Forum warns of need to secure retirement system
JANESVILLE — The Wisconsin Retirement System is sound and stable.
But Betsy Kippers believes plans might be under way to destabilize it.
At a forum Monday, Kippers, vice president of the Wisconsin Education Association Council, told an audience of about 40 people to be ready for an "call to action" to protect the system.
"We're talking about big changes here," Kippers said. "We're talking about allowing people to opt out, allowing people to make defined contributions."
Defined contributions are the same as private employers' 401K plans, where all the risk is on the employees' side.
The forum was sponsored by the Wisconsin Coalition for Retirement Security, a nonpartisan alliance created to advocate for retirement security for Wisconsin residents.
A recent study of the Wisconsin Retirement System came to the conclusion that the system—unlike those in California and New Jersey—was sound and stable.
"It's probably one of the best darn systems in the country," said Doug Leuck, a retired educator.
The study didn't suggest making any changes.
"The governor did say that he wasn't going to change anything, ‘at that time,'" Leuck said.
Another official suggested that public employees might like to have more options and that legislators should "continue to monitor the system and look for opportunities for reform."
All of those comments rang alarm bells for retirees and others.
Kathleen Marsh, a retired state employee, started an online petition asking that the retirement system remain the way it is. The petition has garnered more than 38,000 signatures.
At Monday's meeting, Kippers predicted that after the next election, the Legislature would start chipping away at the retirement system, probably in a budget bill.
Changes might include increasing the retirement age to 59 or altering the accounting system so that future pension liabilities are treated as though they are due now.
One of the most dangerous changes would allow employees to opt out of the system or make defined contributions, Kipper said.
Retirees' benefits are based on the success of the pension system's investments. The smaller the pool of money is, the less successful it will be.
The same rule is applied to defined contributions. Employees removing their money from the system will make the investment pool smaller.
Sep 21, 2012 at 10:31 a.m.
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We need to remember there are two agencies involved in the pension. One administers the pension which Walker said he would not chnage. The other is the funded and the investment of those moneys thats what they have been after. The plan I have heard about just may work for them. The plan is to sell the "investment fund" to a private company. The sale would be financed by a "loan" from the fund. It is now an investment not an illegal taking. No money in the fund no pension.
Sep 21, 2012 at 7:55 a.m.
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"One of the most dangerous changes would allow employees to opt out of the system or make defined contributions, Kipper said."
How about choices?
Sep 20, 2012 at 7:36 p.m.
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It seems that the system works well and should only be monitored for unanticipated changes. However, you have to wonder about the mindset of someone who thinks that giving people the opportunity to "opt out" is "dangerous", or that it "undermines" the system. If that mindset worked so well, the Soviet Union would have won the Cold War.
Sep 20, 2012 at 3:26 p.m.
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Let's change the rules on the WRS money. It will be the GOP's version of what the Dane County judge pulled with Act 10. You know, what comes around, goes around.
Sep 20, 2012 at 1:50 p.m.
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He didn't say anything about collective bargaining either before he "dropped the bomb" - in fact he said he wanted to work WITH unions to problem solve together. Then after inauguration it was "my way of the highway". So no, I don't believe what he has to say and if he says he's not going to change something then watch out because change is coming.
Sep 20, 2012 at 1:24 p.m.
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No where in this article or outside of this article has Gov. Walker said that he wanted to change this system. In fact it was quite the opposite if you read the article. Please don't try to start fear mongering to promote your own agenda.
Sep 20, 2012 at 12:30 p.m.
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The system is working fine as is, better than most in the country. Changes are NOT needed.
Sep 20, 2012 at 12:17 p.m.
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I would prefer a defined contribution system, where its my money -- pure and simple. Changes are needed and must be implimented.
Sep 20, 2012 at 11:56 a.m.
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How many different Governors have tried to get their mitts on all that money in the WRS system? Thompson and Doyle had their hands slapped for trying. Now Walker wants to change the system.
We need to make it clear to our politicans in Madison and in Washington. There are plenty of things that are broke that need fixing in govermment. Get to work on those.
Leave the things that clearly work in government ALONE.
Idiots one and all in our governments!
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