Category Archives: Pension Fund

News and information about the Common Retirement Fund

A Look Inside NYSLRS

NYSLRS paid $13.4 billion in benefits to 487,407 retirees and beneficiaries during the State fiscal year that ended on March 31. These benefits are paid out through the New York State Common Retirement Fund (the Fund).

NYSLRS By the Numbers

NYSLRS Membership                                                           

But NYSLRS is more than just the pension fund. The system had 673,336 members as of March 31, including county workers, professional firefighters and State troopers. Here are some facts about our membership:

  • 530,547 active members (that is, members still on a public payroll) work for 2,962 public employers statewide.
  • One-third of those active members work for New York State. The rest work for counties, cities, towns, villages, school districts and public authorities.
  • Nearly 94 percent of active members are in the Employees’ Retirement System (ERS). The Police and Fire Retirement System (PFRS) accounts for 6 percent of NYSLRS membership.
  • More than 44 percent of all members are in Tier 6. Fifty-eight percent of PFRS members are in Tier 2 and almost 49 percent of ERS members are in Tiers 3 and 4.

NYSLRS Retirees and Beneficiaries

The average pension for an ERS retiree was $25,105; the average for a PFRS retiree was $54,684. But these pension payments don’t just benefit the system’s retirees and beneficiaries. Because 79 percent of NYSLRS retirees and beneficiaries live in New York, $10.8 billion worth of benefits stayed in the State. And that money supported local businesses, paid local taxes and generated economic development statewide.

An Award-Winning Publication

Extensive information about NYSLRS members and retirees, the Fund, and Fund investments can be found in the 2020 Comprehensive Annual Financial Report (CAFR). NYSLRS once again received the Certificate of Achievement for Excellence in Financial Reporting for the 2019 CAFR. The Certificate of Achievement is a national award recognizing excellence in the preparation of state and local government financial reports. NYSLRS has won this award for the last 16 years.

Your Pension Fund is Strong
Your Pension is Secure

The COVID-19 pandemic has caused economic uncertainty as well as a public health emergency. Businesses are struggling, more people are unemployed, and markets are volatile. Yet among all the uncertain news we seem to hear daily, there is something NYSLRS members and retirees can have confidence in: your Retirement System and pension fund are strong and secure.

Since it was established in January 1921, NYSLRS has proven its strength and durability. Over the past century, the Retirement System has weathered the Great Depression of the 1930s, the Dotcom bubble burst of 2001, the Great Recession of 2008-2009 and more than a dozen other economic downturns. Each time, NYSLRS recovered and emerged stronger than before.

pension fund

Investing for the Long Term

The New York State Common Retirement Fund, which holds and invests the Retirement System’s assets, has been impacted by this largely unprecedented crisis, but the Fund remains strong. While weighing the risk and benefit of every investment, the Fund employs a diversified investment strategy that is designed for the long-term, allowing it to take advantage of growth opportunities in good times, which helps it to better navigate through hard times.

NYSLRS entered the current crisis in a position of strength. Independent analysts, such as the Pew Charitable Trusts, have long recognized NYSLRS as one of the best-managed and best-funded public retirement systems in the nation. The strength of the Fund provides stability and enhances its ability to recover from market swings.

In recent months, before the COVID-19 outbreak, the Fund’s professional managers recognized increased volatility in the stock market. The managers made adjustments in the Fund’s investment portfolio in preparation for an expected economic downturn and are actively managing the Fund through these difficult times. The Fund has more than enough assets to pay retiree benefits.

What This Means for You

New York State Comptroller Thomas P. DiNapoli has a fiduciary responsibility to manage the Fund’s assets on behalf of NYSLRS members and retirees. Protecting the Fund is the Comptroller’s number one priority. As a NYSLRS member or retiree, your lifetime retirement benefits are guaranteed by the State constitution, and those benefits cannot be diminished.

NYSLRS continues to be well-positioned to meet both its short-term and long-term obligations. If you are already retired, you will continue to receive your pension payments on schedule. If you are a member, your pension will be there for you when you retire and throughout your retirement years.

We’ve faced similar challenges in the past. We will get through this one.

Your NYSLRS Pension is Secure

You probably have a lot on your mind right now, but one thing you don’t need to worry about is your NYSLRS pension. Despite the turmoil in the financial markets, your retirement benefits are secure.

