Wisconsin Biennial Budget Overview
The Wisconsin Biennial Budget Bill for 2025-2027 (2025 Act 15) was enacted on July 3, 2025.
This budget allocates a one-time funding of $71 million to the ETF, aimed at updating the organization’s outdated pension management system.
Currently, the ETF operates with an array of legacy systems that range from 11 to 38 years old.
The existing system heightens various risks for the agency, including matters related to information security, achieving business goals, financial expenditures, and its overall reputation.
To tackle these issues, the ETF has initiated several projects designed to mitigate risks and enhance service quality.
This new funding will provide necessary resources to ensure the successful rollout of the new pension management system.
Legislative Proposals Regarding Pensioners
The ETF is keeping a close watch on legislative proposals related to returning to work, which have been introduced in both the Senate (SB) and the Assembly (AB).
Specifically, 2025 SB 170 and AB 196 aim to permit pensioners to return to roles with WRS employers, allowing them to work two-thirds of the time while not becoming active WRS participants, thus enabling them to receive pensions for up to 60 months. Recently, there has been a proposal to eliminate the 60-month limit.
These legislative bills do not impose employee contribution requirements on pensioners who return to work but instead ask WRS employers to hire these pensioners to meet the necessary contributions for active employees.
Meanwhile, 2025 SB 301 and AB 376 seek to remove pension suspension requirements for WRS pensions, permitting pensioners to work more than two-thirds full-time for WRS employers while also reducing the mandated service breaks from 75 days to just 30.
In addition, 2025 SB 35 and AB 36 propose allowing pensioners who were law enforcement officers or firefighters to return to their previous jobs, work two-thirds full-time, opt out of becoming participating WRS employees, and still receive their pensions.
Lastly, 2025 SB 105 and AB 138 are intended for pension recipients who were not previously participants in the WRS Protection Occupational Profession, aiming to facilitate their return to work with WRS employers, working two-thirds full-time while maintaining their pension benefits.
