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ETF Projections for Effective Rates, Annuity Adjustments

The State of Wisconsin Investment Board has announced preliminary 2017 investment returns for the Core Trust Fund and the Variable Trust Fund. How will this affect your Wisconsin Retirement System account?


The projections below are based on preliminary 2017 investment returns. ETF will announce the actual effective rates and annuity adjustments after final investment returns have been determined and an actuarial analysis is completed. Watch for announcements in February (effective rates) and March (annuity adjustments).


Core Fund Projections

Preliminary 2017 Investment Return

16.2%

Projected Effective Rate
applied to employees' account balances

8.3% to 8.7%

Projected Annuity Adjustment
Applied to retirees' monthly payments beginning May 1, 2018

2.2% to 2.6%

By law, a Core annuity adjustment will be paid if the adjustment rate is at least 0.5%; if less than 0.5%, no adjustment is paid.

Variable Fund Projections

Preliminary 2017 Investment Return

23.2%

Projected Effective Rate
applied to employees' account balances (if applicable)

22% to 26%

Projected Annuity Adjustment
Applied to retirees' monthly payments beginning May 1, 2018 (if applicable)

16% to 20%

By law, a Variable annuity adjustment will be paid if the adjustment rate is at least 2%; if  less than 2%, no adjustment is paid.

Plan Ahead
No matter your timetable for retirement, it's important that you fully understand your WRS benefits and how they work for you. We suggest learning about the following, so that you make the right decisions at the right time:

  • How trust fund investment performance affects contributions both you and your employer pay into your retirement account;
  • How effective rates and annuity adjustments (for retirees) are determined;
  • How WRS retirement benefits are calculated and the role that investment returns play in your benefit amount;
  • How you can enhance your eventual retirement benefit by making additional contributions, which annually are credited with the effective rate of interest each year; and
  • How participation in the Variable Fund affects your WRS benefits, both as an active employee and as a retiree.

For more information:

  • Participate in free ETF webinars on these topics. Sessions are offered at convenient times over the lunch hour and early evening.

To receive immediate notification about WRS effective rates, annuity adjustments and other benefit-related news, sign up for ETF E-Mail Updates or follow ETF on Twitter.