The Police and Fire Department Retirement Plan Board of San Jose convened on September 7, 2025, to discuss significant updates regarding the financial status and investment strategies of the retirement plan. The meeting began with a review of the board's objectives, emphasizing the need for ongoing assessment of priorities in light of changing circumstances.

The board's financial overview revealed that as of August 2025, the total assets for the police and fire departments reached approximately $5.8 billion, with an additional $3.5 billion for federal assets, culminating in a total exceeding $10 billion for the first time. This marks a notable increase from $5.6 billion in March 2018, highlighting substantial growth over the past seven years.

Investment performance was a key focus, with the board reporting a five-year return of 9.3% and a seven-year return of 7.7% as of June 30, 2025. This performance represents a significant improvement compared to previous years, where the five-year return was only 5.6% in June 2018. The board also noted a positive shift in peer rankings, moving from the bottom 1% in 2018 to the 36th and 39th percentiles for five and seven-year returns, respectively.

The funded ratio of the plan also showed improvement, rising from 76% in 2018 to 88% in 2025. The board expressed optimism that continued positive trends could lead to achieving a fully funded status in the coming years.

Discussion included a strategic shift towards increasing growth assets, which now comprise nearly 75% of the portfolio, while reducing the allocation to investment-grade bonds due to historically low yields. The board acknowledged the challenges of maintaining this trajectory but emphasized the importance of a long-term orientation in investment strategy.

The meeting concluded with a commitment to ongoing evaluation of the retirement plan's performance and the need for adaptability in response to market conditions. The board looks forward to future discussions and updates as they continue to navigate the complexities of pension funding and investment management.