Explanation of
$QQXDO6WDWHPHQWRI%HQH¿WV
Wisconsin Retirement System Account Information
As of January 1, 2016
If any information on your Statement RI%HQH¿WVLVLQFRUUHFWFRQWDFW\RXUSD\UROORI¿FH¿UVW<RXUHPSOR\HUPXVW
UHSRUWDQ\FRUUHFWHGGDWDWRWKH'HSDUWPHQWRI(PSOR\HH7UXVW)XQGVDQGVKRXOGFRQWDFWXVGLUHFWO\ZLWKDQ\
reporting questions. If your employer is unable to resolve your concerns, you must send ETF your request for a
correction in writing.
3OHDVHUHYLHZLQIRUPDWLRQRQSDJHUHJDUGLQJ5HTXLUHG0LQLPXP'LVWULEXWLRQV
Keep This Explanation With Your Statement For Future Reference
Your creditable service may also be less than expected if:
Section 1 — 2015 Earnings and Service
•
You worked part time, took a leave without pay
or had a break in service. In these cases, you
earned less than a full year of creditable service. Your
employer reports your WRS hours, which are then
converted to a decimal fraction of a year. The hours
DUHGLYLGHGE\IRUWHDFKHUVDQGE\IRU
everyone else.
•
<RXUDFFRXQWKDVEHHQGLYLGHGE\D4XDOL¿HG
Domestic Relations Order 4'52<RXUWRWDOVHUYLFH
does not include the portion awarded to your former
spouse or registered domestic partner.
•
You had active military service, prior to January 1,
1974, before you became covered by the WRS. Any
military service credit that you may be eligible for will
be added to your account when you apply for a WRS
UHWLUHPHQWRUGLVDELOLW\EHQH¿W
Your employer reports your pay and service to ETF each
year.
•
For most employees, this information is reported on a
calendar year basis.
•
If you worked as a teacher, judge or educational
support personnel, your information is reported on a
¿VFDO\HDUEDVLV7KLVVHFWLRQVKRZV\RXUVHUYLFHDQG
SD\IRUWKH¿VFDO\HDU-XO\WR-XQH
DQGIRUWKH¿UVWKDOIRIWKH¿VFDO\HDU
-XO\WR'HFHPEHU
Section 2 —
Years of Creditable Service as of 1/1/2016
This section shows your total years of creditable service.
Service is broken down into three types: “Before 2000,”
“After 1999” and “After Act 10.” You may have service in
one, two or all three types, depending on when and how
long you have worked under the WRS.
•
Employees who have “Before 2000” service have a
higher formula multiplier applied to that service.
•
Only employees in the elected/executive category
have “After Act 10” service. A lower formula multiplier
is applied to that service.
Formula Multipliers
Your total service may be less than expected because
of payroll lag time. Generally, when you retire, your
HPSOR\HU¶V¿QDOUHSRUWZLOOLQFOXGHDOOWKHVHUYLFH\RX¶YH
earned.
(75(9
Employment Category
Before
2000
After
1999
General, Teacher and
Educational Support
3URWHFWLYHZLWK6RFLDO
6HFXULW\SROLFHSULVRQ
guards, sheriffs,
deputies)
.020
3URWHFWLYHZLWKRXW6RFLDO
6HFXULW\¿UH¿JKWHUV
.025
(OHFWHG2I¿FLDOV6WDWH
([HFXWLYH5HWLUHPHQW3ODQ
(PSOR\HHVDQG-XGJHV
.020
After
Act 10
3DJH
Section 3 — Employee-Required Contributions
This section shows the cumulative employee-required
contributions in your account and GRHVQRW include the
PDWFKLQJHPSOR\HUFRQWULEXWLRQVVHH6HFWLRQIRU\RXU
WRWDODFFRXQWEDODQFHDVRI-DQXDU\
•
Employee-required contributions are a percentage of
your gross pay.
•
6LQFH-XO\PRVWHPSOR\HHVPXVWSD\WKHVH
contributions themselves.
