The State of Wisconsin Investment Board has announced preliminary 2022 investment returns for the Core Trust Fund and the Variable Trust Fund. How will this affect your Wisconsin Retirement System account? The effective rate of interest is applied to your account balances once a year. The rate of interest applied is based on investment performance and other actuarial factors.
The figures below are Department of Employee Trust Funds projections for this year’s effective rates and annuity adjustments, based on preliminary returns for 2022. These figures are projections. Actual effective rates will be announced after 2022 investment returns have been finalized. Watch for this information in February and the annuity adjustments (for retirees) in March.
| ETF Projections -- Core Fund | |
|---|---|
Preliminary 2022 Investment Return (performance is net of fees) | -12.92% |
Projected Core Effective Rate
| 6.2% to 6.6% |
| Projected Core Annuity Adjustment | 1.2% to 1.6% |
By law, Core annuities can be adjusted if the increase (or decrease) would be at least 0.5% (or -0.5%) for all retirees. If the final computed rate falls between 0.5% and -0.5%, then no Core annuity adjustment will be provided.
| ETF Projections -- Variable Fund | |
|---|---|
Preliminary 2022 Investment Return (performance is net of all fees) | -17.82% |
| Projected Variable Effective Rate | -16% to -20% |
| Projected Variable Annuity Adjustment | -21% to -25% |
By law, a Variable annuity adjustment will be paid if the adjustment rate is at least 2%; if less than 2%, no adjustment is paid.
Plan Ahead
No matter your timetable for retirement, it's important to understand your WRS benefits so that you can make the right decisions at the right time throughout your career -- your future self will thank you for it! Here are some items for your to-do list:
- Learn how to enhance your WRS benefits benefit by making additional contributions, which earn the effective rate of interest each year
- Familiarize yourself with how investment performance affects the amount you and your employer pay into your retirement account (also known as required contributions). Watch a brief yet informative video on this topic.
- Understand how participation in the optional Variable Fund affects participants’ WRS benefits, both as an active employee and as a retiree. Visit this webpage for a wealth of resources.
For More Information
Participate in these ETF webinars. Sessions are offered at convenient times over the lunch hour and early evening.
- Video: WRS Annuity Adjustments and Effective Rates
- Live Webinar: Preparing for Your Retirement
Check out the helpful resources on this WRS Performance web page, including a look at investment performance of the WRS trust funds and the corresponding rates and adjustments since 1986.
To receive immediate notification about WRS effective rates, annuity adjustments and other benefit-related news, sign up for ETF E-Mail Updates or follow ETF on Twitter.