Your Wisconsin Retirement System account is credited annually with the effective rate of interest, as shown on your WRS annual Statement of Benefits. The Core and Variable (if applicable) effective rates applied to your account are calculated by the Department of Employee Trust Funds and based on investment performance of the WRS trust funds. The rates will be available in February.
In the meantime, review ETF’s projections for what the Core effective rate and Core annuity adjustment could be, based on four different Core Trust Fund investment return scenarios for 2022:
|2022 Core Trust Fund Investment Return (net of all costs)||
Projected Core Effective Rate of Interest (for current employees)
Projected Average Core Annuity Adjustment (for retirees)
Scenario 1: 6.8%
|11.0% to 11.4%||5.5% to 5.9%|
|Scenario 2: 0.0%||9.3% to 9.7%||4.1% to 4.5%|
|Scenario 3: -10%||6.9% to 7.3%||1.9% to 2.3%|
|Scenario 4: -18.0%||5.0% to 5.4%||-0.5% (a reduction) to 0% (no adjustment)|
Here is a brief timeline of related news and announcements to watch for in 2023:
- Mid-late January: The State of Wisconsin Investment Board announces preliminary calendar year 2022 investment performance for the WRS trust funds.
- Mid-February: ETF calculates and posts Core and Variable effective rates that will be applied to active employees’ January 1, 2022, account balances.
- Late March: ETF announces Core and Variable annuity adjustments to be applied to retirees’ monthly payments beginning May 1, 2023.
- Mid-April: ETF distributes the WRS Annual Statement of Benefits to employees, showing the effective rates applied to account balances as of January 1, 2022.
Why do non-retired employees need to know about annuity adjustments? When you’re retired, you may see changes each year to the amount of your WRS pension payment. This is not a cost of living adjustment (COLA), but it works like one. Rather, WRS annuity adjustments are based on calendar year investment performance of the WRS trust funds. Review our webpage listing investment returns, effective rates and annuity adjustments since 1986. In addition, watch our video, WRS Effective Rates and Annuity Adjustments, for a good explanation of how the Core and Variable effective rates and annuity adjustments are calculated each year.