WRS News Online

ETF Projections for Effective Rates, Annuity Adjustments

The State of Wisconsin Investment Board has announced preliminary 2018 investment returns for the Core Trust Fund and the Variable Trust Fund. How will this affect your Wisconsin Retirement System account?

Based on these preliminary figures, the Department of Employee Trust Funds is anticipating a Core effective rate in the range of 4.8% to 5.2%. In addition, those participating in the optional Variable Trust Fund will likely see a negative Variable effective rate – somewhere between -6.0% and -10%.

Please note the actual effective rates will not be known until after Core and Variable investment returns have been finalized and an actuarial analysis conducted.

Effective rates are applied to your WRS account balances and appear on your annual WRS Statement of Benefits. Watch for announcements in February (effective rates) and March (annuity adjustments). ETF will distribute statements in April.

Note: Investment returns also affect annual adjustments to WRS retirees’ monthly pensions. Based on the 2018 preliminary returns, the Core annuity adjustment will be either 0% (no change) or a -0.5% (a decrease); the Variable annuity adjustment is projected to be -10% to -14%.

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:

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