JANUARY 2020
NYSTRS continues to be one of the top-performing, most secure and well-funded public pension plans in the country with total year-end net assets of more than $122 billion and a 30-year rate of investment returns, net of fees, at 8.8%, according to the System’s 2019 Comprehensive Annual Financial Report (CAFR).
Benefits paid to retirees and beneficiaries were approximately $7.3 billion for the fiscal year ending June 30, 2019, with nearly 80% of those benefits paid to residents of New York State. This is significant because retiree spending positively impacts state and local economies.
The System’s total investment portfolio returned 7.1%, net of fees, for the fiscal year, slightly below the 7.2% assumed rate of return. However, long-term returns are one of the best indicators of pension plan health and NYSTRS’ 10-year and 30-year returns were 10.4% and 8.8%, respectively. NYSTRS is a long-term investor with liabilities generally not accrued for two or three decades. In addition, returns in six out of the past 10 years exceeded the System’s assumed rate.
Another indicator of pension plan strength is its funded ratio. NYSTRS’ funded ratio is 99.2% using an actuarial value of assets and 100.9% funded using a market value of assets. Nationally, the average funding level for public retirement systems is 73%, according to the Center for Retirement Research at Boston College.