| 1099R |
The WRS 1099-R is
the multi-ply tax form that accompanies lump sum payments from
the WRS and is sent to annuitants early in each year. The WRS
1099-R follows Internal Revenue Service guidelines and contains
information such as the total benefit amount, the taxable portion
of the benefit, and the amount of federal and Wisconsin (annuity
only) income tax withheld. ETF reports the identical information
about these benefits to the IRS. The plies of the 1099-R contain
instructions for filing them with tax returns. |
| 40.63 |
Disability
retirement benefits under section 40.63 of the Wisconsin
Statutes for participating employees who are totally and permanently
disabled from gainful employment in any occupation. This assumes
that the employee has reached normal retirement age and uses
the employee's retirement account for funding. |
| 40.65 |
Duty
disability benefits under section 40.65 of the Wisconsin
Statutes for protective occupation participants who are injured
or contracts a disease due to their occupation. The disability
must be permanent and cause them to no longer be able to work
full duty. |
| Accelerated Payment |
A WRS annuity option
that provides a higher monthly payment until the annuitant reaches
age 62. At age 62 the WRS payments decrease approximately by
the amount of the annuitant's projected age-62 Social Security
benefits. |
| Act 11 |
Legislation that
became effective on December 30, 1999, that included provisions
which increased WRS benefits for most WRS participants and their
beneficiaries. |
| Active Status |
A WRS participant
who is currently employed by a Wisconsin participating public
employer, including employees on a leave of absence. |
| Actuary |
The professional
organization contracted by ETF to perform the statistical analysis
of ETF operations for financial reporting purposes and for determining
the contribution rate necessary to pay future benefits of ETF
members. |
| Actuarial Discount |
A reduction in a
WRS formula retirement benefit when an individual receives a
retirement benefit before normal retirement age. The percentage
that the benefit is reduced is based on the individual's age
and the statutory normal retirement age for his/her employment
category. |
| Age Reduction Factor |
A reduction in a
WRS formula retirement benefit when an individual receives a
retirement benefit before normal retirement age. The percentage
that the benefit is reduced is based on the individual's age
and the statutory normal retirement age for his/her employment
category. |
| Alternate Payee |
The former spouse
of a WRS participant to whom the court has awarded a percentage
of a participant's WRS account or annuity through a Qualified
Domestic Relations Order. |
| Annuitant |
A person who is receiving
an annuity. There are three types of Wisconsin Retirement System
(WRS) annuitants: Disability Annuitants, Retirement Annuitant
and Beneficiary Annuitants. Disability Annuitants are disabled
and unable to work until normal retirement age due to a physical
or mental disability. Retirement Annuitants are those who have
reached their minimum retirement age and are taking a WRS retirement
annuity. Beneficiary Annuitants are receiving an annuity as
the beneficiary of a deceased
WRS participant or alternate payee. |
| Annuity |
A series of monthly
payments payable during the life of the annuitant or during
a specific period. |
| Annuity Certain |
A monthly annuity
paid for a specific number of months only, rather for the annuitant's
lifetime. A WRS annuity certain can only be paid from voluntary
employee additional contributions, and is available for a period
of 24 to 180 months. |
| Annuity Effective Date |
The date on which
an annuity goes into effect, regardless of when the first payment
is issued. An annuity effective date that is later than the
day after termination of WRS employment must be on the first
of a month. |
| Appeal |
A written determination
made by the Department of Employee Trust Funds may be appealed
to the Employee Trust Funds Board
or one of the four other Boards attached to the DETF. The nature
of your appeal determines which Board hears your case. For example,
the Group Insurance Board hears insurance appeals. |
| Attorney-in-Fact |
A person who acts
for another. Used to describe the agent in a Power of Attorney.
In contrast to an attorney-at-law, this person does not have
to be licensed to practice law. |
| Benefit Adjustment Contribution
(BAC) |
Under 1983 Wisconsin
Act 141, effective March 9, 1984, significant increases in WRS
retirement benefits were authorized by the legislature. In order
to help fund these benefit changes, a “Benefit Adjustment
Contribution” (BAC) was created. The BAC provided for
increased employee and employer contributions beginning in 1986.
Employee contributions increased by 1% of salary for general
category employees, teachers and protective employees with social
security coverage only.
