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Wisconsin Retirement System.


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15 hours ago, Mainecat said:

Your not serious are you?

Public employee pensions are always underfunded and under perform.  Give the employees their own money and let them manage it and invest it.  

They make employees put in 6.75% of their salary, match it, it comes to 14.60% of salary.  Then they give them two funds to invest in.  Their 100% stock fund under performs the S&P 500 by almost 9 points.  Including dividends, the S&P 500 was up 28.71% last year.

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2021 WRS Contribution Rates* General / Teacher and Executives Protectives w/ Social Security
Employee Contribution 6.75% 6.75%
Employer Contribution 6.75% 11.75%
Sick Leave 1.10% 1.10%
Duty Disability N/A 0.17%
Total 14.60% 19.77%

Investments

The Wisconsin Retirement System (WRS) consists of two fund options, the Core Fund and the Variable Fund.

  • Core Fund: 50% stocks, 50% fixed income and other assets
  • Variable Fund: 100% stocks

 

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18 minutes ago, teamgreen02 said:

Public employee pensions are always underfunded and under perform.  Give the employees their own money and let them manage it and invest it.  

They make employees put in 6.75% of their salary, match it, it comes to 14.60% of salary.  Then they give them two funds to invest in.  Their 100% stock fund under performs the S&P 500 by almost 9 points.  Including dividends, the S&P 500 was up 28.71% last year.

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Underfunded. :lol: 

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15 hours ago, XCR1250 said:

What's the % raise come may?

I don’t believe that has been announced. I may be wrong. Last year it was a 5.1% increase in monthly annuity from the core fund. I anticipate 6-7% this year. But that’s just a guess. 

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27 minutes ago, teamgreen02 said:

Public employee pensions are always underfunded and under perform.  Give the employees their own money and let them manage it and invest it.  

They make employees put in 6.75% of their salary, match it, it comes to 14.60% of salary.  Then they give them two funds to invest in.  Their 100% stock fund under performs the S&P 500 by almost 9 points.  Including dividends, the S&P 500 was up 28.71% last year.

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You do know that WRS has over 100 Billion right?

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4 minutes ago, XCR1250 said:

You do know that WRS has over 100 Billion right?

It’s a very well managed and fully funded pension. Conservative in investments? Yes. But I’m perfectly ok with that. Long term growth is a good approach. It’s $143 billion. 

Edited by spin_dry
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16 hours ago, teamgreen02 said:

S&P 500 was up 26.9% so you under performed my investments by 10%. 

Why are we locking public employees into lower than market returns?

Seriously,   you need to have some safety built in given the amounts being drawn yearly.  

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3 minutes ago, spin_dry said:

It’s a very well managed and fully funded pension. Conservative in investments? Yes. But I’m perfectly ok with that. Long term growth is a good approach. 

Wisconsin appears to be well funded so you are fortunate.  Take a look at your neighbors in Illinois though.

My issue is that the investor needs to be the one to choose how conservative or aggressive to be.  Your 100% stock fund even under performs their benchmark by 55 basis points.  The Fidelity S&P 500 index has a 10 year average return of +15.42%.  Your variable fund?  13.31%, because it has a bunch of international and emerging market funds you may or may not want.

2 minutes ago, Angry ginger said:

Seriously,   you need to have some safety built in given the amounts being drawn yearly.  

If I was going to build in safety, it wouldn't be with a 100% stock fund.  That's not what those funds are for.

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Did you know that the investment earnings on the Wisconsin Retirement System trust funds provide about 80% of the total needed to pay member benefits? The trust funds are invested by the State of Wisconsin Investment Board. The effects of earnings on your benefits are based on the rate of return as of December 31. 

Hey @XCR1250, where's the other 20% come from?

 

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November WRS Investment Performance*

Year-To-Date (YTD) as of November 30, 2021. Performance is net of fees.

 

Performance

Benchmark

Core Trust Fund

13.57%

13.28%

Variable Trust Fund

15.04%

15.59%

*YTD returns and benchmarks are subject to final valuation and adjustments that may occur during the calendar year. 

 

 

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27 minutes ago, teamgreen02 said:

Wisconsin appears to be well funded so you are fortunate.  Take a look at your neighbors in Illinois though.

My issue is that the investor needs to be the one to choose how conservative or aggressive to be.  Your 100% stock fund even under performs their benchmark by 55 basis points.  The Fidelity S&P 500 index has a 10 year average return of +15.42%.  Your variable fund?  13.31%, because it has a bunch of international and emerging market funds you may or may not want.

If I was going to build in safety, it wouldn't be with a 100% stock fund.  That's not what those funds are for.

Hey @XCR1250, where's the other 20% come from?

 

 

Anyone that takes a job that is under WRS understands the guidelines of how monies will be invested. I don’t know if anyone that’s unhappy with the quality of their pension and the fact it’s lifetime. Most that are retired after 20 to 30 years of service and collect a guaranteed annuity are very appreciative. It’s getting increasingly more rare in today’s environment. After death a monthly annuity is paid out to survivors. So that’s an added benefit. 

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44 minutes ago, teamgreen02 said:

Wisconsin appears to be well funded so you are fortunate.  Take a look at your neighbors in Illinois though.

My issue is that the investor needs to be the one to choose how conservative or aggressive to be.  Your 100% stock fund even under performs their benchmark by 55 basis points.  The Fidelity S&P 500 index has a 10 year average return of +15.42%.  Your variable fund?  13.31%, because it has a bunch of international and emerging market funds you may or may not want.

If I was going to build in safety, it wouldn't be with a 100% stock fund.  That's not what those funds are for.

Hey @XCR1250, where's the other 20% come from?

 

 

Interest?? Tell me where? When Carter was president and had wage and price freeze on, Wisconsin could not give employees a raise so they voted on the State paying 100% of retirement which then passed the Legislature.

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43 minutes ago, spin_dry said:

Anyone that takes a job that is under WRS understands the guidelines of how monies will be invested. I don’t know if anyone that’s unhappy with the quality of their pension and the fact it’s lifetime. Most that are retired after 20 to 30 years of service and collect a guaranteed annuity are very appreciative. It’s getting increasingly more rare in today’s environment. After death a monthly annuity is paid out to survivors. So that’s an added benefit. 

i assume you have option to not have survivor benefits

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