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Employers

Employer Bulletin

All WRS Employers
Vol. 21, No. 9
June 23, 2004

2005 WRS Contribution Rates Announced

Employee Trust Funds Board Announces Contribution Rates For 2005

At its June 18, 2004 meeting, the Employee Trust Funds Board approved Wisconsin Retirement System (WRS) contribution rates for 2005, 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. Increases in 2005 contribution rates are due to the smoothing of the effects of investment losses from previous years. Annuity benefits are not affected by these rate changes.

Under Wis. Stat. §40.05, 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, 2005.

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

    Increase 0.4%

  • Protective with Social Security

    Increase 0.8%

  • Protective without Social Security

    Increase 0.2%

Please reference the enclosed page for the effect on your total rate. In early February 2005 you will receive your Monthly Retirement Remittance Report forms (ET-1515) reflecting these contribution rates for use in reporting earnings paid in 2005. For more information regarding the 2005 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)

    2.8% Judges, Elected Officials and State Executive Positions Designated in § 20.923 (4), (8), or (9) (increased 0.2%)

    4.9% Protective with Social Security (increased .4%)

    3.3% Protective without Social Security (increased 0.1%)

  • Employee Benefit Adjustment Contribution (may be paid by employer)

    0.8% 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)

    4.4% General, including Teachers and Educational Support Personnel (increased 0.2%)

    8.3% Judges, Elected Officials and State Executive Positions Designated in § 20.923 (4), (8), or (9) (increased 0.2%)

    8.0% Protective with Social Security (increased 0.4%)

    10.7% Protective without Social Security (increased 0.1%)

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

    Same rate as 2004 unless employer elected to provide increased prior service coverage or paid off liability at an accelerated rate.

  • Employer Duty Disability Contribution (must be paid by employer)

    Effective January 1, 2005, the experience-rated duty disability contribution rate schedule will remain the same as 2004 and will be determined as listed below:

    1.9% Groups with claims payout 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 2000 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. Please see your individual rate page for your sick leave rate.

For more information, please contact Nancy Kittleson in ETF’s Office of Trust Finance & Data Analysis at (608) 267-9034.