Wisconsin Assembly Bill AB138

Wisconsin 2025-2026 Regular Session

• Introduced: 3/17/25
• Refer: 3/17/25
• Report Pass: 5/29/25
• Refer: 5/29/25
• Failed: 3/23/26

Caption

An Act to amend 40.22 (1), 40.22 (2m) (intro.), 40.22 (2r) (intro.) and 40.22 (3) (intro.); to create 40.26 (7) of the statutes; Relating to: jailers and protective occupation annuitants in the Wisconsin Retirement System who are rehired by a participating employer. (FE)

Summary

AB138 would create a new exception in the Wisconsin Retirement System (WRS) rules that normally require a retiree’s annuity to be suspended if the retiree returns to work for a WRS-participating employer in a covered position. Under the bill, certain retirees could continue receiving their annuity even if they are rehired or provide employee services after retirement, so long as they had no preexisting return-to-work agreement when they retired and they elect not to become a participating employee again. The exception applies to two groups: protective occupation participants and county jailers who retired without being classified as protective occupation participants. The bill also amends several WRS participation provisions to cross-reference the new exception and to treat county jailers who opted out of protective occupation status the same as county jailers who were protective occupation participants for purposes of this post-retirement reemployment rule. The change is limited to participants who terminate employment on or after the bill’s effective date, and it would alter how the Department of Employee Trust Funds administers annuity suspension and reemployment rules for affected retirees and participating employers.

Impact

AB138 would modify Wisconsin retirement law, specifically statutes governing WRS participation and annuity suspension for retirees who return to work. It would create a new statutory carveout in s. 40.26 for certain jailers and protective occupation annuitants, allowing them to avoid suspension of retirement benefits when rehired by a participating employer under specified conditions. The bill would affect the Department of Employee Trust Funds, participating public employers, and retirees in covered protective occupations, especially county jailers and similar public safety employees.

Sentiment

The available context suggests the bill was introduced with bipartisan sponsorship and was framed as a targeted retirement-system adjustment rather than a broad policy overhaul. Because there are no committee transcripts or recorded votes provided, there is no direct evidence of debate or opposition in the supplied materials. The bill ultimately failed to pass pursuant to Senate Joint Resolution 1, indicating it did not complete the legislative process despite its introduction and referral.

Contention

The main policy issue appears to be whether certain public safety retirees should be allowed to draw a WRS annuity while returning to work for a participating employer without being forced back into active participation. Potential points of contention include the fiscal and actuarial effects on the retirement system, whether the exception should apply only to protective occupation retirees and county jailers, and whether county jailers who opted out of protective occupation status should be treated the same as those who did not. Another possible issue is the bill’s requirement that there be no prearranged return-to-work agreement at retirement, which is intended to prevent abuse but may still raise administrative and enforcement questions.