- 2013 Wisconsin Retirement System Contribution Rates
- July 13, 2012
- Law Firm: Boardman Clark LLP - Madison Office
The Employee Trust Fund (ETF), in response to employer budget preparation concerns, has published an estimated range for the Wisconsin Retirement System (WRS) rate next year. The projections are subject to change pending the final actuarial valuation and it is possible that the final rate will fall outside of the projected range.
The projected range of rates that ETF is publishing for the General/Teacher category (excluding the employer-specific unfunded accrued actuarial liability) is anywhere from 12.8% to 13.7% effective 1/1/2013. This reflects a 1% to 1.9% increase from the 2012 11.8% WRS rate. By statute, any increase in the actuarial defined WRS rate will be shared by the employer and employee equally. Therefore, if the WRS rate increases to 12.8 % effective 1/1/2013, that will represent a 1.0% increase, which would translate into a .5% increase to both the employer and employee rates. On the other end of the projected range, a WRS rate increase to 13.7% represents a 1.9% increase, which would translate into a .95% increase to both the employer and employee rates.
The ETF maintains that these rates are not final because of the mid-year changes that occurred in 2011 (2011 Wisconsin Acts 10 and 32). The ETF cannot determine final 2013 WRS contribution rates until all employers submit post-Act 10 hours and earnings. The ETF is waiting for approximately 300 employers to complete that process.