SB 477

Under the Uniform Unclaimed Property Act, all intangible property held by a

governmental subdivision or agency that remains unclaimed for more than a year

after it becomes payable or distributable is presumed abandoned. Once intangible

property is presumed abandoned, it is subject to the custody of the state as unclaimed

property. This bill provides that funds held in employee accounts of a retirement

system of a 1st class city, which become abandoned, are not subject to the custody of

the state as unclaimed property, but may be retained by the retirement system for

purposes of reducing employer funding obligations to the retirement system.

(Currently, the only retirement system of a 1st class city is the City of Milwaukee

Employes' Retirement System.) The bill specifically authorizes the board of any

retirement system of a 1st class city to devise rules and regulations for determining

the conditions under which employee retirement accounts are presumed abandoned

and for determining the manner in which funds in the abandoned employee

retirement accounts may be used to reduce employer funding obligations to the

retirement system.

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.