"Pensions in Hawaii & South Carolina using arcane options strategy called cash-secured put writing" http://www.wsj.com/articles/pensions-play-with-puts-for-protection-1471777202 Guessing is fun!

The pension funds are apparently writing the puts "nakedly," which seems to me to be be non-hygenic. http://fortune.com/2016/08/22/pension-funds-stock-market-drop/

Hawaii uses a 7.75% assumed rate of return. https://ers.ehawaii.gov/wp-content/uploads/2015/02/2014-Actuarial-Valuation.pdf Hawaii's 2015 fiscal year return was 3.6%. http://www.staradvertiser.com/business/ers-pension-plan-shortfall-rises-to-8-77b/