MTA-managed pension funds have lost approximately $500 million this year because of tanking investments in the Wall Street meltdown, the agency says.

The funds dropped an estimated 25% in value between January and Nov. 30, Metropolitan Transportation Authority Chief Financial Officer Gary Dellaverson said.

While the MTA still can pay retiree benefits, the losses have exacerbated the fiscal woes that could lead to fare hikes and service cuts next year, Dellaverson said.

Pension funds across the country have been hammered as stock prices and other investments have plummeted.

The California Public Employees’ Retirement System’s assets dropped 23% between June and September.

The New York State Common Retirement Fund fell an estimated 20% between April and late October, state Controller Thomas DiNapoli reported.

“Like every investor, the fund has felt the impact of the global credit crisis,” DiNapoli said at the time the report was released.

MTA losses would have been greater if the authority didn’t diversify its portfolio several years ago to include alternatives to stocks like real estate, Dellaverson said, noting that those investments are down just 2.3%.

The MTA’s 2009-2012 financial plan calls for the authority to begin replacing the losses with annual deposits growing from $35million next year to $104 million in 2012.

That may be just the tip of the iceberg.

The $500 million drop is in pension funds now worth less than the $2 billion that the MTA manages for about 14,000 workers.

An additional 41,000 MTA workers contribute to the New York City Employees’ Retirement System, run by a board of trustees that includes the city controller and a mayoral appointee.

The five New York City pension funds, which provide benefits to police, firefighters, teachers and other workers, dropped 8.5% in the quarter ended in September. More up-to-date figures are not available.

Source: NY Daily News