•
Some employers may pay all or part of the employeerequired contributions pursuant to a collective
bargaining agreement or contract. Contact your
HPSOR\HULI\RXDUHXQFHUWDLQDERXW\RXUVSHFL¿F
situation.
•
Your interest rate is shown in this section.
0RVWFRQWULEXWLRQVDUHPDGHRQD³SUHWD[´EDVLVDQGDUH
not taxed until you terminate all WRS employment and
UHFHLYHD:56EHQH¿W+RZHYHUVRPHW\SHVRIHPSOR\HH
contributions can be made on an “after-tax” basis and are
not taxed again. The non-taxable portion of your annuity,
referred to as your “Investment in Contract,” is shown at
the bottom of this section.
Section 4 — Additional Contributions
This section shows the balance of additional contributions
that you or your employer have made to your account.
You cannot withdraw these contributions until you leave all
WRS employment. Additional contributions always receive
the effective rate of interest.
,I\RXUHFHLYHGD/RQJ7HUP'LVDELOLW\,QVXUDQFH/7',
EHQH¿W\RXU/7',VXSSOHPHQWDOFRQWULEXWLRQVDUHLQFOXGHG
as Core Employer Additional Contributions.
6HFWLRQ²3ULPDU\%HQH¿FLDU\'HVLJQDWLRQ
for WRS Required Account
$EHQH¿FLDU\GHVLJQDWLRQFRQWUROVZKRUHFHLYHVDGHDWK
EHQH¿WLI\RXGLHEHIRUH\RXEHJLQ\RXUUHWLUHPHQWEHQH¿W
• ,I\RX¿OHGDEHQH¿FLDU\GHVLJQDWLRQZLWK(7)LQ
RUODWHU\RXUSULPDU\EHQH¿FLDU\LHVZLOOQRUPDOO\
appear in this section.
• Changes in your personal situation like marriage,
divorce or termination of a domestic partnership do
QRWFKDQJH\RXUEHQH¿FLDU\GHVLJQDWLRQ<RXPXVW¿OH
DQHZGHVLJQDWLRQWRFKDQJH\RXUEHQH¿FLDU\
• ,I\RXKDYHQHYHU¿OHGDEHQH¿FLDU\GHVLJQDWLRQRU
LI\RXUEHQH¿FLDU\LHVDUHDOOGHFHDVHG\RXUGHDWK
EHQH¿WZLOOEHGLVWULEXWHGDFFRUGLQJWRWKHVWDQGDUG
VHTXHQFHVSHFL¿HGE\:LV6WDW†D
• <RXPD\FKDQJHRUDGGEHQH¿FLDULHVE\FRPSOHWLQJ
the %HQH¿FLDU\'HVLJQDWLRQ(7RU%HQH¿FLDU\
'HVLJQDWLRQ$OWHUQDWH(7IRUP7KHVHIRUPV
are available at etf.wi.gov or by request from ETF.
(75(9
6HFWLRQ²6HSDUDWLRQ%HQH¿W
$VHSDUDWLRQEHQH¿WLVDSD\RXWRI\RXUHPSOR\HH
UHTXLUHGFRQWULEXWLRQVSOXVDQ\DGGLWLRQDOFRQWULEXWLRQVLI
applicable) and interest. It does not include the employerUHTXLUHGFRQWULEXWLRQV$VHSDUDWLRQEHQH¿WFORVHV\RXU
WRS account. If you are vested and take a separation
EHQH¿W\RXIRUIHLWDOOULJKWVWRDUHWLUHPHQWEHQH¿WEDVHG
on the employer contributions and your WRS service
HDUQHGEHIRUHWKHVHSDUDWLRQEHQH¿W
<RXDUHHOLJLEOHIRUDOXPSVXPVHSDUDWLRQEHQH¿WLI\RX
leave all WRS employment, and you are not vested or
\RXDSSO\EHIRUH\RXUPLQLPXPUHWLUHPHQWDJH0LQLPXP
retirement age is age 55, or age 50 if you have some
protective category service that is not purchased forfeited
service.
