Buried in the state budget (Act 32) that became law last June is a provision that requires a study of the structure and benefits of the Wisconsin Retirement System (WRS). The budget language requires that the study to look at moving to a defined contribution (401-k) system and giving workers the choice to "opt out" of paying the employee share of the annual pension contribution.

The budget calls for the secretaries of three state agencies to conduct the study and report their findings to the legislature's Joint Committee on Finance and the Governor no later than June 30, 2012. The three agencies are: the Department of Employee Trust Funds (ETF), Bob Conlin, Secretary; the Department of Administration (DOA), Mike Huebsch, Secretary, and the Office of State Employment Relations (OSER), Greg Gracz, Secretary.

It came to light recently that the ETF is spearheading the effort on behalf of the other two agencies. ETF has contracted with an actuarial firm to do a complete actuarial analysis on these questions.

Once the actuary's study is finished, the three agency heads will review it and will likely prepare a letter or report with their own recommendations on the study and send both to the Joint Finance Committee and the Governor. We expect it to be released sometime late this spring and that the final report from the three agencies will be delivered by the end of June.

The WRS has been nationally recognized for its unique design and for being one of the largest, best managed pension systems in the United States. It is one of only four state pension systems that meets the strict actuarial definition of being fully funded. In AFSCME's view, there is no need to 'study' the WRS or modify a pension system that works well and provides a modest pension for a career of service. However, since the budget law mandates the study, having ETF take charge is the best we can hope for in this uncertain time.

AFSCME has been keeping a close watch on the study proposal. We have a fightback campaign underway to protect the WRS and your pension. It involves lobbying, gathering research and materials and making that information available to our members via the websites, setting up a town hall phone conference, a media piece involving editorial board visits, training sessions (where possible), and more.

AFSCME is working with SEIU, WEAC, the Wisconsin Professional Police Association, the Professional Fire Fighters of Wisconsin and AFT-Wisconsin on the campaign. We've secured a grant from the National Public Pension Coalition based out of Washington, D.C. to help carry out the campaign. AFSCME lobbyist Susan McMurray is coordinating the effort. For more information about the study, the threat to the WRS and your pensions, and what the unions are doing about it, feel free to contact Susan at smcmurray@wiafscme.org.