Under s. 40.04 (2m), the BAC is paid by the employee unless
the employer elects to pay it, but will be treated as an employer
contribution for all benefit purposes, regardless of who pays
for it.
|
| Beneficiary |
A person, entity,
trust or estate designated by a WRS member to receive a member's
benefits upon the member's death. |
| Beneficiary Designation |
Members specify beneficiary(ies)
of their benefit account(s) by completing a Beneficiary
Designation Form (ET-2320).
|
| Broadspire, inc. |
A disability management
company who performs as the third party administrator for the
Group Insurance Board's Income
Continuation Insurance (ICI) and Long-Term
Disability Insurance (LTDI) plans. |
| Calendar Year |
The annual period
running from January 1 through December 31. |
| Contributions |
A percentage of all
earnings reportable to the WRS; the percentage varies by employment
category. Employee contributions are mandatory, and may be paid
by the employer as a fringe benefit. Employer contributions
are required and are adjusted each year. |
| Core Effective Rate |
(Formerly called
the Fixed effective rate) The annual interest rate applied to
the accounts of WRS members eligible for core effective interest
rate crediting. |
| Core Trust |
(Formerly called
the Fixed Trust) The Core Retirement Investment Trust is one
of two trust funds into which the assets of the WRS are placed
and managed by the State of Wisconsin Investment Board (SWIB).
The Core Fund is a fully diversified, balanced fund. In other
words, it includes a mixture of holdings, such as stocks, bonds
and real estate. It is diversified to stabilize the effects
of market changes. All WRS participants have monies invested
in the Core Fund. |
| Creditable Service |
The years of service
for which a WRS participant has received credit under the WRS.
This includes all service for which contributions have been
made, purchased service and any retirement service credit granted
by the employer prior to the date the employer joined the WRS. |
| Deferred
Compensation Board |
A five member Board
that is responsible for oversight of the Wisconsin Deferred
Compensation Program. The board sets policy, contracts with
investment and administrative service providers, and oversees
administration of the Deferred Compensation Program. The board
is responsible for establishing criteria and procedures for
selecting and evaluating investment options offered by the Program.
All board members are appointed by the Governor, there are no
statutory requirements for appointments. |
| Deferred Compensation |
Dollars contributed
to a tax favored retirement savings program from gross earnings
on a tax-deferred basis. |
| Deferred
Compensation Program |
A deferred compensation
program is the tax favored plan that allows its participants
to save a portion of their pre-tax income for retirement. The
Wisconsin Deferred Compensation Program is an example of this
arrangement. |
| Direct
Deposit |
This process is used
by nearly 80% of WRS annuitants. WRS annuitants can have their
monthly checks safely and efficiently credited to their checking
or savings accounts by submitting a ACH direct deposit authorization
form to the Department of Employee Trust Funds. |
| Direct Pay |
Direct Pay is the
term describing direct billing of annuitants or insurance continuants
for their insurance coverage by an insurance carrier. It applies
to those WRS members who continue their state group life or
health insurance after termination of employment or retirement
and who are not receiving a monthly WRS benefit or are receiving
a benefit that is not large enough to pay the premiums. |
| Disability
Benefit |
Benefits payable
to eligible members under disability retirement (40.63), duty
disability (40.65), Income Continuation Insurance (ICI) or Long-Term
Disability Insurance (LTDI) plans. |
| Dividend |
An annual increase
(or decrease) in monthly annuities, expressed as a percentage,
based on the previous year's investment experience. Each year's
core dividend rate is applied to annuities being paid from the
core trust fund, and each year's variable dividend is applied
to the variable fund annuities in force. |
| Earliest Retirement Age |
The minimum age at
which a member can begin receiving a retirement annuity, if
the person also meets all other eligibility criteria to receive
an annuity. Age is determined by employment category that a
person is in when terminating all WRS - covered employment.
