SB 612

This bill makes a number of changes to the Wisconsin Retirement System

(WRS). Currently, under the WRS, participants who are not protective occupation

participants may retire as early as age 55 and qualify for an immediate annuity from

the WRS. This bill increases the minimum retirement age to the greater of age 59.5

or the age at which the Internal Revenue Service does not penalize a person for

taking a distribution from a 401 (k) plan. This change in the minimum retirement

age first applies to individuals who are under the age of 40 on the bill's effective date

and who terminate WRS-covered employment on or after the bill's effective date.

This bill also allows an annuitant who is hired by a WRS employer as an

employee or to provide employee services to elect to not suspend his or her annuity

for not more than a total of 36 months. The bill also requires the Department of

Employee Trust Funds to submit an annual report to the governor and the

legislature that provides information about annuitants who are hired to positions

and who elect to not suspend their annuities. Under current law, if a WRS annuitant,

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

appointed to a position with a WRS-participating employer, or provides employee

services to a WRS-participating employer in which he or she is expected to work at

least two-thirds of what is considered full-time employment by DETF, the annuity

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

again terminates covered employment.

Finally, under current law, a WRS participant who has applied to receive a

retirement annuity must wait at least 75 days between terminating covered

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

a participating employee. This bill reduces that period to 45 days.

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.