What is a Variable Excess or Deficiency?
If you have ever taken part in the Variable Trust Fund, your account has either a variable “excess” (extra amount) or a “deficiency” (shortage). This is the difference between your actual account value, and what it would be if you were never in the Variable. The amount changes each year when Core and Variable interest is credited to your account.
- A Variable “Excess” is the amount you are ahead.
- A Variable “Deficiency” is the amount you are behind.
If you have canceled your Variable participation, your account has a “residual” excess or deficiency balance. That balance is credited with Core interest each year. This means your residual excess or deficiency will continue to change (usually grow) until you begin a retirement benefit.
Why should I use this calculator?
Interest is only credited to your account at the end of each year. Use this calculator to see how future estimated interest will affect your Variable excess or deficiency balance. It will show your updated estimated balance and how much it would increase (or decrease) your formula retirement benefit on your expected benefit begin date.
- This calculator is only for members who are not yet receiving a retirement benefit.
- If your retirement estimate shows your benefit is higher under the money purchase calculation you do not need this calculator. Interest is already included in your money purchase benefit calculation.
Using the Calculator
Use your excess/deficiency and money purchase balances listed on your most recent annual Statement of Benefits. The calculator asks you to enter a projected or actual interest rate (if known) for the same year listed on your most recent Statement.
- If you have cancelled your Variable participation and your Variable balance has been transferred to the Core Fund, use this calculator.
- If your Variable balance is still in the Variable Fund, use this calculator.
For more information about the Variable Fund and how it can change your WRS benefit amount see the Variable Trust Fund (ET-4930) brochure.