Key Takeaways
- • New Jersey's public employee pension fund posted a final, unaudited 14.82% return for the fiscal year ended June 30, 2026, beating its 7% assumed rate of return by roughly eight percentage points.
- • The result marks the third consecutive year of double-digit gains; the three-year annualized return stands at 12.16%.
- • The state made a record $7.3 billion pension contribution, its sixth consecutive full payment and the first under Governor Mikie Sherrill.
- • All investment categories posted positive returns, led by emerging market equities (39.53%), U.S. stocks (23.20%), international developed equities (21.61%) and real assets (23.76%).
Summary
New Jersey's public employee pension fund generated a 14.82% investment return for the fiscal year ended June 30, 2026, according to the state Treasury Department's Division of Investment, which reported the results. The return exceeded the fund's 7% long-term assumed rate of return by nearly eight percentage points and marked the third consecutive year of double-digit gains. The three-year annualized return now stands at 12.16%. The results are preliminary and remain unaudited pending completion of the fiscal year 2026 audit.
All of the fund's investment categories posted positive returns, led by strong equity markets. Emerging market equities gained 39.53%, U.S. stocks returned 23.20%, and international developed market equities rose 21.61%. Real assets returned 23.76%, outperforming their benchmark by more than ten percentage points. Division of Investment Director Shoaib Khan credited the performance to the investment staff's expertise and the State Investment Council, which sets investment policies and asset allocations.
The results coincide with a record $7.3 billion pension contribution under Governor Mikie Sherrill's administration, the state's sixth consecutive full payment and the first under Sherrill, who took office in January. State Treasurer Aaron Binder said the strong results and full payment represent a major step toward returning the pension fund to solid ground. Senate Budget and Appropriations Committee Chairman Paul Sarlo praised the partnership between the legislative and executive branches. Kroll Bond Rating Agency recently cited the state's pension funding commitment as a factor in upgrading New Jersey's credit rating.
All of the fund's investment categories posted positive returns, led by strong equity markets. Emerging market equities gained 39.53%, U.S. stocks returned 23.20%, and international developed market equities rose 21.61%. Real assets returned 23.76%, outperforming their benchmark by more than ten percentage points. Division of Investment Director Shoaib Khan credited the performance to the investment staff's expertise and the State Investment Council, which sets investment policies and asset allocations.
The results coincide with a record $7.3 billion pension contribution under Governor Mikie Sherrill's administration, the state's sixth consecutive full payment and the first under Sherrill, who took office in January. State Treasurer Aaron Binder said the strong results and full payment represent a major step toward returning the pension fund to solid ground. Senate Budget and Appropriations Committee Chairman Paul Sarlo praised the partnership between the legislative and executive branches. Kroll Bond Rating Agency recently cited the state's pension funding commitment as a factor in upgrading New Jersey's credit rating.
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