The nation’s 100 largest public pensions saw substantial increases in their investments compared to the second quarter of 2013, gaining 14.3 percent.
According to the U.S. Census Bureau’s quarterly survey of public pensions, the holdings and investments in the 100 largest public-employee pension systems in the U.S. are at their highest level since the survey began in 1968.
Cash and security holdings amounted to $3.365 trillion vs. $3.218 trillion in the first quarter of 2014. In the second quarter of 2013, the total was $2.945 trillion.
Investment earnings were $129.4 billion for the quarter.
Corporate stocks increased 7.4 percent from Q1’s $1.094.9 trillion to Q2’s $1.176 trillion. They experienced a year-over-year increase of 15.5 percent from Q2 of 2013. At 34.9 percent, corporate stocks make up approximately a third of the pension systems’ total cash and security holdings for the present quarter.
Corporate bonds, at 11 percent, make up less of the whole, but still contributed a respectable increase to total holdings. They rose 7.1 percent from $346.9 billion in Q1 to $371.5 billion in Q2, and year-over-year gained 16.1 percent from Q2 2013’s $319.9 billion.
International securities, on the other hand, were down quarter to quarter, although they were up from 2013. From Q1 to Q2 of 2014, they fell 2.8 percent from $675.2 billion to $656.5 billion. The year-over-year increase was 11.3 percent from Q2 2013’s $590 billion. International securities make up 19.5 percent of total cash and security holdings for these systems.
Federal government securities, which make up 9.1 percent of the holdings, rose 12.4 percent from Q1 to Q2, from $273.9 billion to $307.8 billion, and gained 16.0 percent year over year from $265.4 billion.
Government contributions fell 6.8 percent from Q1’s $25.7 billion to $24.0 billion in Q2. Year-over-year they were up 4.8 percent, from $22.9 billion in the second quarter of 2013. Employee contributions rose 3.4 percent, from $10.9 billion to $11.3 billion, but a year-over-year decrease of 1.4 percent, from $11.4 billion in Q2 2013.
Government contributions ran 2.1 to 1 over employee contributions for the quarter, with government contributions making up 68 percent and employee contributions making up 32 percent of the whole. Altogether, payments totaled $64.1 billion; that was up 1.8 percent from $62.9 billion in Q1, and up 4.3 percent from $61.4 billion in Q2 of 2013.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.