Understanding Wisconsin’s State Retirement System

The Wisconsin Retirement System (WRS) is the retirement plan for covered public employees in Wisconsin. Unlike most state government pension systems, WRS works a little differently in terms of covered employees and if your retirement assets are part of a defined-benefit or defined-contribution plan, with the state paying you the higher amount calculated by the Employee Trust Fund (ETF).

If you are a public employee or getting ready to retire, here's what you need to know about WRS retirement benefits and how to factor them into your retirement planning strategy.

How the WRS Works

Your employer determines Wisconsin retirement eligibility under WRS. If you're employed by the State of Wisconsin, you are eligible to participate in WRS.

Local governments and public entities can also participate in WRS by opting into the system, although it isn't automatic. This includes:

• Municipal governments in Wisconsin
• Local police and firefighters
• Public school teachers
• Schools in the University of Wisconsin system

If you are unsure whether your employer participates in WRS and where your retirement contributions are going, you should contact your employer's benefits manager or payroll department.

Your employer is also mandated to cover you as a participating employee in WRS if your job meets the following WRS Participation Requirements:

If you first became a WRS employee on or after July 1, 2011:

• You must be expected to work at least 2/3 of full-time.
  • 880 hours for teachers and educational support employees of school districts
  • 1,200 hours for all other non-teaching employees of school districts
• You are expected to be employed for at least one year

If you first became a WRS employee before July 1, 2011:

• You must be expected to work at least 1/3 of full-time.
  • 440 hours for teachers and educational support employees of school districts
  • 600 hours for all other non-teaching employees of school districts
• You are expected to be employed for at least one year

You won't be automatically enrolled in WRS if your job is not expected to meet these requirements when you are initially hired. However, if your position becomes eligible later on, you may need to manually enroll in WRS.

Contribution Rates

Similarly to 401(k) plans in private sector employment, both employees and employers make requisite contributions to the WRS. In most cases, you pay 50% of the mandated contribution rate and your employer pays the other 50%. WRS contribution rates are determined by the year, your salary, job class, and if your job is part of a collective bargaining agreement.

There are five classes of jobs that have differing contribution rates:

• General and Teacher Members
• Executives and Elected Officials
• Protective Occupation with Social Security
• Protective Occupation without Social Security
• Act 4 Protective County Jailers

Most state, municipal, and educator employees fall under "general and teacher members." For 2025, both the employee and employer each contribute 6.95% to the WRS.

Employees in protective occupations may have different rates. For example:

• Protective with Social Security: 6.95% employee / 14.95% employer
• Protective without Social Security: 6.95% employee / 18.95% employer

In rare cases, collective bargaining agreements may alter employee contribution percentages, but most public employees are required to pay the full employee share. It’s important to review your own contribution details to plan both your long-term retirement savings and your current budget accurately.

Retirement Eligibility and Benefits

You must be a vested member to receive retirement benefits, which begin at age 55 (or age 50 if you are in a protective category, such as law enforcement or firefighting). If you are not vested, you may only be eligible for a separation benefit rather than a retirement annuity.

• If you began WRS employment after 1989 but ended before April 2, 1998, you must have WRS-creditable service in five calendar years.
• If you began on or after July 1, 2011, you must have five years of WRS-creditable service.
• One year of creditable service is based on hours worked:
  • Teachers: 1,320 hours
  • All other WRS employees: 1,904 hours

Once you are within 12 months of your 55th birthday—or your planned retirement date if later—WRS offers a step-by-step process to help you prepare. You will need to file Form ET-4301, the official retirement estimate and application. This can be submitted online or by phone with a WRS benefits specialist.

While it's not required, it’s highly recommended to set up a retirement appointment with a specialist once you've requested your official benefit estimate. Your final application must be submitted to ETF six weeks before your official retirement date.

Disability Retirement Options

If you become disabled and need to retire early, WRS offers both short-term and long-term disability retirement benefits. Short-term disability is available if you expect to return to work, while long-term disability may be subject to income limits and annual eligibility certification. Consult ETF directly for current requirements and application steps.

Using Retirement Benefits Calculators

WRS benefit calculators provide unofficial estimates of your retirement benefits. Official estimates are only available once you are within 6–12 months of your projected retirement date.

The calculator compares your potential benefits under both the money purchase (defined-contribution) and formula (defined-benefit) methods. Your final retirement benefit will be based on whichever method yields the higher amount. For the most accurate estimate, refer to your most recent annual Statement of Benefits.

Note that your benefit estimate may be reduced if:

• Your account was divided due to divorce or legal separation
• You previously left WRS employment and then returned at a later date.

The WRS system for state employees, and employees of local governments and public institutions that opt into WRS, aims to provide stable and consistent returns for covered employees. By using the retirement planning tools they provide, you can start planning for your future and any additional retirement savings.

Payroll Freedom can help you navigate the intricacies of WRS as you plan for retirement. Contact Payroll Freedom today for personalized guidance.