The New York City Retirement Systems posted a 1.46% return on investment, net of fees, for the fiscal year ended June 30, said preliminary estimates published Wednesday by Scott Stringer, the city comptroller and the fiduciary of the five pension funds within the $163.1 billion city pension system.
The pension system’s assumed rate of return is 7%.
"This past (fiscal) year was challenging for all investors, but the city pension funds remain focused on the long term,” a spokesman for the comptroller’s office wrote in an e-mail.
Because the latest investment returns fell below the 7% assumed rate of return, Mr. Stringer predicted there will be an estimated increase in city contributions to the pension system of approximately $122 million in the 2018 fiscal year; $244 million for the 2019 fiscal year; and $366 million in the 2020 fiscal year. The report didn’t cite any additional contributions for the current 2017 fiscal year.
“Given increased uncertainties in the global economy and signs of potential economic weakness at home, the city must take advantage of strong tax revenues before our window of opportunity to save and prepare for less robust times closes,” Mr. Stringer said in a news release.
Information about the pension system was included in a city analysis, published Wednesday, of the current fiscal year budget. Audited results will be published in the fall.