The Department of Employee Trust Funds just released the Wisconsin Retirement System Financial Report for calendar year 2023.
According to the report, the WRS continues to be one of the best-funded public employee retirement systems in the country. This is based on two common funding measures for public pension plans: funding value and fair value.
Using the funding value-based ratio, which smooths investment gains and losses over a five-year period, the WRS funding level remains at 100% as of Dec. 31, 2023.
The fair value-based ratio, calculated according to standards issued by the Governmental Accounting Standards Board, puts the WRS’s funding level at 99% for the same period. This is an increase from 96% in 2022 and can be attributed to investment gains due to more favorable market conditions in 2023. Because the GASB requires plan assets at fair value, this ratio fluctuates yearly depending on investment performance.
The WRS’s financial strength is attributed to its unique plan design, funding discipline, strong governance, and the effective investment strategies of the State of Wisconsin Investment Board.
The WRS Financial Report is annually prepared by ETF and conforms with generally accepted accounting principles for government units as prescribed by the GASB. Further, the Legislative Audit Bureau issued an unmodified, or “clean,” audit opinion on the WRS’s 2023 financial statements.
A separate Annual Comprehensive Financial Report will be released in the next few months that will cover the WRS and other ETF-administered benefit programs and include additional financial statements.