AB 170

This bill makes all of the following changes with respect to the receipt of an

annuity under the Wisconsin Retirement System (WRS), the termination of an

annuity under certain conditions, and participation status under the WRS:

Mandatory period of separation from covered employment

Under current law, a WRS participant who has applied to receive a retirement

annuity must wait at least 30 days between terminating covered employment with

a WRS employer and returning to covered employment again as a participating

employee. If the participant does not wait the 30-day period, and is rehired before

the expiration of the 30-day period, the participant is not eligible to receive a WRS

retirement annuity. The bill provides that the participant must remain separated

from covered employment under the WRS for at least 75 days in order to be an eligible

rehired annuitant. This provision first applies to a WRS participating employee who

terminates covered employment under the WRS on the bill's effective date.

Termination of annuity for rehired annuitants

Currently, when a WRS participant terminates employment and receives an

annuity he or she may return to covered employment and either terminate the

annuity and again become a WRS participating employee or, instead, continue to

receive the annuity, as well as wages from covered employment. If a participant does

not terminate the annuity, the participant may not be a participating employee in

the WRS and, in the case of state employment, is not eligible for group insurance

benefits provided to participating employees, and may not use any of his or her

employment service as a rehired annuitant for any WRS purposes. If the participant

terminates the annuity, the participant returns to participating employee status and

is eligible for all group insurance benefits provided other participating employees,

as well as is able to accumulate additional years of creditable service under the WRS

for the additional period of covered employment.

This bill provides that, if a WRS participant who is receiving an annuity, or a

disability annuitant who has attained his or her normal retirement date, is

appointed to a position in covered employment in which he or she is expected to work

at least one-half of what is considered full-time employment by the Department of

Employee Trust Funds (DETF), as determined by rule, the participant's annuity

must be terminated and no annuity payment is payable until after the participant

again terminates covered employment. This provision first applies to a WRS

participating employee who terminates covered employment under the WRS on the

bill's effective date.

Under the bill, even though the participant again becomes a WRS participating

employee after terminating his or her annuity, and becomes eligible to receive group

insurance benefits provided to other participating employees, the participant may

not accumulate additional years of creditable service under the WRS for the

additional period of covered employment. Also, all WRS employee required