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Milwaukee County pensions: legacy systems ask for $83.5 million in 2026 contributions; ERS funded at about 70%
Summary
Department of Human Resources reported the 2026 contribution request for the legacy pension systems and explained how the county might use an additional sales tax permitted by state law to reduce unfunded liability.
Milwaukee County's director of retirement plan services presented required informational materials on June 10 showing the 2026 contribution calculation for the county's two legacy pension plans.
Erica Bonikowski, director of retirement plan services in the Department of Human Resources, told the Committee on Personnel that the actuary calculated total 2026 contributions at $83,139,000 for the Employees' Retirement System (ERS) and $328,000 for the OBRA system, a combined total of $83,467,000. Bonikowski said about $13.5 million of that total is expected to come from employee contributions, with the remainder from Milwaukee County.
Why it matters: Bonikowski highlighted that Milwaukee County may use revenue from an additional 0.4% sales tax permitted by 2023 Wisconsin Act 12 to make these legacy pension contributions or to pay pension obligation bonds, a tool the county is considering to address long‑term unfunded liabilities.
Other points from the presentation and committee discussion - Investment performance: the pension funds returned 8.89% in 2024, exceeding the plan assumption of 6.8%. - Employee rates: the actuary set 2026 employee contribution rates for the legacy plans at 4.9% for general employees and 7.1% for public safety employees. - Funding status: Bonikowski reported the ERS was about 70.3% funded while OBRA was 100.5% funded based on the most recent valuation. - WRS: when asked about the Wisconsin Retirement System contributions for new employees, presenters said WRS employer and employee rates are both 6.95% for the year but a dollar total for the county's expected contributions to WRS was not available at the meeting.
Jake Paul, from the Office of the Comptroller, explained why projected county contributions shown in pension documents decline in the coming years. He said the legacy plans are closed to new employees and that the "normal cost" (the cost of benefits earned in the current year by employees already in the plan) should decline as members retire; unfunded liability payments, however, may fluctuate depending on investment returns and other actuarial experience.
The presentation was informational; there was no committee action. Bonikowski said the actuary and the pension board prepared the valuation and that pension‑board requests for contributions are what the pension systems will ask Milwaukee County to make in order to reach 100% funding over time.
