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Department of Employee Trust Funds
September 14, 2015

Legislative Update: Other Post-Employment Benefits for Local Governments

2015 AB 269 and 2015 SB 213 provides that technical colleges, school districts, cities, villages, towns and counties may only provide post-retirement healthcare benefits if they comply with the following:

  • The cost of the benefit must be fully funded in a segregated account for employees hired on or after January 1, 2016.
  • The required funding must be determined by an actuarial study, or other method that complies with generally accepted accounting principles, conducted at least every 4 years.
  • If a local government dissolves a segregated account established for the purpose of providing such healthcare benefits, the local government must provide for the equitable distribution of the proceeds among the beneficiaries.

The proposed legislation only applies to local governments and does not apply to the funding of the state’s other post-employment benefits. The state’s other post-employment benefits are currently funded according to the standards identified in the bill.

2015 AB 269 was introduced by Rep. Thiesfeldt and referred to the Assembly Committee on Urban and Local Affairs. 2015 SB 213 was introduced by Sen. Vukmir and referred to the Senate Committee on Elections and Local Government. A public hearing was held September 8, 2015.

As with any legislative proposal, the provisions of these bills are subject to changes. ETF will continue to monitor developments and provide updates as they occur.

For More Information
If you are interested in monitoring legislative developments more closely, you may want to check out the Wisconsin State Legislature website.

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