State Announces 2007 Pension
Payment Increases
(2/27/07)
MADISON, (Wis.) –- The Wisconsin Department of Employee Trust Funds (ETF) announced last week that the 137,000 retired state and local government employees covered under the Wisconsin Retirement System (WRS) will receive a pension increase this year. The Core annuity dividend is 3.0% and the Variable annuity adjustment is 10%. All WRS retirees receive their monthly payments in the form of a core annuity; about 25% of them also participate in the more volatile variable option. The rate increases are effective May 1.
Pension adjustments under the WRS are not automatic. Whether adjustments are made depends upon the investment performance of the pension funds invested by the State of Wisconsin Investment Board (SWIB) and the current and projected funding needs of the WRS.
The increases were recommended by the Department of Employee Trust Funds’ (ETF) consulting actuary and approved by the ETF Board.
“We are pleased to provide increases to retired public employees,” said ETF Secretary Eric Stanchfield. “SWIB continues to do an excellent job of investing the assets of the pension fund and keeping the WRS on solid financial ground.”
Additional information:
- In 2006, the Department paid out $3.2 billion in retirement benefits to over 137,000 retired members; more than 90% of retirees reside in Wisconsin.
- The ten-year (compounded) average annual Core annuity dividend is 4.78%; the five-year (compounded) average is 1.55%.
- The ten-year (compounded) average annual Variable annuity adjustment is 3.08%; the five year (compounded) average is 2.04%.
