WRS News Online

Investment Returns:
How Will This Affect My WRS Account?

The State of Wisconsin Investment Board has announced preliminary 2014 investment returns of 5.7% for the Core Trust Fund and 7.3% for the Variable Trust Fund. You may be wondering how this will affect your WRS retirement account. In general, positive investment returns mean a higher effective rate of interest for your Core and Variable (if applicable) account balance(s). Based on preliminary investment returns, the Department of Employee Trust Funds projects modest effective rate increases (see below) this year.

Core Fund Projections

Preliminary 2014 Net Investment Return

5.7%

Projected Effective Rate
(applied to employees’ account balances as of January 1, 2015)

Between 8.6% and 9.0%

Projected Annuity Adjustment
(applied to retirees’ monthly payments beginning May 1, 2015)

Between 2.8% and 3.2%


Variable Fund Projections

Preliminary 2014 Net Investment Return

7.3%

Projected Effective Rate
(applied to employees’ account balances as of January 1, 2015, if applicable)

Between 7.0% and 8.0%

Projected Annuity Adjustment
(applied to retirees’ monthly payments beginning May 1, 2015, if applicable)

Between 0.0% and 3.0%
By state law, Variable annuity adjustments will be paid if the adjustment rate is at least 2%. If it is less than 2% no adjustment is made.

Watch for the actual Core and Variable effective rate announcement on our website in mid-February – after final investment returns have been determined and an actuarial analysis is completed. This information will be shown on your annual Statement of Benefits, which you will receive in April.

For immediate notification about WRS effective rates and other benefit-related news, sign up for ETF E-mail Updates.

To learn more about how effective rates and annuity adjustments are calculated, watch for a webinar opportunity in March and April.

Check out Core and Variable investment returns, effective rates and annuity adjustments since 1986.