Wisconsin DETF - Wisconsin Retirement System FAQ's

All employees other than those in the protective category (police, firefighters, etc.) can retire and receive a retirement benefit at age 55; participants who have protective category service (other than purchased service) can retire at age 50.

Is there a minimum number of years that I have to work under the WRS to be vested?

If you began employment covered under the WRS before January 1, 1990, OR have worked under the WRS on or after April 23, 1998, you are automatically vested under the WRS.

If you began covered WRS employment on or after January 1, 1990, and last terminated covered WRS employment before April 23, 1998, you must have earned some creditable WRS service in at least 5 separate calendar years to meet the WRS vesting requirement. If you are not vested, you are only eligible for a separation benefit regardless of your age when you apply for a WRS benefit.

What happens if I terminate employment before my earliest retirement age? Do I have to withdraw my retirement account?

No, you do not need to withdraw your account. If you terminate employment before age 55 (age 50 for participants with protective category service) you can either take a separation benefit, a lump sum refund of contributions plus interest, or wait until you reach age 55 (50) or later and apply for a retirement benefit, which is based on both employer and employee contributions.

Exception: If you began WRS employment on or after January 1, 1990, and terminate WRS employment before April 24, 1998, to be eligible for a retirement benefit you must have some WRS creditable service in at least 5 separate calendar years to be vested. The 5 calendar years do not have to be consecutive, so if you do not close your account and you return to work at a later date, your later years of employment would apply to the vesting requirement. If you never meet the vesting requirement you are only eligible for a separation benefit, regardless of your age.

In the past I worked in a position covered under the WRS, but left my job and withdrew my funds. Is there any way I can get back the creditable service I forfeited when I withdrew my money from the retirement system?

Yes, if you are currently employed under the WRS and meet the eligibility criteria you can buy back your creditable service. Please refer to the Buying Creditable Service (ET-4121) brochure for detailed information about the elibibility requirements and the cost of buying back your forfeited service.

Can I use my teaching or other government employment with out-of state employers towards my WRS benefits?

Yes, if you are currently employed under the WRS you can purchase your years of service with federal, state or local government employers as creditable service in the WRS under the Other Government Service purchase provisions.

I was not covered under the retirement system for my first 6 months of employment. Is there any way I can get credit for that six months towards my retirement benefit?

If you started employment as a non-teacher before 1973, you served a 6-month qualifying period before you became covered under the Wisconsin Retirement Fund. You can purchase your 6-month qualifying period before you retire.

If you meet all eligibility criteria you may be eligible to receive WRS creditable service for up to 4 years of active military service. A Military Service Credit (ET-4122) brochure is available that provides detailed information about eligibility for military service credit in the WRS.

Can I get a lump sum benefit when I retire, or am I limited to receiving a monthly annuity?

If your benefit is at least $341* per month (this amount increases annually), you are restricted to a monthly annuity paid for your lifetime. If your account provides an annuity of less than $341 per month, you are eligible to choose between a lump sum retirement benefit or a monthly annuity. If your annuity is $168* or less per month, you are restricted to a lump sum retirement benefit.

*The $341 and $168 thresholds apply to retirement benefits that become effective in 2009. These amounts are increased annually.

What should I do if I become disabled? Are any disability benefits available through the WRS?

If you become permanently and totally disabled while you are actively employed under the WRS you may qualify for disability benefits. If you meet the service requirements your disability does not have to be work-related to qualify. For temporary or less severe disabilities the department also offers Income Continuation Insurance to state employees, and to employees of local WRS employers who have elected to participate in the Income Continuation Insurance program.

You should request your retirement estimates approximately 6-12 months before you retire. We can accept your retirement application up to 90 days before the date you terminate employment.

No. You can request your retirement estimate packet by phone or in writing. The estimate packet will include your application for benefits, information about income tax liabilities, electronic deposit of your payments, etc., plus any applicable information about health and life insurance continuation. You can submit your application in person or by mail. If you have any questions about your estimates you can call us and have your questions answered over the phone.

If you prefer to handle your retirement in person you can contact us to make an appointment with a benefit specialist. We recommend that you call us a few weeks in advance for an appointment.

