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WISCONSIN BLUE BOOK 1987-1988


  Total Budget 1985-87: $37,730,200.
  Statutory Reference: Section 15.16.
    History: The first statewide teacher retirement law in Wisconsin was
enacted by Chapter 323,
  Laws of 1911, following several years' effort. A pension system for Milwaukee
teachers had been
  authorized in 1909. The statewide program adopted in 1911 was voluntary
and required no
  employer contributions. It was administered by the Board of Trustees of
the Teachers' Insur-
  ance and Retirement Fund.
    In 1921 the first compulsory, joint contributory, statewide system was
enacted. Also in 1921
  (Chapter 459), the board was abolished, and the Annuity Board was created
to administer the
  state retirement system, operating through 3 retirement boards (Public
School, Normal School,
  and University).
    Chapter 491, Laws of 1929, abolished the Annuity Board and created the
State Annuity and
 Investment Board to administer the state teachers' retirement law and invest
the retirement
 funds as well as other state funds.
    In order to provide retirement coverage for state employes, Chapter 176,
Laws of 1943, cre-
 ated the State Employes Retirement System under the Annuity and Investment
Board. In the
 same session, Chapter 175, Laws of 1943, created the Wisconsin Municipal
Retirement Fund to
 provide a general municipal retirement system.
   As a result of recommendations by the Joint Interim Committee on Pension
and Retirement
 Plans, Chapter 206, Laws of 1947, closed a number of separate municipal
retirement plans and
 the Conservation Wardens Pension Fund to new entrants and consolidated the
Wisconsin Mu-
 nicipal Retirement Fund and the State Employes' Retirement System into the
Wisconsin Retire-
 ment Fund, under the Wisconsin Retirement Fund Board, effective January
1, 1948. The Wis-
 consin Retirement Fund thus became the basic retirement program for both
state and municipal
 nonteaching employes throughout the state (except employes of the city and
county of
 Milwaukee).
   The State Annuity and Investment Board was abolished in 1951 (Chapter
511). The State
 Investment Board succeeded to its duties in the investment of state funds
(including retirement
 funds), and the State Retirement System Administration Board succeeded to
its duties in the
 administration of the state retirement system for teachers. It became the
State Teachers Retire-
 ment Board in 1953 (Chapter 204).
   The Group Insurance Board was originally created by Chapter 512, Laws
of 1957, as the
 Group Life Insurance Board to provide a program of group life insurance
for state employes.
   In 1959 (Chapter 211) a group health insurance program was enacted for
state employes, and
 the group life insurance was extended to municipalities (Chapter 412). With
the adoption of the
 group health insurance program in 1959, the name of the board was changed
to Group Insur-
 ance Board. Chapter 75, Laws of 1967 (the executive branch reorganization
act), attached the
 board to the Department of Employe Trust Funds under Section 15.03 of the
statutes.
   Chapter 125, Laws of 1971, provided for creation of an income continuation
plan (disability
 insurance) for state employes and the statutory authorization for using
accrued sick leave credits
 to pay insurance premiums for health care coverage either for state employes
after retirement or
 for surviving dependents. Both changes became effective in 1972 and are
administered by the
 Group Insurance Board.
 Chapter 214, Laws of 1971, gave the Group Insurance Board the authority
to initiate any
 other group insurance plan it found necessary or desirable. This chapter
also required group
 insurance plans not sponsored by the board to receive board approval before
they could benefit
 from payroll deductions from state employes' paychecks.
 The Public Employes Social Security Fund was created by Chapters 60 and
631, Laws of 1951,
 to permit state and local government employes not covered by an existing
retirement system to
 come under social security. As soon as permitted by federal law, 1953 legislation
covered all
 positions under the Wisconsin Retirement Fund excepting firefighters. Pursuant
to 1956 federal
 legislation, the 1957 Legislature enabled other state and municipal retirement
systems to divide
into 2 groups - one coming under social security, the other declining social
security. All new
personnel must come under social security.
  The executive branch reorganization enacted in 1967 (Chapter 75) created
the Department of
Employe Trust Funds to administer the trust funds described above except
that municipal retire-