New Jersey state pension fund earns nearly 15% in fiscal 2026

New Jersey’s state pension fund achieved a return of approximately 14.82% during the 2026 fiscal year, marking its third consecutive year of double-digit gains. The unaudited performance significantly exceeded the fund’s 7% assumed rate of return.

Key drivers of the growth included emerging markets equities, which surged by 39.53%, followed by U.S. stocks at 23.20% and international developed markets at 21.61%. The real assets portfolio also performed strongly, returning 23.76% and outperforming its benchmark by over 10 percentage points.

These returns have supported the state’s ability to make full annual employer contributions, which are budgeted at a record $7.3 billion for fiscal 2027. State Treasurer Aaron Binder noted that the consistent performance and commitment to full payments are steps toward returning the nearly $90 billion fund to solid ground.

Despite the previous year's success, preliminary estimates for the first quarter of the current fiscal year show a slowdown, with returns totaling less than 1% through the end of September due to unfavorable market conditions.