Contribution rates for most Wisconsin Retirement System (WRS) employers and employees will increase in 2014.
The total contribution rates for General/Teacher are 14.0%; 7.0% employee; 7.0% school district
While many complex factors affect WRS contribution rates, the increase is primarily due to the lingering effects of 2008’s global economic meltdown. 2014 is the last year that the investment declines will affect WRS contribution rates. Contribution rate changes, whether increases or decreases, are considered normal for retirement systems that have defined, or pre-funded, benefits.
Core Trust Fund investment results are distributed (“smoothed”) over five years to soften the impact of year-to-year volatility of investments. This also helps to keep WRS contribution rates stable. For example, over the past 25 years the rate for General category employees has deviated by just 2%.
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