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13(5) Rules. The department may by rule adjust the maximum benefit
14limitations under this section to conform with the internal revenue code and any
15regulations promulgated by the U.S. secretary of the treasury, including an
16adjustment which eliminates the maximum benefit limitations under this section.
SB449, s. 44
17Section
44. 40.32 of the statutes is created to read:
SB449,24,23
1840.32 Limitations on contributions.
(1) The sum of all contributions
19allocated to a participant's account under each defined contribution plan sponsored
20by the employer, including all employer contributions and picked-up contributions
21credited with interest at the effective rate under s. 40.04 (4) (a) and (5) (b) and all
22employe contributions made under ss. 40.02 (17), 40.05 (1) and (2m) and 40.25 (6) (a),
23may not in any calendar year exceed the lesser of the following:
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(a) Thirty thousand dollars.
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1(b) Twenty-five percent of the participant's compensation, as defined in the
2internal revenue code, for the calendar year.
SB449,25,43(c) The maximum contribution limit under section
415 (c) of the internal
4revenue code.
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5(2) The department may provide by rule additional limitations for participants
6who are participating in more than one retirement system.
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7(3) Any contribution that the department receives, which is allocated to the
8account of a participant and which exceeds the contributions limitation under this
9section, may be refunded or credited as provided in s. 40.08 (6). If the department
10refunds any contributions that exceed the limitation under this section, the
11department shall first refund amounts voluntarily contributed by a participating
12employe, either as an additional contribution under s. 40.05 (1) (a) 5. or a purchase
13of forfeited or creditable service under s. 40.02 (17) or 40.25 (6) (a).
SB449, s. 45
14Section
45. 40.73 (3) (a) of the statutes is amended to read:
SB449,25,1915
40.73
(3) (a) A death benefit may be paid as
a beneficiary an annuity
for the
16life of the beneficiary, if the amount of the death benefit is sufficient to provide a
17beneficiary annuity in the normal form at least equal to the amount determined
18under s. 40.25 (1) (a) and the beneficiary or the participant has elected to have the
19death benefit paid as a beneficiary annuity.
SB449, s. 46
20Section
46. 40.73 (3) (e) of the statutes is amended to read:
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40.73
(3) (e) Any beneficiary who is eligible to receive a beneficiary annuity
22may elect to receive the annuity in any of the optional annuity forms provided for
23retirement annuities
, other than an annuity under s. 40.24 (1) (c) or any annuity
24payable over the joint life expectancies of the beneficiary and another person.
SB449, s. 47
25Section
47. 40.86 (intro.) of the statutes is amended to read:
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140.86 Covered expenses. (intro.) An employe-funded reimbursement
2account plan may provide reimbursement to an employe for only the following
3expenses that are actually incurred and paid by an employe and that the board
4determines are consistent with the applicable requirements of the internal revenue
5code
, as defined in s. 71.01 (6):
SB449, s. 48
6Section
48. 111.91 (2) (k) of the statutes is created to read:
SB449,26,77
111.91
(2) (k) The definition of earnings under s. 40.02 (22).
SB449, s. 49
8Section
49. 111.91 (2) (L) of the statutes is created to read:
SB449,26,99
111.91
(2) (L) The maximum benefit limitations under s. 40.31.
SB449, s. 50
10Section
50. 111.91 (2) (m) of the statutes is created to read:
SB449,26,1111
111.91
(2) (m) The limitations on contributions under s. 40.32.
SB449,26,1714[
1995 Wisconsin Act 27] Section 9459 (2) (d) The treatment of section 40.81 (3)
15of the statutes and the repeal and recreation of sections 40.02
(22) (e) and (25) (b) 8.,
1640.05 (4) (ag) (intro.), (ar) and (b), (5) (intro.) and (b) 4. and (6) (a) and 40.62 (2) of the
17statutes take effect on July 1, 1997.
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19(1)
Appropriation increase for the department of employe trust funds. In
20the schedule under section 20.005 (3) of the statutes for the appropriation to the
21department of employe trust funds under section 20.515 (1) (w) of the statutes, as
22affected by the acts of 1995, the dollar amount is increased by $450,000 for fiscal year
231996-97 to implement changes in the Wisconsin retirement system relating to
24complying with the federal internal revenue code.
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1(1)
Prohibited subjects of collective bargaining. The treatment of section
2111.91 (2) (k), (L) and (m) of the statutes first applies to participants, who are affected
3by a collective bargaining agreement that contains provisions inconsistent with that
4treatment, on the day on which the collective bargaining agreement expires or is
5extended, modified or renewed, whichever occurs first.
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6(2)
Repurchase of creditable service. The treatment of section 40.05 (1) (a)
77. of the statutes first applies to an amount payable under section 40.02 (17) of the
8statutes on the date specified by the department of employe trust funds, but not later
9than January 1, 1997.
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10(3)
Lump sum payments. The treatment of section 40.25 (7) (a) 1. of the statutes
11first applies to a participating employe who terminates covered employment on the
12effective date of this subsection.
SB449, s. 55
13Section
55.
Effective dates. This act takes effect on the day after
14publication, except as follows:
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15(1)
The treatment of sections 40.31 and 40.32 of the statutes takes effect on
16January 1, 1997.
