K-12 Tax & Spending Climate: Wisconsin Bill would raise retirement age for public employees

Steven Verburg:

The minimum retirement age for public employees would increase by two years under a bill proposed by a state lawmaker who said the change would reflect increasing life spans and later retirement ages in general while possibly strengthening the pension system.

Democrats and a prominent retiree group were skeptical, and the state Department of Employee Trust Funds said a thorough actuarial study was needed to make sure the change wouldn't cause unintended problems.

Most municipal workers, state employees and teachers in the Wisconsin Retirement System must work until they are 65 years old to collect full benefits, but they can retire at age 55 with reduced pensions.

Under a bill circulated by Rep. Duey Stroebel, R-Saukville, the minimum age would rise to 57. For police and firefighters, it would increase two years to 52.

"(Current laws) have been in place for many years and have not changed to reflect increased longevity, normal life work span or the changing demographics of our state," Stroebel said Friday in an email sent to state legislators in an effort to find co-sponsors.

Stroebel's bill would affect only people who are under 40, so nobody would be affected for more than a decade.

Posted by Jim Zellmer at March 18, 2013 1:48 AM
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