“I want to assure the more than one million men and women who rely on the State pension fund for retirement security that we are well-positioned to weather the ongoing volatility,” said New York State Comptroller Thomas P. DiNapoli. “To our retirees, your pensions are safe and we will continue to pay your benefits as promised.”

The New York State Common Retirement Fund, which holds and invests NYSLRS assets, has long been recognized as one of best managed and best funded public pension plans in the nation. The strength of the Fund puts NYSLRS in a good position as we navigate through the current economic turmoil.

The Fund’s professional managers take a conservative approach to investing and focus on sustained, long-term results. This approach allows the Fund to capitalize on investment opportunities in good times and cushions it against market ups and downs. In recent months, as they recognized increased volatility in the market, Fund managers began making adjustments to the Fund’s investment portfolio to prepare for an expected downturn in the economy. They are actively managing the Fund through these difficult times and are confident the markets will ultimately recover.

DiNapoli Continues to Fight Against Pension Fraud

Comptroller Thomas P. DiNapoli’s efforts to prevent and stop pension fraud help protect the integrity of NYSLRS and the retirement security of its members and beneficiaries.

The Comptroller’s Office works with law enforcement and local prosecutors to help root out pension fraud. Over the last several years, these investigations have led to dozens of arrests and the recovery of millions of dollars.

DiNapoli Continues to Fight Against Pension Fraud

Recent Pension Fraud Cases

  • A Dutchess County woman failed to notify NYSLRS about her mother’s death and continued to collect her mother’s pension checks. She collected nearly $42,000 before she was caught, and pleaded guilty to petit larceny in July 2019. She was sentenced to three years’ probation and has agreed to pay full restitution.
  • A Westchester County woman kept her deceased mother’s deposited pension checks and spent the money on personal expenses, including cellphone and utility bills. The amount she stole from the retirement system totaled $60,288. She pleaded guilty to a felony grand larceny charge and was sentenced to five years’ probation. She also paid back $22,000, part of her requirement to make full restitution.
  • Two Westchester County sisters are accused of concealing their mother’s death to collect nearly $22,000 of her retirement benefits from 2013 to 2015. They’re charged with third-degree grand larceny, a felony.

Comptroller DiNapoli is also committed to fighting public corruption in state and local government. He partners with law enforcement to bring corrupt officials to justice and recoup stolen taxpayer money.

Since he took office in 2007, DiNapoli’s anti-corruption initiatives have resulted in more than 200 arrests and the recovery of $60 million in taxpayer money.

How You Can Help

The Comptroller encourages the public to report allegations of wrongdoing by:

  • Calling the toll-free Fraud Hotline at 1-888-672-4555;
  • Filing a complaint online; or
  • Mailing a complaint form to:
    Office of the State Comptroller
    Division of Investigations, 8th Floor
    110 State Street
    Albany, NY 12236.

Common Retirement Fund Earns Strong Investment Returns

The New York State Common Retirement Fund (Fund) holds retirement investments in trust for more than 1 million New York State and Local Retirement System (NYSLRS) members. In the State fiscal year ending March 31, 2018, it generated strong investment returns of 11.35 percent. The Fund ended the year with an audited value of $207.4 billion.

New York State Common Retirement Fund Value

Strong Investment Returns

Independent studies regularly confirm the financial soundness of NYSLRS. Just this year, a study by the Pew Charitable Trusts ranked NYSLRS among the best-funded state retirement systems. In fact, a new State fiscal year 2018 report from our actuary ranks NYSLRS at 98 percent funded, which puts us well above the national average of 66 percent funded.

Comptroller Thomas P. DiNapoli, trustee of the Fund, credits the growth to a long term, diversified investment strategy and solid market growth through most of the fiscal year, despite a volatile fourth quarter

Investing for Retirement Security

The Fund is the country’s third-largest public pension fund. NYSLRS provides retirement security to more than 1 million active state and local government employees, retirees and their beneficiaries. During the fiscal year that ended March 31, 2018, NYSLRS paid out $11.45 billion in retirement and death benefits. More than $9.8 billion of that went to residents of New York State, which generated local spending and provided economic support to New York businesses and communities.

Investing Responsibly

While successfully providing financial security for New York’s government workers and retirees, Comptroller DiNapoli’s has also put investment dollars to work helping New York businesses grow and addressing the long-term threat of climate change.

The In-State Private Equity Program invests in New York-based business ventures, companies and other programs that spur economic growth and create and retain jobs. Recently, Comptroller DiNapoli raised the program’s total commitments to $1.6 billion. Since 2000, it has returned $863 million on $583 million invested in 139 transactions.

