Employer Bulletin
All Employers
Vol. 16, No. 11
June 25, 1999
Employe Trust Funds Board Announces Contribution Rates
For the Year 2000
At its June 18, 1999 meeting, the Employe Trust Funds Board approved
Wisconsin Retirement System (WRS) contribution rates for the year
2000, including rates for the 40.65 protective occupation duty disability
and the state's Accumulated Sick Leave Conversion Credit programs.
These rates are based on recommendations of the consulting actuary
and benefit levels in effect as of this writing.
Each contribution category is valued separately. Contribution rate
changes, whether up or down, are considered to be normal for systems
that pre-fund retirement benefits. The WRS contribution rate decreases
are required for 2000 because of positive investment experiences
in 1998. Annuity benefits are not affected by these rate changes.
Under section 40.05 of Wisconsin Statutes, WRS contribution rate
changes are split evenly between the employer and employe. Employers
who have elected to increase prior service coverage or pay off their
unfunded liability balances may also have a change in their prior
service rates. Enclosed are your contribution rates effective
for salaries and wages paid beginning January 1, 2000.
Contribution rate changes by WRS employment category are summarized
as follows:
-
General (including Teachers and Educational Support
Personnel)
Decrease 0.6%
-
Executive, Elected and Judges
Decrease 0.4%
-
Protective with Social Security
Decrease 1.6%
-
Protective without Social Security
Decrease 2.0%
Please reference the enclosed page for the effect on your
total rate. In January 2000 you will receive your Monthly
Retirement Remittance Report (form ET-1515) reflecting these
contribution rates for use in reporting earnings for the year 2000.
If you have questions regarding the 2000 contribution rates, please
contact Nancy Kittleson in the ETF Controller's Office at (608)
267-9034.
DESCRIPTION OF CONTRIBUTION RATES FOR THE YEAR 2000
Employe Required Contribution (May be paid by employer)
| |
5.0% |
|
General, including Teachers and Educational
Support Personnel (no change) |
| |
| |
4.1% |
|
Judges, Elected Officials and State Executive
Positions Designated in 20.923 (4), (8), or (9) (decreased .2%) |
| |
| |
4.1% |
|
Protective with Social Security (decreased .8%) |
| |
| |
4.4% |
|
Protective without Social Security (decreased
1.0%) |
Employe Benefit Adjustment Contribution (May be paid by
employer)
| |
0.5% |
|
General, including Teachers and Educational Support
Personnel (decreased .3%) |
| |
| |
0.0% |
|
Judges, Elected Officials and State Executive
Positions Designated in 20.923 (4), (8), or (9) (no change) |
| |
| |
0.0% |
|
Protective with Social Security (no change) |
| |
| |
0.0% |
|
Protective without Social Security (no change) |
Employer Required Contribution - Current Service (Must
be paid by employer)
| |
4.1% |
|
General, including Teachers and Educational Support
Personnel (decrease.3%) |
| |
| |
9.6% |
|
Judges, Elected Officials and State Executive
Positions Designated in 20.923 (4), (8), or (9) (decreased .2%) |
| |
| |
7.2% |
|
Protective with Social Security (decreased .8%) |
| |
| |
11.8% |
|
Protective without Social Security (decreased
1.0%) |
Employer Required Contributions - Unfunded Actuarial Liability
(Must be paid by employer)
Same rate as 1999 unless employer elected to provide increased
prior service coverage or paid off liability at an accelerated rate.
Notification of any change for individual employers will be sent
at a later date.
Employer Duty Disability Contribution (Must be paid by
employer)
Effective January 1, 2000, the experience-rated duty disability
contribution rate schedule will be determined as listed below:
| |
1.9% |
|
Groups with claims pay out of less than or equal
to .5% of payroll. |
| |
| |
2.4% |
|
Groups with one claim in which the pay out is
more than 0.5%, and groups with two or more claims in which
the pay out is more than 0.5%, but less than 1.0% of payroll. |
| |
| |
3.6% |
|
Groups with two or more claims in which the pay
out is more than 1.0%, but less than 2.0% of payroll. |
| |
| |
5.4% |
|
Groups with two or more claims in which the pay
out is more than 2.0%, but less than 3.0% of payroll. |
| |
| |
6.6% |
|
Groups with two or more claims in which the pay
out exceeds 3.0% of payroll. |
| |
| |
Over 6.6% |
|
Groups with two or more claims in which new claims
added in 1995 and later make pay out exceed 6.6% of payroll.
Rate will be 6.6% plus one-half of new claims over 6.6%. |
Employer Accumulated Sick Leave Conversion Credit Contributions
(Must be paid by employer)
This rate applies to state agencies only. Effective January 1,
2000, the contribution rate for pre-funded sick leave conversion
to fund health insurance premiums after retirement is 1.9%. The
pre-funded supplemental sick leave credits rate is .8%, bringing
the total contribution rate to 2.7%.
For further information, please call Nancy Kittleson at (608) 267-9034.
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