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WCOA Annual Conference

WCOA Annual Conference. May 16, 2011 Matt Stohr, Administrator for Retirement Services Department of Employee Trust Funds. Today’s Presentation. Overview of the WRS More Detail regarding the Provisions in 2011 WI Act 10 Affect on ETF’s workload Other Retirement Related Issues at ETF.

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WCOA Annual Conference

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  1. WCOA Annual Conference May 16, 2011 Matt Stohr, Administrator for Retirement Services Department of Employee Trust Funds

  2. Today’s Presentation • Overview of the WRS • More Detail regarding the Provisions in 2011 WI Act 10 • Affect on ETF’s workload • Other Retirement Related Issues at ETF

  3. Overview of WRS • Over 566,000 members in the WRS (1/1/10) • Active employees: 267,293 • Annuitants (retirees, disabilitants, and beneficiaries): 150,671 • Inactive employees: 148,353 • Active employees by employer type: 27% state, 73% local • 1,469 employers

  4. WRS Members by Employer Type

  5. WRS Members Eligible to Retire • Active 64,993 • Inactive 41,075 • Total 106,068 • As of 1/1/10, roughly 24% of active WRS members were eligible to retire.

  6. 2011 WI Act 10 • Provisions that affect the programs administered by ETF • Major insurance-related provisions that affect active employees: • Local employers can no longer contribute more than 88% of the premium for local government plan participants beginning 1/1/2012. • Establishes new premium rates for state employees for the rest of 2011. These rates for the employee share are more than twice current rates. • Directs Group Insurance Board to design health coverage plans that reduce state premium costs by at least 5% (including inflationary increases)in 2012 compared to 2011 premium costs.

  7. Act 10 • Major WRS-related provisions that affect active employees: • Changes to WRS contribution rates • Most WRS employees will be required to pay increased WRS contributions (percentage of earnings), usually one-half of total contributions. • Actual amount varies for each WRS employee category. • Eliminates the Benefit Adjustment Contribution. • Contribution rates can change each calendar year • Primarily depends on investment performance.

  8. Act 10 • Prohibits employers in the WRS and other governmental pension plans (City and County of Milwaukee) from “picking up” the employee share for most employees. • Exception: Existing collective bargaining agreements. • Exception: Many protective occupation employees. • Changes the formula calculation multiplier for elected and executive employees from 2.0% to 1.6%. • Date of applicability varies.

  9. Act 10 • Effective date of Act? • Generally, an Act becomes effective on the day after it is published by the Secretary of State. On March 18, 2011 a temporary restraining order (TRO) was issued by the Dane County Circuit Court prohibiting the Secretary of State from publishing the Act as law pending further legal proceedings.

  10. Current Workload • ETF has received more than 15,000 retirement estimate requests in the first 17 weeks of 2011, which is a 108%increase compared to the first 17 weeks in 2010. • ETF has received about 7900 retirement applications in the first 17 weeks of 2011, which is roughly a 94% increase compared to the same time in 2010.

  11. Affect on Other Services • Have had to prioritize services due to limited resources • Wait times have increased for: • General correspondence • Separation benefits • Death benefit processing • Final annuity calculations

  12. Customer Service Improvements • Despite these challenges, we have launched many customer service improvements. • Variable Fund information for retirees • Developed one-stop shop retirement planning tools • Videos • Brochures • Expanded outreach across the state • Improved our overall customer service score with benchmarking firm

  13. Thank You • Appreciate partnership with WCOA. • Questions?

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