18. Peering into the Future to Keep the WRS Positioned for Success, with GRS Actuaries Jim Anderson and Brian Murphy

The Wisconsin Retirement System is one of the few fully funded public pensions in the country, thanks in part to SWIB’s strong investment management. Because of the unique shared risk design of the WRS, investment returns directly impact annuity adjustments for retirees and contribution rates for employees and employers. The challenge is finding the right balance between taking enough risk to make sure the WRS is providing the benefits promised to its participants while avoiding taking too much risk that could cause volatile swings in those annuity adjustments and contribution rates. By implementing a sophisticated investment strategy, SWIB has helped position the WRS for a strong future, despite the volatility that has been a part of the financial markets over the past couple years. But, staying well-positioned means constantly re-evaluating and preparing for what the future might bring In this episode of The SWIB Podcast, we talk to Brian Murphy and Jim Anderson, actuaries from Gabriel, Roeder, Smith and Company (GRS). We will hear how they help SWIB and the Department of Employee Trust Funds to peer into the future and keep the WRS on track for success and how GRS helps SWIB conduct robust stress testing of the system to evaluate and strengthen its investment returns.