NYS pension funds hit $254B; local sales tax collections rise 3% in July

The New York State Common Retirement Fund balance was estimated at $254.1 billion at the end of the first quarter of the state's fiscal year, state comptroller Thomas DiNapoli said Thursday.

For the three-month period ending June 30, the fund's investments returned about 3.08%.

Bloomberg News

"The rebound of the financial markets in recent months helped the fund post positive results for the quarter," DiNapoli said. "Recent economic indicators have shown a resilient U.S. economy, but the fund's diversified portfolio is well-positioned to handle any market fluctuations."

The fund's value reflects $4.09 billion in retirement and death benefits paid during the quarter. Its audited value was $248.5 billion as of March 31, 2023, the end of the state's last fiscal year.

As of March 31, the fund had 44.14% of its assets invested in publicly traded equities. The remaining assets were invested in cash, bonds and mortgages (21.53%), private equity (14.61%), real estate and real assets (13.39%) and credit, absolute return strategies and opportunistic alternatives (6.33%).

The fund's long-term expected rate of return is 5.9%.

For the state's fiscal year that ended March 31, the fund's investment return was negative 4.14% and it was valued at $248.5 billion. The returns reflected $14.7 billion in retirement and death benefits paid during the fiscal year.

For the prior fiscal year, the fund's investment return was 9.51% and as of March 31, 2022, the fund was valued at $272.1 billion. 

In November, DiNapoli reported the fund's estimated value at the end of the second quarter of fiscal 2023 was $233.2 billion and that for the three-month period ending Sept. 30, 2022, fund investments saw a negative 3.85% return.

DiNapoli began quarterly performance reporting in 2009 as part of ongoing efforts to increase accountability and transparency around the pension funds.

"Our pensioners, members and beneficiaries can remain confident that their benefits are safe thanks to our prudent management and long-term perspective," he said.

Separately on Thursday, DiNapoli reported that local sales tax collections increased 3% in July compared to the same month last year. Overall, local collections totaled $1.82 billion, up $53.3 million compared to July 2022.

"Local sales tax growth in July continued at a moderate pace, similar to growth rates from before the pandemic," DiNapoli said. "This may be slower than some local officials anticipated after two years of more robust growth, making careful cash flow monitoring especially important."

On a year-over-year basis, New York City's collections rose 0.2% to $777 million while county and city collections in the rest of the state rose 5% to $935 million.