Get ready for a boost in your retirement savings! ETF predicts a significant rise in employees' effective rates, which could lead to substantial growth in WRS account balances this year.
But here's the exciting part: The Core effective rate is anticipated to fall within the 7.4% to 7.8% range, while the Variable effective rate is expected to soar between 20% and 24%. These numbers are based on the WRS Trust Funds' preliminary investment performance for 2025, so they're subject to change.
The effective rate of interest is an annual affair, impacting your account balance once a year. The Core Fund's effective rate is calculated using a five-year smoothing technique, factoring in investment performance from the past half-decade. In contrast, the Variable Fund's rate is more immediate, solely reflecting the previous year's investment performance without any smoothing.
And the suspense builds... ETF will reveal the official effective rates in February 2026, and these rates will be reflected in your WRS Statement of Benefits in April 2026.
A word of caution: These projections are just that—projections. While they provide a glimpse into potential growth, actual results may vary. So, stay tuned for the official announcement and remember that long-term investment strategies are a marathon, not a sprint!
