Rate of Return For State Pension Fund Heads Into Negative Territory

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The state Common Retirement Fund’s rate of return for the first quarter was -0.92 percent, Comptroller Thomas DiNapoli said.

The fund’s estimated value at the end of June was $146.5 billion.

The fund, which has about 1 million active employees and retirees in state and local governments, gained 5.96 percent for the fiscal year that ended March 30 and had a value of $150.3 billion, the highest since the recession.

“Like many investors, the New York State Common Retirement Fund has been weathering uncertainty in the financial markets since the end of our fiscal year in March,” DiNapoli said in a statement. “It continues to be among the strongest in the nation and our diversified investment strategy and long-term perspective to help manage these market conditions has resulted in positive returns the last three years.”

The negative return makes it that much more difficult for the fund to hit its targeted rate of return of 7.5 percent for the year. In 2010, DiNapoli lowered the goal from 8 percent to 7.5 percent.

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9 Comments

  1. HABIBHASAN-An American Storyteller on

    ….go send Biden to China!
    HABIBHASAN-An American Storyteller

  2. This guy has a bachelor’s degree from Hofstra in (of all things) History. Twelve years later, he got a Masters from the New School in (get this) Human Resources. The brainy NY voters hand him $150 BILLION DOLLARS and they tell him to see what he can do with it. Welcome to Planet X.

  3. just the facts on

    something is very wrong…’A NEGATIVE RATE OF RETURN”…that shouldn’t happen to a state
    pension fund even with low interest rates because conservatively the fund should be putting
    its assets in safe high paying dividend stocks like utilities and others with little downside risk
    that can be protected by writing covered options if necessary..even a short term bond fund
    that has a 3-5 year time horizon would return almost 4%….so the question becomes why
    are they getting a negative rate of return? and the answer probably is that dinapoli knows
    very little about finance and he is not smart enough to know what he doesn’t know…there
    is no excuse for this kind of fundamental lack of knowledge in a state whose pension obligations
    are contingent on a return far in excess of what is currently being gotten…but that is one thing
    you can count on in new york ..and that is electing a democrat to statewide office regardless
    of qualifications and dinapoli has no resume when it comes to finances…its a disgrace

  4. The NYS Retirement System in one of only 4 in the whole USA that is well funded and has the ability to fully fund its obligations because smart pension fund members had to go to court several times to prevent past conservative and right wing governors and politicians from raiding the fund for other uses.

    New Jersey and other states are not well funded because of such bad practices. We have that goon Christie in NJ because of that fact in NJ. He has made a disgusting name for himself by slamming hard working government workers because of the irresponsible practices of right wing politicians in NJ in both raiding and underfunding the pension funds.

  5. just the facts on

    your argument about right and left is nonsense…the rate of return is related to investments
    of existing funds and whether you know it or not ..the promises made are a mathmatical
    function of the rate of return and a negative rate of return means that state will not be
    able to meet its commitments going forward…

  6. It’s also one of the few pension funds in America that has the power to loot counties, local municipalities and other governments to cover its own shortfalls. To have that low of a ROI even with that is disgusting. That thing is a monster.

  7. DiNapoli wasn’t elected first, he was appointed by the Legislature with the blessing of Assembly Speaker Shelly Silver over the objection of then-Governor Spitzer, who was at least smart enough to know that DiNapoli was an unqualified puppet and stooge of the NYS Democratic organization. DiNapoli is a politician first in all things and a publicity hound. Look at his political appointments! He is a poor excuse for a State Comptroller, and hopefully gets defeated for his abysmal performance. Of course, there are many who will make excuses and blame other factors, but the buck stops with DiNapoli. If he had any integrity he would not run for re-election and let someone with the knowledge, skills and ability take over. Come-on Tom, just go away.

  8. Smartporpoise on

    The last guy the Democrats had in there, handling over 200 BILLION dollars, had an academic background in political science and a PhD in “Government.” He’s in jail and will probably be back playing games and politicking in November. Next.