Opinion ID: 2151564
Heading Depth: 2
Heading Rank: 3

Heading: WRS Trusts

Text: ถ 21. The WRS includes two distinct trusts: a variable retirement investment trust (variable trust) and a fixed retirement investment trust (fixed trust or FRIT). [51] For purposes of this litigation, the variable trust contains approximately $7 billion [52] and the fixed trust contains about $48.7 billion. [53] The variable trust, which is not directly at issue in this case, is invested almost exclusively in common and preferred stock. [54] By contrast, the fixed trust contains a more diversified portfolio of investments than the variable trust. [55] The diversification of the fixed trust decreases a participant's potential to earn a large investment profit, but also decreases a participant's potential investment loss. [56] ถ 22. There are 12 different accounts and reserves within the fixed retirement investment trust. [57] The 12 accounts are as follows: (1) Wis. Stat. ง 40.65 duty disability reserve, (2) income continuation insurance reserve, (3) long term disability insurance reserve, (4) accumulated sick leave conversion credits, (5) Milwaukee death benefit account, (6) Milwaukee retirement systems account, (7) Wis. Stat. ง 62.13 police and fire account, (8) WRS employer accumulation reserve, (9) WRS employee accumulation reserve, (10) WRS annuity reserve, (11) WRS undistributed earnings account, and (12) transaction amortization account. [58] Only two of the accounts, the Milwaukee retirement systems account and the WRS undistributed earnings account, are not affected by Act 11. [59] ถ 23. The four accounts or reserves most pertinent to this case are the WRS employer accumulation reserve, the WRS employee accumulation reserve, the WRS annuity reserve, and the transaction amortization account (TAA). [60]