The Department of Employee Trust Funds (ETF) recently announced the Wisconsin Retirement System (WRS) employee and employer contribution rates effective January 1, 2021. WRS rates are evaluated and adjusted annually.
Positive investment returns in 2019 were offset by the effect of salary and demographic experience resulting in no change in rates for the general, executive, and elected category. There will be a small increase in rates for the protective categories.
Contribution increase and decrease fluctuations are considered normal for retirement systems like the WRS that pre-fund retirement benefits.
UW System employee contribution rates are determined by employment category. Most UW System employees are in the General/Teacher/Executive category. Employees with law enforcement or public protection duties (police officers, fire fighters) are in the Protective category.
|Employee Category||General, Teacher and Executive||Protectives with Social Security|
The 2021 rates will apply to all paychecks paid in 2021; beginning January 4, 2021 for Faculty/Academic Staff and Limited Appointees paid monthly, and January 14, 2021 for University Staff paid bi-weekly. As a reminder, WRS contributions are taken on a pre-tax basis for state and federal tax purposes.
For more information visit the WRS webpage on the UW System Employee Benefits website.
Source: UW System Human Resources