You may have to meet one of two vesting laws depending
RQZKHQ\RX¿UVWEHJDQ:56HPSOR\PHQW
• ,I\RX¿UVWEHJDQ:56HPSOR\PHQWDIWHUDQG
left employment before April 24, 1998, then you must
KDYHVRPH:56FUHGLWDEOHVHUYLFHLQ¿YHFDOHQGDU
years; or
• ,I\RX¿UVWEHJDQ:56HPSOR\PHQWRQRUDIWHU-XO\
\RXPXVWKDYH¿YH\HDUVRI:56FUHGLWDEOH
service.
If neither vesting law applies, you were vested when you
¿UVWEHJDQ:56HPSOR\PHQW,I\RXDUHYHVWHG\RX
PD\UHFHLYHDUHWLUHPHQWEHQH¿WDWDJHDJHIRU
protective category participants) once you leave all WRS
employment. If you are not vested, you may only receive a
VHSDUDWLRQEHQH¿WUHJDUGOHVVRI\RXUDJH
6HFWLRQ²'HDWK%HQH¿W
7KHDPRXQWVKRZQLVWKHPLQLPXPGHDWKEHQH¿WSD\DEOH
WR\RXUEHQH¿FLDU\LHV,WZLOOEHSDLGLI\RXGLHEHIRUH\RX
DSSO\IRU\RXU:56EHQH¿W2QFH\RXDUHDQDQQXLWDQW
WKHVHHVWLPDWHGGHDWKEHQH¿WVDUHQRORQJHUYDOLG,QVWHDG
\RXUGHDWKEHQH¿WLIDQ\LVEDVHGRQWKHDQQXLW\RSWLRQ
that you selected.
•
7KHGHDWKEHQH¿WVKRZQLQWKH³$FWLYH´FROXPQZLOO
be paid if you die while employed in a WRS-covered
SRVLWLRQ$KLJKHUIRUPXODGHDWKEHQH¿WPD\EH
payable if you are an active WRS employee and are
minimum retirement age when you die. An active
HPSOR\HH¶VEHQH¿FLDU\LHVLVHQWLWOHGWRWKLVEHQH¿W
regardless of vesting requirements.
•
7KHGHDWKEHQH¿WVKRZQLQWKH³,QDFWLYH´FROXPQ
will be paid if you are no longer working in a WRScovered position and have not yet received a WRS
EHQH¿WZKHQ\RXGLH
See the 'HDWK%HQH¿WV(7EURFKXUHIRUGHWDLOV
3DJH
If you are unable to work due to a permanent disability, call
(7)LPPHGLDWHO\WRUHTXHVWGLVDELOLW\EHQH¿WVLQIRUPDWLRQ
6HFWLRQ²)RUPXOD%HQH¿W'DWD
This section shows the data ETF uses to calculate your
IRUPXODUHWLUHPHQWEHQH¿W
• Your three highest years of WRS earnings. The years
do not need to be consecutive nor your three most
recent years.
• <RXU¿QDODYHUDJHPRQWKO\HDUQLQJV)$(<RXU)$(
is calculated by adding the total earnings in your three
highest years, dividing the total by the total service
credited for those three years, then dividing the result by
12.