| Employment Category |
Earliest Retirement Age |
| General Employees and Teachers |
55 |
| Elected Officials and State Executive Retirement Plan
Employees |
55 |
| Participants with some Protective Occupation Category
Service (other than purchased protective category service) |
50 |
| Protective Occupation Employees who terminated before
1981 |
55 |
|
| Employee
Trust Fund Board |
This board sets policy
for the Department of Employee Trust Funds; appoints the ETF
Secretary; approves tables used for computing benefits, contribution
rates and actuarial assumptions; authorizes all annuities except
for disability; approves or rejects ETF administrative rules;
and generally oversees the benefit programs, except group insurance
and deferred compensation. Membership criteria is set by state
law, with some members appointed by the Teachers Retirement
Board and the Wisconsin Retirement Board. |
| Estate |
- Interest in real estate
- Property left by decedent, both real and personal
- Property of a ward, both real and personal
|
| Estimated Payments |
The amount of a new
retiree's first few monthly payments normally the amount shown
for the annuity option selected on the annuity estimate/application
form. Once the employer has reported the participant's final
earnings, contributions and service, the Department does a final
annuity calculation and adjusts the annuity retroactive to the
annuity effective date. |
| ETF Board |
This board sets policy
for the Department of Employee Trust Funds; appoints the ETF
Secretary; approves tables used for computing benefits, contribution
rates and actuarial assumptions; authorizes all annuities except
for disability; approves or rejects ETF administrative rules;
and generally oversees the benefit programs, except group insurance
and deferred compensation. Membership criteria is set by state
law, with some members appointed by the Teachers Retirement
Board and the Wisconsin Retirement Board. |
| Executor |
Person named by testator
to carry out instructions in his will. Antiquated term. See
also "personal representative," the more modern term
used in Wisconsin. |
| FAE |
The average monthly
earnings component used in a formula retirement benefit calculation.
The average is calculated by adding the highest earnings for
three calendar years (fiscal years for teachers, judges and
educational support personnel) and dividing this total by the
creditable service earned during these years, then dividing
by 12. The three years used are those in which reported earnings
were the highest; they do not need to be consecutive, nor the
last years reported. |
| Final Average Earnings (FAE) |
The average monthly
earnings component used in a formula retirement benefit calculation.
The average is calculated by adding the highest earnings for
three calendar years (fiscal years for teachers, judges and
educational support personnel) and dividing this total by the
creditable service earned during these years, then dividing
by 12. The three years used are those in which reported earnings
were the highest; they do not need to be consecutive, nor the
last years reported. |
| Final Annuity Calculation |
The exact calculation
of a WRS final benefit amount, which can only be done after
the employer has reported the final earnings, contributions
and service for the terminated participant. If an annuitant
has been receiving estimated payments, the annuity is adjusted
retroactive to the annuity effective date. |
| Fiscal Year |
The annual period
running from July 1 through June 30. |
| Forfeited Service |
If a member has taken
a separation benefit (a lump sum withdrawal of the employee's
contributions), the participant's account is closed. All service
and employer contributions credited to the account is forfeited.
If the participant returns to WRS employment, the forfeited
service can be purchased if the participant meets certain eligibility
criteria. |
| Formula Benefit |
One of the two methods
for calculating WRS benefits. A formula benefit is calculated
based on a participant's final average earnings, years of service,
a formula factor based on the participant's employment category(ies),
and any applicable age reduction factor for early retirement. |
| Formula Factor |
A percentage factor
used to calculate a formula benefit. There are different formula
factors for different WRS employment categories. |
| GIB |
This board sets policy
and oversees administration of the group health, life, and income
continuation insurance plans for state employees and the group
health, life, and income continuation insurance plans for local
employers who choose to offer them. The board also can provide
other insurance plans, if employees pay the entire premium. |
| Great-West Retirement Services |
This A division of
Great-West Life & Annuity Insurance Company, an organization
providing financial services throughout the United States, who
performs as the third party administrator for the Wisconsin
Deferred Compensation Program overseen by the Deferred Compensation
Board. |
| Group
Insurance Board |
This board sets policy
and oversees administration of the group health, life, and income
continuation insurance plans for state employees and the group
health, life, and income continuation insurance plans for local
employers who choose to offer them. The board also can provide
other insurance plans, if employees pay the entire premium. |
| Guarantee Period |
The minimum number
of months for which a life annuity will be paid. If the annuitant
dies before the guarantee period ends, the beneficiary(ies)
will receive the remainder of the payments in the guarantee
period. |
| Guardian |
A court-appointed
person charged with caring for the estate and/or person of another
living person (the ward). Sometimes there are two guardians
appointed: one to care for the estate (property of ward, both
real and personal) and one to care for the person. This is most
common when a financial institution is handling the money, but
is not equipped to handle matters of personal care.
