other inability, the
23spouse's or domestic partner's signature may not be obtained. This subsection does
24not apply to any of the following:
SB996,12 25Section 12 . 40.24 (7) (b) of the statutes is amended to read:
SB996,8,12
140.24 (7) (b) In administering this subsection, the secretary may require the
2participant to provide the department with a certification of the participant's marital
3or domestic partnership status and of the validity of the spouse's or domestic
4partner's signature. If a participant is exempted from the requirements under par.
5(a) on the basis of a certification which the department or a court subsequently
6determines to be invalid, the liability of the fund and the department shall be limited
7to a conversion of annuity options at the time the certification is determined to be
8invalid. The conversion shall be from the present value of the annuity in the optional
9form originally elected by the participant to an annuity with the same present value
10but in the optional form under sub. (1) (d) and with monthly payments of 100 percent
11of the amount of the annuity paid to the annuitant to be continued to the spouse or
12domestic partner beneficiary named survivor.
Note: Sections 11 and 12 replace the term “beneficiary” with “named survivor” in
statutes relating to annuity options for the Wisconsin Retirement System.
SB996,13 13Section 13 . 40.285 (2) (b) 1. a. to d. of the statutes are amended to read:
SB996,8,1514 40.285 (2) (b) 1. a. The participant participating employee has at least 3
15continuous years of creditable service at the time of application.
SB996,9,316 b. The number of years of creditable service applied for under this paragraph
17does not exceed the number of years of creditable service that the participant
18participating employee has at the date of application, excluding all creditable service
19purchased under this section or s. 40.02 (17) (b), 1981, 1983, 1985, 1987, 1989, 1991,
201993, 1995, 1997, 1999, and 2001 stats., s. 40.02 (17) (e), 1987, 1989, 1991, 1993,
211995, 1997, 1999, and 2001 stats., s. 40.02 (17) (i), 1989, 1991, 1993, 1995, 1997, 1999,
22and 2001 stats., s. 40.02 (17) (k), 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats.,
23s. 40.25 (6), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001

1stats., or s. 40.25 (7), 1991, 1993, 1995, 1997, 1999, and 2001 stats., less the number
2of years of creditable service previously purchased under this paragraph or s. 40.25
3(7), 1991, 1993, 1995, 1997, 1999, and 2001 stats.
SB996,9,54 c. At the time of application, the participant participating employee furnishes
5evidence of such service that is acceptable to the department.
SB996,9,126 d. Except as provided in sub. (4) (b), at the time of application, the participant
7participating employee pays to the department a lump sum equal to the present
8value of the creditable service applied for under this paragraph, in accordance with
9rates actuarially determined to be sufficient to fund the cost of the increased benefits
10that will result from granting the creditable service under this paragraph. The
11department shall by rule establish different rates for different categories of
12participants participating employees, based on factors recommended by the actuary.
SB996,14 13Section 14 . 40.285 (2) (b) 4. (intro.) of the statutes is amended to read:
SB996,9,1714 40.285 (2) (b) 4. (intro.) A participant participating employee may not receive
15creditable service under this paragraph for service that is used for the purpose of
16establishing entitlement to, or the amount of, any other benefit to be paid by any
17federal, state, or local government entity, except for the following:
Note: Sections 13 and 14 replace the term “participant” with “participating
employee” in statutes relating to purchasing creditable service for purposes of the
Wisconsin Retirement System.
SB996,15 18Section 15 . 40.63 (10) of the statutes is amended to read:
SB996,9,2319 40.63 (10) Upon termination of an annuity in accordance with sub. (9), each
20participant whose annuity is so terminated shall, as of the beginning of the calendar
21month following termination, be credited with additional contributions equal to the
22then present value of the portion of the terminated annuity which was originally
23provided by the corresponding type of additional contributions. Except for additional

1contributions, the retirement account of the participant shall be reestablished as if
2the terminated annuity had never been effective, including crediting of interest and
3of any contributions and creditable service earned during the period the annuity was
4in force
.
Note: Section 15 clarifies that, under the Wisconsin Retirement System, an
annuitant may not earn contributions and creditable service during a period in which the
annuitant receives an annuity from the Wisconsin Retirement System based on the
annuitant's own service as a participating employee.
SB996,16 5Section 16 . 40.86 (1) (intro.) of the statutes is created to read:
SB996,10,76 40.86 (1) (intro.) Expenses authorized under section 125 of the Internal
7Revenue Code, which may include any of the following:
SB996,17 8Section 17 . 40.86 (1) of the statutes is renumbered 40.86 (1) (a).
SB996,18 9Section 18 . 40.86 (2) of the statutes is renumbered 40.86 (1) (b).
SB996,19 10Section 19 . 40.86 (3) of the statutes is renumbered 40.86 (1) (c).
SB996,20 11Section 20 . 40.86 (4) of the statutes is renumbered 40.86 (2m).
Note: Sections 16 and 20 align statutory language with the Internal Revenue
Code by distinguishing between expenses reimbursable under two different plan types.
Sections 16 to 19 address expenses authorized under section 125 plans, and Section 20
addresses expenses authorized under section 132 plans.
SB996,10,1212 (End)
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