Employee Trust Funds Board Announces Contribution Rates For 2002
At its June 22, 2001 meeting, the Employee Trust Funds Board approved Wisconsin Retirement System (WRS) contribution rates for the year 2002, 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 prior to implementation of 1999 Wisconsin Act 11.
1999 Wisconsin Act 11 was ruled constitutional by the Wisconsin Supreme Court. The impact of the law on the benefit and funding changes in this Act will be recognized in contribution rates beginning in 2003.
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. 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 employee. 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.
You will receive a separate Employer Bulletin explaining the Employer Credit Accounts provided for in 1999 Wisconsin Act 11.
Enclosed are your contribution rates effective for salaries and wages paid beginning January 1, 2002.
Contribution rate changes by WRS employment category are summarized as follows:
Please reference the following for the effect on your total rate. In January 2002 you will receive your Monthly Retirement Remittance Report form (ET-1515) reflecting these contribution rates for use in reporting earnings for the year 2002. For more information regarding the 2002 contribution rates, please contact Nancy Kittleson at (608) 267-9034.
Description of Contribution Rates for Year 2002
Employee Required Contribution (may be paid by employer)
Employee Benefit Adjustment Contribution (may be paid by employer)
Employer Required Contributions - Current Service (must be paid by employer)
Employer Required Contributions - Unfunded Actuarial Liability (must be paid by employer)
Same rate as 2001 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, 2002, the experience-rated duty disability contribution rate schedule will remain the same as 2001 and will be determined as listed below:
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 2001. Therefore effective January 1, 2002, the contribution rate for pre-funded sick leave conversion to fund health insurance premiums after retirement is 1.7%. The pre-funded supplemental sick leave credits rate is 1.0%, 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.