Reasons for appointing a guardian in Wisconsin: proposed
ward is a minor (less than age 18), a spendthrift, or an incompetent
(mentally, not physically).
Contrast with Guardian ad Litem: A person appointed
by the court (judge) during litigation (court case) to represent
the interests of a minor or an incompetent. |
| ICI |
Acronym for the State
and Local Income Continuation Insurance plans. |
| Income
Continuation Insurance |
Disability benefit
which provides replacement income for short and long term disabilities
for members who have this insurance coverage. |
Investment in Contract (IIC)
|
When you receive
a benefit from your WRS account, it is fully taxable except
for the portion based on your “Investment in Contract”
(IIC). Your IIC is any portion of your WRS account that was
actually contributed by you from after-tax dollars. The remainder
of your account consists of accrued interest and contributions
paid by your employer(s). Your current IIC is shown on your
annual Statement of Benefits. More detailed information about
your IIC and how your benefits are taxed is available in the
Tax Liability on WRS Benefits
brochure (ET-4125). |
| Last Day Paid |
The most recent date
for which an employee was paid earnings, including accumulated
sick leave, other paid leave, vacation, comp time or worker's
compensation. |
| Last Day Worked |
The most recent date
for actual performed work for which the employee is entitled
to earnings excluding sick leave, paid leave, vacation, comp
time or worker's compensation. |
| Life Annuity |
An annuity paid for
the lifetime of the annuitant. |
| Long-Term
Disability Insurance |
Disability benefit
for those participating employees on or after October 15, 1992.
The disability must be total and permanent and prevent the employee
from being gainfully employed in any occupation. Authorized
under ETF 50, Wis. Admin. Code. This does not use the employees
retirement account as it is insurance, not retirement. |
| LTDI |
Acronym for the Long-Term
Disability Insurance plan. |
| Lump Sum Payment |
A WRS benefit paid
to a participant, beneficiary or alternate payee in one lump
sum. |
| Market Recognition Account
(MRA) |
A smoothing mechanism
provided in Act 11 for reducing
the volatility of the annual core effective rates and core annuitant
dividend rates by spreading recognition of the core fund investment
returns over 5 years. The Market Recognition Account replaces
the Transaction Amortization Account. |
| Maximum Formula Annuity |
WRS law restricts
your formula annuity to a percentage of your final average monthly
earnings. The maximum formula annuity is 70% of your final average
earnings for participants other than protective category employees.
The formula annuity maximum formula benefit is 65% of your final
average earnings for protective category employees covered under
Social Security, and 85% for protective employees not covered
under Social Security (some firefighters only). Note: This
benefit maximum applies only to annuities calculated under the
formula method; it does not apply to annuities calculated under
the money purchase method. If your money purchase annuity is
higher than your formula benefit maximum, you will receive the
higher money purchase annuity. |
| Maximum Voluntary Contribution Limit |
All active participants
may make additional
contributions to their WRS account. The Federal Internal
Revenue Code limits the amount of annual contributions in any
calendar year. The total contributions cannot exceed 100% of
the employee's annual gross compensation or a total of $49,000
whichever is less (in 2009). This amount may increase annually. |
| Military Service |
Active service earned
in the United States armed forces which is then credited towards
retirement for members of the Wisconsin Retirement System. See
Military Service Credit ET-4122
for more information. |
| Minimum Distribution |
The minimum amount
that federal law requires a qualified retirement plan (such
as the WRS) to distribute from a participant's account by certain
deadlines. |
| Minimum Retirement Age |
The earliest at which
a member can begin receiving a retirement annuity, if the person
also meets all other eligibility criteria to receive an annuity.
The minimum retirement age is 55 for most WRS participants,
and age 50 for participants with some creditable service in
a protective occupation category (e.g. police and firefighters).
