2023 - 2024 LEGISLATURE
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2023 SENATE BILL 9
January 27, 2023 - Introduced by Senators JACQUE, BALLWEG, CABRAL-GUEVARA,
QUINN and WANGGAARD, cosponsored by Representatives TITTL, PENTERMAN,
BALDEH, KNODL, MURPHY, MURSAU, MYERS, ROZAR, SCHRAA, SPIROS, TUSLER,
VANDERMEER and WICHGERS. Referred to Committee on Government
Operations, Elections and Consumer Protection.
1 AN ACT to amend 40.22 (1), 40.22 (2m) (intro.), 40.22 (2r) (intro.) and 40.22 (3)
2 (intro.); and to create 40.26 (7) of the statutes; relating to: rehired teacher
3 annuitants.
Analysis by the Legislative Reference Bureau
Under current law, certain individuals 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 individual is no longer in a WRS-covered
position. This suspension applies to an individual 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 individual retired from
WRS-covered employment as a teacher for grades kindergarten to 12 after July 2,
2013; 2) at least 30 days have elapsed from the date the individual left WRS-covered
employment with a school district; 3) the individual is rehired as a substitute
teacher; 4) at the time the individual initially retires from a school district, the
individual does not have an agreement with any school district to return to
employment; 5) the individual elects to not become a participating employee at the
time the individual is rehired or enters into a contract after retirement; and 6) the
individual is hired between the effective date of the bill and August 1, 2026. In other
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SENATE BILL 9
words, the bill allows a WRS teacher annuitant to return to work as a substitute
teacher with a participating employer and elect to not become a participating
employee for purposes of the WRS and instead continue to receive his or her annuity
between the effective date of the bill and August 1, 2026.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
1 SECTION 1. 40.22 (1) of the statutes is amended to read:
2 40.22 (1) Except as otherwise provided in sub. (2) and s. 40.26 (6) and (7), each
3 employee currently in the service of, and receiving earnings from, a state agency or
4 other participating employer shall be included within the provisions of the Wisconsin
5 retirement system as a participating employee of that state agency or participating
6 employer.
7 SECTION 2. 40.22 (2m) (intro.) of the statutes is amended to read:
8 40.22 (2m) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an
9 employee who was a participating employee before July 1, 2011, who is not expected
10 to work at least one-third of what is considered full-time employment by the
11 department, as determined by rule, and who is not otherwise excluded under sub. (2)
12 from becoming a participating employee shall become a participating employee if he
13 or she is subsequently employed by the state agency or other participating employer
14 for either of the following periods:
15 SECTION 3. 40.22 (2r) (intro.) of the statutes is amended to read:
16 40.22 (2r) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an
17 employee who was not a participating employee before July 1, 2011, who is not
18 expected to work at least two-thirds of what is considered full-time employment by
19 the department, as determined by rule, and who is not otherwise excluded under sub.
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SENATE BILL 9 SECTION 3
1 (2) from becoming a participating employee shall become a participating employee
2 if he or she is subsequently employed by the state agency or other participating
3 employer for either of the following periods:
4 SECTION 4. 40.22 (3) (intro.) of the statutes is amended to read:
5 40.22 (3) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), a person
6 who qualifies as a participating employee shall be included within, and shall be
7 subject to, the Wisconsin retirement system effective on one of the following dates:
8 SECTION 5. 40.26 (7) of the statutes is created to read:
9 40.26 (7) During the period beginning on the effective date of this subsection
10 .... [LRB inserts date], and ending on August 1, 2026, subs. (1) to (5) do not apply to
11 a participant who applies for an annuity or lump sum payment during the period in
12 which at least 30 days have elapsed between the participant's termination of
13 employment as a teacher with a school district that is a participating employer and
14 the date on which the participant becomes a substitute teacher as an employee or
15 contractor providing employee services with any school district that is a
16 participating employer if all of the following conditions are met:
17 (a) The participant terminates his or her employment after July 2, 2013.
18 (b) At the time the participant terminates his or her employment as a teacher
19 with a school district, the participant does not have an agreement with any school
20 district that is a participating employer to return to employment as a substitute
21 teacher or enter into a contract to provide employee services as a substitute teacher
22 for that school district.
23 (c) The participant elects on a form provided by the department to not become
24 a participating employee.
25 (END)


Statutes affected:
Bill Text: 40.22(1), 40.22, 40.22(2m)(intro.), 40.22(2r)(intro.), 40.22(3)(intro.)