About 20% of WRS participants are in the Variable Fund, an option unique
to Wisconsin. The investment objective for the Variable Fund is to achieve returns
equal to or above that of similar stock portfolios over a market cycle. If you
are considering whether or not to pick the Variable Fund option, here is some
information that should be helpful.
Variable Fund is only invested in domestic
and international stocks. These
are the same stocks selected for the Core Fund.
Variable Fund returns are not smoothed while Core Fund returns are.
Participants in the Variable Fund are exposed to a higher degree of risk because of possible losses
from unfavorable stock market performance in exchange for the possibility of
greater long-run returns.
It is possible for the Variable Fund portion of your
to decrease below the initial base amount you receive at retirement
More information is available is available from our
information paper entitled "How do Variable Fund investments affect me?"
The effect of investment returns on employee accounts and benefits for
retirees differs between the Variable and Core Funds. More information comparing the
and impact of both funds on participants since 1983
is available. (PDF)