Correcting terminology for making additional contributions to the Wisconsin Retirement System; eliminating a social security account maintained in the public employee trust fund and removing a provision regarding liabili, the official text

2025 - 2026 LEGISLATURE
LRB-6072/1
MIM:cjs/cdc/emw

2025 ASSEMBLY BILL 929
January 28, 2026 - Introduced by Law Revision Committee. Referred to Committee on Rules.

An Act to repeal 40.04 (8); to amend 40.02 (2), 40.02 (25) (a) 4., 40.05 (1) (a) 5. and 40.05 (3) of the statutes; relating to: correcting terminology for making additional contributions to the Wisconsin Retirement System; eliminating a social security account maintained in the public employee trust fund and removing a provision regarding liability for state employer social security remittances; and clarifying who may participate in an income continuation insurance plan provided by the Group Insurance Board (suggested as remedial legislation by the Department of Employee Trust Funds).

Analysis by the Legislative Reference Bureau
Under current law, generally, an individual must not have reached 70 years old at the time of becoming initially eligible for group insurance coverage provided by the Group Insurance Board in order to be an “eligible employee” for coverage under a group insurance plan. However, there are exceptions, including for participation in the group health insurance plan. This bill clarifies that there is also an exception for participation in the income continuation insurance plan.
Under current law, only employees who are actively working for an employer that is a participating employer in the Wisconsin Retirement System are eligible to make additional contributions to their retirement accounts under the WRS. The bill corrects the usage of the term “participant” in certain provisions and replaces it with the term “participating employee.”
Current law requires that a social security account be maintained within the public employee trust fund to be credited with employee and employer OASDHI contributions. The bill repeals the requirement that such an account be maintained. The bill also removes a provision regarding state liability for OASDHI remittances from employers covered by a state-federal agreement.
For further information, see the Notes provided by the Law Revision Committee of the Joint Legislative Council.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
Law Revision Committee prefatory note: This bill is a remedial legislation proposal, requested by the Department of Employee Trust Funds and introduced by the Law Revision Committee under s. 13.83 (1) (c) 4. and 5., stats. After careful consideration of the various provisions of the bill, the Law Revision Committee has determined that this bill makes minor substantive changes in the statutes, and that these changes are desirable as a matter of public policy.

Section 1. 40.02 (2) of the statutes is amended to read:
40.02 (2) “Additional contribution” means any contribution made by or on behalf of a participant participating employee to the retirement system other than employee and employer required contributions.
Section 2. 40.02 (25) (a) 4. of the statutes is amended to read:
40.02 (25) (a) 4. Only a person who has not attained age 70 at the time of becoming initially eligible for the group insurance coverage provided under this chapter; but this subdivision does not exclude any participant from participation in the group health insurance plan or income continuation insurance plan nor does it exclude from participation in the group life insurance plan any employee who is initially eligible on the employer’s effective date of participation.
Note: This Section clarifies that certain persons who are eligible to participate in a group health insurance plan provided by the Group Insurance Board are also eligible to participate in an income continuation insurance plan.

Section 3. 40.04 (8) of the statutes is repealed.
Note: This Section deletes a provision, now obsolete under federal law, that requires the state to maintain a social security account within the public employee trust fund for the purpose of crediting certain employee and employer contributions.
Section 4. 40.05 (1) (a) 5. of the statutes is amended to read:
40.05 (1) (a) 5. Additional contributions may be made by any participant participating employee by deduction from earnings or otherwise or may be provided on behalf of any participant participating employee in any calendar year in which the participant participating employee has earnings, subject to any limitations imposed on contributions by the Internal Revenue Code, applicable regulations adopted under the Internal Revenue Code and rules of the department.
Note: Sections 1 and 4 replace the word “participant” with the phrase “participating employee” for purposes of determining who is eligible to make additional contributions to retirement accounts under the Wisconsin Retirement System.
Section 5. 40.05 (3) of the statutes is amended to read:
40.05 (3) Social security contributions. Each employer included under an agreement made under subch. III shall make the contributions required under federal regulations and shall also withhold from the wages of each of its employees who are covered by the state-federal agreement provided for by subch. III the amount required to be withheld under federal regulations. The state shall be liable for all remittances due from employers in conformity with agreements under subch. III and shall make payment of all sums which are due under this subsection and become delinquent.
Note: This Section deletes a provision, now obsolete under federal law, that imposes liability on the state when an individual employer participating in the Wisconsin Retirement System is delinquent in making a FICA (Federal Insurance Contributions Act) contribution.
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