Short answer: the formula is your final average monthly earnings × your years × 1.765% for service before 2000 and 1.6% from 2000 on. It is reduced if you start before full age and capped at 70% of your final average earnings. ETF also figures a money purchase amount and pays the higher. See one more year and payment options. Load a 30-year teacher at 65 in the calculator.
Two methods, the higher one paid
Final average monthly earnings × years of service × multiplier × age reduction (if any), at most 70% of final average earnings.
Your account balance (your contributions plus your employers' match, with interest) × a factor for your age when the annuity starts.
ETF calculates your benefit using both the formula and money purchase methods and automatically pays you the higher amount. ET-4107 (rev 3/5/2025), p. 3, Retirement Benefit Calculation Methods
ETF pays the higher of the formula and money purchase amounts. The sources don't say whether ETF compares them on the Life Only amount or option by option.
What we use: the comparison on the Life Only amount, then that method's option factors
The formula
The multipliers
| Service | Each year earns |
|---|---|
| before 2000 | 1.765% |
| 2000 and later | 1.6% |
Teachers are in the "general" category. Police, fire, judges and elected officials have other multipliers. ET-4107 (rev 3/5/2025), p. 7, Formula Multipliers
Final average monthly earnings
Add the highest earnings for three annual earnings periods (fiscal years for teachers), divide by the creditable service earned in those years, then divide by 12. The three years need not be consecutive or the last years. ET-4107 (rev 3/5/2025), p. 5, Final Average Earnings
State law drops cents from your final average monthly earnings. ETF's booklets don't mention it.
What we use: the final average earnings you enter, as is
ETF's worked example
| $2,500 × 1.765% × 5 years × .952 | $210.04 |
| $2,500 × 1.6% × 20 years × .952 | $761.60 |
| Formula benefit | $971.64 |
| + Variable excess $10,000 × 0.00571 | $57.10 |
| Life Only, a month | $1,028.74 |
The .952 is the age reduction for 59 with 25 years. See early retirement for the full table.
The 70% cap
The formula can't pay more than 70% of your final average monthly earnings if you worked for a WRS employer after 1999 (65% if not). The For Annuitant's Life Only option, before any Variable adjustment. ET-4107 (rev 3/5/2025), p. 8, Maximum Monthly Benefit
The Variable adjustment
Members may elect to put 50% of employee-required, employer and additional contributions in the Variable Trust Fund (stocks only, not smoothed). For a formula benefit, your Variable excess (amount ahead) or deficiency (amount behind) times the money purchase factor for your age is added to or subtracted from the formula benefit. A money purchase balance already includes Variable gains and losses. ET-4107 (rev 3/5/2025), p. 8, Variable Trust Fund Participation
Money purchase
Your current total contributions (employee- and employer-required contributions, plus accrued interest) multiplied by an actuarial factor based on your age when the annuity begins. The balance is on your annual Statement of Benefits. ET-4107 (rev 3/5/2025), p. 3, Retirement Benefit Calculation Methods
The factor is a monthly payment per dollar of balance. It rises with age:
| Age | Factor | $200,000 balance pays |
|---|---|---|
| 55 | 0.00538 | $1,076 |
| 57 | 0.00553 | $1,106 |
| 60 | 0.00581 | $1,162 |
| 62 | 0.00602 | $1,204 |
| 65 | 0.00641 | $1,282 |
| 67 | 0.00673 | $1,346 |
| 70 | 0.00731 | $1,462 |
ETF's printed option, accelerated and money purchase factors are dated January 1, 2020. ETF says some factors changed for benefits starting January 1, 2026, and it hasn't published the new tables in the booklet we use. Amounts that use these factors may be a little off.
What we use: the factors printed in ET-4107 (rev 3/5/2025)
ETF's compound interest table prints 5.414 for 19 years at 9%. The right value is 5.142 (two digits swapped).
