BlackRock’s 2026 Public Pension Peer Study

By: BlackRock Client Solutions Group

As public pension plans navigate an increasingly complex investment landscape, many are expanding their focus beyond traditional asset allocation toward a deeper understanding of portfolio risk, resilience, and efficiency. Insights from BlackRock’s 2026 U.S. Public Pension Peer Risk Study highlight how leading plans are using risk-based frameworks to evaluate portfolio positioning across a range of market environments.

BlackRock’s 2026 Public Pension Peer Study provides a timely view into the health, positioning, and outlook of U.S. public pension plans. Despite a more complex investment environment, the data points to an industry that remains resilient, with stable funding levels, strong long-term investment outcomes, and portfolios positioned to pursue long-term objectives.

Key findings include:

1. Funded ratios: The average funded ratio across BlackRock’s public pension universe was 78% in FY2025, unchanged from FY2024 and modestly higher than 77% in FY2023.
2. Portfolio allocations: On average, public plans allocated 78% of assets to growth investments, including 44% in public equities and 33% in alternatives.
3. Risk exposures: More than 9 in 10 plans have more than 75% of portfolio risk (13.2% on average) driven by the economic growth risk factor.
4. Historical and expected returns: Over the past 10 years, 85% of plans met or exceeded their assumed rate of return, outperforming targets by an average of 90 basis points annually. Based on BlackRock’s capital market assumptions, most plans are positioned to exceed their assumed return by approximately 114 basis points per year on average over the next decade.

While these aggregate figures provide a useful benchmark, the study also underscores the significant variation that exists beneath the surface. Plans with similar asset allocations and return objectives often exhibit meaningfully different risk exposures, implementation decisions, and portfolio outcomes.

Future white papers will explore these findings in greater detail, including portfolio construction, risk-factor analysis, and emerging trends shaping the next generation of public pension investing.

Many NCPERS member plans are included in BlackRock’s public pension universe, and we welcome the opportunity to review a customized peer analysis with you.

Click here for more information on this study from the BlackRock website.

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable.

We understand the challenges that public pensions face. With interest rates down and market volatility up, many plans are struggling to achieve their long-term target rates of return while maintaining sufficient liquidity to meet annual outflows.

Our dedicated public pensions team leverages the depth and breadth of BlackRock to deliver investment solutions that are aligned with plan priorities. From re-thinking portfolio construction to blending strategic and tactical allocation to optimizing risk and return in private markets, our public pension clients use BlackRock’s full spectrum of public and private markets strategies to help reach their goals.

For additional information on BlackRock services to public pensions, please visit Public pensions - Institutional | BlackRock.