The Federal Retirement Thrift is the largest pension fund in the United States, managing assets totaling approximately $689.86 billion as of 2023. This fund primarily oversees the Thrift Savings Plan (TSP), a defined contribution plan similar to a 401(k), for federal employees and members of the uniformed services.
Top US Retirement Funds by Assets
The annual ranking of the largest US retirement funds by Pensions & Investments (P&I) provides a comprehensive overview of the significant financial entities managing retirement savings across the nation. These funds play a critical role in the financial security of millions of Americans.
Below is a snapshot of the top four largest US retirement funds based on their assets:
| Rank | Sponsor | Assets (in Millions USD) |
|---|---|---|
| 1 | Federal Retirement Thrift | $689,858 |
| 2 | California Public Employees | $432,235 |
| 3 | California State Teachers | $290,384 |
| 4 | New York State Common | $233,227 |
Data as of 2023. Assets are reported in millions of U.S. dollars.
Understanding the Largest Pension Funds
The top pension funds in the US, like the Federal Retirement Thrift and California Public Employees' Retirement System (CalPERS), are massive institutional investors. Their investment decisions can have a significant impact on financial markets due to the sheer volume of assets they manage. These funds typically invest in a diverse range of assets, including:
- Public Equities: Stocks of publicly traded companies.
- Fixed Income: Bonds and other debt instruments.
- Real Estate: Direct property investments or real estate funds.
- Private Equity: Investments in non-publicly traded companies.
- Alternative Investments: Such as hedge funds and infrastructure.
The scale of these funds allows them to negotiate favorable terms with asset managers and diversify their portfolios extensively, aiming to generate stable returns over the long term to meet their future obligations to retirees.
For a complete list and further details on the top US retirement plans, you can refer to the P&I 1,000 Largest Retirement Plans 2023 - Full List.
