CT’s public pension plans generated over 10% in returns last year
Tabius McCoy / CT Mirror
Erick Russell speaking at the CT Mirror "In The Room" event in New Haven on Wednesday, June 26, 2024.
The Connecticut Retirement Plans and Trust Funds (CRPTF) generated returns of 10.3% in the 2024 calendar year, according to an announcement from state Treasurer Erick Russell’s office Wednesday.
The CRPTF consists of six state pension funds, covering more than 200,000 state and municipal employees and their beneficiaries, as well as 12 state trust funds for various initiatives.
The CRPTF’s 2024 earnings were down from 12.8% in the 2023 calendar year.
“Connecticut’s investment strategy, focused on long-term, risk-adjusted growth, has delivered solid returns, helping us reduce pension debt more quickly and lower the state’s fixed costs,” Russell said. “This, in turn, frees up resources to address the critical needs of our residents and fortifies our pension funds to withstand this period of economic uncertainty.”
Overall, the markets performed well in 2024, with the Nasdaq Composite growing by about 29%, S&P 500 growing more than 23% and Dow Jones Industrial Average gaining 13%.
Russell’s office said it has made changes in recent years that contributed to the CRPTF’s performance, including reallocating plan assets, mitigating risk, lowering fees, and recruiting and retaining investment talent.
Russell implemented a new strategic asset allocation plan in 2022. Also, the office has built an in-house investment team.
Connecticut’s pension funds have an average 10-year return of about 7%, slightly above the target rate.
Of course, markets have been roiled in recent weeks with uncertainty over the Trump administration’s tariff plans, and their impact on the economy.
“In the face of federal trade and economic policies that are destabilizing markets and driving up costs for Connecticut families, we remain steadfast in our commitment to fiscal discipline and sound investment principles that protect our pension funds and the retirement security of Connecticut’s teachers and other dedicated public servants,” Russell said.
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