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The truth about the budget bill's impacts for retirees

By Dustin Beilke

Since Governor Scott Walker released his budget “repair” bill proposal, WEAC leaders and staff have spoken with many WEAC-Retired members and active members about bill’s possible impact on current and future retirees.

Questions about effects on bargained retirement benefits are best answered by the professional staff members who work in the UniServ office where your contract was negotiated. This is true for retired members as well as active members who are considering retirement. WEAC.org has a listing of all of the state’s UniServ offices  and the contact information for the men and women who work in them.

Many of us are also concerned about how the so-called repair bill and the budget itself could affect annuitants in the Wisconsin Retirement System (WRS) and the health of WRS, Employee Trust Funds (ETF) and the State of Wisconsin Investment Board.

ETF has produced a 10-page question-and-answer document to address these concerns. ETF’s website also has a link to a shorter document for active members who are considering retiring soon. Questions about either of these documents are best directed to ETF, and the toll-free telephone number there is 1-877-533-5020.

There is much fear and concern about what could happen to retiree benefits and WRS in future budgets and future sessions of the Legislature. The budget repair bill includes a directive to study the state retirement system and to analyze possibilities related to changing from a defined benefit system to a defined contribution system. State law would need to be changed before such a change could occur and there is currently no such proposal to change state law for this purpose. There is also nothing in the bill that calls for privatization of the retirement system, another move that would require a change in state law.

WEAC will continue to monitor all proposed changes to the retirement system and will remain in frequent communication with the experts who run WRS. For e-mail updates, subscribe to the WEAC-Retired blog through this link.

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Comments  2

  1. DAVID MEAD 3/4/2011

    GOOD MORNING,
    HAVE BEEN WONDERING AND WONDERING SINCE THE ONSET OF SO-CALLED 'BUDGET REPAIR BILL' FIASCO BEGAN.  WHY HAS THERE BEEN NO MENTION, NO EXPLANATION OF THE EGREGIOUS EFFECTS OF THE "QEO" ON NEARLY ALL, IF NOT ALL PUBLIC SCHOOL DISTRICTS IN WI??  AM I MISSING SOME-THING?  A 2.1% (REGARDLESS OF INFLATION) CAP ON EMPLOYEE
    WAGES AND BENEFITS FOR THE PAST 18 YEARS HAS CERTAINLY
    REINED IN ANY UNDUE RAISES.  DECLINING PUBLIC SCHOOL ENROLLMENTS, DUE TO SCHOOL CHOICE AND THE INCLUSION OF CHARTER SCHOOLS, NOT TO MENTION PRIVATE SCHOOLS AND PAROCHIAL SCHOOLS, AND HOME-SCHOOLING, AND NOW ADDITIONAL VIRTUAL SCHOOLING---IS KILLING OUR PENSION SYSTEM!!!  ADD TO THAT, ALLOWING TEACHERS TO RETURN TO THEIR OWN SCHOOLS, IN THEIR OWN POSITONS, 30 DAYS AFTER THEY'VE TAKEN RETIREMENT IS ALSO KILLING THE SYSTEM.  WHY? BECAUSE NEITHER THE DISTRICT NOR THE INDIVIDUAL TEACHER IS PAYING INTO THE SYSTEM.  
          POLICEMAN AND FIREMAN [I TRULY APPRECIATE THEM!!]; HOWEVER, THERE IS A 30 YEAR GAP IN THEIR PENSION CONTRIBUTIONS---RETIRING WITH FULL BENEFITS AT AGE 50 MEANS THESE PEOPLE DO NOT CONTRIBUTE 15 YEARS TILL AGE 65 AND THEY ALSO ARE PERMITTED TO WITHDRAW 15 YEARS EARLIER.   DOES THIS SOUND LIKE THE PROBLEM WITH OUR FEDERAL SOCIAL SECURITY SYSTEM TO ANYBODY ELSE??? 
  2. Ronda Schubring 3/3/2011

    Who in the world would tamper with a very well run pension system???!!!

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