• $Q\9DULDEOH)XQGH[FHVVGH¿FLHQF\DVRI
-DQXDU\
3OHDVHQRWH\RXUVWDWHPHQWGRHVQRWLQFOXGHDQ\DFFRXQW
receivable amount due if you have an outstanding balance
pending. Any monies owed on your account will be deducted
from your WRS annuity, if not paid in full, before you apply
IRUEHQH¿WV
Additional Information for Inactive Members
If you no longer work under the WRS, you may want to
FRQVLGHUDSSO\LQJIRU\RXUUHWLUHPHQWEHQH¿WDVVRRQ
as you are eligible, regardless of your employment
VWDWXVRULQFRPH'HOD\LQJ\RXUUHWLUHPHQWEHQH¿W
PD\LQFUHDVH\RXUPRQWKO\DQQXLW\+RZHYHU\RX
should also consider how long it will take to recover the
monthly payments and any annual increases that will
EHORVWE\ZDLWLQJWREHJLQUHFHLYLQJDEHQH¿W
<RXZLOOVHHD9DULDEOHH[FHVVGH¿FLHQF\DPRXQWLI\RX
SDUWLFLSDWHGLQWKH9DULDEOH)XQG7KLVDPRXQWLOOXVWUDWHVWKH
value of your account compared to the value it would have
EHHQLI\RXKDGQHYHUSDUWLFLSDWHGLQWKH9DULDEOH)XQG$
9DULDEOHH[FHVVZLOOLQFUHDVH\RXUIRUPXODEHQH¿W$9DULDEOH
GH¿FLHQF\ZLOOGHFUHDVHLW
For more information, see the +RZ3DUWLFLSDWLRQLQWKH
9DULDEOH7UXVW)XQG$IIHFWV<RXU:56%HQH¿WV(7
EURFKXUH<RXPD\SURMHFWXSGDWHVWR\RXU9DULDEOHH[FHVV
RUGH¿FLHQF\EDODQFHVXVLQJWKH:569DULDEOH([FHVV
'H¿FLHQF\8SGDWH&DOFXODWRUDWHWIZLJRYFDOFXODWRUKWP
Additionally, if you die before you begin receiving a
UHWLUHPHQWEHQH¿WWKHGHDWKEHQH¿WZLOOEHOHVVWKDQ
your total account balance because you will forfeit the
matching employer contributions.
Required Minimum Distributions
Section 9 — Money Purchase Balance
Federal law imposes tax penalties if you do not apply for
\RXUUHWLUHPHQWEHQH¿WE\DFHUWDLQDJH
Your money purchase balance is the total value of both the
employee-required contributions balance and the matching
employer contributions in your account.
• <RXUPRQH\SXUFKDVHEHQH¿WLVFDOFXODWHGE\
PXOWLSO\LQJ\RXUWRWDODFFRXQWEDODQFHLQFOXGLQJ
interest) by the money purchase factor for your age.
• ,QWKLVEDODQFHLVRQO\DYDLODEOHDVDOXPSVXP
UHWLUHPHQWEHQH¿WLIWKHPRQWKO\DPRXQWLVOHVVWKDQ
• <RXPXVWDSSO\IRUDOOEHQH¿WVIURP\RXU:56
DFFRXQWEHIRUH'HFHPEHURIWKH\HDULQZKLFK
\RXUHDFKDJHòXQOHVV\RXVWLOOZRUNXQGHUWKH
WRS.
• $FWLYH:56HPSOR\HHVROGHUWKDQDJHòPXVW
DSSO\ZLWKLQGD\VDIWHUHQGLQJHPSOR\PHQW
• If you die before applying, your surviving spouse
PXVWDSSO\EHIRUH'HFHPEHURIWKH\HDULQZKLFK
\RXZRXOGKDYHUHDFKHGDJHò
• If ETF does not receive your application, ETF must
make a forced distribution in the year that you reach
RUZRXOGKDYHUHDFKHGDJHò
6HFWLRQ²5HWLUHPHQW%HQH¿W3URMHFWLRQV
7KLVVHFWLRQVKRZVHVWLPDWHVIRU\RXUUHWLUHPHQWEHQH¿WXQGHU
both the money purchase and formula methods. These are
QRWRI¿FLDOHVWLPDWHVWKH\DUHIRU\RXUJHQHUDOLQIRUPDWLRQ
only. You may request a retirement estimate packet online at
etf.wi.gov or by contacting ETF six to twelve months before
\RXSODQWRUHWLUHRUEHIRUH\RXSODQWRDSSO\IRUEHQH¿WVLI\RX
are not an active WRS employee).
