The WRS is one of several plans featured in a recent PEW Charitable Trusts article describing how the best-funded retirement plans use cost-sharing mechanisms to maintain fiscal health and keep costs predictable. By design, the key cost-sharing features of the WRS are two-fold:
- Changes in required contribution rates are adjusted annually, based on invest performance
- The WRS does not guarantee retirees an annual cost of living adjustment. Rather, annual annuity adjustments depend on invest performance. In addition, annuities can be reduced based on investment performance, although one’s monthly pension cannot be reduced below the original amount set at retirement.
Read the PEW Charitable Trusts article.
For more information about the strengths of the WRS – one of the best-funded public pension systems in the country – review ETF’s publication, Our Wisconsin Retirement System: Strong for Wisconsin.