Employe Trust Funds Board Announces Contribution Rates For the Year 2001
At its June 23, 2000 meeting, the Employe Trust Funds Board approved Wisconsin Retirement System (WRS) contribution rates for the year 2001, 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.
These contribution rates have been determined without consideration of 1999 Wisconsin Act 11, which has been stayed by the Wisconsin Supreme Court. If any or all of Act 11 is found to be constitutional, the impact of the law on contribution rates will be reflected in 2002 rates, set in June 2001.
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 2001 because of positive investment experiences in 1999. 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 experience a change in their prior service rates. If the Court declares the employer credits provided under 1999 Wisconsin Act 11 legal, ETF will provide further instructions.
Enclosed are your contribution rates effective for salaries and wages paid beginning January 1, 2001.
Contribution rate changes by WRS employment category are summarized as follows:
Please reference the enclosed page for the effect on your total rate. In January 2001 you will receive your Monthly Retirement Remittance Report form (ET-1515) reflecting these contribution rates for use in reporting earnings for the year 2001. For more information regarding the 2001 contribution rates, please contact Nancy Kittleson at (608) 267-9034.
Description of Contribution Rates for Year 2001
Employe Required Contribution (may be paid by employer)
5.0% General, including Teachers and Educational Support Personnel (no change)
3.9% Judges, Elected Officials and State Executive Positions Designated in 20.923 (4), (8), or
(9) (decreased .2%)
3.8% Protective with Social Security (decreased .3%)
3.3% Protective without Social Security (decreased 1.1%)
Employe Benefit Adjustment Contribution (may be paid by employer)
0.2% 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 Contributions - Current Service (must be paid by employer)
3.8% General, including Teachers and Educational Support Personnel (decreased .3%)
9.4% Judges, Elected Officials and State Executive Positions Designated in 20.923 (4), (8), or
(9) (decreased .2%)
6.9% Protective with Social Security (decreased .3%)
10.7% Protective without Social Security (decreased 1.1%)
Employer Required Contributions - Unfunded Actuarial Liability (must be paid by employer)
Same rate as 2000 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. If the Wisconsin Supreme Court determines the employer credits provided by 1999 Wisconsin Act 11 are legal, the Department of Employe Trust Funds will provide further instructions.
Employer Duty Disability Contribution (must be paid by employer)
Effective January 1, 2001, the experience-rated duty disability contribution rate schedule will remain the same as 2000 and 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 1996 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. The rate will remain the same as 2000. Therefore effective January 1, 2001, 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 more information, please contact Nancy Kittleson in the ETF Controller's Office at (608) 267-9034.
Announcing: ETF Expands Employer Question-and-Answer Section on Internet Site
As part of a continuing effort to enhance the amount and quality of information available on-line to WRS employers, the Division of Employer Services (DES) is pleased to announce a revised and expanded comprehensive question-and-answer section. DES staff compiled several of the employers' most commonly asked questions and provided the answers on ETF's Internet site.
Questions and answers, which center on the administration of Wisconsin Retirement System (WRS) and other benefit programs, are arranged by topic. Many include hyperlinks to appropriate chapter references and forms.
To access this new additional resource, please visit our Internet site at etf.wi.gov, and select either "Employer" or "FAQ". If you have suggestions for additional topics or comments regarding this new feature, please contact Donald Stuckert, Division of Employer Services, at (608) 266-0133.
Employers may continue to contact the Employer Communication Center at (608) 264-7900.