With all of the negative pension news coming out of Trenton, it is refreshing to hear that the returns on our investment have been doing very well! According to a recent report by the New Jersey Treasury Department, the New Jersey Pension Fund has produced positive returns for Fiscal Year 2014 of 15.9 percent, according to preliminary data compiled as of June 30, 2014. The final return for the fiscal year is expected to exceed 16 percent once year-end valuations are completed for all investments.
This marks the fourth consecutive year of positive returns and the second year in a row that the fund has produced solid, double-digit returns. The New Jersey Division of Investment will report the performance gain to the State Investment Council during its monthly meeting on July 23, 2014.
The assumed, long-term rate of return is 7.9 percent.
During the past four fiscal years, actual annualized returns have provided the fund with an incremental $11.5 billion, or more than $2.8 billion per year, above the rate of return assumed by actuaries in calculating the funded status of New Jersey’s pension plan.