NYC Comptroller Lander Announces Strong 10.3% Pension Returns for Fiscal Year 2024-2025
The five funds have achieved an aggregate three-year return of 9.4%, steadily outpacing 7% actuarial target; this year's robust returns yield approximately $2.18 billion in savings to the City through fiscal year 2030
Strategic approach to responsible investing has contributed to positive returns and enhanced portfolio value and resilience
New York, NY — New York City Comptroller Brad Lander and the trustees of New York City’s five retirement systems today announced an aggregate 10.3% investment return net of fees across all five pension funds for the fiscal year (FY) ending June 30, 2025, bringing the total value of the funds to $294.6 billion. This surpasses the actuarial target of 7% therefore reducing New York City’s required pension contributions by $2.18 billion through fiscal year 2030. These savings allow the City to invest in schools, housing, and other critical social services that improve the well-being of all New Yorkers.
The funds (the New York City Teachers’ Retirement System, Employees’ Retirement System, Police Pension Fund, Fire Pension Fund, and Board of Education Retirement System) have an annualized average three-year return of 9.4%, five-year return of 8.5%, seven-year return of 7.8% and 10-year return of 7.7%. These returns all outpace the 7% actuarial target despite rising inflation, geopolitical uncertainty, strained trade relations, and heightened market turbulence due to shifts in monetary and economic policy—most recently including a new tariff regime and uncertainty regarding federal interest rates.
NYC Combined Pension System Annualized Returns, Net of Management Fees for Periods Ended June 30, 2025
| 1-Year | 3-Year | 5-Year | 7-Year | 10-Year |
| 10.3% | 9.4% | 8.5% | 7.8% | 7.7% |
Source: State Street
“Our strong investment returns for the third consecutive fiscal year are a testament that our disciplined and prudent long-term approach that integrates responsible investing as a strategy to assess and mitigate portfolio risk is working to deliver wins for retirees and New York City,” said New York City Comptroller Lander. “Despite market volatility due in part to conflicting messages on monetary policy and tariffs, we are delivering solid performance that will safeguard the pensions of hundreds of thousands of hardworking public servants. I am incredibly proud of today’s results and the work of our talented Bureau of Asset Management team to generate strong returns and strengthen our funds for years to come.”
As long-term investors, the City’s pension funds have a diversified investment portfolio and take a prudent approach to secure steady risk-adjusted returns year-over-year. Each pension fund is well-positioned to provide retirement security for members and beneficiaries and to weather market turbulence and volatility.
The funds’ assets are allocated mostly to Public Equities (43.4%), followed by 31.5% in Public Fixed Income (i.e. Government and Corporate Bonds), and 25.2% in Private Markets Alternatives (including Private Equity, Real Estate, Alternative Credit, Infrastructure, and Hedge Funds) and cash. This diversification across asset classes helps to ensure that the funds achieve appropriate risk-adjusted returns.
Today’s announcement reflects work by the Office’s Bureau of Asset Management in partnership with board trustees, investment consultants, and asset managers to safeguard the assets of each of the funds including a Strategic Asset Allocation review following the amendment of state law that enabled the funds to allocate assets to better align with modern portfolio management practices.
“The investment portfolios of our five funds have continued to exceed the actuarial target. The rapidly shifting monetary policy and continued uncertainty throughout the market underscores the importance of a steady and long-term investment approach rooted in thoughtful diversification. In the coming months we remain aware of the existing challenges and are focused on thoughtful portfolio construction and disciplined manager selection and recommendations to continue maximizing portfolio value and delivering strong returns for our members and beneficiaries,” said Chief Investment Officer Steven Meier.
Public equities delivered the strongest returns throughout the portfolio, led by continued outperformance of the “Magnificent Seven” stocks, as positive price momentum in large-cap tech and AI companies persisted. Developed market ex-US equities saw a return of 16.2%, followed by US equities at 14.7%. In private markets, for the third consecutive year, Infrastructure outperformed other alternative investment asset classes with an 11.9% return.
Under Comptroller Lander’s leadership, and in partnership with each board, New York City’s pension funds are leaders in responsible investing as an important component of the investment approach designed to mitigate risk and maximize returns for the five funds by enhancing portfolio resilience and value.
Since the start of Comptroller Lander’s tenure, a series of responsible investing initiatives have been crucial to strengthening the value of each fund by assessing and mitigating risk. This includes a robust, measurable and tangible roadmap for NYCERS, TRS and BERS to reach net zero portfolio greenhouse gas emissions by 2040; the creation of Responsible Property Management Standards (adopted by NYCERS) with the goal of improving long-term investment risk and return through resident stability as well as preserved and enhanced property values; and a renewed focus on deepening the funds’ Economically Targeted Investment in the months and years to come.
The funds have also expanded their work with emerging and diverse asset managers who have directly contributed to robust pension returns each year. Under Comptroller Lander’s tenure, the funds have grown investments in minority- and women-owned asset managers to $23.1 billion in FY2024, an increase of $6.3 billion, or 37.5% (FY 2025 data will be released in the coming months).
The funds’ responsible investing approach aligns with Comptroller Lander’s role as a fiduciary for the funds and provides new opportunities for the funds to benefit from emerging opportunities throughout the market. It is a critical tool in safeguarding each investment portfolio from financial risk. Despite meritless attacks on responsible investing, the Comptroller’s office will continue to move strongly forward with its responsible investing approach.
