In February, Gov. Tony Evers released the 2025-2027 executive state budget, a proposal for how the state should manage expenses for the next two years.
The budget is introduced as separate yet identical legislation (bills) in the Senate and the Assembly. Both bills are currently before the Joint Committee on Finance, which will continue to review and make changes over the next few weeks.
What’s in the Budget
The proposed budget contains changes affecting benefit programs administered by ETF. The governor included the following resources that ETF requested in the budget bill.
Spending authority to replace antiquated legacy pension administration systems. ETF currently operates a portfolio of legacy systems that are 11 to 38 years old. These systems significantly increase agency risks related to information security, fulfillment of business objectives, financial costs, and agency reputation. ETF has embarked on multiple projects intended to lessen these risks and enhance the quality of service we provide. The funding will provide the resources to support the successful implementation of these projects.
Position and statutory changes to create an independent Office of Internal Audit. These will strengthen ETF’s Office of Internal Audit’s ability to conduct objective reviews of third-party administrators, IT project implementation, and staff oversight of external vendors.
Positions to maintain service levels for members and employers. ETF’s member and employer populations have significantly increased. Since 2014, the retiree population rose by 25%, and 250 more employers joined the WRS.
Position for ETF to manage actuarial duties. Increased actuarial oversight ensures the accuracy of actuarial valuations and reliability of financial reporting.
The budget bill did not include ETF requests related to agency risk management and information security functions, positions for locating WRS missing participants, and increased autonomy toward managing personnel.
Return-to-Work Proposals
The governor also included the following changes to WRS return-to-work laws:
- Allow an annuitant to return to work for a WRS employer, work two-thirds of full time, and elect to not become a participating WRS employee, and instead continue to receive their annuity
- Reduce the break-in-service requirement from 75 to 30 days
Likewise, lawmakers introduced their versions of return-to-work proposals. 2025 Senate Bill (SB) 170 and Assembly Bill (AB) 196 seek to allow an annuitant to return to work for a WRS employer, work two-thirds of full time, and elect to not become a participating WRS employee, and instead continue to receive their annuity for up to 60 months.
The bills also require WRS employers that hire these annuitants to make payments to ETF equal to what they would have paid as required contributions for an active employee. It does not require an employee contribution from the rehired annuitant.
Further to these, 2025 SB 35 and AB 36 seek to allow an annuitant who was a law enforcement officer or firefighter to return to work for a WRS employer, work two-thirds of full time, and elect to not become a participating WRS employee, and instead continue to receive their annuity.
Finally, 2025 SB 105 and AB 138 have a wider coverage by seeking to allow an annuitant who was a WRS protective occupation participant or a county jailer who was not a WRS protective occupation participant to return to work for a WRS employer, work two-thirds of full time, and elect to not become a participating WRS employee, and instead continue to receive their annuity.
ETF will monitor the progress of these bills and provide updates to WRS members.