Increase in WRS Rates Expected
2009-03/05 Jeffrey T. Jones, Esq.

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:

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.

For further information, please contact Attorney Jeff Jones,who prepared this article, or an attorney within the Employment, Labor & Benefits Practice Group of Ruder Ware: Ron Rutlin, Dean Dietrich, Mary Ellen Schill, Chris Toner, or Sara Ackermann.

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