Press Release
For Immediate Release
June 22, 2007
Contact:
Bob Conlin
Communications Director
(608) 261-7940
2008 WRS Contribution Rates to Remain Level
MADISON, (Wis.) -- The Department of Employee Trust Funds (ETF)
announced today that required Wisconsin Retirement System (WRS)
contribution rates will not change next year. At its meeting today,
the ETF Board (Board) approved the consulting actuary’s recommendation
to keep next year’s rates at 2007 levels.
ETF Deputy Secretary David Stella said a small rate increase had
been expected for next year, but better-than-anticipated investment
returns offset the upward pressure created by improved life expectancies
of program participants. “This is good news for everyone –
employers, employees, and taxpayers,” said Stella. “Stable
contribution rates are further evidence that the WRS is achieving
the intended goal of financial stability and continues to be very
well funded.”
In other action, the ETF Board approved the actuary’s recommendation
to reduce the contribution rates for the state’s Accumulated
Sick Leave Conversion Credit Program. The cost of this program has
declined steadily over the past three years and will now be 1% of
payroll.
Normal Cost contribution rates as a percentage of salary* by Wisconsin
Retirement System (WRS) employment category for 2008 are summarized
as follows:
| Employee Category |
2007 |
2008 |
Percent of Payroll
Increase |
| General/Teacher |
10.6% |
10.6% |
No Change |
| Elected Official/Executive |
11.5% |
11.5% |
No Change |
| Protective with Social Security |
13.3% |
13.3% |
No Change |
| Protective without Social Security |
14.2% |
14.2% |
No Change |
The rates shown above do not include
other mandatory employer contributions for duty disability, the state's Accumulated
Sick Leave Conversion Credit Program, or unfunded liabilities, all of which vary
by employer.
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Additional information:
- The WRS has approximately 260,302 active employees, including state
government workers, teachers, University of Wisconsin faculty and staff,
and most local government employees, with a total annual payroll of
approximately $11.1 billion.*
- General category employees comprise approximately 91% of the total
WRS employee population. The group includes state and local government
employees, except employees of Milwaukee County and the City of Milwaukee,
which have their own separate retirement systems.
- By law, the WRS receives funding from three separate sources:
employee contributions, employer contributions, and investment earnings.
Together, these must be sufficient to meet the present and future pension
and benefit commitments of the system.
*As of December 31, 2006 actuarial valuation.
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