Retirement Changes Possible

Six public employee unions, including WEAC, are continuing discussions about a possible improvement in the retirement formula.

“We are waiting for the results of an actuarial study the state is conducting before moving forward,” WEAC President Terry Craney said. “We are hopeful some improvement in the formula will result, but at this point, nothing is certain.”

The union proposal calls for an across-the-board 0.2 percentage point increase in the multiplier in the Wisconsin Retirement System formula for years of service prior to Jan. 1, 1998. The multiplier would rise from 1.6% to 1.8% for most WEAC members, both teachers and support personnel.

The change would increase benefits for experience gained by January 1, 1998. The plan could increase retirement benefits by about 12% for certain members. The proposal calls for an increase from 1.6% to 1.65% for years of service after January 1, 1998. The actuarial report is expected in late September or early October.

“Until the actuary’s study is released and reviewed, there will be little action on the proposal,” Craney said. “We hope all parties will work together to develop a plan the Legislature can adopt this fall.”

Other changes proposed by legislators are also being studied. Some of the changes, if pursued, could block passage or acceptability of the bill.

Craney said WEAC members should not base their retirement decisions on hopes the improvements will be adopted this year.

“Members should balance economic and other issues as they normally would in deciding when to retire,” Craney said. “We cannot predict whether the Legislature will act.”

Posted September 19, 1997