Contributions paid by Wisconsin Retirement System employees will decrease slightly for most individuals, effective January 1, 2019.
Total 2019 contribution rates, expressed as a percentage of salary, are indicated in the table below.
The 2019 rate changes are primarily due to higher favorable WRS Trust Fund investment performance. In general, when trust fund investment earnings are greater than expected, contribution rates may decrease the following year. When earnings are lower than expected, rates may increase to make up for the shortfall.
Changes in WRS contribution rates are designed to be stable, with investment returns for the Core Fund smoothed over a five-year period.
The rates, which were approved last Thursday by the ETF Board, are adjusted annually, upon review of the Board’s consulting actuary’s valuation of the system and WRS funding requirements. The total rates are generally split evenly between employees and employers. Contributions are paid in full, ensuring full funding of future WRS benefits.
In addition, the ETF Board approved 2019 rate reductions for the following employer-paid benefit programs:
- Accumulated Sick Leave Conversion Credit programs – decrease of 0.1%
- Duty Disability program – decrease of 33% for each tier base contribution rate