AB 671 — Relating to: protective occupation annuitants in the Wisconsin Retirement System who are rehired by a participating employer. (FE)

- 2024 LEGISLATURE LRBs0261/1LRB-4462/1 MIM:cdcMIM:klm&skw ASSEMBLY SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 671 JanuaryNovember 31,27, 20242023 - OfferedIntroduced by Representatives R ETTINGERETTINGER, DONOVAN , WITTKEC. and T ITTL.

A NDERSON , BARE, BEHNKE , ALLAHAN , DITTRICH, GOEBEN, GREEN , ACOBSON , K URTZ, MELOTIK, MICHALSKI, MOSES, MURSAU, NEDWESKI , 'CONNOR , OHNSTAD, R OZAR, SPIROS, S UBECK, T ITTL, W ICHGERS, M AGNAFICI and O LDENBURG , cosponsored by Senators T OMCZYK , BALLWEG , BRADLEY , CABRAL-G UEVARA, F EYEN, HUTTON , NODL , MARKLEIN, QUINN, ROYS, SPREITZER, WANGGAARD and H ESSELBEIN.

Referred to Committee on State Affairs.

and to create 40.04 (5) (am), 40.26 (7) and 40.26 (8) of the statutes;

retiredprotective lawoccupation enforcementannuitants officers in the Wisconsin Retirement System who are rehired by a participating employer.

This bill creates an exception to this suspension for up to 60 months for an annuitant who retired from employment with a participating employer and who is subsequently rehired or provides employee services after retirement if 1) the annuitant retired as a lawprotective enforcementoccupation officerparticipant; at least one year before being rehired or providing employee services;

2) at the time the annuitant initially retires from LRBs0261/1 - 2024 Legislature - 2 - MIM:cdc covered employment with a participating employeremployer, law enforcement agency, the annuitant does not have an agreement with any participating employer to return to employment;

and 3) the annuitant iselects to not become a participating employee at leastthe 55time yearsthe old;annuitant is rehired or enters into a contract after retirement.

4)In other words, the bill allows - 2024 Legislature - 2 - LRB-4462/1 MIM:klm&skw ASSEMBLY BILL 671 an annuitant iswho rehiredretired byas a lawprotective enforcementoccupation agencyparticipant thatto isreturn notto work with an employer who participates in the oneWRS fromand whichelect to not become a participating employee for purposes of the annuitantWRS, retired;and instead continue to receive his or her annuity.

andFor 5)further theinformation annuitantsee elects to not become a participating employee at the timelocal thefiscal annuitantestimate, iswhich rehiredwill orbe entersprinted intoas aan contractappendix afterto retirement.this bill.

Also under the bill, employers that hire such annuitants are required to make payments to ETF equal to what they would have paid as required contributions for each rehired annuitant if the rehired annuitant had suspended his or her annuity, for deposit in the employer reserve account.

In other words, the bill allows an annuitant who retired as a police officer or sheriff's deputy to return to work with an employer other than the employer from which the annuitant retired who participates in the WRS and elect to not become a participating employee for purposes of the WRS, and instead continue to receive his or her annuity.

If the person does not terminate the annuity and does not become an active WRS-participating employee, in the case of state employment, the person is not eligible for group insurance benefits provided to active WRS-participating employees and may not use any of his or her service in the new position for any WRS purposes.

If the person opts to again become an active WRS-participating employee, the person is eligible for all group insurance benefits provided to other participating employees and may accumulate additional years of creditable service under the WRS for the new period of WRS-covered employment.

SSECTION ECTION 1.

40.04 (5) (am) of the statutes is created to read:

40.04 (5) (am) Credited all employer payments made under s.

40.26 (8).

S ECTION 2.

40.26 (6) and (7)ach(7), 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.

SSECTION ECTION2. 3.

LRBs0261/1 - 2024 Legislature - 3 - MIM:cdc SECTION 3 40.22 (2m) (intro.) Except as otherwise provided in s.

40.26 (6) and (7)(7), 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.

SECTION 4.3.

40.26 (6) a,and an7)(7)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.

LRB-4462/1 - 2024 Legislature - 3 - MIM:klm&skw SECTION 3 ASSEMBLY BILL 671 (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:

SECTION 5.4.

40.26 (6)(, and (7), 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:

SECTION 6.5.

40.26 (7) (a) UnderSubsections this(1) subsection,to “law(5) enforcementdo officer”not hasapply theto meaninga givenparticipant who applies for an annuity or lump sum payment during the period in s.which at least 75 days have elapsed between the participant's termination of employment and becoming an employee or contractor providing employee services with a participating employer if all of the following conditions are met:

165.85 (2) (c).

(b) Beginning on the effective date of this subsection ....

[LRB inserts date], a participant may elect to not suspend his or her retirement annuity or disability annuity under sub.

(1m) for up to a total of 60 months, if the participant applies for LRBs0261/1 - 2024 Legislature - 4 - MIM:cdc S ECTION 6 an annuity or lump sum payment after at least one year has elapsed since the participant's termination of employment with a participating employer and prior to becoming an employee with a participating employer if all of the following conditions are met:

The participantindividual is a protective occupation participant retired lawfrom enforcementa officer.protective occupation under the WRS.

TheAt the time the participant terminates his or her employment with a participating employer, the lawparticipant enforcementdoes agencynot thathave isan aagreement with any participating employer afterto Julyreturn 2,to 2013.employment or enter into a contract to provide employee services for the employer.

At the time the participant terminates his or her employment as a law enforcement officer, 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 a participating employer and complies with 26 CFR 1.401-1 (a) (2) (i) and requirements set by the federal department of the treasury for bona fide separation from service.

4.

The participant is hired to work at a law enforcement agency other than the one from which the participant retired.

5.