Employee Matters

This column is prepared by staff of the Employee Compensation and Benefits Services office. E-mail the office at employee@bussvc.wisc.edu, or call 263-7556 or 262-5650. For more information, visit the EC&BS Web site, or e-mail employee@bussvc.wisc.edu.

Variable Trust Fund Investments and Wisconsin Retirement System

The Wisconsin Retirement System (WRS) can provide a lifetime retirement income for covered employees. The benefit payment at retirement is based on your years of WRS service or the total dollar value of your account. The payment may be adjusted if you wish to retire before your normal retirement age.

The dollar value of your account is made up of employee and employer contributions plus the investment earnings applied to your account. WRS monies are invested by the State of Wisconsin Investment Board.

You have a choice in how your WRS retirement account is invested. Active employees can elect to have retirement contributions invested in fixed investment only or split 50-50 between fixed and variable trust fund investments. The fixed account monies are invested in some stocks, bonds, loans and other fixed investments. The variable trust fund is invested primarily in the stock market and will experience a greater range of returns.

Participation in the variable trust fund had been closed for many years, but in 1999 legislation opened the variable trust fund again to new participants.

Will your retirement fund earn more if you participate in the variable trust fund?

Although stocks have out-performed many other investments historically, there is no guarantee that past performance will equal future returns. For a comparison of returns for the fixed and the variable trust fund, visit http://www.etf.wi.gov/retirees/dividends.htm, and refer to the first two columns in the charts.

What percent of your retirement contributions can you invest?

You can contribute 50 percent of your contributions to the variable trust fund. Once you choose to participate in the variabletrust fund only future contributions will be invested in a variable trust fund.

When can I enroll?

Employees covered for the first time under the WRS can enroll in the first 30 days of employment, with participation effective immediately upon hire. If you do not enroll when initially eligible, you can enroll at anytime later with participation effective the first of the year following the year in which your election is received by the Department of Employee Trust Funds.

How do I enroll in the variable trust fund?

The enrollment process is simple, and the application form includes detailed information. Visit http://etf.wi.gov/publications/et2356.pdf for an application.

May I cancel enrollment?

You may cancel participation by completing an application to cancel. The effective date of the cancellation is Dec. 31 of the year that the cancellation is received by the Department of Employee Trust Funds. Once you cancel you may not elect to participate in the future except under special qualifying event. To learn more, visit http://etf.wi.gov/publications/et2313.pdf.

For more information, visit http://etf.wi.gov/publications/et4930.htm. The benefits booklet and information about buying creditable service can be found at http://www.bussvc.wisc.edu/ecbs/emp-retirement-menu.html. You also can contact employee@bussvc.wisc.edu.