Funds now valued at a combined $326.3 billion
Returns significantly outpace actuarial target of 7.0% and reduce City pension obligations by an estimated $6.3 billion over five fiscal years
New York City Comptroller Mark Levine and the trustees of the five New York City retirement systems (Systems) announced an aggregate 13% investment return net of fees across the five Systems for the fiscal year ending June 30, 2026. The Systems are now valued at $326.3 billion, reflecting strong performance amid a complex investment landscape marked by evolving trade policy, persistent inflation, geopolitical uncertainty, and continued investment in artificial intelligence.
The past fiscal year’s performance surpasses the 7.0% actuarial target and reduces the City’s required pension obligations by approximately $6.3 billion over five fiscal years beginning in FY28.
“Retirees work for decades to earn the financial security that a pension provides and protecting that security requires a disciplined and prudent investment approach. Global markets faced significant headwinds over the past year, and our results demonstrate the importance of maintaining a long-term focus and a diversified strategy designed to deliver sustainable, risk-adjusted returns for decades to come,” said New York City Comptroller Mark Levine.
The five systems – the New York City Teachers’ Retirement System, Employees’ Retirement System, Police Pension Fund, Fire Pension Fund, and Board of Education Retirement System – posted an annualized average three-year return of 11.1%, five-year return of 6.2%, seven-year return of 8.6% and 10-year return of 8.9%.
NYC Combined Systems Annualized Returns, Net of Management Fees
The funds maintain a disciplined, diversified, and long-term investment strategy to ensure appropriate risk-adjusted returns. They have 43% invested in Public Equities, 25% in Public Fixed Income (i.e. Government and Corporate Bonds), and about 22% in Private Markets Alternatives (including Private Equity, Real Estate, Alternative Credit, Infrastructure, and Hedge Funds) and cash.
The Systems’ public market investments, which represent more than 74% of the Systems’ assets, generated strong gains for the Systems across both equities and fixed income as the principal contributor to investment performance. The solid performance of public markets was driven in large part by emerging markets equity investments led by the information technology sector. Fixed income market investments also experienced positive gains, supported by higher starting yields, strong investor demand and historically tight credit spreads.
The Systems’ private markets investment returns supported their long-term investment strategy, providing diversification, downside protection and long-term value creation. Hedge Funds delivered a record program return of 19.2%, while Infrastructure and Alternative Credit also generated strong returns of 9.2% and 7.8%, respectively. Real Estate also saw stronger returns this year due to the strategic shift toward multifamily and industrial properties, and a reduction in office exposure.
“This past year’s performance reflects our commitment to deliver for hundreds of thousands of members and beneficiaries counting on us to safeguard the retirement assets that they have worked tirelessly to earn. I am grateful for the leadership of Comptroller Levine, and the commitment of staff within the Bureau of Asset Management, and our fruitful partnership with our asset managers, trustees and investment consultants that made this possible,” said Chief Investment Officer Monte Tarbox.
Assets Under Management, Return Net of Fees, and Contribution to Return
Review this report on the audited investment returns for the fiscal year ending June 30, 2026, at https://comptroller.nyc.gov/reports/new-york-city-pension-funds-returns-for-fiscal-year-2026 for market reflections and a detailed review on overall performance and individual asset classes.
About the New York City Retirement Systems
The New York City retirement systems comprise the City’s five public pension funds (the New York City Teachers’ Retirement System, Employees’ Retirement System, Police Pension Fund, Fire Pension Fund, and Board of Education Retirement System), and are collectively the third largest public pension system in the nation, valued at approximately $326.3 billion in assets under management as of June 30, 2026.
In addition to Comptroller Levine, trustees of the New York City retirement systems are as follows:
Teachers’ Retirement System of the City of New York (TRS): Mayor Zohran Mamdani’s appointee Ahmer Qadeer, Director and Chief Pension Administrator, Mayor’s Office of Pensions and Investments; Gregory Faulkner, Chair, New York City Public Schools Panel for Educational Policy; and Thomas Brown (Board Chair), Victoria Lee, and Christina McGrath, all of the United Federation of Teachers.
New York City Employees’ Retirement System (NYCERS): Mayor Zohran Mamdani’s representative Ahmer Qadeer, Director and Chief Pension Administrator, Mayor’s Office of Pensions and Investments (Board Chair); New York City Public Advocate Jumaane Williams; Borough Presidents: Donovan Richards Jr. (Queens), Antonio Reynoso (Brooklyn), Vanessa L. Gibson (Bronx), Brad Hoylman-Sigal (Manhattan), and Vito Fossella (Staten Island); Henry Garrido, Executive Director, District Council 37, AFSCME; John Chiarello, President, Transport Workers Union Local 100; and Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.
New York City Police Pension Fund (Police): Mayor Zohran Mamdani’s representative Ahmer Qadeer, Director and Chief Pension Administrator, Mayor’s Office of Pensions and Investments; New York City Police Commissioner Jessica Tisch (Board Chair); New York City Finance Commissioner Richard Lee; Patrick Hendry, President, Albert Alcierno, First Vice President, Arthur Egner, Second Vice President and Michael Freeman, Chair, all of the NYC Police Benevolent Association; Chris Monahan, President, Captains Endowment Association; Louis Turco, President, Lieutenants Benevolent Association; Vincent Vallelong, President, Sergeants Benevolent Association; and Scott Munro, President, Detectives Endowment Association.
New York City Fire Pension Fund (Fire): Mayor Zohran Mamdani’s representative Ahmer Qadeer, Director and Chief Pension Administrator, Mayor’s Office of Pensions and Investments; New York City Fire Commissioner Lillian Bonsignore (Board Chair); New York City Finance Commissioner Richard Lee; Robert Eustace, President, Dennis Tveter, Vice President, Chris Viola, Treasurer, and Robert Unger, Chair, Uniformed Firefighters Association of Greater New York; Sean Michael, Chief’s Rep., Liam Guilfoyle, Captain’s Rep., and Joseph Camastro, Lieutenants’ Rep., all of the Uniformed Fire Officers Association; and John Young, President, Marine Engineers Association.
Board of Education Retirement System of the City of New York (BERS): Members of the New York City Public Schools Panel for Educational Policy, including: Borough President Appointees Costa Constantinides (Queens), Camille Casaretti (Brooklyn), Dr. Jonathan Collins (Manhattan), Rima Izquierdo (Bronx), and Aaron Bogad (Staten Island); Elected CEC Members Adriana Alecia (Queens), Faraji Hannah-Jones (Brooklyn), Naveed Hasan (Manhattan), and Rev. Laticia Thompson (Bronx); Mayoral appointees Karla Cordero, Marjorie Dienstag, Amy Fair, Dr. Maddy Fox, Kristin Jefferson, Tariq Khan, Lucas Koehler, Primo Lasana, Mehrain Mahdi, Alan Ong, Courtney Rajwani, Raysa Rodriguez, and Crystal Vera-Montalvo; New York City Public Schools Chancellor Kamar Samuels, represented by Karine Apollon (Board Co-Chair); as well as two elected employee members: Donald Nesbit, District Council 37, Local 372 (Board Co-Chair) and Frank Sirabella, IUOE Local 891.
No comments:
Post a Comment