State’s pension fund grew 1.7 percent in third quarter

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The state’s pension fund had a rate of return for the third quarter of 1.7 percent, Comptroller Thomas DiNapoli said today. The fund projects a long-term rate of return of 7.5 percent.

The fund’s estimated value at the end of the third quarter, which was Dec. 31, was $153 billion, near a record high, DiNapoli said.

“The New York State Common Retirement Fund has seen steady growth in the second half of 2012 and is on pace for a positive return as we approach the end of the fiscal year on March 31,” DiNapoli said in a statement.

The poor performance of the pension fund, due to declines on Wall Street, has led pension contributions for local governments to soar in recent years.

Gov. Andrew Cuomo has proposed a pension-smoothing plan to help local governments, but DiNapoli has been leery of the proposal.

Cuomo this month chided DiNapoli for the fund’s performance, saying last month, “Maybe he can increase the performance of the fund so he doesn’t charge the localities as much.”

The Comptroller’s Office has been criticized for keeping an estimated 7.5 percent rate of return on the fund.

“If somebody offers you a guaranteed 7 percent on your money for the rest of your life, you take it and just make sure the guy’s name is not Madoff,” Mayor Michael Bloomberg said last year in Albany.

DiNapoli said that the end of the 2011-12 fiscal year, the pension’s funded status was 87 percent, among the highest funded ratios of public pension plans in the country.

The pension fund is the second largest in the nation, behind California. DiNapoli is the sole trustee.

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  1. Better than losing and I am sure it is up more now since that market has gain since the beginning of Jan.

    But we it all could be lost if we don’t fix our spending habits and start to really bring down spending at the federal level.

    We must change our ways and stop listening to all these “PROGRESSIVE LIBERALS” who will bankrupt us.

    Before there was the “Oracle of Delphi” there was Count Vampire J. Machiavelli

    VJ Machiavelli
    http://www.VJMachiavelli.blogspot.com
    To The Moon, Mars, and Beyond