Administration

State Pension Assets Rose Nearly $325B Last Year

August 9, 2012 (PLANSPONSOR.com) – Assets of U.S. state pension systems rose nearly $325 billion last year, according to a survey.

By Jay Polansky editors@plansponsor.com | August 09, 2012
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The Census Bureau’s “2011 Annual Survey of Public Pensions: State-Administered Defined Benefit Data” reports the nation's state-administered defined benefit retirement systems had $2.5 trillion in cash and investment holdings in 2011, a 14.6% increase from $2.2 trillion in 2010. Earnings on investments were $410.6 billion, up from $291.1 billion in 2010.

Cash and Security Investment Holdings  

Corporate stocks increased 13.8%, from $767.1 billion in 2010 to $873.2 billion in 2011 (and comprised 34.3% of total holdings in 2011). Corporate bonds decreased 2.1%, from $357 billion in 2010 to $349.7 billion in 2011 (and comprised 13.8% of total holdings in 2011).

Among the cash and security holdings for public pensions, foreign and international securities increased 24.1%, from $359.4 billion in 2010 to $446 billion in 2011 (and comprised 17.5% of total holdings in 2011). Federal government securities increased 7.4%, from $192.3 billion in 2010 to $206.6 billion in 2011 (and comprised 8.1% of total holdings in 2011).

Cash and short-term investments increased 36.4%, from $78.7 billion to $107.3 billion (and comprised 4.2% of total holdings in 2011). Real property increased 28.6%, from $83.3 billion in 2010 to $107.1 billion in 2011 (and comprised 4.2% of total holdings in 2011).

Nongovernmental securities (e.g., corporate stocks and bonds, foreign and international securities, funds held in trust, and mortgages) were $1.8 trillion in 2011, a 12.1% increase from 2010. Nongovernmental securities comprised 72% of total cash and security holdings.  

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