Wisconsin’s 2023-25 biennial budget bill (2023 Wisconsin Act 19) became law on July 5, 2023. We have completed an initial review of the law and prepared a summary of the provisions that relate to the Department of Employee Trust Funds. Here is a brief description:
- Modernization-Related Ongoing IT Expenses. Provides seven positions and funding to support our modernization effort related to ETF’s Insurance Administration System, data management and consulting/contractor costs related to replacing outdated legacy IT systems.
- Critical Customer Service Functions. Provides five positions to maintain basic, critical customer service functions related to significant increases in the number of Wisconsin Retirement System members and employers.
These resources support ETF’s commitment to providing exceptional and dependable service, which includes ensuring benefits are calculated accurately and paid on time; that we provide expert benefits guidance; and safeguard member personal information.
Enacted Legislation
2023 Wisconsin Act 12 modifies the state’s approach to shared revenue for local governments; repeals Wisconsin’s personal property tax; and authorizes the City of Milwaukee and Milwaukee County to impose sales and use taxes, primarily to address the city's and county’s unfunded pension system liabilities.
Imposing the sales tax would require Milwaukee City and Milwaukee County to join the WRS. Additionally, the bill closes the City of Milwaukee and the Milwaukee County retirement systems to new employees, prohibits the city or county from creating a new retirement system, and prohibits the city or county from changing the benefits of employees that remain enrolled in the two systems.
In July, the Milwaukee City Common Council and the Milwaukee County Board of Supervisors voted to impose the sales tax. ETF is working with the city and county to prepare them for WRS and duty disability enrollment. WRS consulting actuaries have determined that since only new hires from these two entities would participate in the system, the census of our active employee population is projected to increase gradually, reaching an ultimate count of 270,000 in 30 to 50 years. This is not expected to have a material impact on the WRS. In addition, the legislation does not affect other ETF-administered programs at this point.
2023 Wisconsin Act 4 provided that, beginning January 1, county correctional officers (jailers) who are currently categorized as general category employees will become protective occupation employees under the Wisconsin Retirement System, unless they opt out. For more information on who is affected, decision deadlines, and what this means for a jailer’s WRS benefits, visit the 2023 Wisconsin Act 4 for Jailers page.
Other Legislative Proposals
2023 SB 9 and 2023 AB 18 eliminate the annuity suspension requirement for teachers of school districts who return to work as a substitute teacher for a school district and work more than two-thirds of full time and reduce the break-in-service requirement for teachers of school districts from 75 days to 30 days. The changes apply to retired teachers who are hired between the effective date of the bill and August 1, 2026.
2023 AB 227 and 2023 SB 224 eliminate sick leave credits for state representatives and state senators. Under the bill, the current accumulated sick leave balances of legislators would not be affected. The bill would not make any changes to the state’s sick leave conversion credit programs.
2023 SB 273 and 2023 AB 278 allow an annuitant who was a law enforcement officer or fire fighter to return to work with an employer who participates in the WRS, work two thirds of full-time, and elect to not become a participating employee for purposes of the WRS, and instead continue to receive his or her annuity.