Pension systems thrive when they are well-funded. There is no better example of this than the Wisconsin Retirement System: it has been fully funded since 2003. There’s no secret formula here that makes WRS such a success- the state makes its required contributions each year, the employees make their contributions out of each paycheck, and the system performs well.
Frequently you’ll hear anti-pension ideologues saying that defined benefit pensions are unsustainable and busting state budgets, but WRS proves the falsity of those claims. The responsible management of the system and the necessary payment of annual contributions are the keys to WRS’s success.
The Wisconsin Retirement System has over 600,000 participants. It covers employees of the state of Wisconsin as well as employees of cities and towns across the state. Wisconsin proves that there’s no secret to having a fully funded pension system: just make your payments.