Public Pension Peer Study Analysis

This technical report presents the findings of the Public Pension Peer Study, which analyzes data from 150 U.S. public pension plans representing over $5.8 trillion in assets. The report outlines the average funded ratio, which stands at 78% for fiscal year 2025, remaining stable compared to previous years. It details the portfolio allocations, indicating that 78% of assets are invested in growth assets, with 44% in public equities and 33% in alternatives. The study also evaluates historical and expected returns, noting that 85% of plans met or exceeded their return targets over the past decade. Additionally, the report discusses the concentration of portfolio risk in economic growth factors and highlights the shifts in asset allocation among plans. The findings suggest that while the overall funded status is improving, significant variations exist among individual plans, driven by specific asset allocation decisions and portfolio construction strategies.