The contribution rates for WRS' pension plans are set in state statute. The WRS Board carefully monitors the funding status of the plans, and makes recommendations to the Legislature if changes are needed based on a periodic actuarial experience study.
Contributions are broken down into "Employer" and "Employee" contribution rates. The Employer Contribution is made by the participating employer on behalf of the represented position. The Employer Contribution is not added to the member's account balance, and should the member terminate and elect a refund, the employer contributions are not refundable to the individual employee.
The Employee Contribution is paid by the employee, as a reduction in the employee's monthly paycheck. In many WRS pension plans, employers may elect to "pick-up" some or all of the Employee Contribution as part of total compensation. The Employee Contribution, including any "pick-up" paid by the employer, is added to the member's account balance and accrues interest at a rate set by the WRS Board. While the account balance is not part of the calculation of a vested member's future retirement annuity benefit, the account balance is payable to terminating members who elect a refund.
For information on the implications of taxed and untaxed pension contributions visit the Taxed vs Untaxed page...
Pension Contribution Rates
