Retirement and Market Downturns
Lately there has been a lot of concern about the recent difficulties in the stock market, and how it will affect the Wisconsin Retirement System (WRS), especially for those in the variable fund. The following information and resources are being provided to keep you informed on how the economic downturn could affect your retirement.
First, some facts on the WRS:
- The WRS is managed by the Department of Employee Trust Funds (ETF), and the investments are managed by the State of Wisconsin Investment Board (SWIB).
- The WRS is solvent, well funded, diversified, and focused on long-term investing. It is designed, funded, and invested to meet future benefit obligations.
- It is the 9th largest public pension fund in the U.S. and the 22nd largest fund
- It is the only state-run pension plan that is almost fully funded. Current and future benefits are funded at 99%, the mean funding percentage for state pension plans is 82%.
- Benefit payments are guaranteed by statute.
- Employees generally are either 100% invested in the Core Fund, or 50% in the Core Fund and 50% in the Variable Fund.
- Investment earnings and losses for the Core Fund are smoothed out over a five year period. It is unknown what the Core Effective Rate or Annuity Adjustment will be, but ETF has provided some projections.
- Investment earnings and losses for the Variable Fund are not smoothed out. Those in the Variable Fund will see a more immediate effect from the market downturns.
Below are some articles from ETF, SWIB, and UW System Administration that give more information:
- 2009 Annuity Adjustment Projections new
- When Should I Retire? new
- ETF - Economic Turmoil Projections
- Variable Fund Information
- Things to Consider before Canceling Variable Participation
- Variable Fund FAQ
- How do Variable Fund Investments Affect Me?
- Letter from ETF and SWIB on Market Volatility
- Retirement Savings Options Available to UW System Employees
- Q&A Guide for Almost Retirees
- Strategy Helps Retirement Funds In Market Downturns
- Calculating Your Retirement Benefits
- How Participation in the Variable Trust Affects your WRS Benefits
- What is my Minimum Core Annuity Amount?
- Historical Return Rates for the WRS
- UW System Website on the Market Downturn and its Effect
ETF Webcasts and Tutorials
- Canceling Variable Fund Participation
- Message on the Condition of the WRS
- WRS Trust Funds: Core and Variable
- Annual Retirement Annuity Adjustments
- Calculating your Retirement Benefits Online
Retirement Calculators
Other Sites
- Department of Employee Trust Funds
- UW System Administration Benefits Page
- State of Wisconsin Investment Board
