2024, Now a Distant Memory, Was Good Year for Connecticut Pension Fund

The economy – and the stock market – of 2024 seems like a distant memory, given the roller coaster of the past dozen weeks, but the year did bring some good news according to the Connecticut Treasurer’s Office.

Treasurer Erick Russell released investment performance numbers this week for calendar year 2024, reflecting that the Connecticut Retirement Plans and Trust Funds (CRPTF) earned returns of 10.26%.

The calendar year result continued the strong performance of the CRPTF, according to the Treasurer’s office. The CRPTF, better known as the state pension fund, performed at 12.8% for calendar year 2023.

“Strong investment performance will benefit taxpayers and pensioners in the near and long term,” said Treasurer Russell. “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. 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.”

Key reforms implemented in recent years to reallocate plan assets, mitigate risk, lower fees, and recruit and retain investment talent have all contributed to the positive performance, the office noted.

In collaboration with the Investment Advisory Committee, a new strategic asset allocation plan was initiated in 2022 and has been implemented by Treasurer Russell with the goal of maximizing returns over the long term at an acceptable level of risk.

Additionally, the Treasurer’s office has made significant strides in building a talented, in-house investment team, supported by legislation that allows for greater flexibility in recruiting experienced investment professionals, the Treasurer’s office indicated.

Treasurer Russell added, “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.”

The performance of Connecticut’s pension funds has steadily improved in recent years, with 10-year returns now averaging 7.01%,according to data provided by the office, slightly above the target rate of return.

Updates on pension fund performance are posted monthly on the Office of the Treasurer’s website, https://portal.ct.gov/ott.