14.82% Return: NJ Public Pension Fund Posts Third Straight Year of Gains

New Jersey’s public employee pension fund achieved a 14.82% investment return for the fiscal year ending June 30, according to data released Wednesday by the Treasury Department’s Division of Investment. This performance marks the third straight year of double-digit gains and outperformed the fund’s assumed rate of return by nearly eight percentage points.

The fund’s three-year annualized return is now 12.16%, which is substantially higher than the long-term assumed rate of return of 7%.

Emerging Market Equities Lead Investment Gains in 2026

Strong stock market performance drove positive returns across every investment category in fiscal year 2026. The highest gains were seen in emerging market equities, which grew by 39.53%. Other significant gains included:

U.S. stocks: 23.20%
Real assets: 23.76% (outperforming the benchmark by more than ten percentage points)
International developed market equities: 21.61%

Shoaib Khan, Director of the Division of Investment, attributed these results to the State Investment Council’s asset allocations and policies, as well as the expertise of the investment staff.

Record Pension Contributions Help Upgrade New Jersey Credit Rating

The investment gains coincide with a record $7.3 billion pension contribution from the administration of Gov. Mikie Sherrill, who took office in January. This represents the state’s sixth consecutive full payment to the fund.

State Treasurer Aaron Binder stated that the administration’s full payment and the strong three-year results are a huge step in returning the pension fund to solid ground to protect retirees. The Kroll Bond Rating Agency recently noted the state's pension funding commitment as a factor in upgrading New Jersey’s credit rating.

Budgetary Outlook

Senate Budget and Appropriations Committee Chairman Paul Sarlo credited the fund’s strength to smart, targeted investments and a partnership between the executive and legislative branches regarding responsible budgeting. Sarlo noted that these factors, alongside credit rating upgrades, indicate the state is on a path toward improved long-term financial stability.

The reported figures are currently preliminary and remain unaudited while the fiscal year 2026 audit is completed.

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