WRS Contribution Rates for 2022 to Remain Stable
July 15, 2021
The Department of Employee Trust Funds (ETF) recently announced the Wisconsin Retirement System (WRS) employee and employer contribution rates effective January 1, 2022. The employee contribution for 2022 will decrease slightly.
The 2022 rates will apply to all paychecks paid in 2022, starting with the January 13, 2022 biweekly paycheck. As a reminder, WRS contributions are taken on a pre-tax basis for state and federal tax purposes.
UW System employee contribution rates are determined by employment category. Most UW System employees are in the General/Teacher/Executive category. Employees with law enforcement or public protection duties (police officers, fire fighters) are in the Protective category.
| Employee Category | General, Teacher and Executive | Protectives with Social Security | ||
| Year | 2021 | 2022 | 2021 | 2022 |
| Employer Contribution | 6.75% | 6.50% | 11.75% | 12.0% |
| Employee Contribution | 6.75% | 6.50% | 6.75% | 6.50% |
| Total Contribution | 13.5% | 13.0% | 18.5% | 18.5% |
WRS contribution rates change annually, based on investment performance of the WRS and actuarial factors to pre-fund retirement benefits. In general, when investment earnings are greater than expected, contribution rates may decrease the following year. When returns are lower than expected, rates may increase to make up for the shortfall.
Contribution fluctuations are considered normal for retirement systems like the WRS that pre-fund retirement benefits.
For more information visit the WRS web page on the UW System Employee Benefits website.
Source: UW System Human Resources
Categories: WI Retirement System (WRS)