The state should ensure that excessive resources are not committed to funding teachers' pension systems.
As of December 31, 2015, the most recent date for which an actuarial valuation is available, Wisconsin's teacher pension system is 100.0 percent funded. It has no unfunded liabilities to pay down. Both levels are better than regulatory recommendations, and Wisconsin's system is financially sustainable, according to actuarial benchmarks.
Wisconsin does not commit excessive resources toward its teachers' retirement system. Notably, Act 10 of 2011 restricts employers from paying the employee required contribution unless provisioned in an existing collective bargaining agreement. Commendably, employers and employees split the actuarially required contributions 50-50. The mandatory employer and employee contribution rate to the defined benefit plan for fiscal year 2015 is 6.8 percent. Both of these rates are reasonable considering the fact that districts and teachers are also contributing to Social Security.
Wisconsin Retirement System. Thirty-fifth Annual Actuarial Valuation and Gain/Loss Analysis, December 31, 2015.
Wisconsin did not respond to repeated requests to review this analysis.