Accelerated payment
A temporary higher payment until 62 that permanently lowers the after-62 amount.
Age reduction factor
The permanent reduction applied to a formula benefit that starts before normal retirement age.
Annuity
A monthly payment for life (or a set period). Annuitant: someone receiving one.
Annuity adjustment (dividend)
The yearly Core or Variable change to annuities from investment results; not a cost-of-living increase.
Annuity effective date
The date your annuity starts: the day after you end employment, or the 1st of a later month.
ASLCC and SHICC
Sick leave conversion credits that pay health insurance premiums in retirement. They're for State of Wisconsin employees, not school district teachers.
Assumed rate
The 5% a year that annuities are funded to earn. Only Core earnings above it pay for increases.
Break in service
The 75 calendar days a retiree must stay away from WRS employment before going back to work.
Core floor
The Core part of your annuity can't fall below its starting amount.
Core Trust Fund
The diversified, smoothed fund every member is in. Variable Trust Fund: an optional all-stock fund holding 50% of your contributions if you elect it.
Creditable service
Years of WRS service in decimals (1.00 = one year), including purchased and military service. A teacher's full year is 1,320 hours.
ETF
The Wisconsin Department of Employee Trust Funds, which runs the WRS. Phone 1-877-533-5020, 7 a.m. to 5 p.m. Central, Monday to Friday.
Final average monthly earnings (FAE)
Your three highest years' earnings divided by the service in those years, divided by 12.
For Annuitant's Life Only
The payment option with the highest monthly amount, for your life only, with no death benefit. ETF's other options start from it.
Formula multiplier
1.765% (before 2000) or 1.6% (2000 on) of FAE per year of service for teachers.
Maximum benefit
The formula can't pay more than 70% of final average earnings (65% if you didn't work for a WRS employer after 1999).
Money purchase benefit
Your account balance (with the matching employer amount and interest) x an age-based factor.
Named survivor
The one person who gets a lifetime payment under a joint and survivor option. Beneficiary: who gets any remaining guaranteed payments; can be changed any time.
Normal retirement age
For teachers, 65, or 57 with 30 years of creditable service. No age reduction applies from then on.
Option conversion factor
The number your Life Only amount is multiplied by to get another option's amount. For the formula, ETF uses your age or 62, whichever is lower.
Rehired annuitant
A WRS retiree who goes back to WRS-eligible work.
Separation benefit
A lump-sum refund of your own contributions and interest that closes your account.
Statement of Benefits (ET-7365)
The yearly April statement showing your service, account balances and Variable excess or deficiency.
Variable excess / deficiency
How far ahead or behind your account is compared with never joining the Variable Fund.
Vested
Entitled to a benefit that includes employer contributions. Post-July 1, 2011 hires vest at five years; earlier hires are generally vested from the start.
WRS
The Wisconsin Retirement System. It covers Wisconsin public school teachers and most state and local government workers.
No terms match. Try a shorter word.
Plain English, not the official wordingThese definitions put ETF's booklets into everyday words. They aren't ETF's official definitions, and they aren't legal or financial advice. ETF decides your benefit.
Source: Your Benefit Handbook (ET-2119), 6/18/2026, with Calculating Your Retirement Benefits (ET-4107, rev 3/5/2025), ET-2119 pp. 2, 3, 4, 14, 26; ET-4105 pp. 2, 4; ET-4107 pp. 3, 5, 6, 7, 8, 12; ET-4116 p. 3; ET-4117 pp. 2, 3, 4; ET-4133 pp. 4, 6, 15; ET-4930 pp. 3, 6, 9. Last reviewed .