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Employers

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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