New york state common retirement fund
The New York State Common Retirement Fund (CRF) is a public pension fund that manages the retirement benefits for over 1 million state and local government employees, including teachers, police officers, firefighters, and other public employees in New York State. Here are some key facts about the CRF:
History: The CRF was established in 1921 to provide a secure retirement income for public employees in New York State.
Assets: As of 2022, the CRF has assets of approximately $247 billion, making it one of the largest public pension funds in the United States.
Investments: The CRF invests in a diversified portfolio of stocks, bonds, real estate, and other assets to generate returns and ensure the long-term sustainability of the fund.
Funding: The CRF is funded by contributions from participating employers, employee contributions, and investment returns. The fund's funding ratio is around 90%, which means that for every dollar of promised benefits, the fund has approximately 90 cents in assets.
Investment returns: The CRF has a long-term investment return target of 7.5% per annum. In recent years, the fund has achieved returns of around 10% per annum, which has helped to improve its funding ratio.
Governance: The CRF is governed by a 12-member Board of Trustees, which includes the New York State Comptroller, the State Insurance Fund Commissioner, and 10 other members appointed by the Governor and the Legislature.
Investment strategies: The CRF has a range of investment strategies, including:
- Public equities: The fund invests in publicly traded companies in the United States and around the world.
- Private equities: The fund invests in private companies, including venture capital and private equity funds.
- Fixed income: The fund invests in government and corporate bonds, as well as other fixed-income securities.
- Real assets: The fund invests in real estate, infrastructure, and other real assets.
- Alternatives: The fund invests in alternative assets, such as private debt, hedge funds, and commodities.
Sustainability: The CRF has a strong commitment to sustainability and has implemented various initiatives to reduce its environmental impact, including:
- ESG (Environmental, Social, and Governance) investing: The fund considers ESG factors when making investment decisions.
- Climate change: The fund has set a goal to reduce its carbon footprint and is working to increase its investments in renewable energy and sustainable infrastructure.
- Diversity and inclusion: The fund is committed to promoting diversity and inclusion in its investment decisions and has set targets for increasing diversity among its investment managers and staff.
Overall, the New York State Common Retirement Fund is a significant institution that plays a critical role in providing retirement security for public employees in New York State. Its investment strategies and sustainability initiatives are designed to ensure the long-term sustainability of the fund and the retirement benefits it provides.