SB 553

This bill makes the following remedial changes to the Wisconsin Retirement

System (WRS) and the operation of the Department of Employee Trust Funds

(DETF):

1. The bill clarifies the treatment and uses of moneys credited to memorandum

accounts of WRS participants who suspend their annuities in order to return to

covered employment.

2. The bill specifically authorizes the secretary of employee trust funds to

implement any payment processing system to pay moneys owing to any person under

benefit plans administered by DETF, including payment by direct deposit, electronic

benefit transfer cards or other prepaid cards, electronic funds transfer, and

automated clearinghouse procedures.

3. Under current law, one requirement of a qualified domestic relations order

(QDRO) is that the determination of an alternate payee share in the QDRO may not

require benefits to be paid to the alternate payee if those benefits are also required

to be paid to another alternate payee. The bill clarifies that the determination of the

alternate payee share in a QDRO may not require benefits to be paid to an alternate

payee if a court has already required those benefits to be paid to another alternate

payee under a previously determined QDRO.

4. The bill eliminates references to the transaction amortization account in the

core retirement investment trust of the public employee trust fund, which no longer

exists.

5. The bill eliminates a duplicative reference to a federated library system

under the WRS.

6. Currently, among the conditions that a participant in the WRS must meet

in order to qualify for an annuity is one that requires the individual to have separated

from WRS-covered employment for at least 30 days. Other WRS provisions prohibit

a participant from receiving an annuity if the individual returns to covered

employment within 75 days after terminating employment. The bill eliminates the

30-day requirement for receiving an annuity under the WRS.

7. The bill eliminates a requirement under the WRS that an application for an

annuity may not be filed more than 90 days before the employee's anticipated

termination date from employment.

8. The bill changes application deadlines for an employer to join the WRS.

Under current law, if an employer elects to join the WRS and DETF receives the

application on or before November 15, the effective date of inclusion is the ensuing

January 1. If DETF receives the application after November 15, the effective date

of inclusion is the January 1 after the ensuing January 1. The bill eliminates this

provision.

For further information, see the

Notes