Public Safety Personnel Retirement System
State of Arizona
FOR IMMEDIATE RELEASE
Contact: Christian Palmer
Phone: (602) 296-3736
PSPRS investment returns push trust value to $24.2 billion
11.1 percent net-of-fee returns in FY2025 produces $2.4 billion
ARIZONA – The Public Safety Personnel Retirement System reported a 11.1% net-of-fee investment return for the fiscal year ending June 30, 2025, generating approximately $2.4 billion in value for the pension trust.
This growth benefits nearly 60,000 members, including firefighters, police officers, corrections officers, judges and elected officials. The total trust balance closed the fiscal year at $24.2 billion, up from $21.8 billion at the end of the 2024 fiscal year.
“The continued growth of plan assets through strong investment returns is great news for all of our stakeholders,” said PSPRS Administrator Mike Townsend. “The PSPRS investment team has again delivered strong returns that help provide retirement security to our members at decreasing cost to employers and taxpayers.”
The 11.1% return surpassed the system’s 7.2% assumed earnings rate for the one, three, five and seven-year periods, supporting stronger plan funding levels and sustainability.
For the first time since 2017, international stocks outperformed domestic equities. High returns were also delivered by the diversifying strategies, private lending and private credit portfolios. Private equity returns also rebounded to exceed the system’s assumed earnings rate after struggling for several years due to high interest rates.
“We have a top-notch group of investment professionals who have complemented public stock holdings with a strong alternative asset portfolio that keeps risk in check while generating returns,” said Trustee Harry Papp, chairman of the PSPRS Investment Committee. “They’ve done a remarkable job of selecting investments for this trust.”
Through the July 1, 2024, to June 30, 2025, fiscal year, the PSPRS portfolio was 65% less volatile than the S&P 500 index. When compared to peers, PSPRS ranked in the top 25th performance percentile over the one-year period and top 11th percentile over the seven-year actuarial cycle.
“We are pleased to deliver a double-digit return in a year marked by volatility from tariffs, shifting interest rate and inflation expectations, geopolitical tensions, and swings in the value of the largest companies in the stock market,” said PSPRS Chief Investment Officer Mark Steed. “The performance reaffirms the value of a disciplined, long-term approach and prudent risk management for our membership.”
Employer valuations for FY2025 and the system’s consolidated annual reports for all PSPRS plans will be completed and published before year-end.
PSPRS is governed by a nine-member Board of Trustees. To learn more about PSPRS investment strategies and pension financing please visit the PSPRS YouTube channel.