The New Jersey pension fund lost value in 2022.
The state's pension fund covers about 800,000 active and retired government workers. This fund lost more than $3 billion on investments in April and May. The treasury's total market value dropped to $91.5 billion as of May 31. It was at almost $100 billion at the end of last year. (source)
The Division of Investment is still processing results from June. But the state is set to post a negative return for the fiscal year that ended June 30. The current estimates show negative returns of about 3% from July 2021 through May. (source)
How did this happen, and will it impact the government worker retirees?
In explanation for the losses, the team made a statement. (source)
"Markets across the board are having a hard time, and that has been the case throughout the first half of this year. Unfortunately, there are very few hiding spots in these current market conditions."
The poor performance of returns will not immediately impact current retirees' benefits. There is some cushioning for the loss, according to another finding of the preliminary estimates. The fund's five-year return figures also topped 8% percent through May. (source)
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