| Retired Professional Fire Fighters of Wisconsin |
|
Legislative Update December 21, 2011 The Wisconsin Legislature returns for its Winter Session on January 17, 2012. That session is scheduled to end on March 15th. That could be the end of the regular session unless the Governor calls a Special Session. Between now and March we will likely know the status of the efforts to recall the Governor and Lieutenant Governor and several state senators. There are at least two issues that are under consideration by the State Legislature that could have an impact on retired fire fighters but fortunately will not likely come before the legislature in 2012 for a vote. These are the issues of "double dipping" and converting WRS from a defined benefits to a defined contribution system. DOUBLE DIPPING - Legislation is pending in the State Assembly placing new restrictions on retired public employees that take another state or local job after retiring. The new restriction would stop the annuity if the annuitant goes back to work for government. However, this legislation is not likely to be taken up now but wait for an audit to be done of the current practice. Audit was approved on December 1, 2011 by the Legislative Audit Committee. The audit will take about 6-8 months to complete. Depending on the results, if the Legislature decides to take action to place new restrictions on double dipping it probably would not occur until next session (2013-2014). DEFINED BENEFIT v.s. DEFINED CONTRIBUTION - The Biannual Budget Bill signed last summer directs that a study be conducted to determine the feasibility of moving the state retirement system from a "defined benefit" to a "defined contribution" system. The study was to be done jointly by the ETF, the Department of Administration (DOA) and Office of State Employment Relations (OSER). However the Legislature did not provide any funding for the study. ETF decided that this issue was important and could have a detrimental impact on WRS so they are going to pay for the study themselves. An actuarial has been hired and is expected to have his work done by March. By July 1, 2012 ETF, DOA and OSER will then refer the study to the Governor and the State Legislature's Joint Committee on Finance. By then the Legislature will be out of session for the year so if there was interest on the part of the Governor or State Legislators they would have to wait until 2013 to introduce legislation. The budget language directs both the study of "defined contribution" and a separate question of making WRS an optional system for public employees. Back in 1997 then Assembly Speaker Scott Jensen (R-Brookfield) authored legislation giving new employees of the UW system the option of taking their state pension contributions and investing them in a private system rather than WRS. They private system was TIAA-CREF. Opposition from annuitant groups and public employees effectively killed the legislation. Sensing that Governor Walker and the Republican controlled State Legislature might be more "sympathetic" toward this type of private system, TIAA-CREF is again lobbying for this change. To date not actual legislation has been introduced so it is doubtful that any bill will pass this winter. Depending on the results of both these studies and the upcoming recall elections and then the fall election the future of the WRS could be a stake. Depending on the results it might be necessary for RPFFW members to contact their State Legislators. Until then we will continue to keep you informed. |
|
