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Calculators

Wisconsin Retirement System (WRS)
Forfeited Service Cost Calculator

This calculator lets you produce an unofficial estimate for purchasing WRS forfeited service. The tool will aid you in deciding whether to purchase forfeited service. For an official cost estimate and application to purchase forfeited service, please contact us.

WRS forfeited creditable service is created when you take a lump sum separation benefit of your employee-required WRS contributions. Under certain conditions, you are eligible to buy back these years of forfeited service. Buying back WRS service usually increases the amount of your WRS retirement benefit.

The WRS Forfeited Service Cost Calculator should not be your only source of information regarding service purchases. For additional information and important details, review the ETF resources listed at the end of this page or contact ETF.

Information About Forfeited Service Purchases

ETF must receive your application and payment to purchase forfeited service before you terminate WRS-covered employment. After you terminate WRS employment, forfeited service can no longer be purchased.

To purchase forfeited service, you must have three continuous years of WRS creditable service since returning to WRS-covered employment. Once the return to work requirement is met, you may purchase all or part of your forfeited service, making up to two separate purchases each calendar year. You can only buy the amount of service you have earned since your return.

There are several ways to pay for your forfeited service purchase:

  • A personal check or money order;
  • WRS additional contributions; or
  • A plan-to-plan transfer from a retirement plan other than the WRS.

Forfeited Service Calculator

Using the information you provide, the calculator estimates the cost of your forfeited service purchase. The accuracy of the estimate depends on the accuracy of the data you enter. The calculator also shows an estimate of the increase to a formula retirement benefit and a money purchase retirement benefit. The increases shown are for the highest paying annuity option and will be less if you select a lower paying option.

Other factors could affect the benefit increase you receive from a forfeited service purchase. These include:

  • Retiring before Normal Retirement Age;
  • Receiving WRS credit for active military service; or
  • Having your WRS account split by divorce.

Partial Purchase

The calculator can also determine the cost of a partial purchase of your forfeited service. A Partial Purchase button appears at the bottom of the screen once the calculator determines the cost of buying all your service.

In addition, you may use the Partial Purchase button to calculate the amount of forfeited service you can purchase for a specific dollar amount. For example, if the cost of your total service is $18,000, but you only have $10,000, the calculator tells you how much forfeited service can be purchased for $10,000. It also shows the projected retirement benefit increase for a specific dollar purchase.

We strongly recommend that you use the Retirement Benefit Calculator to calculate a more accurate projection of how your forfeited service would increase your retirement benefit.

Estimating the Return on Your Investment When Buying Service

The calculator also estimates the number of years it would take to recover your investment by dividing the total service cost by the estimated annual benefit increase. In the following example, the service purchase investment is recovered in five years.

Example:

Cost to Purchase Service ÷ Estimated Annual Increase = Years to Recover Investment
$18,000 ÷ $3,600 = 5

In addition to investment recovery time, the calculator provides the rate of return on your investment by dividing the estimated annual increase by the estimated cost to purchase service. In the following example, the rate of return is 20%.

Estimated Annual Increase    ÷ Cost to Purchase Service  = Rate of Return
$3,600 ÷ $18,000  = .20 or 20%

Continue to the Forfeited Service Cost Calculator or contact us if you would like an official WRS forfeited service cost estimate/application form and information packet.

ETF Resources

For more detailed information about WRS retirement benefits, review the following ETF resources:

 

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