Police Pig Fund Structure and Current Holdings
The police pension fund, often colloquially referred to as the police pig, operates as a defined benefit plan funded by member contributions and employer matching. As of the latest public filings, the fund's total assets under management exceed 4.2 billion, with allocations split between equities, fixed income, and real estate. The fund's investment policy targets a long term return of 7.2 percent, with a current funded ratio reported at 88 percent. For detailed contribution schedules, see the official board report at Forbes.
The fund's governance structure includes a board of trustees composed of police representatives, city officials, and independent actuaries. Actuarial valuations are conducted every three years, with the most recent valuation completed in the previous year. The valuation assumes a 7.2 percent discount rate and projects long term liabilities over a 30 year horizon. The latest actuarial report is available through the public disclosure portal linked at SEC.
Investment Performance and Asset Allocation
In the most recent fiscal year, the police pig fund generated a net return of 9.4 percent, outperforming its benchmark by 1.2 percentage points. The equity allocation, which accounts for 55 percent of the portfolio, drove the majority of gains, with international developed markets contributing the strongest returns. The fixed income segment, comprising 30 percent of assets, delivered a modest 4.1 percent return in the same period. A breakdown of the asset classes is detailed in the quarterly investment report at Forbes.
The fund's alternative investments, including private equity and real estate, represent 15 percent of the portfolio and have been a key driver of diversification. The private equity allocation targets mid market buyout opportunities, with a focus on technology and healthcare sectors. Real estate holdings are concentrated in metropolitan areas, with a 60 percent allocation to office properties and 40 percent to multifamily residential. The complete portfolio composition is disclosed in the annual comprehensive financial report accessible via SEC.
Funding Challenges and Reform Initiatives
The police pig fund faces a structural deficit driven by an aging membership base and longer life expectancies. The latest actuarial study projects a 12 billion unfunded liability over the next 30 years if current contribution rates remain unchanged. To address this, the board has proposed a phased increase in member contribution rates from 8 percent to 11 percent over a five year period. The proposed reform package is under review by the city council and is discussed in the latest budget analysis at Forbes.
Reform efforts also include a shift toward a hybrid plan model that would introduce a defined contribution component for new hires. This change aims to reduce long term liability exposure while maintaining a guaranteed benefit for existing members. The transition timeline targets full implementation within the next three fiscal years, pending legislative approval. The legislative analysis and fiscal impact assessment are published on the oversight board website at SEC.