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Employers

Employer Bulletin

All WRS Employers
Vol. 19, No. 11
June 27, 2002

2003 WRS Contribution Rates Announced

Employee Trust Funds Board Announces Contribution Rates For 2003

At its June 21, 2002 meeting, the Employee Trust Funds Board approved Wisconsin Retirement System (WRS) contribution rates for 2003, 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 from the system's consulting actuary and current benefit levels.

Each contribution category is valued separately. Contribution rate changes, both increases and decreases, are considered normal for systems that pre-fund retirement benefits. This is the first year the contribution rates include the impact of funding and benefit changes from 1999 Wisconsin Act 11. 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.

Enclosed are your contribution rates effective for salaries and wages paid beginning January 1, 2003.

Contribution rate changes by WRS employment category are summarized as follows:

  • General (including Teachers and Educational Support Personnel)

Increase 0.4%

  • Executive, Elected and Judges

Decrease 1.0%

  • Protective with Social Security

Unchanged

  • Protective without Social Security

Decrease 1.2%

Please reference the enclosed page for the effect on your total rate. In January 2003 you will receive your Monthly Retirement Remittance Report form (ET-1515) reflecting these contribution rates for use in reporting earnings for the year 2003. For more information regarding the 2003 contribution rates, please contact Nancy Kittleson at (608) 267-9034.

Employee Required Contribution (may be paid by employer)

5.0% General, including Teachers and Educational Support Personnel (no change)

2.6% Judges, Elected Officials and State Executive Positions Designated in § 20.923 (4), (8), or (9) (decreased 0.5%)

4.0% Protective with Social Security (no change)

2.4% Protective without Social Security (decreased 0.6%)

Employee Benefit Adjustment Contribution (may be paid by employer)

0.4% General, including Teachers and Educational Support Personnel (increased 0.2%)

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)

4.0% General, including Teachers and Educational Support Personnel (increased 0.2%)

8.1% Judges, Elected Officials and State Executive Positions Designated in § 20.923 (4), (8), or (9) (decreased 0.5%)

7.1% Protective with Social Security (no change)

9.8% Protective without Social Security (decreased 0.6%)

Employer Required Contributions - Unfunded Actuarial Liability (must be paid by employer)

Same rate as 2002 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, 2003, the experience-rated duty disability contribution rate schedule will remain the same as 2002 and will be determined as listed below:

1.9% Groups with claims pay out of less than or equal to 0.5% 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 1998 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 increase .1% in 2003. Therefore, effective January 1, 2003, 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 1.1%, bringing the total contribution rate to 2.8%.

For more information, please contact Nancy Kittleson in the ETF Controller's Office at (608) 267-9034.