New Jersey’s public employee pension fund posted a 14.82% investment return for the fiscal year ending June 30, outperforming its assumed rate of return by nearly eight percentage points and marking its third consecutive year of double-digit gains.
The results, reported Wednesday by the Treasury Department’s Division of Investment, come as Gov. Mikie Sherrill’s administration makes a record $7.3 billion pension contribution, the state’s sixth consecutive full payment.
The fund’s three-year annualized return now stands at 12.16%, substantially above the 7% long-term assumed rate of return.
“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 State Treasurer Aaron Binder.
The $7.3 billion contribution is the first under Sherrill, who took office in January. 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 in fiscal year 2026, led by strong stock market performance.
Emerging market equities gained 39.53%, followed by U.S. stocks at 23.20% and international developed market equities at 21.61%.
Real assets returned 23.76%, outperforming their benchmark by more than ten percentage points.
Division of Investment Director Shoaib Khan credited the fund’s performance to the investment staff’s expertise and the State Investment Council, which sets investment policies and asset allocations.
Senate Budget and Appropriations Committee Chairman Paul Sarlo said the legislative and the executive branch “continue to prove how our partnership and responsible budgeting practices are delivering for our state’s residents, workers, and families. “
“This is the third year now that New Jersey’s Pension Fund has seen double-digit returns that have far exceeded the long-term assumed rate of return. The Treasury’s smart, targeted investments, combined with six consecutive full pension payments through the state budget process, are helping to strengthen the fund and protect the retirements of our dedicated public workforce,” Sarlo said. “Alongside our state’s recent credit rating upgrades, we are on the right track to continue improving our long-term financial health and stability.”
The results are preliminary and remain unaudited pending completion of the fiscal year 2026 audit.