Large public plans have heavier equity and alts allocations vs. corporate and union plans

Large public pension plans have different asset allocations than corporate and union plans, according to aggregate data collected for Pensions & Investments’ annual top 1,000 retirement plan sponsor survey.

Public plans had 42.5% of their assets invested in equity, about 21% in fixed income and 33.7% in alternatives. Corporate and union plans have much lower portions of their assets invested in equity and alternatives, and a much higher allocation to fixed income.

Over the past decade, public pension plans have markedly lowered their weights in equities and increased alternatives. The equity allocation dropped about 8.6 percentage points to 42.5% and alternatives increased 11.6 percentage points to 33.7%. Fixed income dropped to 21.2% from 23% during this time.

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