• <RXPXVWEHYHVWHGWRUHFHLYHDUHWLUHPHQWEHQH¿W
• <RXUHVWLPDWHGSD\PHQWPXVWEHDWRUDERYHWKH
minimum of $190 to be eligible for a monthly annuity.
• If no amount is shown in this section, you may be
restricted to a lump sum payment.
• If you are older than normal retirement age for your
employment category, the amounts are calculated
EDVHGRQ\RXUDJHDVRI-DQXDU\
(75(9
• 7RUHTXHVWEHQH¿WLQIRUPDWLRQSOHDVHFRPSOHWHWKH
%HQH¿W,QIRUPDWLRQ5HTXHVW(7IRUPDQG
return it to ETF.
Name and Address Change
Once your WRS employment ends, you must notify ETF
of all name and address changes. This will ensure that
you receive annual statements and other information
from ETF. Failure to notify ETF may result in forfeiture of
\RXU:56DFFRXQW3OHDVHFRPSOHWHWKH$GGUHVV1DPH
&KDQJH)RUP(7DQGUHWXUQWR(7)
3DJH
WRS Retirement Plan Structure
•
7KH:56UHWLUHPHQWSODQLVDTXDOL¿HGSHQVLRQSODQWKDWVDWLV¿HVUHTXLUHPHQWVRIWKH,QWHUQDO5HYHQXH&RGH,5&
•
7KH:56UHWLUHPHQWSODQLVVXEMHFWWR6HFWLRQD,WLVQRWDNSODQ
•
7KH:56UHWLUHPHQWSODQLVDGH¿QHGEHQH¿WSODQZLWKDYDULDEOHLQYHVWPHQWRSWLRQ
•
,QWHUHVWLVRQO\FUHGLWHGWR\RXUDFFRXQWHDFK'HFHPEHU1RLQWHUHVWLVFUHGLWHGRQDGDLO\PRQWKO\RUTXDUWHUO\
EDVLVH[FHSWWKDWSURUDWHGLQWHUHVWPD\EHFUHGLWHGIRUDSDUWLDO\HDUZKHQ:56EHQH¿WVDUHSDLG
•
You cannot take a loan against your account.
Contact the Department of Employee Trust Funds
Visit us Online at etf.wi.gov
Write or Return Forms
)LQG:LVFRQVLQ5HWLUHPHQW6\VWHPEHQH¿WVLQIRUPDWLRQ
IRUPVDQGSXEOLFDWLRQVEHQH¿WFDOFXODWRUVHGXFDWLRQDO
offerings, email and other online resources.
'HSDUWPHQWRI(PSOR\HH7UXVW)XQGV
32%R[
0DGLVRQ:,
Online Calculator
7RSURMHFW\RXUSRWHQWLDOUHWLUHPHQWEHQH¿WVIROORZWKH
LQVWUXFWLRQVWRXVH(7)¶VUHWLUHPHQWEHQH¿WFDOFXODWRUDW
etf.wi.gov/calculator.htm. ETF encourages members to use
this valuable tool for retirement planning. This calculator
uses only the information that you enter; it is not connected
to your WRS account. There is no risk of anyone accessing
\RXUFRQ¿GHQWLDOGDWDWKURXJKWKLVFDOFXODWRU
Appointments
Group appointments are held regularly in your area. For an
DSSRLQWPHQWYLVLWHWIZLJRYDQGVHHWKH0HPEHU(GXFDWLRQ
section. Contact us to schedule an individual appointment in
0DGLVRQ
&DOO'XULQJ2I¿FH+RXUV
2I¿FH+RXUV DPWRSP0RQGD\WKURXJK
)ULGD\H[FHSWKROLGD\V
7HOHSKRQH
WROOIUHH
ORFDO0DGLVRQ
:LVFRQVLQ5HOD\6HUYLFHIRUKHDULQJ
speech impaired)
7-1-1 or
(QJOLVK
(VSDxRO
Media
ETF e-learning video presentation: Understanding Your Annual
Statement of Benefits (alternate non-audio version).
(75(9
3DJH