This time of year, there are two questions that I am typically asked.
First, everyone wants to know how the Trust Funds performed. More often than not, like this past year, I can happily report that the WRS Trust Funds performed very well. In 2024, our investment strategy helped weather sticky inflation, several geopolitical crises, and continued market volatility to generate positive returns that will result in an annuity increase for retirees and continued stable contribution rates for employees and employers.
The follow-up question is almost always what I think we might expect in the year ahead. While I don’t have a crystal ball that can accurately predict the future, I can confidently answer that no matter what comes in the days, weeks, and months ahead, the WRS is well positioned to continue to meet its obligations and remain fully funded.
The more I thought about it, I realized that my answers to those questions don’t change much from year to year. That is because we are incredibly fortunate to be part of a pension system with both a plan structure and an investment strategy that are designed to weather financial storms and help provide you with the retirement security you deserve. Our public pension plan is built on stability, long-term growth, and a commitment to you, the participants.
Not every public pension plan is able to say the same. My sister is a teacher in the Chicago Public Schools. I have seen firsthand how hard she works to educate and inspire her students. Like so many of you, no matter if you are a teacher, police officer, or town clerk, she dedicates herself to a public service career — one that requires patience, passion, and a deep sense of responsibility.
Unfortunately, her public pension is woefully underfunded. That is something that is not unique to Chicago. Many public pension plans across the country are underfunded. They must take a riskier investment approach to reach for returns, which means they are more exposed to the unpredictable fluctuations of the financial markets and the whims of economic cycles. The participants in those plans have to keep their fingers crossed that the promises made today can be kept tomorrow.
Here in Wisconsin, thanks to prudent stewardship, a sound investment strategy, and strong governance, the WRS remains well funded and positioned for the long-term. Our mission is to protect your benefits and ensure you have peace of mind to focus on your work, your life, and your future. And that is why as we head into a new year, we remain committed to continuously improving and evolving to ensure we remain one of the most resilient pension funds in the country.
I want to extend my gratitude to you for your dedication to public service and for entrusting us with your retirement future. It is our honor to serve you.
Denson looks back at 2024 and shares his expectations for this year on Episode 32 of The SWIB Podcast at swib.state.wi.us/podcasts.