State Rep. Robert Wittke (R-Racine, pictured), along with Sen. Dan Knodl (R-Germantown) and Rep. Joel Kitchens (R-Sturgeon Bay) circulated LRB-2040/5421 for cosponsorship last Friday. This bill draft would allow for certain participants of the Wisconsin Retirement System (WRS) to be rehired by participating employers, without having to suspend their annuities (pensions), for up to 60 months. Under current law, retired annuitants generally must suspend their annuity payments in order to return to work (which is a significant disincentive). As Wisconsin continues to face school personnel shortages of all kinds, retired staff is a pool of qualified individuals that can help districts fill positions. However, the current statutory language has made this a challenge.
Employers across Wisconsin continue to struggle to find enough workers with the right skill set to fill an abundance of vacancies. Given our state’s demographic trends, this challenge is unlikely to be resolved soon. We must consider all avenues on how to recruit and retain workers across all sectors in all positions, including: police and fire departments, county and municipal governments, and school districts.
Under current law, certain people 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 the annuity and may not receive a WRS annuity payment until the person is no longer in a WRS-covered position .
We asked the Department of Employee Trust Funds (ETF) to review our draft and provide feedback as to safeguarding the WRS relating to Return-to-Work (RTW) provisions. A break in service (BIS) requirement prior to rehire is currently 75 days. Evidence seems to indicate that the longer the waiting period – break in service – the more likely it is that the retirement would appear bona-fide to an external observer. We agree that moving to a shorter waiting period will tend to discourage hiring new people which would be detrimental to the WRS.
The bill would require full employer contributions for rehired annuitants, further preserving the WRS covered payroll base if the position taken by rehired retiree would have been filled by a new active member. The rehired retiree would not make contributions to the WRS.
LRB 2040 would afford an option for public sector employers to look at retirees and consider rehiring them to fill open positions within police and fire departments, county and municipal governments, and school districts. LRB 2040/5421 would provide important safeguards for the WRS as well.
If you would like to be added as a co-sponsor on LRB 2040/5421, please reply to this email by Thursday, December 21, or call the office of Rep. Wittke 9162 or Sen. Knodl 6-5830. You will be added to both assembly and senate versions unless you indicate otherwise.
- 4.37 Rehiring Retired Teachers and Staff
The WASB supports legislation to remove any impediments to rehiring retired teachers and staff. Policies and standards for rehiring retired staff should be set by each local school board. (2021-07)