I do not remember who I designated as my beneficiary for my retirement account, or even whether I have ever filed a designation form. How do I find out who is my designated beneficiary?

You can call or write to the Department to request information about your current beneficiaries, and we will send the information to you. If you file a new designation form it will supersede all forms you filed in the past, and will govern your retirement account and your life insurance benefits if you have the group life insurance coverage offered through this Department.

It is extremely important that you keep your designation up to date. Under the law all death benefits must be paid according to the most recent designation filed by you, regardless of any changes in your personal situation such as divorce, remarriage, birth of your children, etc.

Yes, except for the portion of your benefit based on the contributions in your account that were actually paid by you from after-tax dollars, your entire benefit is subject to federal and state income tax. If you reside in another state your lump sum or monthly benefit would be subject to the state income tax laws in your state of residence. A Tax Liability on WRS Benefits (ET-4125) brochure is available that provides information about federal and Wisconsin state income tax liabilities.

I am not currently enrolled in the Variable Fund, and would like to participate. Is it possible to get into the Variable Fund?

Most participants are eligible to elect participation in the Variable Fund*. If you have never participated in the variable program, or you previously participated but canceled your variable participation before 1999, you can file an election to participate in the Variable Fund.

A Variable election applies only to new contributions made after the date your Variable election becomes effective. No monies in your existing account balance are transferred to the Variable Fund. Once your Variable election becomes effective, 50% of all new contributions to your account are deposited in the Variable Fund, including service purchase payments and any voluntary additional contributions made to your account.

A booklet entitled How Participation in the Variable Trust Affects Your WRS Benefits (ET4930) is available that provides detailed information about the effect of variable participation on your WRS benefits.

*You are not eligible to elect participation in the Variable Fund if you:

cancelled your Variable participation after 1998, or
terminated all employment covered under the WRS before 2001, and have not subsequently returned to covered WRS employment.

I am currently enrolled in the Variable Fund. How does participation in the Variable affect my WRS benefits? Can I get out of the Variable Fund if I so choose?

If you are already enrolled in the Variable Fund, the annual Variable investment returns will affect any WRS lump sum or monthly benefits paid from your WRS account. A booklet entitled How Participation in the Variable Trust Affects Your WRS Benefits (ET-4930) is available that provides detailed information about how your benefits will be affected.

If you decide to withdraw from the Variable Fund you can file an election with the Department to cancel your Variable participation. Your election becomes effective on January 1 of the year after the year in which we receive it; therefore, your account will be credited with the Variable gain or loss for the year in which we receive your election. Once your election becomes effective it is irrevocable, and you cannot re-enroll in the Variable Fund.

If I file an election to participate in the Variable Fund, when would it become effective?

Your Variable participation will become effective on the January 1 after the date your election is received. Exception: if you are a new WRS participant and the Department receives your Variable election form within 30 days after the date your covered WRS employment begins, your election becomes effective immediately on the date your covered WRS employment began.

I will be retiring within the next few years. What impact will it have on my retirement benefits if I enroll in the Variable program?

The closer you are to retirement when you elect to participate in the Variable fund, the less effect it will have on your retirement benefit. A Variable election under Act 11 applies only to future contributions; your existing account balance prior to your Variable participation effective date remains in the core fund. 50% of your new contributions (including any new voluntary additional contributions) will go into the Variable Fund, and will be credited with the Variable gains or losses.

The variable excess/deficiency balance used to calculate the Variable adjustment to a formula annuity will be based only on a comparison of the Core and Variable investment earnings credited to your contributions reportable after your Variable participation effective date. Therefore, if you enroll in the Variable Fund shortly before your retirement, the Variable adjustment to your formula annuity will be fairly small. Also, since the Variable portion of your account balance will be small, and the Variable portion of your annuity is calculated based on your Variable account balance, only a small portion of your retirement annuity will be variable. This means that most of your annuity will receive annual annuity adjustments, and only a small portion will receive the annual Variable adjustment.

Frequently Asked Questions

Wisconsin Retirement System