Comptroller touts $309.7 billion pension fund as opponent targets Wall Street fees

New York State Comptroller Thomas DiNapoli, a Democrat, reported a 6.12% quarterly return on the New York State Common Retirement Fund, which holds $309.7 billion, for the period from April through June. DiNapoli credited the fund's diversified strategy for the result, saying, "Our disciplined investment strategy is focused on diversification, responsible risk management, and long-term stability." According to the comptroller's report, the fund's assets are allocated 39.4% to public companies, 22.9% to cash, bonds and mortgages, and roughly 37.7% to private equity, real estate and credit strategies such as corporate lending. The $309.7 billion figure represents assets held in the fund rather than payments made to retirees; investment earnings support $16.8 billion in annual benefits.

DiNapoli cited a 96.8% funded status as of March 31, 2026, meaning the state has set aside just under 97 cents for every dollar of projected future pension obligations. He also referenced two independent reviews from late 2025 and early 2026 that assessed the fund's risk to pensioners as low. One of them, a fiduciary review by Weaver and Tidwell, noted a long-term projected rate of return of 5.9%, which it characterized as more conservative than other states' assumptions. The fund was valued at $297 billion in February and $295.4 billion at the close of the prior fiscal year on March 31. Separately, New York City's comptroller reported a 13% return for the city's $326.3 billion pension fund for the fiscal year ended June 30.

DiNapoli's Republican opponent in the fall race for state comptroller, Joseph Hernandez, criticized the performance and the fund's governance. Hernandez said the S&P 500 rose about 15% and the Nasdaq about 21% during the same quarter, compared with the fund's 6.12%. He also objected to the nearly 38% allocation to alternatives, which he said limits public visibility into the fund's holdings. He claimed management fees rose from about $145 million to $862 million during DiNapoli's tenure, and argued that total costs exceed $1.8 billion annually once payouts to Wall Street fund managers and carried interest are included. Hernandez also questioned the objectivity of audits conducted by a private vendor hired through the comptroller's office and by another state agency. In a statement on Tuesday, he said, "That is real money that should be working for New York retirees and taxpayers instead of going toward fees paid to Wall Street middlemen."

The debate comes as pension costs draw wider scrutiny in New York. The Empire Center for Public Policy reported that 132 retired state and local government workers qualified for pensions above $200,000 in the 2026 fiscal year, with the highest at $503,128. Separately, new five-year labor agreements include pay increases for more than 55,000 Civil Service Employees Association members and 42,000 SUNY faculty and staff, and the state lowered the retirement age without penalty for some teachers with at least 30 years of service from 63 to 58.