02/19/2020
Each year the trade publication Pensions & Investments ranks the top 1,000 pension systems, both public and private, in the country. Here’s how NYSTRS stacked up in the 2020 rankings:
- 8th largest public fund.
- 11th largest fund overall.
- 7th largest defined benefit plan.
- 5th among defined benefit plans with the most funds managed internally.
Defined benefit plans like the one administered by NYSTRS pay lifetime benefits calculated using a formula typically based on age, salary and years of service. Funding comes from system members and their employers. Those monies are invested with the returns earned used to pay benefits and grow the overall fund.
About 60% of NYSTRS assets are managed internally. Internal management of assets saves money by reducing investment fees paid to external managers. The money saved can be invested, thus earning more money for paying benefits. The greater the return on investments, the lighter the burden on employers and the taxpayers who fund them.
Over the past 30 years, 85% of NYSTRS income has come from earnings on investments. Nationally, about 63% of public pension revenues are attributable to investment earnings, according to statistics compiled by the National Association of State Retirement Administrators (NASRA).
Learn more about NYSTRS and its finances by reviewing the System’s 2019 Popular Annual Financial Report (PAFR) and visiting the Infographics page of this website.