Key Takeaways
- • The American Investment Council's 2026 Pension Study ranks Vermont Pension Investment Commission first among U.S. public pension funds by private equity returns, at 16.61%.
- • Ohio School Employees Retirement System ranks second at 16.27%, with Massachusetts PRIT (16.18%), West Virginia Investment Management Board (16.12%) and Tennessee Consolidated Retirement System (16.04%) completing the top five.
- • Ohio SERS CIO Farouki Majeed states private equity has been the highest-returning asset class in the fund's portfolio over 10 years and longer periods.
- • Illinois State Board of Investment and Public School and Education Employee Retirement Systems of Missouri tied for ninth place at 15.20%.
Summary
The American Investment Council (AIC) has released a new report, the 2026 Pension Study, which finds that private equity remains the top-performing asset class for America's public pension funds. The study ranks public pension systems by their private equity returns, with the top ten shown below.
Vermont Pension Investment Commission led the ranking with a 16.61% private equity return. Ohio School Employees Retirement System followed at 16.27%, then Massachusetts Pension Reserves Investment Trust at 16.18%, West Virginia Investment Management Board at 16.12%, and Tennessee Consolidated Retirement System at 16.04%. City of Baltimore Employees' Retirement System (15.80%), Nebraska Investment Council (15.40%), The Florida Retirement System (15.33%), and a tie between Public School and Education Employee Retirement Systems of Missouri and Illinois State Board of Investment at 15.20% rounded out the list.
The AIC cited comments from pension leaders on the role private equity plays in long-term returns and retirement security for beneficiaries. Farouki Majeed, CIO of Ohio SERS, said private equity "continues to be the highest returning asset class in our portfolio over 10 years and longer periods and thus contributes positively to the long-term sustainability of the pension fund."
The source material does not specify the time period, methodology or benchmark used for the return figures beyond the reference to the full 2026 Pension Study, which readers should consult for those details.
Vermont Pension Investment Commission led the ranking with a 16.61% private equity return. Ohio School Employees Retirement System followed at 16.27%, then Massachusetts Pension Reserves Investment Trust at 16.18%, West Virginia Investment Management Board at 16.12%, and Tennessee Consolidated Retirement System at 16.04%. City of Baltimore Employees' Retirement System (15.80%), Nebraska Investment Council (15.40%), The Florida Retirement System (15.33%), and a tie between Public School and Education Employee Retirement Systems of Missouri and Illinois State Board of Investment at 15.20% rounded out the list.
The AIC cited comments from pension leaders on the role private equity plays in long-term returns and retirement security for beneficiaries. Farouki Majeed, CIO of Ohio SERS, said private equity "continues to be the highest returning asset class in our portfolio over 10 years and longer periods and thus contributes positively to the long-term sustainability of the pension fund."
The source material does not specify the time period, methodology or benchmark used for the return figures beyond the reference to the full 2026 Pension Study, which readers should consult for those details.
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