“I am proud of the strong investment performance of NYCERS over the past year as well as in prior years. DC 37 looks forward to continuing to work with Comptroller Lander’s staff and with fellow Trustees to further responsible investment returns that protect retirement security for NYCERS’ hard working public servants,” said Henry Garrido, Executive Director of District Council 37.
Review today’s report on the audited investment returns for fiscal year 2024-2025 for market reflections and a detailed review on overall performance and individual asset classes. Details on the systems’ assets under management, broken down by system, asset class, and asset manager are available on the Comptroller’s website, a feature that was added in 2022 and provides significantly increased transparency.
Assets Under Management, Return Net of Fees, and Contribution to Return for Periods Ended June 30, 2025
| Investment Strategy | AUM ($ Billions) |
AUM % of Total | FY 2025 Return | Contribution to FY 2025 Return |
| U.S. Equity | 80.6 | 27.4% | 14.7% | 4.0% |
| Developed ex-U.S. Equity | 33.3 | 11.3% | 16.2% | 1.8% |
| Emerging Markets | 13.9 | 4.7% | 14.0% | 0.7% |
| Core Fixed Income | 71.2 | 24.2% | 6.2% | 1.5% |
| High Yield | 19.5 | 6.6% | 9.9% | 0.6% |
| Convertible Bonds | 2.0 | 0.7% | 10.1% | 0.1% |
| Private Equity | 26.4 | 9.0% | 4.5% | 0.4% |
| Private Real Estate | 18.4 | 6.2% | 1.9% | 0.1% |
| Infrastructure | 9.1 | 3.1% | 11.9% | 0.4% |
| Alternative Credit | 13.9 | 4.7% | 9.5% | 0.5% |
| Hedge Funds | 4.3 | 1.5% | 7.8% | 0.1% |
| Cash/Equivalents | 2.0 | 0.7% | 5.0% | 0.0% |
| Total Combined NYC Plans | 294.6 | 100.0% | 10.3% | 10.3% |
Source: State Street
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 $294.6 billion in assets under management as of June 30, 2025.
About the Role of the Comptroller of the City of New York
New York City Comptroller Brad Lander serves as the investment advisor, the custodian, and a trustee for the five New York City retirement systems. In these capacities, the Comptroller works with the trustees of the systems, through the Office’s Bureau of Asset Management, to oversee the investment portfolios of each fund.
In addition to Comptroller Lander, trustees of the New York City retirement systems are as follows:
Teachers’ Retirement System of the City of New York (TRS): Mayor Eric Adams’ Appointee Bryan Berge, Director, Mayor’s Office of Pension and Investments; Greg Faulkner, Chair, New York City Public Schools Panel for Educational Policy; and Thomas Brown (Chair), Victoria Lee, and Christina McGrath, all of the United Federation of Teachers.
New York City Employees’ Retirement System (NYCERS): Mayor Eric Adams’ Appointee Bryan Berge, Director, Mayor’s Office of Pension and Investments; New York City Public Advocate Jumaane Williams; Borough Presidents: Mark Levine (Manhattan), Antonio Reynoso (Brooklyn), Donovan Richards Jr. (Queens), Vito Fossella (Staten Island), and Vanessa L. Gibson (Bronx); 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 Eric Adams’ Representative Bryan Berge, Director, Mayor’s Office of Pension and Investments; New York City Finance Commissioner Preston Niblack; New York City Police Commissioner Jessica Tisch (Chair); Chris Monahan, Captains Endowment Association; Louis Turco, Lieutenants Benevolent Association; Vincent Vallelong, Sergeants Benevolent Association; Scott Munro, Detectives Endowment Association; and Patrick Hendry, President, Albert Alcierno, First Vice President, Betty Carradero, Second Vice President and Raymond Salamone, Chair, all of the NYC Police Benevolent Association.
New York City Fire Pension Fund (Fire): Mayor Eric Adams’ Representative Bryan Berge, Director, Mayor’s Office of Pension and Investments; New York City Fire Commissioner Robert S. Tucker (Chair); New York City Finance Commissioner Preston Niblack; Andrew Ansbro, President, Robert Eustace, Vice President, Chris Viola, Treasurer, and Dennis Tveter, Chair, Uniformed Firefighters Association of Greater New York; Joe Camastro, Lieutenants’ Rep., Liam Guilfoyle, Captain’s Rep., and Sean Michael, Chief’s Rep., Uniformed Fire Officers Association; and John Young, Marine Engineers Association.
Board of Education Retirement System of the City of New York (BERS): New York City Public Schools Chancellor Melissa Aviles-Ramos, Represented by Karine Apollon; Mayoral appointees Marjorie Dienstag, Amy Fair, Gregory Faulkner, Anita Garcia, Anthony Giordano, Dr. Angela Green, Alice Ho, Jessamyn Lee, Sharon Odwin, Alan Ong, Phoebe Sade-Arnold, Maisha Sapp; CEC appointees Adriana Alecia, Faraji Hannah-Jones, Naveed Hasan, Brenida Parsons; Borough President Appointees Camille Casaretti (Brooklyn); Rima Izquierdo (Bronx); Marielle Ali (Manhattan); Shirley Aubin (Queens); Aaron Bogad (Staten Island); and employee members John Maderich of the IUOE Local 891 and Donald Nesbit of District Council 37, Local 372.
Report: New York City Pension Funds’ Returns for Fiscal Year 2025
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