summary
Introduced
04/15/2025
04/15/2025
In Committee
04/15/2025
04/15/2025
Crossed Over
Passed
Dead
Introduced Session
Potential new amendment
2025-2026 Regular Session
Bill Summary
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 they are no longer in a WRS-covered position. This suspension applies to an annuitant who 1) has reached his or her normal retirement date; 2) is appointed to a position with 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 allows such an annuitant who is hired by a WRS-participating employer as an employee or to provide employee services to not suspend his or her annuity for up to 60 months. The bill also requires WRS-participating employers that hire such annuitants 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. Under the bill, these payments are deposited into the employer reserve account. If the annuitant does not suspend the annuity and does not become an active WRS-participating employee, in the case of state employment, the annuitant 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 annuitant opts to again become an active WRS-participating employee, the annuitant 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. The bill also repeals two obsolete provisions related to WRS annuitants returning to WRS-covered employment during the public health emergency declared on March 12, 2020, by executive order 72, which ended on May 13, 2020. Because this bill relates to public employee retirement or pensions, it may be referred to the Joint Survey Committee on Retirement Systems for a report to be printed as an appendix to the bill. For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
AI Summary
This bill modifies provisions of the Wisconsin Retirement System (WRS) related to rehired annuitants, allowing participants receiving retirement or disability annuities to continue receiving their annuity payments while working for a WRS-participating employer for up to 60 months under specific conditions. Currently, annuitants who are hired by a WRS employer and expected to work at least two-thirds of full-time must suspend their annuity payments. The new provisions require that the annuitant must have terminated previous employment at least 75 days prior, not have a pre-existing agreement to return to work, and elect on a department form to not become a participating employee. Participating employers hiring such annuitants must make payments to the Department of Employee Trust Funds equal to the contributions that would have been required if the annuitant had suspended their annuity, and these payments will be credited to a specific employer reserve account. If the annuitant does not suspend the annuity and does not become an active WRS employee, they will be ineligible for group insurance benefits and cannot use the new employment for WRS purposes. Conversely, if they become an active WRS employee, they will be eligible for benefits and can accumulate additional creditable service. The bill also repeals some obsolete provisions related to employment during the 2020 public health emergency.
Committee Categories
Government Affairs
Sponsors (20)
Robert Brooks (R)*,
Joel Kitchens (R)*,
Dan Knodl (R)*,
Rob Kreibich (R)*,
Anthony Kurtz (R)*,
Paul Melotik (R)*,
Dave Murphy (R)*,
Todd Novak (R)*,
Jerry O'Connor (R)*,
Sylvia Ortiz-Velez (D)*,
William Penterman (R)*,
Jessie Rodriguez (R)*,
David Steffen (R)*,
Robert Wittke (R)*,
Rachael Cabral-Guevara (R),
Dan Feyen (R),
Jodi Habush Sinykin (D),
Howard Marklein (R),
Brad Pfaff (D),
Romaine Quinn (R),
Last Action
Assembly Amendment 1 offered by Representatives Wittke, Kitchens and Rodriguez (on 06/30/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
---|---|
State Bill Page | https://docs.legis.wisconsin.gov/2025/proposals/reg/asm/bill/ab196 |
Assembly Amendment 1 | https://docs.legis.wisconsin.gov/document/amends/2025/REG/AB196-AA1.pdf |
Fiscal Note - AB196: Fiscal Estimate From ETF | https://docs.legis.wisconsin.gov/2025/related/fe/ab196/ab196_etf.pdf |
BillText | https://docs.legis.wisconsin.gov/document/proposaltext/2025/REG/AB196.pdf |
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