And recently, the Asset Owners Disclosure Project once again named the Fund as the number one U.S. pension fund — and the third globally — for its work to address climate risk. The Fund’s portfolio includes $7 billion dedicated to sustainable investments, including $4 billion in a low emissions index that shifts stock holdings away from the biggest carbon emitters.

What is the CAFR?

Last week, we published the latest Comprehensive Annual Financial Report (CAFR). This annual report gives a clear view about how both NYSLRS and the New York State Common Retirement Fund (Fund) are managed. This year’s CAFR covers our last State fiscal year, from April 1, 2015 through March 31, 2016.

The CAFR and Transparency

Each year when the CAFR is prepared, we strive to make sure the data is accurate, complete, and clear. For example, the financial section was prepared in keeping with accounting principles established by the Governmental Accounting Standards Board, and reporting requirements outlined by the Government Finance Officers Association of the United States and Canada. These principles set standards for financial accounting and reporting. By following them, we can see how we compare with other government entities using the same standards, ensure our data is consistent between accounting periods, and provide reliable financial statements to the public.

Comptroller DiNapoli is responsible for the Fund’s management. He ensures that investment policies and practices follow the highest levels of ethical conduct and transparency. The CAFR aids in transparency by providing historical data and extensive detail about the Fund’s audited assets, liabilities, investments, and transactions.

The CAFR provides many facts and figures about both NYSLRS and the Fund. Here are some statistics from the past fiscal year:

  • As of April 1, 2016, there were a total of 647,399 NYSLRS members; 612,294 in the Employees’ Retirement System (ERS) and 35,105 in the Police and Fire Retirement System (PFRS).
  • As of April 1, 2016, there were 440,943 NYSLRS retirees, 78 percent of whom live in New York.
  • As of April 1, 2016, there were a total of 3,040 participating NYSLRS employers.
  • The largest holdings in the Fund’s portfolio include:
    • Apple, Inc.
    • General Electric Company
    • AT&T, Inc.
    • Exxon Mobil Corp.
    • Microsoft Corp.
  • The Fund has invested approximately $9 billion with minority- and women-owned business enterprises since Comptroller DiNapoli took office in 2007.

This fact sheet (PDF) summarizes many other NYSLRS statistics you’ll find in the new CAFR. You can also find back issues of the CAFR on our website.

A Quick Look at the NYS Common Retirement Fund

Comptroller Thomas P. DiNapoli is the trustee of the Common Retirement Fund, which is the third largest public pension fund in the country. The Fund’s assets come from three main sources: member contributions, employer contributions, and investment returns. The Fund has two main goals:

  • Provide the means to pay benefits to NYSLRS’ participants; and
  • Minimize employer contributions through an investment program designed to protect and enhance the long-term value of the assets.

Over the last 20 years, 79 percent of benefits have been funded from investment returns. When you retire from NYSLRS, your monthly pension benefit—and the benefits of many others—will be drawn from this fund. Ethical management and a long-term, diversified investment strategy has made NYSLRS one of the best managed and funded plans in the nation.
Common Retirement Fund Assets

Strategic Long-Term Investments

The Fund’s investment program is designed to weather the ups and downs of an increasingly volatile global market. Our long-term target allocation for our investment portfolio is 22 percent in fixed income assets (bonds and Treasury Inflation Protected Securities [TIPS]) and 78 percent in equities, which includes:

  • Domestic and international public equities
  • Real estate
  • Real assets
  • Absolute return strategies
  • Mortgages
  • Private equity investments
  • Opportunistic funds

A diversified investment strategy helps us meet the funding needs for our current and future retirees while also helping to control risk.

The Fund is Well-Managed

An independent review of the Fund commended Comptroller DiNapoli and NYSLRS for strong policies and ethical management. By adhering to the highest standards of accountability and transparency, our members, retirees, and beneficiaries can be confident the Fund is being managed wisely.

