How to Read My Statement of Benefits - Active Employee

1. Name & Address:  Make sure you receive important information about your WRS account by keeping your contact information up to date. See the Change My Contact Information page for steps to change information.
2. IRS Codes:  The WRS falls under Internal Revenue Service Codes 401(a) and 403(b). The WRS is a defined benefit pension plan; it is neither a 401(k) nor a 457(b). See the WRS Retirement Benefit page for more information.

• If any information on your Statement of Benefits is incorrect, contact your payroll office first. Your employer must report any corrected data to ETF and should contact ETF directly with any reporting questions.
• If your employer is unable to resolve your concerns, you must submit a written request for corrections to ETF.
• Carefully review the information about Required Minimum Distributions (the deadline to apply for your benefit) at the bottom of this page.
   

3. Section 1 – Earnings and Service:  Your employer reports your WRS earnings and service to ETF each year.

• For most employees, this information is reported on a calendar year basis. However, if you worked as a teacher, judge, or educational support personnel, your information is reported on a fiscal year basis. 
• A maximum of 1.0 year of service is creditable for each annual reporting period.
   

4. Section 2 – Years of Creditable Service:  This section shows your total years of creditable service broken down into three types: "Before 2000," "After 1999," and "After Act 10."  This includes military service, if applicable. You may have service in one, two, or all three types, depending on when and how long you have worked under the WRS. See the WRS Retirement Benefit page for more information. 

• 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 this service. If you first began employment in one of these categories after 2016, your normal retirement age is 65 for this service.
• Your total service may be less than expected because of payroll lag time. Generally, when you retire, your employer’s final report will include all the service you have earned. Your creditable service may be less than expected if:
  • 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. 
  • Your account has been divided by a Qualified Domestic Relations Order (QDRO). Your total service does not include the portion awarded to your former spouse or 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 retirement or disability benefit.

See the Calculating your Retirement Benefits (ET-4107) brochure for more information, including the various formula multipliers.

5. Section 3 – Employee-Required Contributions:  This section shows the cumulative employee-required contributions in your account. This amount does not include the employer contributions (see Section 9 for your total account balance). Your interest rate is shown in this section.

• Employee-required contributions are a percentage of your WRS earnings reported. 
• Since July 2011, most employees must pay these contributions themselves. However, some employers may pay all or part of the employee-required contributions pursuant to a collective bargaining agreement or contract. Contact your employer if you are uncertain about your specific situation.
   

6. Non-taxable portion of employee contributions (Investment in Contract):  Since July 2011, most employee contributions are made on a pre-tax basis and are not taxed until you receive a WRS benefit. However, some types of employee contributions are made on an after-tax basis and are not taxed again. The non-taxable portion of your account is your "Investment in Contract."

7. Section 4 – Additional Contributions:  This section shows the balance of voluntary additional contributions that you and/or your employer have made to your account. Additional contributions always receive the effective rate of interest. You cannot withdraw contributions until you leave all WRS employment. See the Additional Contributions page for more information.
8. If you received a Long-Term Disability Insurance (LTDI) benefit, your LTDI supplemental contributions are included as Core Employer Additional Contributions.
9. Investment in Contract:  Employee additional contributions are made on an after-tax basis. After-tax employee additional contributions are the Investment in Contract amount. The non-taxable portion of your WRS benefit will be based on this amount. Note: Before 2009, some employees made before-tax additional contributions (tax-deferred). Those and all employer additional contributions are fully taxed when the WRS benefit is paid. For information about taxes on additional contributions, see the Tax Liability on WRS Benefits (ET-4125) brochure. 
    
10. Section 5 – Primary Beneficiary Designation(s):  A beneficiary designation controls who receives any WRS death benefits payable when you die, including the life insurance administered by ETF. This section shows who receives any death benefit payable when you die. Your statement only shows your primary beneficiary designation(s) added after 1988. Secondary and tertiary beneficiaries are not listed, but are on file with ETF. If you do not have one on file or you turned one in before 1988, you will see a message like the one in the example. Changes in your personal situation like marriage, divorce, or termination of a domestic partnership do not change your beneficiary designation. You must file a new designation form to change your beneficiary. See the Designate a Beneficiary page for more information. If you have never filed a beneficiary designation, or if all your beneficiary(ies) are deceased, your death benefit will be paid according to the standard sequence specified by Wis. Stat. § 40.02 (8)(a).