What we use: the correct compound growth, worked out directly
Both methods side by side
What the sources say
- ETF figures your benefit two ways, the formula method and the money purchase method, and automatically pays you the higher one.ET-4107 (rev 3/5/2025), p. 3, Retirement Benefit Calculation Methods
- Formula: final average monthly earnings x years of creditable service x multiplier x age reduction factor (if any). The multiplier is 1.765% for service before 2000 and 1.6% for service from 2000 on.ET-4107 (rev 3/5/2025), pp. 5 and 7, Formula Benefit Calculation / Formula Multipliers
- ETF's worked example: $2,500 a month final average earnings, 5 years before 2000 and 20 after, age 59 (factor .952): $210.04 + $761.60 = $971.64 a month for life.ET-4107 (rev 3/5/2025), p. 9, Regular Payment Calculation Sample
- The formula benefit can't exceed 70% of final average earnings if you worked for a WRS employer after 1999 (65% otherwise).ET-4107 (rev 3/5/2025), p. 8, Maximum Monthly Benefit
- Money purchase: your account balance (your required contributions plus the matching employer contributions, with interest) x a factor for your age when the annuity starts. The balance is on your annual Statement of Benefits.ET-4107 (rev 3/5/2025), p. 3, Retirement Benefit Calculation Methods
- ETF's money purchase example: a $29,521 balance at 55 x .00538 = $158.82 a month.ET-4107 (rev 3/5/2025), p. 18, Money Purchase Benefit Calculation
- In the year your annuity begins, your account earns an assumed 5% interest, prorated through the month before your benefit starts, instead of that year's effective rate.ET-4107 (rev 3/5/2025), p. 17, Interest Crediting
- If you're in the Variable Trust Fund, your Variable excess (or deficiency) x the money purchase factor for your age is added to (or subtracted from) a formula benefit. A money purchase balance already includes Variable gains and losses.ET-4107 (rev 3/5/2025), p. 8, Variable Trust Fund Participation
- Check with ETFETF's option, accelerated and money purchase factors in our calculator are from ET-4107 (rev 3/5/2025), whose option factors are dated January 1, 2020. ETF notes factor changes tied to its 6.8% assumed rate starting with benefits effective January 1, 2026.ET-4107 (rev 3/5/2025), p. 12; ET-8816b (rev 10/20/2026), footnote 1We don't know which factors changed on January 1, 2026.
- Final average monthly earnings = earnings in your three highest years / creditable service in those years / 12. For teachers the years are fiscal years (July 1 to June 30).ET-4107 (rev 3/5/2025), p. 5, Final Average Earnings
- The three years don't need to be consecutive or your last three; they're simply the years with the highest reported earnings.ET-4107 (rev 3/5/2025), p. 5, Final Average Earnings
- By statute the monthly average drops any fraction of a dollar and is subject to federal compensation limits.Wis. Stat. s. 40.02 (33) (a)
- Moving from full time to part time can lower your final average earnings, your service and your age reduction factor.ET-2119 (6/18/2026), p. 11, Part-Time WRS Employment
Questions
Which method will I get?
Whichever pays more. ETF works out both and pays the higher amount automatically. You don't choose.
Why is service before 2000 worth more?
The law pays 1.765% of final average earnings for each year before 2000 and 1.6% for each year from 2000 on.
What's the most the formula can pay?
70% of your final average earnings if you worked for a WRS employer after 1999 (65% if you didn't). The cap applies before any Variable adjustment.
Where do I find my money purchase balance?
On your yearly Statement of Benefits from ETF. It's your required contributions and your employers' matching contributions, with interest.
Source: Your Benefit Handbook (ET-2119), 6/18/2026, with Calculating Your Retirement Benefits (ET-4107, rev 3/5/2025), ET-2119 p. 11; ET-4107 pp. 3, 5, 6, 7, 8, 9, 12, 17, 18, 19; ET-4930 p. 5; ET-8816b; Wis. Stat. s. 40.02. Last reviewed .