Increase in WRS Rates Expected

By
March 5, 2009

At the end of 2008, it is estimated that the Wisconsin Retirement System (WRS) lost $18.6 billion as a result of the turndown in the economy. This estimate reflects a -26.2% return in 2008. In light of these losses, the Secretary of the Wisconsin Department of Employee Trust Funds board, Mr. David Stella, reported that public employers can expect to see a relatively large WRS rate increase to address the investment losses. Mr. Stella estimates the general employee contribution rate increase over the next five years to be:

Year
Increase
Total Contribution Rate

2009
—
10.40%

2010
.80%
11.20%

2011
.80%
12.00%

2012
.80%
12.80%

2013
1.00%
13.80%

2014
1.00%
14.80%

The increase for protective service employees (e.g., police officers) and elected officials may be larger. Obviously, the WRS increases will have a major impact on the budgets of public employers. You should keep this in mind when negotiating collective bargaining agreements and estimating future costs.
If you have questions regarding the above, please contact any of the attorneys on the Local Governments Focus Team, or the School Districts Focus Team of Ruder Ware.

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