Navigating the 2026 Public Pension Compensation Survey

Benchmarking Pay in a Stabilising Market

The National Conference on Public Employee Retirement Systems (NCPERS), in partnership with CBIZ, conducts the annual Public Pension Compensation Survey to gather detailed data on salaries, bonuses, benefits, and workforce trends across roughly 90 common roles at public pension funds. These funds manage retirement benefits for public employees and collectively oversee trillions in assets.

Recent results from the 2025 survey, covering 169 funds with $6 trillion in assets and over 21,000 full-time equivalent positions, highlighted a turnaround in staffing. Only three years earlier, 63% of funds viewed talent attraction and retention as a problem; by 2025, that figure dropped significantly, with 57% reporting no difficulties—a reflection of post-pandemic adjustments, including more competitive pay and flexible work options like remote arrangements offered by over 70% of respondents.

Yet this progress coincides with a normalisation of salary increases. After a surge to 8.3% in 2024—seen as catch-up following years of lagging private-sector wages—growth eased to 4.7% in 2025, with projected budgets around 4.1% for the next cycle. This moderation arrives against broader economic headwinds: potential budgetary strains on state and local governments, lingering inflation concerns, and competition for specialised skills in investments, IT, and actuarial roles.

The survey's benchmarking value lies in its granularity—data segmented by fund size, region, and assets under management—allowing funds to justify compensation decisions to boards and stakeholders. Non-participation means missing representation in the dataset, potentially skewing peer comparisons and leaving HR leaders without robust evidence for pay adjustments or retention strategies.

Tensions emerge between maintaining fiscal discipline for pension solvency and the need to offer competitive packages to avoid talent drain to private finance. Public funds often cap pay below private equivalents due to taxpayer scrutiny, yet understaffing or turnover can impair investment performance and operational efficiency. Recent broader pension trends show funded ratios improving to around 82.5% in 2025 estimates, but rising contribution volatility and other costs like disabilities add pressure to control administrative expenses—including personnel—without compromising capability.