SB 512

Under current law, certain people who receive a retirement or disability

annuity from the Wisconsin Retirement System (WRS) and who are hired by an

employer that participates in the WRS must suspend that annuity and may not

receive a WRS annuity payment until the person is no longer in a WRS-covered

position. This suspension applies to a person who 1) has reached his or her normal

retirement date; 2) is appointed to a position with a WRS-participating employer or

provides employee services as a contractor to a WRS-participating employer; and 3)

is expected to work at least two-thirds of what is considered full-time employment

by the Department of Employee Trust Funds.

This bill creates an exception to this suspension if 1) the person retired from

WRS-covered employment as a teacher; 2) at least 30 days have elapsed from the

date the person left WRS-covered employment with a school district; 3) the person

is hired as an employee or contractor to provide employee services; 4) at the time the

person initially retires from a school district, the person does not have an agreement

with any school district to return to employment or a contractor providing employee

services; and 5) the person elects to not become a participating employee at the time

the person is rehired or enters into a contract after retirement. In other words, the

bill allows a WRS teacher annuitant who is either hired as an employee or provides

employee services with a school district that is a participating employer to return to

work with a school district and elect to not become a participating employee for

purposes of the WRS and instead continue to receive his or her annuity.