December 19, 2024

Starting Next Year, New Milwaukee County Employees to Enroll in Wisconsin Retirement System

Wisconsin Act 12 enabled this milestone for Milwaukee County that will save taxpayer dollars

MILWAUKEE – County Executive David Crowley is applauding the Milwaukee County Board of Supervisors for approving ordinance changes that will allow the Milwaukee County Employee Retirement System (ERS) to close to new entrants after 87 years.

The Wisconsin State Legislature enabled Milwaukee County to establish the Employee Retirement System (ERS) in 1937. The system is one of three public pension systems in the State of Wisconsin (City of Milwaukee, County of Milwaukee & Wisconsin Retirement System). Changes to the plan in the early 2000s caused controversy and political upheaval. As a result of these changes and significant market events in the early 2000s, Milwaukee County has struggled financially over the past two decades.

Thanks to the leadership of County Executive Crowley, the State Legislature passed and Governor Tony Evers signed into law Wisconsin Act 12 in 2023. This reform is permitting the County to close the system to new members, join the Wisconsin Retirement System (WRS), and use new sales tax revenues to fully fund the County’s existing pension obligations. This bipartisan legislation enabled a huge milestone for Milwaukee County.

“When I became County Executive, my number one priority was solving the County’s fiscal issues, including the legacy pension challenges that have impacted County budgets for many years. That’s why we worked to pass Wisconsin Act 12 to address our pension system, create a revenue source to pay off our pension obligations, and forge a pathway for future employees of Milwaukee County to be part of the Wisconsin Retirement System,” said County Executive Crowley. “As new employees begin joining the state pension system starting next year, I am looking forward to the history of pension challenges staying in the past, so we can focus on the future and move Milwaukee County forward.”

Wisconsin Act 12 is already helping free up revenue that is allowing Milwaukee County to invest in local priorities and carry out the services residents depend on. Between eliminating the County’s pension liabilities and adding new revenue sources, Milwaukee County is expected to gain over $2 billion in new revenue flexibility over the lifespan of the .4% sales tax.

“To be clear, this was the largest fiscal weight around our neck that we had to address and resolve. This was also one of the most complex policy challenges that Milwaukee County has ever had to overcome, while also securing additional revenue sources that County leaders have long sought,” continued County Executive Crowley. “While more work is needed to address ongoing fiscal challenges, Wisconsin Act 12 is allowing us to deliver additional revenue flexibility to Milwaukee County for many years to come, including through this transition to the state’s pension system.”

The County pension system will be closed to new employees who are hired by Milwaukee County as of January 1, 2025, per the provisions of Wisconsin Act 12. That means newly-hired, eligible County employees as of January 1, 2025, will be enrolled in WRS. Active employees in the ERS as of December 31, 2024, will remain members of the Milwaukee County ERS. More information is available upon request.

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