| Employment Category |
Earliest Retirement Age |
| General Employees and Teachers |
55 |
| Elected Officials and State Executive Retirement Plan
Employees |
55 |
| Participants with some Protective Occupation Category
creditable service (other than purchased protective category
service) |
50 |
| Protective Occupation Employees who terminated before
1981 |
55 |
|
| Money Purchase Benefit |
One of the two methods
for calculating WRS benefits. A money purchase benefit is calculated
based only on the applicant's age when the benefit paid and
the amount of money in the account available to fund the benefit. |
| Named Survivor |
A participant may
select one of several joint and survivor monthly annuity options
which provide a lifetime annuity for the participant and one
joint survivor, who is most often a spouse. The joint survivor
must be named on the annuity application form. Once the annuity
option change deadline has passed, that named joint survivor
can never be changed or eliminated. Certain age restrictions
apply to named survivors who are not the participant's spouse. |
| Normal Retirement Age |
The age at which
you may begin receiving a retirement annuity that is not reduced
by an actuarial age reduction factor. The normal retirement
ages for the various employment categories are as follows:
| Employment Category |
Normal Retirement Age |
| General Employees and Teachers |
65 |
| Elected Officials and State Executive Retirement Plan
Employees |
62 |
| Protective Occupation Employees with less than 25 years
of creditable service |
54 |
| Protective Occupation Employees with 25 or more years
of creditable service |
53 |
| Protective Occupation Employees who terminated before
1981 regardless of years of service |
55 |
|
| Other Governmental Service |
Employment with a
non-WRS public employer other than military at the federal,
state or local level. Participants may purchase this service.
For more information, see
Buying Creditable Service ET-4121. |
| Participant, Active |
An employee who is
currently in the service of, or an employee who is on a leave
of absence from, a WRS participating employer who has met the
eligibility requirements. |
| Participant, Annuitant |
A person receiving
a retirement or disability annuity from his/her WRS account. |
| Participant, Inactive |
A participant who
no longer works for a WRS employer but who has left contributions
on deposit in the WRS to continue to earn investment earnings.
|
| Participant, or Member |
1. A person who currently
is making contributions to the WRS. Also referred to as "active."
2. A person who no longer is working for a WRS employer but
has left contributions in the WRS. Also referred to as "inactive."
3. A participant who currently is receiving a retirement
benefit or disability benefit from the WRS. Also referred
to as "annuitant." |
| Participating Employer |
A local government,
school district or state employing agency that has filed a resolution
to participate in the WRS and administers the benefits associated
with membership. |
| Personal Representative |
Person named by testator
to carry out instructions in his will. An executor or administrator
of a decedent's estate. |
| Plan Administrator |
This is the term
used to describe the third party administrator (TPA) contracted
by the Department to provide administrative services for certain
benefit plans, such as ERA
and the WDC. |
| Power of Attorney |
Legal document in
which one person (principal) appoints another person (agent
or attorney-in-fact) to act in his place. In Wisconsin, there
are separate requirements for a power of attorney for business
matters and for a power of attorney for health care. See
chaps. 243
and 155,
Wis. Stats. Scope: A power of attorney may be general,
including most or all business decision-making powers, or
it may be limited to a specific purpose.
Duration: A power of attorney terminates upon death of the
principal. It may also terminate upon incapacity (mental,
not physical) of the principal, unless it is a durable power
of attorney. A durable power of attorney must include a statement
that the power of attorney is not affected by the subsequent
disability or incapacity of the principal. |
| Primary Beneficiary |
The person(s) and/or
entity(ies) who will receive any death benefits payable upon
a participant's death. Those named as principal recipients of
a deceased participant's benefits on a beneficiary designation
form. |
| Protective Occupation |
WRS members who are
classified "protective category employees" are as follows:
Protectives with Social Security: law enforcement
personnel, including correctional officers, firefighters covered
under Social Security, and participants working in positions
and defined in WRS statutes as protecitve occupation employment.
