New York City system reports return of 7.24% for fiscal year

The New York City Retirement Systems posted an estimated return on investment of 7.24% for the fiscal year ended June 30, exceeding the actuarial assumed return of 7%, Scott Stringer, the city comptroller said Wednesday.

Mr. Stringer is the fiduciary for the five pension funds within the $199 billion city system.

The pension fund's return was achieved "despite a year in which the markets were characterized by volatility, trade conflicts and instability in the technology sector," Mr. Stringer said in remarks prepared for the annual meeting of the New York State Financial Control Board at which he presented a report on the city's current fiscal year budget.

By exceeding the actuarial assumed rate of return, the city will be able to reduce its contribution to the pension system by $19 million for the 2021 fiscal year, $37 million in fiscal 2022, and $56 million in fiscal year 2023, the report said.

Because the 7.24% figure is unaudited, "these preliminary numbers may be revised up or down in the coming months," said a Wednesday news release from the comptroller.

The city's pension achievement also was cited in a report Wednesday from Thomas DiNapoli, the state comptroller, noting the city pension system's aggregate health has improved in recent years. For the fiscal year ended June 30, 2018, the overall funding ratio was 76% on a market value basis. Among the five pension funds within the system, the ratios ranged from 90% for the board of education pension fund to 65% for the firefighters' pension fund.