An Act to repeal 40.26 (5m), 40.26 (6) and 323.19 (3); to amend 40.22 (1), 40.22 (2m) (intro.), 40.22 (2r) (intro.), 40.22 (3) (intro.), 40.26 (1m) and 40.26 (5) (intro.); to create 40.04 (5) (am) and 40.26 (7) and (8) of the statutes; Relating to: rehired annuitants in the Wisconsin Retirement System. (FE)
Summary
SB170 revises the Wisconsin Retirement System rules for retirees and disability annuitants who return to work for a WRS-participating employer. Under current law, many such individuals must suspend their annuity payments if they take a covered position or provide employee services at a qualifying workload. The bill creates a new option allowing an eligible annuitant to elect to keep receiving retirement or disability annuity payments for up to 60 months after returning to work, so long as the person had a bona fide separation from service, terminated employment after July 2, 2013, and does not already have an agreement to return. The election is made on a department form and applies only if the person chooses not to become an active participating employee again.
The bill also requires the participating employer to make payments to the Department of Employee Trust Funds equal to the contributions that would have been owed for that rehired annuitant, with those payments credited to the employer reserve account. If the rehired annuitant instead becomes an active WRS participant, the person would receive the same group insurance benefits as other participating employees and could earn additional creditable service in the system. SB170 also repeals obsolete provisions tied to the COVID-19 public health emergency and removes outdated references in the retirement statutes.
Impact
SB170 would amend multiple sections of chapter 40 of the Wisconsin statutes governing WRS participation, annuity suspension, and employer contributions. It would create a new statutory pathway for certain rehired annuitants to continue receiving benefits while working for a participating employer, while also imposing offsetting employer payments to ETF. The bill would affect state agencies, local government employers, rehired retirees and disability annuitants, and the Department of Employee Trust Funds, and it would eliminate obsolete emergency-era retirement provisions and related statutory language.
Sentiment
The available context suggests the bill was generally framed as a technical and policy adjustment to retirement rules rather than a controversial overhaul. Its introduction by a bipartisan group of senators and representatives indicates some cross-party interest in updating WRS rehiring rules. However, the bill ultimately failed to pass, which suggests it did not secure enough support to advance through the legislative process.
Contention
The main policy tension is between flexibility for employers and retirees versus preserving the traditional separation between retirement and active employment in the WRS. Supporters likely view the bill as a way to help employers retain experienced workers and fill staffing needs without forcing annuity suspension, while critics may be concerned about the cost, fairness, or potential erosion of retirement-system rules. The requirement that employers make payments to ETF appears designed to address fiscal concerns, but the bill’s failure indicates unresolved disagreement over whether the new rehired-annuitant option should be adopted.
Crossfiled
An Act to repeal 40.26 (5m), 40.26 (6) and 323.19 (3); to amend 40.22 (1), 40.22 (2m) (intro.), 40.22 (2r) (intro.), 40.22 (3) (intro.), 40.26 (1m) and 40.26 (5) (intro.); to create 40.04 (5) (am) and 40.26 (7) and (8) of the statutes; Relating to: rehired annuitants in the Wisconsin Retirement System. (FE)