In the past few weeks, some of the largest pension funds in the U.S. have reported exceptional returns for the past fiscal year. And this is good news for members of the pension funds because after several years of dismal performance, a good year is welcome news indeed.
According to press reports, California’s two giant pensions had tremendous years with post-fiscal-year returns that each topped 20 percent. The $154.3 billion California State Teachers’ Retirement System (CalSTRS), said its 23.1 percent return was “remarkable,” adding that it was its best performance in 25 years. Meanwhile, the $237.5 billion California Public Employees Retirement System (CalPERS) posted a 20.7 percent return, the best since 1997.
In addition, New York’s Common Retirement Fund (NYCRF) has grown to $146.5 billion, “its highest point since markets crashed in 2008,” state Comptroller Tom DiNapoli said. The fund, which provides benefits for more than a million state and municipal and retirees – generated a 14.6 percent rate of return for the 2010-11 fiscal year, which ended March 30. The fund grew about $6 billion since the end of 2010.