Change in Wisconsin Retirement System (WRS) Contribution Rates for 2011
November 16, 2010
As you may know, most UW employees currently are not required to contribute anything toward their Wisconsin Retirement System (WRS) fund. However, during its annual review process in June 2010, the Employee Trust Funds (ETF) Board approved changes that will now require a modest WRS employee contribution for 2011. The increased rates were deemed necessary by the ETF Board to maintain solid funding of the WRS, which suffered large investment losses during the 2008 downturn of the stock market.
Please note these rates are effective for 2011 and will be reviewed again prior to the 2012 calendar year. Please also note the UW System is prohibited, under the 2009-11 compensation plan and collective bargaining agreements, from paying the increased portion of the required contribution.
Here is what the change means for you:
As of January, employees will be required to pay the following contribution rates of WRS-covered earnings for 2011:
UW System will pay the remainder of the WRS contribution rate for 2011. The WRS contribution rate paid by UW System on behalf of most employees will be 11.4% of earnings (20.5% for protective occupation employees, 10.6% for Building Trades employees, and 9.1% for LTEs).
Any required WRS contributions are automatically deducted from an employee's paycheck. Unclassified employees (paid monthly) will first have a WRS deduction on the January 3, 2011 paycheck and classified employees (paid bi-weekly) will have the first deduction on the January 13, 2011 paycheck. For example, 0.2% of an annual salary of $40,000 amounts to $3.08 per biweekly paycheck and $6.67 per monthly paycheck.
For additional information, see http://www.uwsa.edu/hr/benefits/WRSratefaq.pdf. This document will be updated and expanded to reflect additional FAQs as needed.
Source: UW System Administration
Categories: WI Retirement System (WRS)