Public Pensions Adopt Cost Sharing Mechanisms to Stem Volatility
- Maine and South Dakota pensions tweak cost of living increases
- About a third of states have funds sharing risk with workers
This article is for subscribers only.
In spring 2016, Sandy Matheson, the executive director of the Maine Public Employees Retirement System, was panicking.
After earning 2 percent the previous fiscal year, record low bond yields and global stock market turmoil were dragging the pension’s returns even lower -- and further away from its 6.9 percent assumed annual return.