The 100 largest public-employee retirement systems in the country saw their largest earnings on investments since the third quarter of 1974, according to new statistics released by the U.S. Census Bureau.

Total holdings and investments increased 5.6 percent, from $2.6 trillion last quarter to $2.8 trillion in the first quarter of 2012. There was a year-to-year increase of 0.7 percent from $2.7 trillion in the first quarter of 2011. Total holdings and investments reached the second-highest level since the market downturn of 2008, the “Summary of the Quarterly Survey of Public Pensions for 2012: Q1” stated.

This year’s survey took into account changes in asset classification. These changes apply to the categories designated as corporate stocks, corporate bonds, federal government securities, and other securities. Federally sponsored agency securities are not classified under federal government securities instead of corporate bonds. Private equity, venture capital, and leveraged buy-outs are now classified under corporate stocks instead of other securities.

The Census Bureau added that because of the asset classification changes, caution should be exercised in comparing data from the first quarter of 2012 and prior quarters.

Corporate stocks increased 17.6 percent from $822.4 billion in the first quarter of 2011 to $967.2 billion in the first quarter of 2012. Corporate stocks year-to-year were up 5.6 percent from $916.3 billion in the first quarter of 2011. Corporate stocks comprised more than a third (35.1 percent) of the total cash and security holdings of major public pension systems for the current quarter. Part of this increase can be attributed to the recent change in asset classification.

Corporate bonds fell to the lowest level since the first quarter of 2006, dropping 6.9 percent from $399.6 billion in the first quarter of 2011 to $371.9 billion in the first quarter of 2012. Corporate bonds year-to-year decreased 15 percent from $437.3 billion in the first quarter 2011. Corporate bonds comprised 13.5 percent of the total cash and security holdings of major public pension systems for the current quarter. Part of the decrease in corporate bonds was due to the change in asset classification.

The Census Bureau also found that international securities reached the highest level since the survey began collecting this information in the third quarter of 2000. There was a quarter-to-quarter increase of 16.3 percent, from $472.8 billion to $550 billion in the first quarter of 2012. International securities year-to-year increased 7.4 percent from $512.3 billion in the first quarter of 2011. International securities made up 19.9 percent of the total cash and security holdings of major public pension systems for the current quarter and the recent changes in asset classification did not affect international securities.

Since the second quarter of 2001, federal government securities reached the highest level in over 10 years with a quarter-to-quarter increase of 25 percent, from $178.8 billion to $223.5 billion in the first quarter of 2012. Federal government securities year-to-year increased 29.8 percent from $172.1 billion in the first quarter of 2011. These securities comprised 8.1 percent of the total cash and security holdings of major public pension systems for the current quarter. Part of the increase was due to the recent change in asset classification.

Government contributions reached the highest level since the survey began collecting this data in the third quarter of 1974. There was a quarter-to-quarter increase of 12.7 percent, from $21.5 billion to $24.2 billion in the first quarter of 2012 and a year-to-year increase of 14.5 percent from $21.1 billion in the first quarter of 2011. Employee contributions quarter-to-quarter increased 1.5 percent, from $9.2 billion to $9.3 billion in the first quarter of 2012. There was a year-to-year increase of 7.9 percent from $8.6 billion in the first quarter of 2011. Government to employee contributions had a 2.6 to 1 ratio this quarter—government contributions comprised 72.2 percent and employee contributions comprised 27.8 percent of total contributions. Total payments quarter-to-quarter increased 9.6 percent, from $50.2 billion to $55 billion in the first quarter of 2012. There was a year-to-year increase of 11.2 percent from $49.5 billion in the first quarter of 2011.

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Largest public retirement systems saw 5.6 percent increase in Q1 holdings and investments

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