AB 539

This bill authorizes the Board of Regents of the University of Wisconsin (UW)

System (board) to establish an optional retirement system for UW employees

initially hired on or after January 1, 2012, who elect to participate in the optional

retirement system. The optional retirement system must be established as a

governmental plan and as a qualified plan for federal income tax purposes and must

be so maintained and administered. The bill specifically provides that any employer

contributions paid by the board during any year on behalf of a UW employee may not

exceed the employer contributions paid by a participating employer under the

Wisconsin Retirement System (WRS) in that year for a similarly situated employee.

Under the bill, the board must establish a process for employees to elect to

participate in the optional retirement system and must determine all benefits for

employees who elect to participate in the optional retirement system. The bill also

provides that the board may delegate any powers and duties that the board considers

necessary or desirable for the purpose of administering the optional retirement

system.

The bill further provides that UW employees who elect to participate in the

optional retirement system may not, at the same time, also be participating

employees in the WRS. Moreover, an employee who participates in the optional

retirement system may not subsequently become a participating employee in the

WRS during the period of his or her employment with the UW System. Finally, it

should be noted, the bill does not affect any current law insurance benefit or coverage

for employees in either the WRS or the optional 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.