SB70: Bill Text

SB70,695 Section 695. 40.03 (1) (dm) of the statutes is created to read:

SB70,,1777 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.

SB70,696 Section 696. 40.03 (1) (i) of the statutes is amended to read:

SB70,,1779 40.03 (1) (i) May determine that some or all of the disability annuities and death benefits provided from the Wisconsin retirement system shall instead be provided through group insurance plans to be established by the group insurance board either as separate plans or as integral parts of the group life and income continuation insurance plans established under this chapter.

SB70,697 Section 697. 40.03 (1) (p) of the statutes is amended to read:

SB70,,1781 40.03 (1) (p) May, upon the recommendation of the actuary, transfer in whole or in part the assets and reserves held in any account described in s. 40.04 (9) to a different account described in s. 40.04 (9), for the purpose of providing any group insurance benefit offered by the group insurance board.

SB70,698 Section 698. 40.03 (1) (q) of the statutes is created to read:

SB70,,1783 40.03 (1) (q) For the purposes of the group income continuation insurance plan established under ss. 40.61 and 40.62 and the group long-term disability insurance plan established under s. 40.64:

SB70,,1784 1. May, on behalf of the state, enter into a contract or contracts with one or more insurers authorized to transact insurance business in this state for the purpose of providing the plans.

SB70,,1785 2. May, wholly or partially in lieu of subd. 1., on behalf of the state, provide the plans on a self-insured basis.

SB70,,1786 3. May take any action as trustees that is considered advisable and not specifically prohibited or delegated to some other governmental agency to carry out the purpose and intent of the plans.

SB70,,1787 4. May apportion all excess moneys becoming available to the board through operation of the plans to reduce premium payments in following contract years or to establish reserves to stabilize costs in subsequent years. If the board determines that the excess became available due to favorable experience of specific groups of employers or specific employee groups, the board may make the apportionment in a manner designated to benefit the specific employers or employee groups only or to a greater extent than other employers and employee groups.

SB70,,1788 5. Shall take prompt action to liquidate any actuarial or cash deficit that occurs in the accounts and reserves maintained in the fund for the plans.

SB70,,1789 6. Shall accept timely appeals of determinations made by the department affecting any right or benefit under the plans.

SB70,699 Section 699. 40.03 (2) (i) of the statutes is amended to read:

SB70,,1791 40.03 (2) (i) Shall Except as provided under pars. (ig) and (ir), shall promulgate, with the approval of the board, all rules, except rules promulgated under par. (ig) or (ir), that are required for the efficient administration of the fund or of any of the benefit plans established by this chapter. In addition to being approved by the board, and shall promulgate rules as necessary for a group long-term disability insurance plan established under s. 40.64. All rules promulgated under this paragraph are subject to board approval under sub. (1) (m). Except for rules promulgated under s. 40.30 (6), the rules promulgated under this paragraph relating to teachers must be approved are subject to approval by the teachers retirement board and under sub. (7) (d). Except for rules promulgated under s. 40.30 (6), the rules promulgated under this paragraph relating to participants other than teachers must be approved are subject to approval by the Wisconsin retirement board, except rules promulgated under s. 40.30 sub. (8) (d).

****Note: This is reconciled s. 40.03 (2) (i). This Section has been affected by drafts with the following LRB numbers: -0719/P1 and -1037/P1.

SB70,700 Section 700. 40.03 (2) (ig) of the statutes is amended to read:

SB70,,1793 40.03 (2) (ig) Shall promulgate, with the approval of the group insurance board, all rules required for the administration of the group health, long-term care, income continuation or life insurance plans established under subchs. IV to and VI and health savings accounts under subch. IV.

SB70,701 Section 701. 40.03 (4m) of the statutes is created to read:

SB70,,1795 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,,1796 (b) The internal auditor may review any activity, information, or record of the department that relates to the administration of the fund.

SB70,,1797 (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,,1798 (d) The internal auditor shall monitor the department’s compliance with applicable legal requirements and contracts entered into by the department and the board.

