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WRS contribution rates up for 2014: Plan ahead

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Brenda EcheverriaThe Wisconsin Retirement System (WRS) contribution rate will increase from 13.3% to 14% in 2014. Employers and employees split the cost equally, so each will contribute 7% (up from 6.65% in 2013) of payroll toward the pension—an increase of 0.35% over last year.

What do you need to do?

Increases start January 1, so be prepared. Generally, the adjustment will not have a significant impact on your take home pay. However, it's a good idea to look at your budget in advance. This calculator can help you determine the change to your take home pay.

It's more important now than ever that Wisconsin public school employees save more to prepare for their retirement income needs, so resist the temptation to balance your budget by reducing the amount you contribute to other retirement savings accounts, such as an IRA or 403(b).

Would you like to talk to someone about how much you need to save for retirement? Set up a personal phone consultation with a consultant from Member Benefits or call 1-800-279-4030.

Brenda Echeverria, Financial Planner

This blog post is for informational purposes only and not intended to be legal or tax advice. Consult your tax advisor or attorney before taking any action. The 403(b) retirement program is offered by the WEA TSA Trust. TSA program registered representatives are licensed through WEA Investment Services, Inc., member FINRA.  The Trustee Custodian for the WEAC IRA accounts is Newport Trust Company.