11. Section 6 – Separation Benefit:  This section shows the amount available if you are eligible for a separation benefit. A separation benefit is a one-time (lump-sum) payment consisting of your employee contributions, additional contributions (if applicable), and interest. It does not include employer contributions. If you choose this option, you will lose all employer contributions (if vested) and service, and your account will be closed.
    • You are eligible for a separation benefit if you leave all WRS employment, and you are not vested or you apply before reaching your minimum retirement age. Minimum retirement age is 55 for most, or age 50 if you have some protective category service (that is not purchased). 
    • The decision to take a separation benefit, instead of waiting to take a retirement benefit, has significant financial, insurance, and tax consequences. See the Separation Benefit page for more information.
12. Section 7 – Death Benefit:  The amount shown is the minimum death benefit payable to your beneficiary(ies). It will be paid if you die before your WRS benefit begin date. Once you are receiving benefit payments from your WRS account, these estimated death benefits are no longer valid. Instead, your death benefit, if any, is based on the annuity payment option that you selected. See the Death Benefits page for more information.
13. Active:  This benefit will be paid if you die while employed in a WRS-covered position. A higher formula death benefit may be payable if you are an active WRS employee and are minimum retirement age when you die. An active employee’s beneficiary(ies) is entitled to this benefit regardless of vesting requirements.
14. Inactive:  This benefit will be paid if you are no longer working in a WRS-covered position and you die before beginning your benefit.

15. Section 8 – Formula Benefit Data:  This section shows the data ETF uses to calculate your formula retirement benefit. See the WRS Retirement Benefit Calculations page for more information.
16. Your three highest years of WRS earnings. The years do not need to be three years in a row, nor your three most recent years.
17. Your final average monthly earnings (FAE). Your FAE is calculated by adding the total earnings from your three highest years, dividing that amount by the total service credited for those three years, then dividing by 12.
18. If you participate in the Variable Trust Fund, your Variable excess or deficiency amount is shown. This amount shows the value of your account compared to the value it would have been if you had never participated in the Variable Fund. A Variable excess will increase your formula benefit, while a Variable deficiency will decrease it. See the Variable Fund page for more information.
19. Section 9 – Money Purchase Balance:  Your money purchase balance is the total value of your account. It includes both the employee-required contributions balance and the employer contributions in your account plus accumulated interest. Note: Your monthly money purchase retirement benefit is calculated by multiplying this total balance (including interest) by the money purchase factor for your age on the benefit begin date. Your benefit will be based on this balance, unless the formula calculation (using information from Section 8) is higher. 

20. Section 10 – Retirement Benefit Projections:  This section shows estimates for your retirement benefit under both the money purchase and formula methods. These are not official estimates; they are for your general information only. For more information about projecting your retirement benefit, see the WRS Retirement Benefit Calculations page.

    You may request a retirement estimate six to twelve months before you plan to retire (or before you plan to apply for benefits if you are not an active WRS employee). You must be vested to receive a retirement benefit. For more information about these requirements see vesting and how the WRS retirement benefit works. If you are unable to work due to a permanent disability, call ETF immediately to request disability benefits information. 

    Your eligibility for a one-time lump-sum payment versus a monthly payment depends on the size of your For Annuitant’s Life Only benefit. Annual minimum and maximum amounts are determined by the IRS. See annuity payment options for current rates. 

    If you are older than the normal retirement age for your employment category, the amounts are calculated based on your age as of January 1.

• Members with Protective and other WRS-creditable service:

  This retirement projection shows your estimates for both your “minimum retirement age” and “normal retirement age.” Your normal retirement age is the age at which you can receive a full benefit without an age reduction factor. This calculation takes into account all employment categories for which you have service. Your minimum retirement age is the earliest age you can begin a retirement benefit, at a reduced amount because the benefit is expected to be paid longer. Depending on your age and years of creditable service, these dates can be the same and produce only one benefit projection.   

Please note, your statement does not include any account receivable amount due if you have an outstanding balance pending. Any monies owed on your account will be deducted from your WRS benefit, if not paid in full, before you apply for benefits.

Additional Information about Required Minimum Distributions

Once you stop working for a WRS employer, federal law requires you to begin receiving your benefit payment(s) by a certain date, depending on your age. This is called a required minimum distribution (RMD). Visit the RMD page for detailed information about current RMD requirements, and the potential impact a RMD may have on your WRS benefits and tax liability. You may also want to consult with your tax advisor.

It is important for you to contact ETF before a forced distribution is required. Once a forced distribution begins, your ability to choose a different payment option, if available, will be very limited. Your WRS account will be closed and you will not be able to return your payment(s).