Department of Employee Trust Funds
February 11, 2011
ETF Announces Effective Rates
The Department of Employee Trust Funds (ETF) announced the interest
rates credited to the retirement accounts of active Wisconsin Retirement
System (WRS) members and eligible inactive members. For 2010 the
Core Fund effective rate is +4.8% and the Variable
Fund effective rate is +16%.
These rates affect the account balances of more than 265,000 state
and local government workers, including law enforcement officers,
teachers, firefighters, and University of Wisconsin employees. Calculated
by ETF, the rates are based on investment performance earned by
the State of Wisconsin Investment Board (SWIB). SWIB recently announced
2010 investment returns of 12.4% for the Core Fund and 15.6% for
the Variable Fund.
Effective rates are the starting point for calculating annual adjustments
to WRS annuitants’ monthly benefit payments. Significant factors
in these adjustment rates include assumed interest, annuitant mortality
rates and other actuarial factors. ETF expects to announce this
year’s Core and Variable annuity adjustments in March.