SB 170

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 they are no longer in a WRS-covered position. This suspension applies to an annuitant who 1) has reached his or her normal retirement date; 2) is appointed to a position with 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 allows such an annuitant who is hired by a WRS-participating employer as an employee or to provide employee services to not suspend his or her annuity for up to 60 months. The bill also requires WRS-participating employers that hire such annuitants to make payments to ETF equal to what they would have paid as required contributions for each rehired annuitant if the rehired annuitant had suspended his or her annuity. Under the bill, these payments are deposited into the employer reserve account.

If the annuitant does not suspend the annuity and does not become an active WRS-participating employee, in the case of state employment, the annuitant is not eligible for group insurance benefits provided to active WRS-participating employees and may not use any of his or her service in the new position for any WRS purposes. If the annuitant opts to again become an active WRS-participating employee, the annuitant is eligible for all group insurance benefits provided to other participating employees and may accumulate additional years of creditable service under the WRS for the new period of WRS-covered employment.

The bill also repeals two obsolete provisions related to WRS annuitants returning to WRS-covered employment during the public health emergency declared on March 12, 2020, by executive order 72, which ended on May 13, 2020.

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.