Protective without Social Security: firefighters
who are not covered under the federal Social Security program. |
| QDRO |
A court order that
awards a percentage up to 50% of a participant's WRS account
or annuity to a former spouse. |
| Qualified
Domestic Relations Order (QDRO) |
A court order that
awards a percentage up to 50% of a participant's WRS account
or annuity to a former spouse. |
| Qualifying Service |
Participants hired
prior to January 1, 1973 were required to serve a qualifying
period, usually the first six months, which was not covered
under the Wisconsin Retirement Fund (now part of the Wisconsin
Retirement System). Participants may purchase
this service. |
| Retirement |
The receipt of retirement
benefits after the member has made an application and has fulfilled
all requirements for a retirement benefit. |
| Rollover |
Occurs when funds
from your benefits are made payable to another qualified retirement
plan or IRA - in other words, you "rollover" the funds or benefit
from the WRS to another qualified retirement fund. |
| SIPD |
Legislation enacted
in 1987 that provided an early recognition of investment gains
credited to the Transaction Amortization Account, and directed
the ETF Board on how the Wisconsin Supreme Court found the SIPD
legislation unconstitutional, and ordered the State of Wisconsin
to reimburse the WRS for the portion of the SIPD funds distributed
to annuitants in 1997. The Court also directed the ETF Board
to find an equitable method of distributing the SIPD funds recovered
to the WRS; the SIPD distribution project ended on June 30,
2001. |
| Secondary Beneficiary |
If all of the primary
beneficiaries die prior to participant's death, the benefits
will be distributed to those named as secondary beneficiaries. |
| Separation
Benefit |
A separation benefit
is a lump sum payment of the employee contributions in your
retirement account plus accumulated interest. Your separation
benefit will also include any voluntary additional contributions
you have made to your account. You cannot withdraw part of your
contributions; a separation benefit will completely close your
account. All service and employer contributions credited to
the account are forfeited through a separation benefit. |
| Special Investment Performance Dividend
(SIPD) |
Legislation enacted
in 1987 that provided an early recognition of investment gains
credited to the Transaction Amortization Account, and directed
the ETF Board on how the Wisconsin Supreme Court found the SIPD
legislation unconstitutional, and ordered the State of Wisconsin
to reimburse the WRS for the portion of the SIPD funds distributed
to annuitants in 1997. The Court also directed the ETF Board
to find an equitable method of distributing the SIPD funds recovered
to the WRS; the SIPD distribution project ended on June 30,
2001. |
| State
of Wisconsin Investment Board |
The State of Wisconsin
Investment Board (SWIB) is the state agency responsible for
investing the assets of the Wisconsin Retirement System, the
State Investment Fund and five smaller trust funds established
by the State. As of June 30, 2000, SWIB managed a total of $70
billion in investments. SWIB is directed by a nine-person Board
of Trustees. ETF Secretary Eric Stanchfield, is the SWIB Board
member who is also a Wisconsin Retirement Board member representing
non-teacher WRS participants. |
| Statement of Benefits |
An annual statement
distributed to active and inactive members each year that provides
individual information on their WRS account. |
| SWIB |
The State of Wisconsin
Investment Board (SWIB) is the state agency responsible for
investing the assets of the Wisconsin Retirement System, the
State Investment Fund and five smaller trust funds established
by the State. SWIB is directed by a nine-person Board of Trustees.
|
| TAA |
A smoothing mechanism
authorized in WRS law for reducing the volatility of the annual
core (formerly "fixed") effective rates and core annuitant
dividend rates by spreading recognition of the core fund investment
returns over a 5-year period. Under Act 11 the Market Recognition
Account replaces the Transaction Amortization Account. |
| Teachers
Retirement Board |
The Teachers Retirement
Board (TR) advises the ETF Board on retirement and other benefit
matters involving public school, vocational, state and university
teachers; acts on administrative rules and authorizes or terminates
teacher disability benefits and hears disability benefit appeals.
Nine of the 13 members are directly elected. It appoints four
members to the ETF Board and one teacher participant to the
separate State of Wisconsin Investment Board. |
| Termination |
The employee-employer
relationship ends between a WRS participant and the WRS employer. |
| Termination Date |
The date on which
the WRS employer-employee relationship is severed. |
| Third Party Administrator (TPA) |
This is the company
that the Department contracts with to provide administrative
services for certain benefit plans (such as ERA
and the WDC). |
| TPA |
(Acronym for Third
Party Administrator.) This is the company that the Department
contracts with to provide administrative services for certain
benefit plans (such as ERA
and the WDC). |
| TR Board |
The Teachers Retirement
Board (TR) advises the ETF Board on retirement and other benefit
matters involving public school, vocational, state and university
teachers; acts on administrative rules and authorizes or terminates
teacher disability benefits and hears disability benefit appeals.
Nine of the 13 members are directly elected. It appoints four
members to the ETF Board and one teacher participant to the
separate State of Wisconsin Investment Board. |
| Transaction Amortization Account (TAA) |
A smoothing mechanism
authorized in WRS law for reducing the volatility of the annual
core (formerly "fixed") effective rates and core annuitant
dividend rates by spreading recognition of the core fund investment
returns over a 5-year period. Under Act
11 the TAA The Market Recognition Account replaces the Transaction
Amortization Account. |
| UAAL |
Unfunded Actuarial
Accrued Liability - The accumulated cost of providing benefits
for service credit earned prior to an employer joining WRS.
