MIM:kms&amn
2023 - 2024 LEGISLATURE
January 27, 2023 - Introduced by Senators Jacque, Ballweg, Cabral-Guevara,
Quinn and Wanggaard, cosponsored by Representatives Tittl, Penterman,
Baldeh, Knodl, Murphy, Mursau, Myers, Rozar, Schraa, Spiros, Tusler,
VanderMeer and Wichgers. Referred to Committee on Government
Operations, Elections and Consumer Protection.
SB9,1,3 1An Act to amend 40.22 (1), 40.22 (2m) (intro.), 40.22 (2r) (intro.) and 40.22 (3)
2(intro.); and to create 40.26 (7) of the statutes; relating to: rehired teacher
3annuitants.
Analysis by the Legislative Reference Bureau
Under current law, certain individuals who receive a retirement or disability
annuity from the Wisconsin Retirement System (WRS) and who are hired by an
employer that participates in the WRS must suspend that annuity and may not
receive a WRS annuity payment until the individual is no longer in a WRS-covered
position. This suspension applies to an individual who 1) has reached his or her
normal retirement date; 2) is appointed to a position with a WRS-participating
employer or provides employee services as a contractor to a WRS-participating
employer; and 3) is expected to work at least two-thirds of what is considered
full-time employment by the Department of Employee Trust Funds.
This bill creates an exception to this suspension if 1) the individual retired from
WRS-covered employment as a teacher for grades kindergarten to 12 after July 2,
2013; 2) at least 30 days have elapsed from the date the individual left WRS-covered
employment with a school district; 3) the individual is rehired as a substitute
teacher; 4) at the time the individual initially retires from a school district, the
individual does not have an agreement with any school district to return to
employment; 5) the individual elects to not become a participating employee at the
time the individual is rehired or enters into a contract after retirement; and 6) the
individual is hired between the effective date of the bill and August 1, 2026. In other

words, the bill allows a WRS teacher annuitant to return to work as a substitute
teacher with a participating employer and elect to not become a participating
employee for purposes of the WRS and instead continue to receive his or her annuity
between the effective date of the bill and August 1, 2026.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB9,1 1Section 1 . 40.22 (1) of the statutes is amended to read:
SB9,2,62 40.22 (1) Except as otherwise provided in sub. (2) and s. 40.26 (6) and (7), each
3employee currently in the service of, and receiving earnings from, a state agency or
4other participating employer shall be included within the provisions of the Wisconsin
5retirement system as a participating employee of that state agency or participating
6employer.
SB9,2 7Section 2 . 40.22 (2m) (intro.) of the statutes is amended to read:
SB9,2,148 40.22 (2m) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an
9employee who was a participating employee before July 1, 2011, who is not expected
10to work at least one-third of what is considered full-time employment by the
11department, as determined by rule, and who is not otherwise excluded under sub. (2)
12from becoming a participating employee shall become a participating employee if he
13or she is subsequently employed by the state agency or other participating employer
14for either of the following periods:
SB9,3 15Section 3 . 40.22 (2r) (intro.) of the statutes is amended to read:
SB9,3,316 40.22 (2r) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an
17employee who was not a participating employee before July 1, 2011, who is not
18expected to work at least two-thirds of what is considered full-time employment by
19the department, as determined by rule, and who is not otherwise excluded under sub.

1(2) from becoming a participating employee shall become a participating employee
2if he or she is subsequently employed by the state agency or other participating
3employer for either of the following periods:
SB9,4 4Section 4 . 40.22 (3) (intro.) of the statutes is amended to read:
SB9,3,75 40.22 (3) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), a person
6who qualifies as a participating employee shall be included within, and shall be
7subject to, the Wisconsin retirement system effective on one of the following dates:
SB9,5 8Section 5 . 40.26 (7) of the statutes is created to read:
SB9,3,169 40.26 (7) During the period beginning on the effective date of this subsection
10.... [LRB inserts date], and ending on August 1, 2026, subs. (1) to (5) do not apply to
11a participant who applies for an annuity or lump sum payment during the period in
12which at least 30 days have elapsed between the participant's termination of
13employment as a teacher with a school district that is a participating employer and
14the date on which the participant becomes a substitute teacher as an employee or
15contractor providing employee services with any school district that is a
16participating employer if all of the following conditions are met:
SB9,3,1717 (a) The participant terminates his or her employment after July 2, 2013.
SB9,3,2218 (b) At the time the participant terminates his or her employment as a teacher
19with a school district, the participant does not have an agreement with any school
20district that is a participating employer to return to employment as a substitute
21teacher or enter into a contract to provide employee services as a substitute teacher
22for that school district.
SB9,3,2423 (c) The participant elects on a form provided by the department to not become
24a participating employee.
SB9,3,2525 (End)
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