The Employee Trust Funds Board recently approved 2024 required contribution rates for the Wisconsin Retirement System, following the recommendations of its consulting actuary. Rates for all employee categories will increase by the following percentages:
- General, Executive and Elected: 0.2%
- Protective with Social Security: 1.2%
- Protective without Social Security: 1.1%
Contribution rates, expressed as a percentage of salary, are listed for each WRS employee category in the following table. Contributions from employees and employers and investment earnings fund WRS benefits. The new rates take effect January 1, 2024.
WRS Required Contribution Rates
| Employee Category | General, Executive and Elected Officials | Protective with Social Security | Protective without Social Security | |||
|---|---|---|---|---|---|---|
| Year | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Employer Cost | 6.90% | 6.80% | 14.3% | 13.20% | 19.10% | 18.10% |
| Employee Cost | 6.90% | 6.80% | 6.90% | 6.80% | 6.90% | 6.80% |
| Total Cost | 13.8% | 13.6% | 21.2% | 20.0% | 26.0% | 24.9% |
Note: Rates for other mandatory employer-paid contributions (e.g., duty disability, the state's Accumulated Sick Leave Conversion Credit Program) or unfunded liabilities are not included in the above figures because these rates vary by employer.
WRS contribution rates change annually to ensure retirement benefits are pre-funded. Rates changes are based on investment performance of the Core Trust Fund and other actuarial factors such as wages, inflation, and member demographics. Increased rates for 2024 are a result of recent investment performance, although positive investment returns prior to 2023 have helped to mitigate the effects of investment losses.
WRS Facts
- Funds to pay WRS pension benefits are generated from three sources: investment earnings, employer contributions and employee contributions.
- Investment income accounts for approximately 84% of WRS revenues over the past 10 years.
- The WRS is one of the best-funded public pension systems in the country. As of December 31, 2022, the WRS is 100% funded.
- The WRS is a low-cost system. Wisconsin and local governments spend 2.1% of their budgets on the WRS, compared to 5.0% nationally.
Resources
- ETF Board June 23, 2022 Meeting Agenda and Materials
- WRS Contribution Rates Since 1989
- WRS Returns, Rates and Adjustments