San Jose Police & Fire Department Retirement Plan

The San Jose Police & Fire Department Retirement Plan provides defined benefit pension benefits to sworn police officers and firefighters of the City of San Jose, California. Managing approximately $5 billion in assets, the plan is one of the larger public safety pension systems on the West Coast. It is governed by a Board of Administration and operates independently from the city’s Federated employees’ retirement system.

Investment Strategy

The Police & Fire plan maintains a diversified investment portfolio spanning domestic and international equities, fixed income, real estate, and alternative investments. The Board of Administration establishes asset allocation policy based on actuarial analyses, liability projections, and capital market assumptions. The plan’s investment strategy is designed to generate long-term returns sufficient to fund pension obligations for active and retired public safety personnel. External investment managers are engaged across asset classes through competitive selection processes, with oversight from the internal staff and external investment consultants. The plan balances growth-oriented equity positions with fixed income and real assets to manage volatility and ensure liquidity for benefit payments.

Private Markets Approach

The Police & Fire plan allocates approximately 12% of its portfolio to alternative investments, including private equity and real estate. The private equity program includes commitments to buyout, growth equity, and diversified strategies managed by established general partners. The plan has built its alternatives program over time, maintaining diversification across vintage years and strategies. The real estate allocation encompasses core and value-add strategies through commingled fund vehicles. The plan’s private markets program emphasizes manager quality, appropriate fee structures, and portfolio-level diversification. Investment decisions in alternatives are supported by external consultant recommendations and thorough due diligence conducted by the investment team and board.