Wisconsin Retirement System Fact Sheet

ET-8901 (REV 1/2013) Active employees 256,232 Annuitants (retirees, disabilitants, and beneficiaries) 167,649 Inactive employees with deferred benefit payable 146,927 Total 570,808 State of Wisconsin Wisconsin Retirement System FACT SHEET As of December 31, 2011 Covered Public Employees and Employers • The Wisconsin Retirement System (WRS) covers employees of the State of Wisconsin and employees of local government employers who elect to participate, and Milwaukee Public School District teachers. Employees of the City of Milwaukee and Milwaukee County are covered under different pension systems. • 1,501 employers • Employees by employer type: 27% state, 73% local • Participants in the WRS: Retirement Benefits • Minimum Retirement Age: 55 (50 for protectives) • Benefits are taxed by Wisconsin for the majority of

participants • Formula Benefit or Money Purchase Benefit • Formula Benefit = Years of Service x Final Average Monthly Earnings x Formula Factor(s) x Actuarial Reduction Factor for early retirement (if applicable)  Final Average Monthly Earnings = Total of highest three years of earnings divided by Total service (decimal equivalent of years) in those years divided by 12  Formula Factors are based on when creditable service was earned*: Pre-2000 Service Post-1999 Service After June 29, 2011 Category 1.765% 1.6% General/Teacher/Educational Support 2.165% 2.0% 1.6% Elected/Executive 2.165% 2.0% Protective with Social Security 2.665% 2.5% Protective without Social Security  Normal Retirement Age (the age at which you can receive a formula retirement benefit with no reduction for early retirement) General Protective Executive & Elected Age Service Age Service Age Service 65 Any 54 Any 62 Any 57 30 53 25 57 30 * The pre-2000 formula factors apply only to participants who terminate WRS employment after 1999. The post- 1999 factors apply to all years of service for participants who terminated their WRS employment before 2000. The after June 29, 2011 factor applies to participants in the Elected/Executive category. ET-8901 (REV 1/2013)  Actuarial age reduction if under normal retirement age: Generals and elected/executive employees: Age 57 and above: 0.4%, decreased by 0.001111% per month of service for each month remaining before normal retirement age. Age 55 and 56: 0.4% for each month before age 57. Protectives: 0.4% per month prior to normal retirement age.  Benefit maximum: 70% of Final Average Earnings (85% for protectives without Social Security and 65% for protectives with Social Security). • Money Purchase Benefit = Employee and matching employer dollars (including interest) x money purchase factor for current age when retirement benefit begins. Contributions • Employee and employer contributions are adjusted annually. 2013 Contributions (percent of payroll) EMPLOYEE Normal Cost EMPLOYER Normal Cost General Protective With Social Security Protective Without Social Security Elected/ Executive 6.65% 6.65% 6.65% 9.75% 6.65% 12.35% 7.00% 7.00% TOTAL 13.3% 16.4% 19.0% 14.0% Vesting Some participants must meet one of two vesting laws based on when they first began WRS employment: 1. Participants who first began WRS employment after 1989 and terminated employment before April 24, 1998 must have some WRS creditable service in five calendar years; or 2. Participants who first began WRS employment on or after July 1, 2011 must have five years of WRS creditable service....

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