Changes required by the federal SECURE Act; named survivors under the Wisconsin Retirement System; domestic relations orders executed by the Department of Employee Trust Funds; the purchase of other governmental service under the Wisconsin Retirement System; disability annuities under the Wisconsin Retirement System; employee-funded reimbursement accounts; references to the administrator of the Division of Personnel Management; and abandoned accounts (suggested as remedial legislation by the Department of Employee Trust Funds)

The bill clarifies that only an employee who is currently employed with a participating employer under the WRS may purchase other governmental service.

As currently written, the statute uses the terms “participant” and “participating employee.” The term “participant” includes a person who previously worked for a participating employer but has not yet taken a WRS benefit.

Under the bill, references to beneficiaries and named survivors in statutes regarding annuity options under the WRS are amended to distinguish between a named survivor who will receive a benefit and a beneficiary.

Under current law, when a disability annuity under the WRS is terminated, the person's WRS account is reestablished and credited with interest. While a person is receiving an annuity from the WRS, the person cannot also be credited with contributions and service. The bill removes obsolete language from the statute.

Under current law, the Employee Trust Funds Board contracts with employee-funded reimbursement account plan providers to provide accounts to be used by state agencies. Employee-funded reimbursement accounts are governed by provisions of the Internal Revenue Code. The bill aligns the statutory language with the language in the IRC.

The bill amends how DETF must treat a retirement account as abandoned if an estate is never opened. The bill allows DETF to consider a benefit abandoned if an estate is never opened within a specific period, the same as if an estate is closed and not reopened.

The bill eliminates an expired provision regarding the execution of domestic relations orders (DROs) that divide a WRS account. Under current law, a DRO must be provided to DETF within 20 years after the judgment of divorce is entered. Under the original DRO law, DETF could not accept a DRO for a judgment of divorce entered before April 28, 1990. The law was amended by 1997 Wisconsin Act 125 to cover DROs for a judgment of divorce entered between January 1, 1982, and April 27, 1990.

The Wisconsin Supreme Court held in Johnson v. Masters , 2013 WI 43, 347 Wis.

2d 238, 830 N.W. 2d 647 (2013), that the 20-year limit for execution of DROs issued under the amended law did not begin until the date DETF was able to divide a WRS account. The 20-year period did not begin to toll until May 2, 1998. DETF has not been authorized to accept a DRO to divide an account under 1997 Wisconsin Act 125 since May 2, 2018.

2015 Wisconsin Act 55 eliminated the Office of State Employment Relations in the Department of Administration, headed by a director, and replaced it with the Division of Personnel Management in DOA, headed by an administrator. The bill corrects a reference to the director of OSER by substituting the administrator of DPM.

For further information, see the Notes provided by the Law Revision Committee of the Joint Legislative Council.