PHILIPPA YELLAND

US public sector pension funds will have to take a radical private-enterprise approach to reforming employee benefits and revising investment expectations if funds are to fulfil their obligations to existing and new employees.

The $28 billion Tennessee Consolidated Retirement System is a late entrant into private equity with its debut $25 million allocation to the Draper Fisher Jurvetson Fund X, occurring at the same time the fund has cut its allocation to short term assets by 5 per cent.