Q&A Guide for Almost Retirees
(those who want to retire in 2008 or 2009)
1. What are the two types of retirement annuity calculations?
Your retirement annuity is calculated under two different methods and your annuity is based on the
HIGHER of the two calculations. You do not select your calculation method; you automatically receive the
higher of the two calculations. A formula calculation is based on years of WRS service, three highest years
of earnings, formula factors based on employment category and age at retirement. A money purchase
calculation is based on the total value of your WRS account and a money purchase factor based on your
age at the time of retirement.
2. How do I know if my annuity will be higher under the Formula or Money Purchase calculation method?
1) On the second page of your annual ETF Statement of Benefits, you will find annuity projections. This
section of the statement will indicate which calculation method provides the higher benefit. 2) If you have
already received your retirement estimate and application from ETF, you will need to look on the upper half
of the first page of the application. It will state on the application if your benefit is higher under the
formula or money purchase calculation. Also, if your years of creditable service and three high years of
earnings are listed on the application, your annuity is higher under the formula calculation. If that
information is not on the application, you annuity is higher under the money purchase calculation.
3. How is interest credited to my WRS account for the year prior to retirement and during the first year of
Your WRS account is credited with the full effective rate of interest for the year prior to your retirement.
For example, if you retire in 2008, you received 13.1% core interest and 6% variable interest (if applicable)
on your WRS account for 2007. For the year in which you retire, you receive 5% prorated interest on your
account based on your actual retiremen