Archive · 6 Aug 2025
NYC Pensions Outperform, Save City Millions Amid Stock Gains
Imagine the city has a big savings account for teachers, police, and other workers' retirement.
This year, that account did really well, earning over 10% thanks to the stock market.
That means the city doesn't have to put in as much money, saving around $2.2 billion over the next few years.
Some investments, like stocks from other countries and the US, made a lot of money.
However, some investments, like real estate, didn't do as well.
The city's savings did well, though not quite as well as some other big savings accounts, like in California.
New York City's five pension funds achieved a 10.3% return in the past fiscal year, exceeding the 7% target.
The $295 billion in assets benefitted from a stock market rally, particularly in foreign and US equities.
The gains are projected to decrease the city's retirement contribution by $2.2 billion over five years.
Foreign developed-market stocks returned 16.2%, while US equities returned 14.7%.
Private real estate and private equity funds had lower returns, at 1.9% and 4.5% respectively.
- Who
- New York City's pension funds for various public employees.
- What
- New York City pension funds exceeded their investment targets.
- When
- In the fiscal year ending June.
- Where
- New York City.
- Why
- Due to strong performance in the stock market, resulting in higher returns.
- Pension Funds
- Five NYC pension funds
- Assets
- $295 billion
- Return
- 10.3%
- Target Return
- 7%
- Contribution Savings
- $2.2 billion (over 5 years)
- Top Performers
- Foreign developed-market stocks (16.2%)