The Employee Trust Funds Board recently approved the 2025 required contribution rates for the Wisconsin Retirement System.
Employee and employer contributions to the WRS are based on a percentage of an employee’s salary. Contributions go to the WRS Trust Funds which, combined with investment returns, help fund employee’s WRS benefit.
Following the recommendations of Gabriel, Roeder, Smith & Company as its consulting actuary, the ETF Board approved the following contribution rates effective Jan. 1, 2025:
| General, Executive and Elected Officials | Protective Occupation with Social Security | Protective Occupation without Social Security | |
|---|---|---|---|
| Employee | 6.95% | 6.95% | 6.95% |
| Employer | 6.95% | 14.95% | 18.95% |
| Total | 13.9% | 21.9% | 25.9% |
The employee contribution rate of 6.95% is slightly higher than 6.9% in 2024 due to higher-than-expected salary levels. This contribution rate increase is partially offset by favorable investment performance of the WRS Trust Funds.
Other factors that affect contribution rates include demographic changes of WRS members, legislative adjustments to benefit levels, and other actuarial assumptions.
The WRS is one of the very few public pension systems that remains fully funded, due to its unique design features. Employee and employer contributions are paid in full, not deferred into the future, and contribution rates are adjusted annually as calculated by an independent actuary. Further, strong investment earnings help fully fund its members’ future benefits without burdening taxpayers.