Recently, the Employee Trust Fund sent out your Wisconsin Retirement System Benefit Statement. If you are in the Variable fund, you might have noticed that you took a significant loss. That doesn't necessarily mean that it is time to get out of the Variable fund. It really depends on how near you are to retirement, and what losses you have the stomach for. The Variable fund is mostly invested in stock funds, and so when the market has a bad year, the Variable fund suffers losses. You also need to remember that if you have been in the Variable fund the last 10 years or so, you have been enjoying some excellent gains to your pension! 

Most advisors will recommend (and I agree) that if you are within 1-3 years of retirement, it may be time to consider switching to the Core fund. This is due to the fact that most people do not want their monthly pension payment decreasing once they are drawing their benefit. Here is what you need to know before you make a change:

• You can fill out the paperwork to switch from the variable to the core fund at any time, but the change will not take effect until the following January 1st

• Once you switch out of the Variable, you may not return to it- this is a permanent change, with no recourse.

Some things to know about how divorce can impact your pension:

• Your account and the alternate payee account will remain separate, and require separate applications to draw your monthly benefit

• The alternate payee should request an estimate on both this account and their own accounts separately

• You cannot draw a monthly benefit from your Alternate Payee account until the member (your ex) reaches the age of 55.

• The alternate payee can take a separation benefit at any time (not advised)

• An active WRS employee can apply for the alternate payee benefit even if they are currently working

• The monthly benefit calculation uses the alternate payees age, not the member (ex)

• The alternate payee may be eligible for an accelerated benefit before the age of 62, but caution is advised because the payment will decrease when the alternate payee reaches the age of 62. ( I would advise you to take the regular payment)

• More detail can be found on theWRS Website- pages 12 & 13 are especially important