Department of Employee Trust Funds
February 13, 2014
ETF Announces Effective Rates
The interest rates credited to the retirement accounts of active
Wisconsin Retirement System (WRS) members and eligible inactive
members have been set. For 2013 the Core Fund effective rate is
10.9% and the Variable Fund effective rate is 31%.
These rates affect the account balances of more than 256,000 state
and local public employees, including teachers, law enforcement
personnel, firefighters, and University of Wisconsin System employees.
Calculated by the Department of Employee Trust Funds, the rates
are based on investment performance earned by the State of Wisconsin
Investment Board (SWIB).
In January SWIB announced 2013 investment returns of 13.5% for
the Core Fund and 29.0% for the Variable Fund.
The effective rates are the starting point for calculating annual
adjustments to WRS retirees’ monthly benefit payments. Significant
factors in these adjustment rates include assumed interest, annuitant
mortality rates and other actuarial factors. ETF expects to announce
the Core and Variable annuity adjustments in March. These adjustments
will first be reflected on retirees’ May 1, 2014 payments.