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Department of Employee Trust Funds
May 24, 2013

Legislative Update: Joint Committee on Finance
Acts on Re-hiring of WRS Annuitants

The Joint Committee on Finance recently took action on provisions of the executive budget bill (2013 Assembly Bill 40) affecting Wisconsin Retirement System (WRS) annuitants being re-hired by participating WRS employers.

The Joint Committee on Finance’s provisions in Assembly Bill 40 include:

  • Lengthening the current 30-day waiting period before an annuitant can be re-hired by a WRS participating employer to 75 days.
  • Rehired annuitants who are expected to work at least 1,392 hours annually are ineligible to receive annuity payments and must return to WRS participating employee status. The original annuity is suspended. A new account will be created for the second period of employment and upon re-retirement, the original annuity will be unsuspended and a second annuity will be calculated for the second period of employment.
  • Requires termination of annuities for rehired annuitants who enter into a contract with a WRS employer and work at least 1,392 hours annually. The annuity payments resume when the annuitant no longer provides service under the contract.

The provisions relating to the suspension and calculation of annuities for rehired annuitants first apply to WRS annuitants who return to covered employment as WRS participating employees on the effective date of the bill. The remaining provisions first apply to WRS participating employees who terminate employment on the effective date of the bill.

As with any legislative proposal, the provisions are subject to change. ETF will continue to monitor developments and provide updates as they occur. Watch this website for the latest information.

For More Information

ETF Provides Initial Review of 2013-2015 State Budget (February 22, 2013).

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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