SB70,702 Section 702. 40.03 (6) (intro.) of the statutes is amended to read:

SB70,,1800 40.03 (6) Group insurance board. (intro.) The With respect to the group insurance plans provided for by this chapter other than the group income continuation insurance plan established under ss. 40.61 and 40.62 and the group long-term disability insurance plan established under s. 40.64, the group insurance board:

SB70,703 Section 703. 40.03 (6) (a) 1. of the statutes is amended to read:

SB70,,1802 40.03 (6) (a) 1. Except as provided in par. (m), shall, on behalf of the state, enter into a contract or contracts with one or more insurers authorized to transact insurance business in this state for the purpose of providing the group insurance plans provided for by this chapter; or

SB70,704 Section 704. 40.03 (6) (d) (intro.) of the statutes is amended to read:

SB70,,1804 40.03 (6) (d) (intro.) May take any action as trustees which that is deemed advisable and not specifically prohibited or delegated to some other governmental agency, to carry out the purpose and intent of the group insurance plans provided under this chapter, including, but not limited to, provisions in the appropriate contracts relating to:

SB70,705 Section 705. 40.03 (6) (i) of the statutes is amended to read:

SB70,,1806 40.03 (6) (i) Shall accept timely appeals of determinations made by the department affecting any right or benefit under any group insurance plan provided for under this chapter that is overseen by the group insurance board.

SB70,706 Section 706. 40.04 (3) (a) of the statutes is amended to read:

SB70,,1808 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.

SB70,707 Section 707. 40.04 (3) (am) 3. (intro.) of the statutes is amended to read:

SB70,,1810 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:

SB70,708 Section 708. 40.05 (4) (a) 2. of the statutes is amended to read:

SB70,,1812 40.05 (4) (a) 2. For an insured employee who is an eligible employee under s. 40.02 (25) (a) 2. or (b) 1m. or 2c., the employer shall pay required employer contributions toward the health insurance premium of the insured employee beginning on the date on which the employee becomes insured. For an insured state employee who is currently employed, but who is not a limited term appointment under s. 230.26 or an eligible employee under s. 40.02 (25) (a) 2. or (b) 1m. or 2c., the employer shall pay required employer contributions toward the health insurance premium of the insured employee beginning on the first day of the 3rd 2nd month beginning after the date on which the employee begins employment with the state, not including any leave of absence. For an insured employee who has a limited term appointment under s. 230.26, the employer shall pay required employer contributions toward the health insurance premium of the insured employee beginning on the first day of the 7th month beginning after the date on which the employee first becomes a participating employee.

SB70,709 Section 709. 40.05 (5) (intro.) of the statutes is renumbered 40.05 (5) and amended to read:

SB70,,1814 40.05 (5) Income continuation insurance premiums. For the group income continuation insurance provided under subch. V ss. 40.61 and 40.62, the employee shall pay the amount remaining after the employer has contributed the following an amount equal to the gross premium payable for insurance coverage that includes the longest waiting period available to the employee under the insurance contract by rule or, if different, the amount determined under a collective bargaining agreement under subch. V of ch. 111 or s. 230.12 or 233.10:.

SB70,710 Section 710. 40.05 (5) (a) of the statutes is repealed.

SB70,711 Section 711. 40.05 (5) (b) of the statutes is repealed.

SB70,712 Section 712. 40.22 (1) of the statutes is amended to read:

SB70,,1818 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.

SB70,713 Section 713. 40.22 (2) (L) of the statutes is amended to read:

SB70,,1820 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.

SB70,714 Section 714. 40.22 (2m) (intro.) of the statutes is amended to read:

SB70,,1822 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:

SB70,715 Section 715. 40.22 (2r) (intro.) of the statutes is amended to read:

SB70,,1824 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:

SB70,716 Section 716. 40.22 (3) (intro.) of the statutes is amended to read:

SB70,,1826 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:

SB70,717 Section 717. 40.23 (1) (bm) of the statutes is renumbered 40.23 (1) (bm) 1. and amended to read:

SB70,,1828 40.23 (1) (bm) 1. If an application by a participant age 55 or over, or by a protective occupation participant age 50 or over, for group long-term disability insurance benefits under s. 40.64 is disapproved under rules promulgated by the department, the date which would have been the effective date for the insurance benefits shall be is 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.

