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Effective Rates Applied to Your WRS Account

The effective rates of interest have been applied to Wisconsin Retirement System active employees’ WRS accounts. Find how the rates affected your account balances on your annual Statement of Benefits, distributed in April.

Both the effective rates and annuity adjustments, which are based on Core and Variable Trust Funds investment performance, are shown below:

 

Core Fund

Variable Fund

Net 2015 Calendar Year Investment Return

-0.4%

-1.2%

Effective Rate (applied to employees’ account balances)

6.4%

0.0%

Annuity Adjustment (applied to retirees’ monthly payments)

0.5%

-5.0%

What are ETF’s projections for rates and adjustments next year? All members – retirees and employees – should prepare for continued volatility and low returns in the investment markets. For retirees in particular, this may mean relatively flat or even negative Core annuity adjustments.

Projected WRS Core Effective Rates and Annuity Adjustments

 

2016 Core Fund Net Investment Return

Projected 2017 Core Effective Rate

Projected 2017 Core Annuity Adjustment

Scenario 1

7.2%

7.4% to 7.8%

1.2% to 1.6%

Scenario 2

0.0%

6.0% to 6.4%

0.0%

Scenario 3

-3.8%

5.2% to 5.6%

-0.5%

 

Note: Keep in mind these are projections. Actual rates will be available after final 2016 investment returns have been determined and an actuarial analysis is completed.

For more information

  • See Core Fund Annuity Adjustment Projections, a March 2016 presentation to the governing boards of the WRS. This presentation, updated annually by ETF, reviews a range of projected Core effective rates and annuity adjustments, using several Core investment return scenarios.
  • Sign up for our webinar, WRS Effective Rates and Annuity Adjustments. Sessions are filling up for May 5, May 10 and May 18.
  • Review this table, which shows the relationship between trust fund investment returns and effective rates and annuity adjustments since 1986.
  • Find all of our webinars, videos and e-learning presentations on the Member Education web page.