WRS News Online

Investments Affect WRS Accounts, Annuity Adjustments

The State of Wisconsin Investment Board has announced preliminary 2015 investment returns of -0.4% for the Core Trust Fund and -1.2% for the Variable Trust Fund. How will this affect your retirement account? The Department of Employee Trust Funds anticipates a modest Core effective rate increase and a slight Variable effective rate decrease this year. This information will be shown on your annual Statement of Benefits, which you will receive in April.

The projections below are based on preliminary 2015 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 for active employees) and March (annuity adjustments for retirees).

Core Fund Projections

Preliminary 2015 Net Investment Return

-0.4%

Projected Effective Rate

6.3% to 6.7%

Projected Annuity Adjustment

0.0% to 0.8%

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

 

Variable Fund Projections

Preliminary 2015 Net Investment Return

-1.2%

Projected Effective Rate

-3% to 1%

Projected Annuity Adjustment

-4% to -8%

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

 

To learn more:

Take in an ETF webinar on these topics -- don’t delay -- registration is required and space is limited!

  • WRS Effective Rates and Annuity Adjustments
  • Variable Fund

Check out the helpful resources in the Core/Variable Information menu on our website.

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