New York's pension fund in the first quarter of the state's fiscal year posted a negative rate of return amid a volatile financial scene nationally and across the globe. 

State Comptroller Tom DiNapoli's office on Friday announced the fund posted a negative 8.24% return in the first three months of the fiscal year beginning April 1. 

The fund dropped in value from $272.1 billion at the end of March to $246.3 billion after paying out $3.69 billion to beneficiaries and retired people. Benefits for retirees and members remain safe, DiNapoli said. 

“The first three months of the fiscal year brought upheaval to the financial markets amid Russia’s invasion of Ukraine, rising inflation and supply chain issues that continue to effect the economy,” DiNapoli said. “The Fund’s prudent management and diverse holdings have helped make it one of the best-funded public pension funds in the nation and it remains well-positioned to weather the up and downs of the markets. Retirees’ and members’ benefits remain secure.”

But inflation, supply chain problems and the war in Ukraine have contributed to the broader woes of the market. The development also comes as Gov. Kathy Hochul's administration has revised estimates for tax revenue next year, projecting budget gaps as spending is expected to outpace a slowing economy. 

Hochul previously told her cabinet to consider belt tightening ahead of next year's budget while also pointing to cash reserves that could offset any drop in revenue. 

In the past, market downturns have led to municipalities and other public employers paying more into the fund. 

DiNapoli's office estimated the long-term rate of return will be 5.9%.