The New York State Common Retirement Fund (Fund) earned an estimated 11.42 percent on investments during the State fiscal year ending March 31, 2017, exceeding the long-term expected rate of return of 7 percent. The Fund ended the year with an estimated value of $192 billion.
Comptroller Thomas P. DiNapoli, Trustee of the Fund, credited the growth to a diversified investment strategy and strong returns on investments, particularly in the fourth quarter. Domestic and non-U.S. equities (stocks) performed particularly well, with an overall return of 17 percent. The return on real estate investments was nearly 11 percent. All returns are estimates, pending audited data that will be available later this year.
The financial soundness of the New York State and Local Retirement System (NYSLRS) has been confirmed by two independent studies. A report by S&P Global Ratings ranked NYSLRS as the third best funded state pension system in the country for 2015. Only South Dakota and Wisconsin ranked higher. A study by the Pew Charitable Trusts also showed NYSLRS in the top three nationwide.
The Fund is the third-largest public pension fund in the country. NYSLRS provides retirement security to more than one million active state and local government employees, retirees and their beneficiaries. During the fiscal year that ended March 31, 2016, NYSLRS paid out $10.9 billion in retirement and death benefits. More than $8.6 billion was paid to residents of New York State, which generated local spending and provided economic support New York businesses and communities.