SB70,718 Section 718. 40.26 (1) of the statutes is amended to read:

SB70,,1830 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.

SB70,719 Section 719. 40.26 (1m) of the statutes is repealed.

SB70,720 Section 720. 40.26 (2) (intro.) of the statutes is amended to read:

SB70,,1833 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:

SB70,721 Section 721. 40.26 (5) (intro.) of the statutes is amended to read:

SB70,,1835 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:

SB70,722 Section 722. 40.26 (5m) of the statutes is repealed.

SB70,723 Section 723. 40.26 (6) of the statutes is repealed.

SB70,724 Section 724. 40.51 (2m) (a) of the statutes is repealed.

SB70,725 Section 725. 40.51 (2m) (b) of the statutes is renumbered 40.51 (2m) and amended to read:

SB70,,1840 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.

SB70,726 Section 726. 40.51 (7) (a) of the statutes is amended to read:

SB70,,1842 40.51 (7) (a) Any employer, other than the state, including an employer that is not a participating employer, may offer to all of its employees a health care coverage plan through a program offered by the group insurance board. Notwithstanding sub. (2) and ss. 40.05 (4) and 40.52 (1), the department may by rule establish different eligibility standards or contribution requirements for such employees and employers. Beginning on January 1, 2012, except as otherwise provided in a collective bargaining agreement under subch. IV of ch. 111 that covers public safety employees or transit employees and except as provided in par. (b), an employer may not offer a health care coverage plan to its employees under this subsection if the employer pays more than 88 percent of the average premium cost of plans offered in any tier with the lowest employee premium cost under this subsection.

SB70,727 Section 727. 40.51 (8) of the statutes is amended to read:

SB70,,1844 40.51 (8) Every health care coverage plan offered by the state under sub. (6) shall comply with ss. 631.89, 631.90, 631.93 (2), 631.95, 632.72 (2), 632.728, 632.729, 632.746 (1) to (8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853, 632.855, 632.861, 632.862, 632.867, 632.87 (3) to (6) (8), 632.871, 632.885, 632.89, 632.895 (5m) and (8) to (17), and 632.896.

****Note: This is reconciled s. 40.51 (8). This Section has been affected by drafts with the following LRB numbers: -1147/P1, -1151/P2, -1153/P1, -1156/P1, and -1157/P1.

SB70,728 Section 728. 40.51 (8m) of the statutes is amended to read:

SB70,,1846 40.51 (8m) Every health care coverage plan offered by the group insurance board under sub. (7) shall comply with ss. 631.95, 632.728, 632.729, 632.746 (1) to (8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853, 632.855, 632.861, 632.862, 632.867, 632.87 (7) and (8), 632.871, 632.885, 632.89, and 632.895 (11) (8) and (10) to (17).

****Note: This is reconciled s. 40.51 (8m). This Section has been affected by drafts with the following LRB numbers: -1147/P1, -1151/P2, -1153/P1, -1156/P1, and -1157/P1.

SB70,729 Section 729. 40.513 (3) (b) of the statutes is amended to read:

SB70,,1848 40.513 (3) (b) The employee’s spouse or domestic partner is receiving health care coverage under s. 40.51 (6).

SB70,730 Section 730. 40.52 (2) of the statutes is amended to read:

SB70,,1850 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.

SB70,731 Section 731. 40.55 (1) of the statutes is amended to read:

SB70,,1852 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.

SB70,732 Section 732. 40.61 (1) of the statutes is amended to read:

SB70,,1854 40.61 (1) The procedures and provisions pertaining to enrollment, premium transmitted and coverage of eligible employees for group income continuation benefits shall be established by contract or rule except as otherwise specifically provided by this chapter.

SB70,733 Section 733. 40.61 (2) of the statutes is amended to read:

SB70,,1856 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).

SB70,734 Section 734. 40.61 (2) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB70,,1858 40.61 (2) Except as provided in sub. (4), 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. 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 board under sub. (1).

SB70,735 Section 735. 40.61 (3) of the statutes is amended to read:

SB70,,1860 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.

SB70,736 Section 736. 40.62 (1) of the statutes is amended to read: