ETF Announces Pension Adjustments
MADISON, (Wis.) – Trust fund earnings in 2005 were enough to give retired state and local government employees in the Wisconsin Retirement System (WRS) a small increase in their monthly pension checks, Eric Stanchfield, Secretary of the Department of Employee Trust Funds (ETF), announced today. The fixed annuity dividend is 0.8% (eight-tenths of one percent) and the variable adjustment is 3%. Retirees will receive the increases beginning with their May 1 pension payments.
“These are modest adjustments, but nonetheless we are very pleased to provide our retirees with an increase this year,” said Stanchfield, adding that the WRS does not provide for an annual cost-of-living increase, or any other guaranteed annual increase.
Whether any post-retirement pension increase is provided depends on returns from the pension funds’ investment earnings. Fixed Fund gains and losses are distributed over a five-year period to help avoid wide fluctuations between pension increases or decreases. This year’s Fixed annuity dividend reflects losses carried over from 2001 and 2002. In addition, payment of annuity increases may only occur after current and future projected funding needs of the pension system are met. In practical terms, this means that only the portion of investment returns exceeding 5% annually are available for pension increases.
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Deferred Annuity
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