New Jersey pension fund posts 14.82% return in fiscal year 2026, marking third straight year of double-digit gains
NEW JERSEY — New Jersey’s pension fund recorded a 14.82% investment return for fiscal year 2026, marking its third consecutive year of double-digit gains and exceeding the state’s long-term assumed rate of return, according to figures released Wednesday by the New Jersey Department of the Treasury.
The Division of Investment reported the final, unaudited results during Wednesday’s meeting of the State Investment Council. The return covers the 12-month period ending June 30, 2026, and exceeded the pension fund’s long-term assumed return of 7% by 7.82 percentage points.
The latest performance brings the fund’s three-year annualized return to 12.16%, reflecting three consecutive fiscal years of double-digit investment gains. Treasury officials said the results, combined with continued state contributions, are helping strengthen the retirement system for public employees.
The state has also committed a record $7.3 billion pension payment for fiscal year 2027, representing the sixth consecutive full pension contribution and the first under Gov. Mikie Sherrill’s administration. The payment was among the factors cited by Kroll Bond Rating Agency in its recent upgrade of New Jersey’s credit rating.
“The strong results over the past three years, along with the administration’s commitment to making the full payment, represent a huge step in returning the pension fund to solid ground, and helps protect the pensions of the hard-working men and women who rely on it in retirement,” said New Jersey State Treasurer Aaron Binder.
Investment gains across all asset classes
According to the Division of Investment, every asset class in the pension fund’s diversified portfolio generated positive returns during fiscal year 2026, with publicly traded stocks contributing the largest positive impact on overall performance.
Emerging market equities delivered the highest return among the public equity categories at 39.53%, followed by U.S. equities at 23.20% and international developed market equities at 21.61%.
Real assets also performed strongly, generating a 23.76% return compared with a benchmark return of 13.33%. That represented an outperformance of 10.43 percentage points for the asset class.
The Division of Investment manages the pension fund’s diversified portfolio under investment policies and asset allocation guidelines established by the State Investment Council. Officials credited the fund’s investment strategy and staff with contributing to the positive results.
“For the third year in a row, the Pension Fund has reached double digit returns, which is a testament to the knowledge, dedication and professionalism of the staff at the Division of Investment,” said Shoaib Khan, Director of the Division of Investment. “I’d also like to thank the State Investment Council, which plays an integral role in the success of the pension fund, for its expertise in establishing asset allocation and other investment policies and for its trust in Division staff to implement those policies.”
State continues full pension contributions
New Jersey’s $7.3 billion contribution for fiscal year 2027 continues a series of full pension payments intended to support the state’s retirement obligations to public employees.
Treasury officials said the combination of investment gains and continued contributions is helping improve the pension system’s financial position. The administration also pointed to the recent credit rating upgrade from Kroll Bond Rating Agency, which cited the state’s pension funding commitment as one of the factors supporting its decision.
Although the fund’s 14.82% return exceeded its long-term assumed rate, investment performance can vary from year to year, and returns alone do not determine the pension system’s overall funded status.
The Division of Investment emphasized that the fiscal year 2026 performance figures remain unaudited and are subject to completion of the annual financial audit.
