The Department of Employee Trust Funds published a Wisconsin Retirement System Financial Report as of and for the year ending December 31, 2019. This report provides information about the WRS, including the related financial statements and an unmodified, or “clean”, audit opinion.
The WRS continues to be one of the best-funded public employee retirement systems in the country. The financial strength of the WRS is attributable to its unique plan design , funding discipline, strong governance, and the effective investment strategies of the State of Wisconsin Investment Board.
For public pension plans, there are two common funding measurements: funding value and fair value. The funding value-based ratio of the WRS, which smooths investment gains and losses over a five-year period, remains approximately 100% as of December 31, 2019. The fair value-based ratio of the WRS, calculated in accordance with standards issued by the Governmental Accounting Standards Board, is 103%. This is an increase from 96.5% and was primarily the result of increased investment returns in 2019 compared to 2018. Because GASB requires plan assets to be valued at fair value, this ratio will fluctuate from year to year, depending upon investment performance.