However, public employee unions have threatened to file a lawsuit claiming the law is unconstitutional.
Adding to the brighter landscape is an improved economy and market. The Board of Investment’s portfolio is up 14 percent from $11.3 billion a year earlier.
The state’s largest pension fund, the Teachers Retirement System, has seen improvement in its portfolio as well, sitting at just under $41 billion this fall, spokesman Dave Urbanek said.
That’s lower than the 2007 total but up 44 percent from a recent low of $28.5 billion in 2009.
The improvement hasn’t spared the teachers’ system from selling assets. It has routinely sold more than $1 billion a year since 2005, Urbanek said, topping out at $2.8 billion in 2011 because of short state funding and reverberations of the 2008 economic downturn.
“We get cash from the state contribution,” Urbanek said. “If it’s not there, we have to sell assets to get cash. When the economy is bad, we have to sell more.”