Court Continues Order Barring Implementation of llaw

The Wisconsin Supreme Court has continued its order barring implementation of all provisions of the biggest public employee improvement law in state history.

However, the court has not yet made any rulings on the merits of the case.

The court is reviewing a challenge to the legislation, which was signed into law as Wis. Act 11 in December 1999 but immediately challenged in court. The Supreme Court last year barred implementation of the law pending its review. Last October, the court heard oral arguments from both sides.

On December 20, 2000, WEAC filed a motion for interim relief pending final disposition of the case. Specifically, WEAC asked the court to dissolve the preliminary injunction with respect to certain provisions in Act 11 that were not being challenged. The provisions included the following:

• Reopening the variable fund
• Removing the 5% interest cap on individual accounts for certain participants
• Increasing death benefits for participants who die before age 55
• Allowing death benefits to be payable to beneficiaries other that a spouse or dependent.

The other parties were ordered to respond and objections were raised to WEAC's motion. The court issued its order on December 28, 2000, denying WEAC's motion.

This order does not have any bearing on the merits of the pending case. The court did not rule on the legal merits and has not yet made any decision on the legality of any provisions of Act 11.

WEAC Legal Counsel Anthony Sheehan said that while WEAC is disappointed the motion was denied, WEAC attorneys believe the law will ultimately be upheld.

The law, which was the bipartisan product of months of negotiations and cooperation between labor and governmental groups, provides a 10% increase in pensions for past service and makes various other improvements in the Wisconsin Retirement System.

Unfortunately, because of the legal delays, participants have missed out on the opportunity to take immediate advantage of one of the provisions of the new law — enrolling in the Variable Trust Fund for 2001.