The Common Retirement Fund: Invested In New York

As the third largest public pension fund in the country, the New York Common Retirement Fund (Fund) is in an excellent position to help strengthen the New York economy. One way it accomplishes this is by investing in New York businesses. Like all of the Fund’s investments, businesses are evaluated on their potential to earn a solid return for the Fund. Under New York State Comptroller Thomas P. DiNapoli’s direction, the Fund uses several programs to invest in New York businesses:

  • The In-State Private Equity Investment Program
  • The New York Business Development Corporation (NYBDC)
  • The New York Credit Small Business Investment Company (SBIC) Fund

By making money available through these programs, the Fund supports local businesses and creates jobs across the state.
The Fund—Invested in New York

The In-State Private Equity Investment Program

With the In-State Program, the Fund looks for companies in need of expansion capital. Businesses use the Fund’s investment to expand their operations and hire workers. The Fund has invested $820 million in over 300 New York businesses, with almost $325 million returned on exited investments. The companies in the In-State Program have also created or kept more than 4,500 jobs around the state.

The New York Business Development Corporation (NYBDC)

The Fund works with NYBDC to provide loans to small businesses in New York. These loans help small businesses buy property and equipment, expand, or start up. They also help create or retain almost 9,000 jobs each year. By borrowing from NYBDC, small businesses can receive lending terms that are often more favorable than other lending terms. Since the Fund partnered with NYBDC, they’ve loaned $362 million to 1,082 small businesses.

Invested in New York — Comptroller DiNapoli at Versa-Tel

Since teaming up with New York Business Development Corporation in 2007 to offer small business loans to returning military veterans, the New York State Common Retirement Fund has made nearly $1.5 million in loans to military veterans. On Veterans Day, Comptroller DiNapoli visited Versa-Tel, a veteran-owned telecommunications company based in Long Island, which received one of those loans.

The New York Credit Small Business Investment Company (SBIC) Fund

Last week, State Comptroller DiNapoli introduced a program that will make $200 million available for in-state investing. The SBIC fund offers credit financing to eligible New York companies, which provides another way to help smaller businesses expand their operations. The Fund is one of the first public funds to offer state-focused credit financing.

The Fund has New York’s best interests in mind by investing in local businesses and the result is two-fold: New York businesses receive the financing they need to succeed, and the Fund receives solid returns that get passed on to its members and retirees.

NYSLRS Retirees Help Power New York’s Economy

At the 2015 annual meeting of the Retired Public Employees Association of New York, State Comptroller Thomas P. DiNapoli told association members that “a public pension is not only good for you and your family, it’s good for New York State.” He added that “you are part of the economic engine in many of our communities.”

The administrator of the New York State & Local Retirement System (NYSLRS) and trustee of the New York State Common Retirement Fund, State Comptroller DiNapoli also noted that, of NYSLRS’ 430,308 retirees, 78 percent of them — 337,406 — have chosen to live in New York.

NYSLRS-Retirees-Build-a-Stronger-NY

Click for full-sized version (PDF)

This is important, the State Comptroller explained, because the pension money paid to retired state and local public employees’ flows directly back into our communities, stimulating and growing our local economies.

During calendar year 2014, NYSLRS retirees were responsible for $12 billion in economic activity in New York State.

Why Corporate Political Disclosure Matters

With the help of Comptroller DiNapoli, the New York State Common Retirement Fund is asking the companies it invests in to be more open about their corporate political spending. When companies spend money toward certain political causes, their shareholders may end up footing the bill. And as a shareholder in many large American companies, the Fund wants to make sure its investments are used wisely.

The Comptroller’s Efforts Toward Transparency

Election-Spending-Trend_2008-2014 Political Disclosure

In the election years from 2008 to 2014, the cost of congressional and presidential races climbed into the billions.

In 2010, the Supreme Court decided that corporations could contribute unlimited amounts of money to independent election efforts. Shareholders of these companies may not realize their money gets put toward these efforts. So, after the ruling, the Comptroller pushed for more transparency from the companies the Fund invests in.

One way he accomplishes this is through shareholder requests. These requests ask companies for a full, public report that lists their spending on:

  • Candidates
  • Political parties
  • Ballot measures
  • Any direct or indirect state and federal lobbying
  • Payments to any trade associations used for political purposes
  • Payments made to any organization that writes and endorses model legislation

This knowledge helps the Fund determine if it will still invest in these companies. Ultimately, the Fund wants to make sure its portfolio companies provide a long-term value on its investments, because that value will get passed on to its members, retirees and beneficiaries. If a company’s political spending puts that investment at risk, the Fund can withdraw as it sees fit.

The Fund’s Progress on Disclosure Agreements

The Fund has asked 52 of its portfolio companies to disclose their corporate political spending, and 26 companies have agreed to do so. Over the last year, the Fund has reached disclosure agreements with:

The Fund has taken a leadership role in corporate political disclosure, and Comptroller DiNapoli will continue to make it a priority.