This liability also includes funding for major benefit improvement
legislation enacted into law. |
| Unfunded Actuarial Accrued Liability |
The accumulated cost
of providing benefits for service credit earned prior to an
employer joining WRS. This liability also includes major benefit
improvement legislation enacted into law. Sometimes identified
as UAAL. |
| Unreduced Benefits |
A formula retirement
annuity calculated with no age reduction factor, either because
the applicant has reached normal retirement age or because the
applicant's combination of age and service qualify the applicant
for a retirement benefit with no actuarial reduction. |
| Variable
Deficiency |
When a participant
elects to participate in the variable trust fund, the Department
maintains a record of how much money is in the participant's
WRS account compared to what the account balance would be if
the entire account had always been invested in the core trust
fund. If the account balance is less than it would be if the
participant never participated in the variable fund, that account
has a variable deficiency. How much less is in the account due
to variable participation is the amount of the variable deficiency.
A participant's variable deficiency (or variable excess) changes
each year, based on the investment experience of the core and
variable funds, and is shown on each year's annual Statement
of Benefits. |
| Variable Effective Rate |
The annual interest
rate applied to the accounts of WRS members who have a WRS variable
account balance. Employees first hired before 1980 could have
elected to participate in the Variable and have half their contributions
invested in the Variable. The Variable Fund was closed in 1980,
but was reopened to new enrollments beginning in 2001 through
the 1999 Wisconsin Act 11.
|
| Variable Excess |
When a participant
elects to participate in the variable trust fund, the Department
maintains a record of how much money is in the participant's
WRS account compared to what the account balance would be if
the entire account had always been invested in the core trust
fund. If the account balance is higher than it would be if the
participant never participated in the fund, that account has
a variable excess. How much more is in the account due to variable
participation is the amount of the variable excess. A participant's
variable excess (or variable deficiency) changes each year,
based on the investment experience of the core and variable
funds, and is shown on each year's annual Statement of Benefits. |
| Variable Trust |
The Variable Retirement
Investment Trust is one of two trust funds into which the assets
of the WRS are placed and managed by the State
of Wisconsin Investment Board (SWIB).The variable fund is
primarily a stock fund, which results in a greater degree of
risk due to the volatility of the stock market. The core fund
is also partially invested in the stock market, and the particular
stocks held by the core and variable funds are the same. The
variable fund was closed to new participants in 1980, and reopened
to new enrollments beginning in 2001 through the 1999 Wisconsin
Act 11. |
| Vesting |
The minimum number
of years of covered WRS employment needed to qualify a participant
for a retirement benefit. As of January 1, 1990, new WRS participants
needed some WRS creditable service in 5 separate calendar years
to meet the WRS vesting requirements. As of April 24, 1998 the
vesting requirement was eliminated, so participants who either
began WRS employment before January 1, 1990 or terminated after
April 23, 1998, are automatically vested. |
| WDC |
(Acronym for Wisconsin
Deferred Compensation.) This is a supplemental retirement savings
plan, under Section 457 of the Internal Revenue Code, that is
available to all state and university employees as well as employees
of local governments that have elected participation in this
plan. |
| Wisconsin Deferred Compensation (WDC) |
This is a supplemental
retirement savings plan, under Section 457 of the Internal Revenue
Code, that is available to all state and university employees
as well as employees of local governments that have elected
participation in this plan. |
| Wisconsin
Retirement Board |
The Wisconsin Retirement
Board (WR) advises the ETF Board on matters relating to retirement;
approves or rejects administrative rules; authorizes or terminates
disability benefits for non-teachers; and hears appeals of disability
rulings. It appoints four members to the ETF Board and one non-teaching
participant to the separate State of Wisconsin Investment Board. |
| WR Board |
The Wisconsin Retirement
Board (WR) advises the ETF Board on matters relating to retirement;
approves or rejects administrative rules; authorizes or terminates
disability benefits for non-teachers; and hears appeals of disability
rulings. It appoints four members to the ETF Board and one non-teaching
participant to the separate State of Wisconsin Investment Board. |
